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2025-12-31-accounts

St. Luke’s Hospice (Harrow & Brent) Limited

Annual Report & Consolidated Financial Statements For the year ended 31 December 2025

Charity Number: 298555

Company Number: 02141770

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Contents

Page
1. Introduction from Chair of trustees 3
2. About St Luke’s Hospice 4
a. Vision
b. Values
c. Strategy 2025-2028
d. Main activities
3. Service review 7
4. Strategic report 8
a. Achievements and performance
b. The year ahead
c. Volunteers
d. Relationships with stakeholders
5. Structure, governance and management 11
a. Public benefit
b. Corporate structure
c. Governance
d. Appointment of trustees
e. Trustee induction and training
f. Principal risks
g. Our people
h. Remuneration policy for key management personnel
i. Diversity, equality and inclusion
j. Environmental impact – energy and carbon reporting
6. Financial performance 15
a. Financial performance
b. Fundraising approach, controls and performance
c. Retail and lottery performance
d. Reserves policy
e. Investment policy
7. Statement of responsibilities of the trustees 19
8. Independent Auditors’ Report 20
9. Financial statements 23
10. Reference and administrative information 45

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1. INTRODUCTION FROM CHAIR OF TRUSTEES

Every day, St Luke’s Hospice helps people live as well as possible for as long as possible, while providing comfort, dignity and support at the end of life.

2025 was another important year for St Luke’s Hospice as we continued to provide high-quality palliative and end-of-life care to the communities of Harrow and Brent. We delivered our core and developing services against a backdrop of increasing demand, while remaining focused on providing compassionate, patient-centred care and supporting patients and families at a challenging times in their lives.

During the year, St Luke’s cared for 2,164 patients and carers, representing an increase of 4.7% compared with the previous year. This growth reflects both the increasing need for our services and the vital role the hospice plays within the local healthcare system. I am in awe of the dedication, kindness and professionalism shown by our colleagues and volunteers across the organisation, whose commitment enabled us to meet this growing demand while maintaining careful control of costs and delivering excellent care.

The support we received from our community was equally remarkable. Our fundraising activities achieved outstanding results, supported by exceptional events, generous donations and a strong pipeline of legacy gifts. This generosity continues to underpin our ability to provide services that are free at the point of care and available to those who need them most.

We were also grateful to receive £235,000 of government support, secured through Hospice UK, which has enabled us to begin modernising facilities within our In-Patient Unit. In addition, constructive discussions with our Integrated Care Board resulted in increased funding and a 3-year commitment. These developments provide an encouraging foundation as we continue to invest in our services, our facilities and the infrastructure needed to support future growth.

While our financial and operational performance in 2025 exceeded expectations, the wider hospice sector continues to face significant challenges. Demand for specialist palliative care continues to rise, while funding pressures remain. For this reason, the Board remains vigilant and committed to prudent financial stewardship. We recognise that income streams can fluctuate and will continue to manage resources carefully while investing strategically to meet the needs of our community.

I am encouraged by the early progress being made through collaboration with fellow charitable hospices; by sharing expertise, learning from one another and exploring opportunities to work together, I believe we can strengthen the sustainability and impact of hospice care across our sector.

The year also saw a change in leadership. Following the departure of our Chief Executive, the Board appointed Jo Pearce as Interim Chief Executive to provide continuity and stability for the organisation. We are grateful for the energy, commitment and leadership she has brought to the role, and for the support provided by the Executive Team and Senior Leadership Team during this period of transition.

Reflecting on a year that brought both opportunities and unexpected challenges, I am pleased with what St Luke’s has achieved. On behalf of the Board of Trustees, I would like to thank our colleagues, volunteers, supporters, partners and the wider community. Their dedication, generosity and trust make it possible for St Luke’s Hospice to continue providing such valuable and valued services to local people.

Meg Lustman Chair of Trustees 18 June 2026

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2. ABOUT ST LUKE’S HOSPICE

a) Vision

A world where people experience the best possible last phase of life.

b) Values

Caring – Care of all those who deliver and need our services Respect – Demonstrate respect and be open minded, inclusive and approachable Excellence – Create an environment of continually achieving our goals Inclusivity – Strive to reach all sections of our community in all areas of work Empowerment – Empower our community to live a better life

c) Strategy 2025-28

Our work continued throughout 2025 to deliver the key elements of our three-year strategy, whilst also reflecting the diverse and increasing needs of our community for end-of-life support and care, and the challenging external funding landscape for charitable hospices.

The London boroughs of Harrow and Brent are two of the most ethnically and culturally diverse boroughs in London, with high rates of deprivation. Our populations in these boroughs are also ageing, and across the UK more people are dying or living with life-limiting conditions.

Our strategy focuses on adapting our care services to improve provision and accessibility for our community. We will do this by working with the NHS, other charitable hospices, local government and communities in the London boroughs of Harrow and Brent.

At the heart of our strategy is our response to the financial challenges that the charitable hospice sector is facing where funding has not kept pace with rising costs, increased demand and the changing needs of our population. Our strategy reflects the urgent need to achieve sustainable funding for St Luke’s Hospice in both the short- and longer-term.

We have three Strategic Goals, with associated delivery priorities, and activities that form the hospice’s operational plan.

i) Quality of care

We will be the best hospice we can possibly be, providing high quality and compassionate hospice care and support to all people and their families who come into St Luke’s or require our care at home.

Our delivery priorities:

  1. Deliver responsive, personalised, high-quality, and compassionate care and support to more people and their families.

  2. Provide early support to individuals with life-limiting illnesses, helping them maintain their quality of life.

  3. Improve the provision of high-quality compassionate care using our clinical quality framework.

  4. Enhance our compliance with best practices and regulatory standards throughout all aspects of our operations.

To achieve this, we will:

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Investigate opportunities for enhancing the use of our hospice ward (Inpatient unit) to match the needs of the population and improve the hospice’s sustainability;

ii) Serving our community

We will embed ourselves at the heart of our local community through increased engagement and by working in partnership to provide high quality and compassionate hospice care and support to our community.

Our delivery priorities:

  1. Strengthen St Luke’s role as a leading voice in palliative care in Harrow and Brent, by providing advice, guidance, and education, in partnership with health, social care, and community organisations.

  2. Build our relationships with our local community to establish St Luke’s as the charity of choice for palliative care, support, and advice in Harrow and Brent.

3. Expand our engagement with diverse communities to better understand their needs and enhance our care and support services.

To achieve this, we will:

iii) Sustainability

We will deliver strong leadership, financial stability, and dependable income sources, supported by a skilled team of employees and volunteers ready to face future challenges.

Our delivery priorities:

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  1. Create dependable and efficient revenue sources through our fundraising campaigns, retail and other commercial activities.

  2. Work with our NHS partners to secure equitable and sustainable funding for our clinical services.

  3. Create an organisation culture where people are valued, included, and developed to perform to the best of their abilities to deliver St Luke’s strategic goals.

  4. Design our estates and infrastructure to be responsive to the current and future needs of St Luke’s and our community.

To achieve this, we will:

Key enablers

To deliver our strategic goals, our strategy is underpinned and enabled by:

  1. Sound financial management; robust finances and targets; accurate analysis; and accurate and timely management information.

  2. Creative and innovative communications and marketing tailored to our target audiences and aimed at raising the profile of St Luke’s as we endeavour to be the best hospice we can possibly be.

d) Main Activities

The Charity’s main focus is to provide specialist palliative care to the people of Harrow and Brent facing life-limiting illnesses.

Our range of clinical services include:

This is specialist care to patients who cannot be cared for in the community delivered by a multidisciplinary team of nurses, doctors, healthcare assistants, physiotherapists and social workers.

We provide a programme of emotional and practical support to patients and their families living with life-limiting conditions, delivered by our specialist team of palliative care social workers, family support workers, and trained volunteers. These services are intended to keep people feeling well, independent and mobile for as long as possible.

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Our holistic approach to care is intended to support people’s wellbeing, including emotional support through services such as social work, spiritual care, exercise groups, advice on welfare benefits and advance care planning support. In addition to caring for our patients, we also provide bereavement support to family members and carers, through our team of trained, supervised volunteers.

Two-thirds of our care is provided in the comfort of peoples’ homes, as we respect that this is where most people would like to be looked after. Our specialist community team of nurses helps people to manage more complex needs whilst our Hospice at Home team provides care that allows people to remain in their own homes by providing practical care and support. Our consultants offer outpatient appointments in the community and also at the hospice’s main building, Kenton Grange.

3. SERVICE REVIEW

Our service activity data reports for the financial period 1 April 2025 to 31 March 2026, in line with local statutory reporting requirements.

St Luke’s Hospice supported 2,164 service users (2024: 2,020).

Our specialist palliative care community team (Brent) carried out 1,547 visits to patients in their homes.

Our Inpatient unit saw 185 admissions in 2025, which is slightly fewer than in 2024 but is reflective of the care of greater complexity and intensity. The Inpatient unit continues to accept admission 7 days a week which resulted in 25 weekend admissions, and total inpatient days increased to 2,373 this year reflecting longer lengths of stay and higher levels of dependency.

There was increased activity across all areas of our patient and family support services work including providing 2,492 social work sessions, compared to 2,207 in 2024. This year-on-year growth reflects the increasing functional and rehabilitative needs of patients, alongside longer episodes of care and greater clinical complexity.

4. STRATEGIC REPORT

a. Achievements and Performance

In the 2024 Annual Report and Statutory Accounts, the following delivery priorities were identified for 2025.

i) Deliver a new strategy for 2025-2028

During 2024, St Luke’s developed a new strategy focused on three Strategic Goals: Quality of Care, Serving our Community and Sustainability. This strategy commenced in January 2025 and is supported

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by a detailed operational plan and Key Performance Indicators, as well as quarterly reporting to the Board of trustees.

ii) We will work with the North West London ICB on the new model of service delivery

iii) We will improve the performance and contribution of our retail network

iv) We will join national campaigns that will increase awareness of hospice funding, and explore fundraising initiatives to raise additional income

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v) We will prioritise delivering our strategic ambitions to develop and value our People.

Progress was made in 2025 to strengthen the hospice’s people infrastructure, governance arrangements, and leadership capability.

vi) We will ensure that St Luke’s estate is fit for purpose and fit for the future to deliver the services our local community needs at end of life.

b. The Year Ahead

In 2026, we will deliver a programme of activities that meet our delivery priorities set out in the Strategy 2025-2028 (see section 2.c Strategy 2025-2028). Progress will be reported in the Annual Report and Statutory Accounts for 2026.

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The focus from our Board of Trustees continued around three key transformation projects for the future sustainability of the hospice.

c. Volunteers

Volunteers remain at the heart of St Luke’s Hospice and continue to make a vital contribution to the care and support provided to patients, families, and the wider community. During 2025, more than 491 volunteers supported the hospice across clinical services, retail, fundraising, administration, and community engagement, contributing more than 100,880 hours of support throughout the year. In December, we celebrated and recognised 13 volunteers who have worked for us for more than five years, with a handful celebrating their 15th and 20th years of service.

Throughout 2025, work continued to strengthen the volunteer experience and further embed volunteering within the wider hospice community. Volunteer recruitment and onboarding processes continued to be strengthened to support a positive and consistent volunteer experience from initial enquiry through to induction and placement. Following the recruitment process audit undertaken during the year, equal opportunities and diversity monitoring were introduced within volunteer recruitment processes to help the hospice better understand the diversity of applicants and volunteers, and to identify and respond more effectively to any additional support needs. The hospice also continued to review opportunities to further develop volunteering roles and pathways to ensure volunteering remains accessible, meaningful, and responsive to the changing needs of the charity and community.

Volunteer contributions were recognised and celebrated throughout the year, including during Volunteers’ Week and through local recognition initiatives across hospice departments and retail services. Volunteers continued to play a significant role in the hospice’s retail and fundraising activities, helping generate valuable income for patient care and hospice services. The hospice also continued to review opportunities to further develop volunteering roles and pathways to ensure volunteering remains accessible, meaningful and responsive to the changing needs of the organisation and community.

The continued dedication, compassion and generosity shown by volunteers remain central to the success of St Luke’s Hospice, and we are extremely grateful for the extraordinary contribution they make every day.

d. Relationship with Stakeholders

St Luke’s Hospice places great value on engagement with our stakeholders, building positive relationships across all areas of our work. We are very fortunate with the extraordinary support from our local communities of Harrow and Brent, and the relationships that have been established with a range of faith groups, schools, businesses and local organisations to raise awareness of our work and the services we provide.

This was evident with the 1,000 strong participation from supporters and volunteers alike at our rebranded Starlight Walk event in June; and through our collaborations with our Patron, The Lord Popat, the Asian Foundation for Help, Lions Club of Kingsbury and Pranasha at a very successful fundraising event in Spring 2025.

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We continue to work closely with our NHS and local authority partners, including the local ICB, London North West University Hospitals NHS Foundation Trust and Brent Council Social Services. We are grateful for the interest and engagement from local Trusts and Foundations who fund our work, and voluntary sector partners. Our relationships with our charity hospice partners in the area remain strong, providing opportunities to share knowledge and experience, expertise and resources whenever possible, and working in partnership.

Our people matter greatly to St Luke’s, and we engage with our staff across the hospice and our retail network through ‘Staff Conversation’ events with the CEO, and regular communications to keep staff informed and engaged. Many of our staff volunteer to help at fundraising events and we are very grateful for their engagement and support.

3. STRUCTURE, GOVERNANCE AND MANAGEMENT

Reference and administrative information set out at the end of the report form part of the formal report.

The purposes of the charity, as set out in its Articles of Association are “The relief of sickness and the preservation of health of those suffering from any life limiting illness, primarily but not exclusively, within the areas of the London Boroughs of Harrow and Brent by:

  1. maintaining a Hospice providing palliative and end of life care for them in a range of settings;

  2. promoting and providing services, support and care for them, their families, friends, and carers to help relieve physical, emotional, mental, or spiritual distress;

  3. promoting and providing education about all aspects of palliative and end of life care;

  4. carrying out research into the development and improvement of care services, in particular all aspects of palliative and end of life care; and

  5. promoting and providing other services and support in such ways as the trustees shall from time to time think fit through the provision of health and social care services of all types.”

a. Public Benefit

The charity exists to provide a palliative care end of life service for the residents of Harrow and Brent. In reviewing the objectives and activities for the year, the trustees have satisfied themselves that all our charitable activities focus on that care and further our charitable purposes for the public benefit. The trustees take into account Charity Commission guidance in this regard. The charity is a local organisation providing professional and compassionate services to the community in Harrow and Brent. It receives the majority of its funding from local individuals and organisations (including local NHS commissioning), therefore beneficiaries are mainly (although not exclusively) from the London boroughs of Harrow and Brent.

b. Corporate Structure

The Articles of Association govern the charity and set out its charitable objectives and powers. In 2023, updated Articles of Association were adopted with Charity Commission consent.

The organisation is a charitable company limited by guarantee, incorporated on 22 June 1987.

St. Luke’s Hospice (Harrow & Brent) Ltd. has a wholly owned trading subsidiary, St. Luke’s Hospice (Harrow & Brent) Charity Shops Ltd (company number 02454552) through which it operates a network of charity shops and a lottery. The trading subsidiary exists to maximise income for the hospice and all profits are donated to St Luke’s Hospice using Gift Aid regulations. In 2024, a governance review was carried out for the trading company and new Articles of Association and Deed of Covenant were approved and adopted by the Board of trustees. In addition, a review of the lottery was undertaken and plans approved to move to an external lottery provider which began in 2025, and will be fully implemented in 2026.

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c. Governance

St Luke’s Hospice is governed by a Board of Trustees which meets 4 times a year. The Board of Trustees is responsible for setting the strategic direction of the hospice. Additional Board business is carried out between formal meetings in line with procedures set out in the Articles of Association, including discussion, decisions and voting by email. In addition to attending Board meetings, every trustee sits on at least one Committee.

The hospice has four sub-committees:

The Charity Shops Ltd company also has a Shops Board made up of Non-Executive Shop Directors.

The Board delegates day-to-day management of the charity to the Chief Executive Officer and the Executive Team.

All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in Note 9 to the Accounts.

d. Appointment of Trustees

Trustees, including the Chair of Trustees, are appointed by the Board following an open recruitment process including advertising, application and interview. The Board reviews the skills it needs in deciding selection criteria to maintain breadth of expertise. Once appointed a trustee will serve for an initial term of 3 years, with a maximum of 3 terms.

e. Trustee Induction and Training

St Luke’s Hospice operates a thorough induction programme for all new trustees, including engagement with our services, and meetings with the Chief Executive Officer and members of the Executive Team. Trustees are provided with a comprehensive pack of information for reference including the Charity Governance Code. All trustees are required to complete e-learning modules via the hospice’s online training portal and are also offered relevant training courses. Annual appraisal of all trustees is conducted by the Chair and Vice-Chair. In addition, the Chair has an annual appraisal which is led by the Vice-Chair.

f. Principal Risks

St Luke’s Hospice continued its embedded approach to risk management during 2025. The Finance and Performance Committee met four times during the year including a meeting with the hospice’s auditors to review the audited accounts. A Board Assurance Framework and Corporate Risk Register has been embedded into practice and is supported and informed by an internal clinical governance framework.

The Executive Team have agreed the organisation’s principal risks which are regularly reviewed. Organisational policies and procedures are in place in relation to the principal risks.

Risk Management / Mitigations
Clinical Services Education and training provision
Competency programmes
Arrangements for clinical and consultant on-call

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Financial sustainability Finance and Performance Committee
Regular monitoring of management accounts and financial
position
Approved budget for financial year
Appointed auditors
Financialplan for 2026 and beyond
Transformation Strategic objectives
Board and Executive Team away days for strategic
planning
Internal staff engagement and communications
Staff survey
Commissioning Regular meetings with commissioners
Contract in place
Provision of monthlyactivityandqualitydata
Governance and compliance Clinical Governance Committee and Board level
committees
Internal governance groups
Risk, incident and complaint management (Vantage)
Patient feedback measures and strategy
Board assurance framework and monitoringof risk register
Employment law, HR and payroll
compliance		 Remuneration Committee
Specialist advisor support
Contracts of employment
The environment Structural surveys
Planned maintenance programme
Strategicplan for buildingupgrade
Infection prevention and control External expert advisors
Risk assessment
Audit and monitoring programmes
Trainingand education
Infrastructure External IT contractor
Cyber security
Safeguarding Safeguarding lead and trustee with responsibility for
safeguarding
Safeguarding training and compliance monitoring
Freedom to Speak UpGuardian
Health and safety Health and Safety Group
Health and Safety competent advisors
Various risk assessments
Business ContinuityPlan
Communication and engagement Communications and marketing team
Mailings, social media and engagement events
Workforce capability People Committee
Recruitment, probationary and appraisal processes
Competency programmes
Mandatory training and external training opportunities
Education team
Workforce recruitment People Committee
Diverse recruitment methods
Data governance, security, privacy and
quality		 Information Governance Group

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Data Protection Officer, Senior Information Risk Officer, Caldicott Guardian Compliance with the Data Security and Protection Toolkit (DSPT)

g. Our People

There were, on average, 137 full-time and part-time (FT/PT) staff employed in 2025 in the hospice and the hospice’s Shops company (2024: FT/PT staff 143).

Staff FT/PT Year 2025 Year 2024
Shops Company 48 50
Hospice 89 93
Total 137 143

In 2025, a total of 491 (2024: 521) people volunteered at St Luke’s Hospice; 381 in retail, and 110 in the hospice.

h. Remuneration Policy for Key Management Personnel

The Remuneration Committee consists of the Chair of trustees, Vice Chair of trustees, Chair of Finance & Performance Committee, and is chaired by a fourth trustee. It has delegated responsibility from the Board for pay and remuneration of the Chief Executive Officer and Executive Team.

i. Diversity, Equity and Inclusion

Starting in the final quarter of 2024 and continuing throughout 2025, St Luke’s undertook a comprehensive review and refresh of its People Policy framework. This programme of work has modernised and updated all People Policies, with the exception of one policy currently under review, ensuring greater consistency, clarity, and alignment with current employment practice, organisational values, and legislative requirements.

As part of this work, significant revisions were made to the Dignity at Work Policy and the Equal Opportunities at Work Policy to further strengthen the hospice’s approach to equality, dignity, inclusion, governance, and employee relations practice across the organisation.

Staff engagement was an important part of this work through the establishment of the People Policy Review Group, which provided colleagues with the opportunity to contribute feedback and help shape the development of policies that support a positive, fair, and inclusive working environment. Alongside the policy review programme, staff continued to be engaged in shaping the Equity, Diversity and Inclusion (EDI) agenda at St Luke’s, supporting the hospice’s ongoing commitment to developing an inclusive culture where colleagues, volunteers, patients, and families feel valued, respected, and supported.

j. Environmental Impact - Energy and Carbon Reporting

We continued a number of initiatives in 2025 to improve our impact on the environment.

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6. FINANCIAL PERFORMANCE

a. Financial Performance

In 2025, the Hospice Group recorded a surplus of £3,265k (2024: deficit £118k). Compared to last year, this represents increases of £1,967k in legacies, £1,226k in contract income, £293k for fundraising and a £46k fall in investment income. There was a moderate (£160k) increase in costs, which was more than offset by overall income growth, and a £195k increase in contributions from our shops.

The Charity’s income arises from:

e Charity’s income arises from:
2025
£000		 2024
£000		 Increase/
(decrease)
Contract income 4,258 3,032 40%
Fundraising 2,623 2,330 13%
Legacies 3,721 1,754 112%
Shops Company, includingthe lottery 2,291 2,324 (1%)
Interest & dividend 91 137 (34%)
Total income excluding unrealised investment gains. 12,984 9,577 35%

The Group’s total income increased by 35% (£3,317k) compared to the previous year, prior to accounting for unrealised investment gains and losses. This is driven by the increase in legacy income and the 40% increase in contract income, alongside cost control across the organisation with costs remaining roughly flat versus 2024 (<2% increase).

The net profit contribution from the Shops Company saw a return to growth in 2025 as a result of stable income versus prior year and cost control across the shops portfolio reducing administrative expenses.

As a result of the growth in income and cost control, cash reserves grew from £1.3 million to £4.2 million and total reserves increased from £12.8m to £16.0m.

b. Fundraising Approach, Controls and Performance i) Performance

St Luke’s Hospice is dedicated to engaging and collaborating with its local community, whilst also maintaining high standards of fundraising and lottery activity. In a particularly challenging income generating environment for the hospice sector, St Luke’s is immensely appreciative of the continued commitment of our local communities of Harrow and Brent to all our work in the past year.

36% income growth was achieved in 2025, resulting in a gross contribution from Fundraising of over £4.7m. This was made up of £1.8m from multiple fundraising income streams (Individual Giving, InMemory, Corporate and Community, Major Donors, Trusts and Foundations and Gift Aid), as well as Legacies, Events and from the Lottery. The lottery contribution and performance are reported within the Shops company performance section below.

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Our Spring appeal showed a 160% increase in donations from 2024, which was a result of data-led targeted marketing and re-engagement with lapsed donors. Our community income was up 79% from the previous year due in particular to a successful event from the Hindu/Gujarati Community, and we rebranded our flagship event, from the Midnight Walk, to the Starlight Walk, in order to appeal to a wider audience with an earlier start time. Our two flagship events, our Annual Walk in the Peak District, and our newly re-branded Starlight Walk (from the Midnight Walk) brought in over £200k combined, and attracted a healthy number of new participants, which was very encouraging for our events portfolio. Focus on embedding our regular giving ask in communications also resulted in 5% increase in income and was identified as an area for future potential growth.

In 2025, St Luke’s was incredibly grateful to receive tremendous support from local businesses, charitable Trusts and Foundations and grant-giving funds of all sizes. Our huge thanks to all those listed and those who prefer to remain anonymous:

The Albert Hunt Trust; The Betty Messenger Charitable Foundation; Bloom Endows Charitable Trust; Cecil Rosen Foundation; The Childwick Trust; City Bridge Foundation ; Edward Harvist Charitable Trust ; February Foundation; Haji Omar Foundation; Hamilton Wallace Charitable Trust; Hospice UK; John Laing Charitable Trust; Kingsbury Charity; Kramer Charitable Trust; Lenore Reynell Trust; Middlesex Province Relief Fund; Middlesex Freemasons; The National Lottery Awards for All England; RUB White Charitable Trust; The Screwfix Charitable Foundation; Sharegift and The Arts Society Harrow.

Support from St Luke’s Charitable Trust and Foundation partners is vital in helping St Luke’s Hospice Harrow and Brent bring comfort, dignity, and compassionate care to end of life patients and their unpaid carers and families facing the most difficult time of their lives. The generosity of these important organisations enable our Hospice to meet its strategic objectives by supporting (for example) sustained specialist clinical care, expanding support for patients in their own homes and providing emotional and bereavement support for families. Funding also helps invest us in skilled staff, digital/IT enhancements to improve efficiency, welcoming facilities, and innovative services that respond to the growing local need for palliative care in Harrow and Brent. With the backing of Trusts and Foundations, St Luke’s can continue to reach more people with compassionate, person-centred care when it matters most. Thank you.

ii) Controls

St Luke’s is committed to operating within the Fundraising Code of Practice, employing a team of paid colleagues to deliver our fundraising and communications activities. Many of our fundraisers are also members of the Chartered Institute of Fundraising. We have a dedicated supporter care team responsible for data maintenance and record-keeping to comply with Fundraising Regulator requirements. In the period of 1 January to 31 December, we received five fundraising complaints, all of which were minor, and were investigated and resolved to the supporter’s satisfaction.

St Luke’s Hospice has voluntarily registered with the Fundraising Regulator, is a member of Hospice UK, the Hospice Lottery Association and the Hospice Income Generation Network (HIGN). In 2025, the Lottery continued in-house licensed by the Gambling Commission, but a move to the Local Hospice Lottery was commenced.

From time to time, St Luke’s engages with professional third-party suppliers to help raise funds, particularly where we do not have the expertise in-house, including mailing houses and fundraising agencies, to undertake some direct mailings and telephone appeals. St Luke’s also contracts services to Legacy Link, a legacy administration company, to administer legacy donations. The Hospice is also signed up to the Fundraising Preference Service to enable individuals to opt out of fundraising communications from us, and we received one request through this service in the past year.

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The Director of Communications and Fundraising, who moved to Interim CEO in December 2025, is a member of the internal Information Governance Group and a member of the Fundraising team attends the hospice’s Health and Safety Group. The team also liaise closely with, and seek guidance from, the Data Protection Officer to ensure data processing is in line with GDPR compliant procedures. All fundraising activities are reported to the Finance and Performance Committee on a quarterly basis by the Director of Communications and Fundraising.

The fundraising team will continue to build on the strategies implemented this year to steward existing donors and acquire new supporters to generate and increase income for St Luke’s Hospice in the new financial year.

c. Retail and Lottery Performance

St Luke’s Hospice Shops Company Ltd continued to generate profits in support of the Hospice’s vital work and services. The decline in profitability for the previous two years was arrested, with shops recording roughly flat sales and realising cost reduction through efficiencies to increase the net contribution from all retail activity (including e-commerce) for 2025 was £355k up from £153k in 2024. Although quality of the donated goods remained low, our shops continued to benefit from strong community support. By the end of 2025, the Shops Company operated 16 retail outlets.

During 2025, we received no (2024: 1) complaints in relation to our retail network.

St Luke’s Hospice has been operating an in-house lottery for a number of years, which is licensed by the Gambling Commission, and play income is reported within the trading company. St Luke’s is a member of the Hospice Lottery Association, and provides regular weekly data and quarterly regulatory returns to the Gambling Commission. A decision to outsource our lottery activity to the Local Hospice Lottery was taken, and the move commenced in 2025 and will be fully complete in 2026. This move will enable pro-active recruitment for players but income is expected to remain stable for the immediate term.

d. Reserves Policy

The Board of Trustees Reserves Policy aims to maintain six months of total expenditure as reserves. Adequate reserves also ensures that there are sufficient liquid funds available to meet unexpected shortfalls in its funding streams, timing differences in receipt of those funds, or sudden increases in costs.

The Finance and Performance Committee of the Board of Trustees reviews the Reserves Policy in line with future anticipated financial demands of the Charity. In 2025, reserves of £5,028k (six months total expenditure of £10,057), compared to £4,948k in 2024 (six months total expenditure of £9,897k) will be considered adequate by the Board of Trustees to meet the policy.

Total free reserves excluding Fixed asset reserve and designated funds held at 31st December 2025, as per the table below, were £8,398k. This is well above the required £5,015k of six-month operational cost. Therefore, the Trustees confirm the compliance of the Charity’s Reserves Policy.

The Risk Management Reserve of £1,291k was established to help the Hospice address any operational risk that could arise in the future.

Comprehensive details about the Pension Deficit Reserve can be found in Note 20 to the Accounts.

As at 31st December 2025, the Charitable Group held the following General and Designated Reserves:

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Fund £000’s Timeline for Use
2025 2024
Designated Fixed Asset
Fund - Hospice		 5,384 5,233 The designated fixed asset funds represent
the net book value of the fixed assets. These
funds are identified separately as they are
illiquid funds and not available for use.
Designated Fixed Asset
Fund - Shops		 380 380
TOTAL Designated
Fixed Asset Funds		 5,764 5,613
FREE RESERVES
General Unrestricted
Fund		 8,398 5,171 Available for general purposes and core costs
Risk Management
Reserve		 1,291 1,411 General Purposes – against perceived
potential risks to income – see below
Pension Deficit Reserve 300 300 Held towards a potential future buy-out of the
Defined Benefits Pension Scheme – see Note
20 of the Financial Statements
TOTAL LIQUID
RESERVES		 9,989 6,882 Total Reserves available to spend
TOTAL
UNRESTRICTED
FUNDS		 15,753 12,495 As per Balance Sheet

e. Investment Policy

Messrs Rathbones plc were appointed as Investment Managers to the Charity in 2016 to manage the investment portfolio with an initial allocation of approximately £1.6m. An additional investment of £2.5m was made in December 2021. Before placing investments on behalf of the Charity, the trustees have asked the fund managers to screen for tobacco and health care companies. The fund managers report to the Charity on a quarterly basis.

As at 31st December 2025 the investments were valued at £4,465k (2024 - £4,182k). Performance was in line with weighted benchmarks and long-term return targets.

Changes in the investments held are detailed in Note 11 of the Accounts.

18

7. STATEMENT OF RESPONSIBILITIES OF THE TRUSTEES

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

Charity Law in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and the group and of the incoming resources and application of resources, including the income and expenditure, of the charity and the group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. So far as each of the trustees is aware at the time the report is approved:

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may vary from legislations in their jurisdictions.

The Trustees’ Report, which incorporates a Strategic Report, was approved by the trustees and signed on their behalf by

Margaret Lustman Chair of Trustees

Date: 18 June 2026

19

8. INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ST. LUKE’S HOSPICE (HARROW & BRENT) LTD

We have audited the financial statements of St. Luke’s Hospice (Harrow & Brent) Ltd for the year ended 31 December 2025 which comprise the Consolidated Statement of Financial Activities, the Charity and Group Balance Sheets, the Statement of Consolidated Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group'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 Trustees’ Annual Report and the message from the Chair. 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

20

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).

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

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 19, 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

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.

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:

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to compliance with regulatory

21

requirements of the Care Quality Commission, Charity Commission, employment law and health and safety regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such the Companies Act 2006, the Charities Act 2011, payroll taxes and VAT.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to recognition of income and management bias in certain accounting estimates. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the 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.

Lee Stokes (Senior statutory auditor) for and on behalf of HaysMac LLP, Statutory Auditor 10 Queen Street Place, London, EC4R 1AG

02/07/2026

22

9. FINANCIAL STATEMENTS

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Including an Income and Expenditure Account) FOR THE YEAR ENDED 31 DECEMBER 2025

Unrestricted Restricted Endowment Total Total
funds Funds Funds 2025 2024
Notes £’000 £’000 £’000 £’000 £’000
Income from:
Donations and legacies
. Donations 2 1,823 508 - 2,331 2,094
. Legacies 3 3,721 - - 3,721 1,754
----------------------- ----------------------- ---------------------- --------------------- ------------------------
5,544 508 - 6,052 3,848
Charitable Activities ----------------------- ----------------------- --------------- --------------------- ---------------
. NHS commissioning 3,979 - - 3,979 3,007
. Hospice UK Capex Grant - 235 - 235 -
. Other income 44 - - 44 25
----------------------- ----------------------- ----------------------- --------------------- ----------------------
5 4,023 235 - 4,258 3,032
Other trading activities ----------------------- ----------------------- --------------- --------------------- ------------------
. Fundraising events 2 292 - - 292 236
. Gross income from shops and lottery 4 2,291 - - 2,291 2,324
----------------------- ----------------------- ----------------- ----------------------- -----------------
2,583 - - 2,583 2,560
----------------------- ----------------------- ------------------------- ----------------------- ------------------------
Income from Investments 91 - - 91 137
----------------------- ----------------------- ---------------------- --------------------- -----------------------
Total income 12,241 743 - 12,984 9,577
----------------------- ----------------------- --------------- --------------------- -----------------
Expenditure on:
Raising funds
. Fundraising costs 1,312 - - 1,312 1,380
. Fundraising events costs 273 - - 273 279
. Shops and lottery expenditure 2,439 - - 2,439 2,567
. Investment management costs 21 - - 21 20
----------------------- ----------------------- --------------- --------------------- ------------------
4,045 - - 4,045 4,246
Charitable activities ----------------------- ----------------------- -------------- --------------------- ------------------
. Inpatient services 2,045 176 - 2,221 2,098
. Outpatient services 567 25 - 592 671
. Community services 1,900 125 - 2,025 1,771
. General clinical support 965 182 - 1,147 1,111
----------------------- ----------------------- ---------------- --------------------- ---------------------
5,477 508 - 5,985 5,651
----------------------- ----------------------- ---------------- --------------------- ---------------------
Total expenditure 7 9,522 508 - 10,030 9,897
----------------------- ----------------------- ---------------- --------------------- ---------------------
Net income/(Expenditure) before
gains/(losses) on investments 2,719 235 - 2,954 (320)
Net gains on investments 11 302 - 6 308 202
Pension revaluation gain 3 - - 3 -
----------------------- ----------------------- ---------------- --------------------- ---------------------
Net income/(Expenditure) 6 3,024 235 6 3,265 (118)
========= ========= ========= ========= =========

23

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (continued) (Including an Income and Expenditure Account)

FOR THE YEAR ENDED 31 DECEMBER 2025

Unrestricted Restricted Endowment Total Total
funds Funds Funds 2025 2024
Notes £’000 £’000 £’000 £’000 £’000
Net income 6 3,024 235 6 3,265 (118)
Transfer between funds 234 (234) - - -
----------------- ----------------- ----------------- ----------------- -----------------
Net movement in funds 3,258
 1 6
 3,265 (118)
Reconciliation of funds
Total funds brought forward 12,495 26 240 12,761 12,879
----------------- ----------------- ----------------- ----------------- -----------------
Total funds carried forward 15,753 27 246 16,026 12,761
======== ========= ======== ======== ========

All amounts relate to continuing activities. There are no recognised gains or losses for the current or preceding financial year other than as shown above, therefore no Statement of Total Recognised Gains & Losses has been presented. Income and expenditure by fund for the year ended 31 December 2025 is given in note 19 to the accounts

The net result of the charity’s own activities for 2025 was a surplus of £2.91 million (2024: £271,224).

The notes on pages 27 to 45 form part of these accounts.

24

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.

CHARITY AND GROUP BALANCE SHEETS

AT 31 DECEMBER 2025

Group Charity Charity
2025 2024 2025 2024
Notes £’000 £’000 £’000 £’000
FIXED ASSETS
Tangible assets 10 5,678 5,614 5,376 5,233
Investments 11 4,465 4,182 4,465 4,182
----------------- ----------------- ------------------ ------------------
10,143 9,795 9,841 9,415
----------------- ----------------- ------------------ ------------------
CURRENT ASSETS
Debtors 12 2,777 2,466 3,460 3,052
Cash at bank and in hand 4,192 1,331 3,506 983
----------------- ----------------- ------------------ ---------------
6,969 3,797 6,966 4,035
CURRENT LIABILITIES
Creditors: amounts falling due
within one year 13 (1,067) (734) (762) (592)
----------------- ----------------- ------------------ ------------------
NET CURRENT ASSETS 5,902 3,063 6,204 3,443
----------------- ----------------- ----------------- ------------------
Long term liabilities
(Pension deficit) 20 (19) (97) (19) (97)
----------------- ----------------- ------------------ -----------------
NET ASSETS 14 16,026 12,761 16,026 12,761
----------------- ----------------- ------------------ ------------------
Represented by
Unrestricted funds
Designated funds 7,355 7,324 7,355 7,324
General fund 8,398 5,171 8,398 5,171
------------------ ----------------- ------------------ ------------------
15,753 12,495 15,753 12,495
Endowment funds 246 240 246 240
Restricted funds 27 26 27 26
------------------ ----------------- ------------------ ------------------
15 16,026 12,761 16,026 12,761
======== ======== ======== ========

The financial statements were approved and authorised for issue by the Board of Trustees on 18 June 2026 and signed on their behalf by:

M Lustman

Chair of Trustees

The notes on pages 27 to 45 form part of these accounts.

25

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.

STATEMENT OF CONSOLIDATED CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2025

2025 2024 2024
£’000 £’000 £’000 £’000
Cash flows from operating activities:
Net cash flow provided by/(used in) operating activities (note A) 3,152 (423)
Cash flows from investing activities:
Dividends, interest and rents from investments 91 136
Purchase of property, plant and equipment (329) (57)
Disposal of investments 313 872
Acquisition of investments (280) (946)
Change in investment cash (8) 105
Pension creditor revaluation (78) (73)
----------------- -----------------
Net cash used in investing activities (291) 37
----------------
----------------
Change in cash and cash equivalents in the reporting period 2,861 (386)
Cash and cash equivalents at the beginning of the reporting 1,331 1,717
period
----------------
----------------
Cash and cash equivalents at the end of the reporting period 4,192 1,331
---------------- ----------------
A ) Reconciliation of net (expenditure)/income to net cash flow
from operating activities 2025 2024
£’000 £’000
Net income for the reporting period (as per the statement of
financial activities) 3,265 (118)
Adjustments for:
Depreciation charges 251 250
Loss on disposal of tangible fixed assets 13 -
Losses/(gains) on investments (308) (202)
Dividends, interest and rents from investments (91) (136)
Decrease/(increase) in debtors (311) (326)
Increase/(decrease) in creditors 333 109
Other - -
------------- -------------
Net cash flow provided in/(used in) operating activities 3,152 (423)
====== ======
Analysis of cash and cash equivalents
Cash at bank and in hand 4,192 1,331
------------- -------------
Total cash and cash equivalents 4,192 1,331
====== ======
ANALYSIS OF NET DEBT
Balance Cash Other Balance
at 1.1.25 flows non-cash at
changes 31.12.25
£’000 £’000 £’000 £’000
Cash and bank 1,331 2,861 - 4,192
====== ====== ====== ======

26

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

(i) Basis of preparation

The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

( ii) Critical accounting judgements and key sources of estimation uncertainty

In the application of the accounting policies, trustees are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

Judgements made by the trustees, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are deemed to be in relation to the depreciation rates of tangible fixed assets and accruing for legacies which have not yet been received.

In the view of the trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

(iii) Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised costs with the exception of investments which are held at fair value. Financial assets held amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions.

(iv) Preparation of accounts on a going concern basis

The trustees consider there are no material uncertainties about the charity’s ability to continue as a going concern. The review of our financial position, reserves levels and future plans gives trustees confidence the charity remains a going concern for the foreseeable future.

(v) Consolidation

These accounts consolidate the results of the charity and its wholly owned subsidiary, St Luke's Hospice (Harrow & Brent) Charity Shops Limited, on a line-by-line basis. A separate Income and Expenditure Account and Statement of Financial Activities is not presented for the charity alone as permitted by the Companies Act 2006 and Charities SORP.

27

(vi) Income

Income from donations, legacies and grants are recognised where there is entitlement, probability of receipt and the amount can be measured with sufficient reliability. Donations include related gift aid income.

The Shops company acts as agent to sell items donated with a gift aid declaration and to pass the resulting cash donations to the Hospice rather than record them as turnover within the Shops Company. The Hospice also receives the gift aid claimed on these donations.

Legacies are included when the Hospice becomes entitled to the funds and the sum receivable can be reliably quantified. Where they rely on the sale of property or investments, and thus do not have a certain valuation, an estimate of their value is disclosed in the notes to the financial statements.

Investment income is recognised on a receivable basis.

Income from charitable activities includes income from NHS contracts from the Harrow & Brent Clinical Commissioning Groups. They have been dealt with on a receivable basis as a contribution to running costs.

There have been no significant gifts in kind or donated goods and services during the year.

The value of services provided by volunteers is not incorporated in these financial statements. Further detail of the substantial contribution by volunteers can be found in the Report of the Trustees.

(vii) Expenditure

Expenditure is recognised when a liability is incurred. It includes VAT where this is not recoverable.

Expenditure on raising funds is the costs incurred in attracting donation income, organising and managing fundraising events, and the costs incurred in trading activities which raise funds.

Charitable activities include the Hospice care services offered to inpatients, day care patients, those receiving Hospice services in their own homes, and their carers and families. There are also a range of clinical and other services which apply to all these forms of Hospice care. These costs include both the direct costs and support costs relating to these activities.

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, e.g., property costs by floor areas and other costs on the bases shown in Note 7.

Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with compliance with constitutional and statutory requirements. These have been allocated to activity costs on the same basis as support costs.

(viii) Tangible fixed assets

All assets acquired costing more than £2,500 are capitalised.

Leasehold properties assets acquired prior to 2016 - over the term of the lease assets acquired after 2016 – shorter of 5 years or the remaining term of the lease Fixtures and equipment 20% Motor vehicles 20% IT equipment and systems 20%

The freehold property is not depreciated as the amount of depreciation is considered to be immaterial.

Tangible fixed assets are held at cost and (except for the freehold property) depreciated on a straight line basis over their estimated useful lives as follows.

(ix) Investments

Investments are initially recognised at their transaction cost and subsequently valued at fair value at the Balance Sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Net gains/(losses) on investments’ in the Statement of Financial Activities.

28

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2025

(x) Funds

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donors, or which have been raised by the charity for specific purposes.

Endowment funds are restricted funds which are to be retained for the benefit of the charity as a capital fund.

The Hospice has a number of restricted income and capital funds. Details of the funds are given in the notes to the financial statements.

(xi) Pensions

The Group currently offers a qualifying defined contribution pension scheme to all staff. In addition, the Group is a Direction Employer under the NHS Scheme.

National Health Service Superannuation scheme

This is a statutory superannuation scheme as defined in Section 6.12 (1) Income and Corporation taxes Act 1988, which has no invested funds. Contribution by employers (currently 14.3%) and members are accounted for to the Treasury and benefits are paid from the consolidated fund. This scheme is only open to staff who have been members of the NHS scheme in previous employment under the dispensation rules. The accounting charge represents the employer's contributions for the period.

Defined Contribution Scheme (Pensions Trust)

With effect from 1 May 2015 the group also operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the group. There is no liability under the scheme other than the payment of those contributions.

(xii) Taxation

No tax is payable due to the charitable status of the parent company. Taxable profits generated by the trading subsidiary are transferred to the parent company under gift aid.

(xiii) Leases

Operating lease rentals are charged to the Statement of Financial Activities over the period of the lease.

(xiv) Legal status

The charitable company is limited by Guarantee and does not have any share capital.

(xv) Employee benefits

Short term benefits including holiday pay are recognised as an expense in the period in which the service is received. Termination benefits are accounted for on an accrual basis and in line with FRS 102.

(xvi) Debtors

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

(xvii) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments.

(xiii) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

29

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2025

2. DONATIONS – 2025 Unrestricted Restricted Total Total
funds funds 2025 2024
£’000 £’000 £’000 £’000
Individual donations 192 42 234 239
In memoriam donations 195 1 196 205
Community groups 121 65 186 102
Trust fund donations 159 370 529 367
Corporate donations 133 13 146 123
Major Donors 117 17 134 144
Gift aid 101 - 101 146
Donations & gift aid from sale of goods in our
shops		 805 - 805 768
-------------- ------------- --------------- ---------------
1,823 508 2,331 2,094
======= ====== ======= =======
Fundraising events in 2025 raised £292,269 (2024: £236,052).
DONATIONS – 2024 Unrestricted Restricted Total
funds funds 2024
£’000 £’000 £’000
Individual donations 215 24 239
In memoriam donations 202 3 205
Community groups 101 1 102
Trust fund donations 34 333 367
Corporate donations 115 8 123
Major Donors 131 13 144
Gift aid 146 - 146
Donations & gift aid from sale of goods in our
shops		 768 - 768
-------------- ------------- ---------------
1,712 382 2,094
======= ====== =======

3. LEGACIES

£3,720,893 has been recognised from legacies for 2025 (2024: £1,753,661) using the Hospice’s accounting policy and principles of (i) Entitlement exists; (ii) receipt is probable; and (iii) the amount is measurable. Where there is any uncertainty regarding any of those principles, or the legacy could be contested, these have not been included in our accounts.

30

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2025

4. INCOME AND EXPENDITURE FROM SHOPS AND LOTTERY

The Charity owns the entire share capital of St Luke's Hospice (Harrow & Brent) Charity Shops Limited, a company registered in England and Wales, which operates charity shops in support of the Hospice funding. The subsidiary transfers to the Hospice under gift aid an amount not less than its taxable profits.

A summary of the trading results of the subsidiary is shown below. Audited accounts have been prepared in respect of the trading period for the year ended 31 December 2025.

Total Total
2025 2024
£’000 £’000
Turnover 2,056 2,060
Income from lottery 223 249
Government grants - 15
Other income 12 -
--------------- ---------------
2,291 2,324
--------------- ---------------
Cost of sale of purchased goods 3 -
Administration expenses 1,845 2,081
Lottery expenditure and prizes 88 90
--------------- ---------------
Gross direct expenditure of shops and lottery 1,936 2,171
--------------- ---------------
Net direct income from shops and lottery 355 153
Lease costs relating to shops owned by Charity (66) (66)
Donations of goods under gift aid 653 659
Lottery Prizes donated by Players 9 10
--------------- ---------------
Contribution generated by Charity Shops Ltd 951 756
======= =======

31

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2025

5. CHARITABLE ACTIVITIES - 2025 Unrestricted Restricted Total Total
funds funds 2025 2024
£’000 £’000 £’000 £’000
NHS commissioning income 3,979 - 3,979 3,007
-------------- ----------------- -------------- ---------------
3,979 - 3,979 3,007
Hospice UK Capital Expenditure Grant - 235 235 -
Other funding 44 - 44 25
-------------- ----------------- --------------- ---------------
4,023 235 4,258 3,032
======= ======== ======= =======
CHARITABLE ACTIVITIES - 2024 Unrestricted Restricted Total
funds funds 2024
£’000 £’000 £’000
NHS commissioning income 3,007 - 3,007
Other funding 25 - 25
-------------- ----------------- --------------
3,032 - 3,032
======= ======== =======
6. NET (EXPENDITURE)/INCOME Total Total
2025 2024
£’000 £’000
Net income is stated after charging:
Depreciation 251 250
Auditor’s remuneration 26 27
Other fees payable to auditors 6 15
Operating lease rental 623 616
======= ======

32

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2025

7. EXPENDITURE – 2025

Shops & Investment Out General
Basis of Fundraising Fundraising Lottery Management Inpatient Patient Community clinical 2025
Allocation costs event costs expenses costs services services services support Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Staff costs Direct 406 73 1,351 - 1,250 281 1,812 438 5,611
Drugs and medical Direct - - - - 116 - - - 116
Catering and Direct
housekeeping - - - - 302 - - - 302
Fundraising and Direct
community 748 82 - - - - - - 830
Other direct costs Direct - - 585 21 48 67 28 349 1,098
------------- ----------------- ------------- -------------- ------------- ------------- ------------- -------------- ------------
1,154 155 1,936 21 1,716 348 1,840 787 7,957
------------- ----------------- ------------- -------------- ------------- ------------- ------------- -------------- ------------
Support costs
Management Staff time 40 40 106 - 20 20 20 20 266
Quality Staff time 10 - 46 - 55 36 39 55 241
Finance Staff time 40 40 121 - 48 24 40 89 402
HR Headcount 21 12 145 - 98 15 33 71 395
Premises Floor area 35 19 - - 227 140 34 83 538
Communication Headcount 12 7 85 - 57 9 19 42 231
Shops Lease Amortisation - - - - - - - - -
------------- ----------------- ------------- -------------- ------------- ------------- ------------- -------------- ------------
158 118 503 - 505 244 185 360 2,073
------------- ----------------- ------------- -------------- ------------- ------------- ------------- -------------- ------------
Total expenditure 2025 1,312 273 2,439 21 2,221 592 2,025 1,147 10,030
====== ======= ====== ====== ====== ====== ====== ====== ======
Total expenditure 2024 1,380 279 2,567 20 2,098 671 1,771 1,111 9,897
====== ======= ====== ====== ====== ====== ====== ====== ======

33

7. EXPENDITURE – 2024

Shops & Investment Out General
Basis of Fundraising Fundraising Lottery Management Inpatient Patient Community clinical 2024
Allocation costs event costs expenses costs services services services support Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Staff costs Direct 443 65 1,418 - 1,102 315 1,556 339 5,238
Drugs and medical Direct - - - - 106 - - - 106
Catering and Direct - - - - 227 - - - 227
housekeeping
Fundraising and Direct 777 107 - - - - - 884
community
Other direct costs Direct - - 753 20 104 80 21 394 1,372
------------- ----------------- ------------- -------------- ------------- ------------- ------------- -------------- ------------
1,220 172 2,171 20 1,539 395 1,577 733 7,827
------------- ----------------- ------------- -------------- ------------- ------------- ------------- -------------- ------------
Support costs
Management Staff time 29 29 77 - 14 14 14 14 191
Quality Staff time 13 0 60 - 72 48 50 72 315
Finance Staff time 38 38 111 - 45 24 38 80 374
HR Headcount 25 12 148 - 102 14 35 74 410
Premises Floor area 42 22 - - 272 168 40 102 646
Communication Headcount 13 6 - - 54 8 17 36 134
Shops Lease Amortisation - - - - - - - - -
------------- ----------------- ------------- -------------- ------------- ------------- ------------- -------------- ------------
160 107 396 - 559 276 194 378 2,070
------------- ----------------- ------------- -------------- ------------- ------------- ------------- -------------- ------------
Total expenditure 2024 1,380 279 2,567 20 2,098 671 1,771 1,111 9,897
====== ======= ====== ====== ====== ====== ====== ====== ======
Total expenditure 2023 1,417 230 2,390 19 1,867 593 1,855 1,313 9,683
====== ======= ====== ====== ====== ====== ====== ====== ======

34

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2025

STAFF COSTS AND NUMBERS Total Total
2025 2024
£’000 £’000
Salaries and wages 5,119 5,052
Social security costs 599 486
Pension costs 372 324
---------------- ----------------
Total 6,090 5,862
======= =======
Average number of employees (full time equivalents)
Hospice 77 79
Shops 40 43
--------------- ---------------
117 122
======= =======

8. STAFF COSTS AND NUMBERS

There were on average 137 people employed (2024 – 143) full and part time. The employees were supported by 491 unpaid volunteers during the year (2024: 521).

Pension costs include an amount of £33,878 (2024 - £31,849) paid in respect of death in service cover for employees in the company.

Ex Gratia payment made during the year were £16,572 (2024 - £13,108)

The total remuneration for Key Management Personnel included in staff costs above is £614,983 (2024: £540,569). The number of staff with remuneration in excess of £60,000 were as follows:

£ 2025 2024
£60,000 - £70,000 3 1
£70,001 - £80,000 1 2
£80,001 - £90,000 2 3
£90,001 - £100,000 2 -
£100,001 - £110,000 1 1

9. TRUSTEES

None of the trustees received any remuneration or benefits in kind from the charitable company (2024: Nil). Trustees did not claim any expenses on behalf of the charity during the year (2024: Nil).

10. TANGIBLE FIXED ASSETS Freehold Leasehold Fixtures & Hospice UK
properties properties equipment Capital Grant Total
Group £’000 £’000 £’000 £’000 £’000
Cost
Opening balance 4,932 799 617 - 6,349
Additions (12) 41 48 252 329
Disposals - (229) (113) - (343)
------------- ------------- ----------- ----------- ------------
Closing balance 4,920 612 552 252 6,335
------------- ------------- ----------- ----------- ------------
Depreciation
Opening balance - 419 317 - 736
Charge for the year - 126 101 25 251
Disposals - (216) (113) - (330)
------------- ------------- ----------- ----------- ------------
Closing balance - 328 304 25 657
------------- ------------- ----------- ----------- ------------
Net Book Value
At 31 December 2025 4,920 283 248 227 5,678
====== ======= ===== ====== ======
At 31 December 2024 4,932 381 301 - 5,614
====== ======= ===== ====== ======

35

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2025

Freehold Leasehold Fixtures & Hospice UK
properties properties equipment Capital Grant Total
Charity £’000 £’000 £’000 £’000 £’000
Cost
Opening balance 4,932 - 617 - 5,549
Additions (12) - 44 234 266
Disposals - - (113) - (113)
------------- ------------- ----------- ----------- ------------
Closing balance 4,920 - 548 234 5,703
------------- ------------- ----------- ----------- ------------
Depreciation
Opening balance - - 316 - 316
Charge for the year - - 101 22 123
Disposals - - (113) - (113)
------------- ------------- ----------- ----------- ------------
Closing balance - - 304 22 326
------------- ------------- ----------- ----------- ------------
Net Book Value
At 31 December 2025 4,920 - 244 212 5,376
====== ======= ===== ====== ======
At 31 December 2024 4,932 - 301 - 5,233
====== ======= ===== ====== ======

Freehold properties otherwise represents the acquisition and conversion costs of Kenton Grange between 1992 and 2002 shown at historic cost and the costs of building the Woodgrange Centre completed in 2015.

11. INVESTMENTS

ESTMENTS
2025 2024
£’000 £’000
Market value at 1 January 2025 4,182 4,011
Additions 280 946
Disposals (313) (872)
Realised and unrealised gains 308 202
Movement in investment cash 8 (105)
----------------- -----------------
Market value at 31 December 2025 4,465 4,182
======== ========

The investments are held in a collective investment fund by Rathbones Investment Management Limited. The historic value as at 31st December 2025 was £4,465,212 (2024 £4,182,286).

12. DEBTORS: amounts falling due with one

DEBTORS: amounts falling due with one
year Group Charity
2025 2024 2025 2024
£’000 £’000 £’000 £’000
Trade debtors 261 179 225 179
Other debtors 312 141 71 40
Prepayments and accrued income 2,204 2,146 2,024 1,931
Amounts owed by subsidiary undertaking - - 1,140 902
------------- ------------- ----------- -----------
2,777 2,466 3,460 3,052
======= ======= ====== ======

36

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2025

13 CREDITORS: amounts falling due within one year Group Charity
2025 2024 2025 2024
£’000 £’000 £’000 £’000
Trade creditors 520 209 325 156
Taxation and social security 217 170 182 139
Accruals and deferred income 330 355 255 297
----------- ----------- ----------- -----------
1,067 734 762 592
===== ===== ====== ======
14 ANALYSIS OF NET ASSETS BETWEEN FUNDS
-
GROUP – 2025
Unrestricted funds Endowment Restricted Total
General Designated
Funds		 Funds 2025
£’000 £’000 £’000 £’000 £’000
Tangible fixed assets - 5,678 - - 5,678
Investments 2,717 1,502 246 - 4,465
Net current assets 5,700 175 - 27 5,902
Long term liabilities (19) - - - (19)
------------- ----------- ----------- ----------- ------------
Net assets 8,398 7,355 246 27 16,026
====== ===== ===== ====== ======
ANALYSIS OF NET ASSETS BETWEEN FUNDS
-
GROUP – 2024
Unrestricted funds Endowment Restricted Total
General Designated
Funds		 Funds 2024
£’000 £’000 £’000 £’000 £’000
Tangible fixed assets - 5,613 - - 5,613
Investments 2,531 1,411 240 - 4,182
Net current assets 2,737 300 - 26 3,063
Long term liabilities (97) - - - (97)
------------- ----------- ----------- ----------- ------------
Net assets 5,171 7,324 240 26 12,761
====== ===== ===== ====== ======
ANALYSIS OF NET ASSETS BETWEEN FUNDS
-
CHARITY – 2025
Unrestricted funds Endowment Restricted Total
General Designated
Funds		 Funds 2025
£’000 £’000 £’000 £’000 £’000
Tangible fixed assets - 5,376 - - 5,376
Investments 2,717 1,502 246 - 4,465
Net current assets 5,701 477 - 27 6,204
Long term liabilities (19) - - - (19)
------------- ----------- ----------- ----------- ------------
Net assets 8,398 7,355 246 27 16,026
====== ===== ===== ====== ======

37

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2025

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS (Continued) - CHARITY – 2024

-
CHARITY – 2024
Unrestricted funds Endowment Restricted Total
General Designated Funds Funds 2024
£’000 £’000 £’000 £’000 £’000
Tangible fixed assets - 5,233 - - 5,233
Investments 2,531 1,411 240 - 4,182
Net current assets/(liabilities) 2,737 680 - 26 3,443
Long term liabilities (97) - - - (97)
------------- ----------- ----------- ----------- ------------
Net assets 5,171 7,324 240 26 12,761
====== ===== ===== ====== ======
15. FUNDS – 2025 Transfer/
Opening Investment Pension Closing
Balance Income Expenditure Gains/Losses Surplus Balance
£’000 £’000 £’000 £’000 £’000 £’000
Restricted funds
Inpatient care funds - 176 (176) - - -
Outpatient care funds - 25 (25) - - -
Community care funds 20 125 (125) - - 20
General Clinical funds - 182 (182) - - -
Capital funds 6 235 - (234) 7
------------ ------------ ------------ ------------ ------------ ------------
Total restrictedfunds 26 743 (508) - (234) 27
------------ ------------ ------------ ------------ ------------ ------------
Endowment funds
Alice Wisbey Capital Fund 26 - - 1 - 27
D D McPhail 214 - - 5 - 219
------------ ------------ ------------ ------------ ------------ ------------
Total endowmentfunds 240 - - 6 - 246
------------ ------------ ------------ ------------ ------------ ------------
Unrestrictedfunds
Designated fixed asset 5,233 - - 147 4 5,384
fund
Designated shops assets 380 - - - - 380
fund
Designated risk 1,411 - - 66 (186) 1,291
management fund
Pension liability reserve 300 - - - - 300
------------ ------------ ------------ ------------ ------------ ------------
Total designatedfunds 7,324 - - 213 (182) 7,355
------------ ------------ ------------ ------------ ------------ ------------
Unrestricted funds
General charitable funds 5,171 9,953 (7,062) 89 248 8,398
General
non-charitable		 - 2,291 (2,460) - 169 -
trading funds
------------ ------------ ------------ ------------ ------------ ------------.
Total generalfunds 5,171 12,244 (9,522) 89 417 8,398
------------ ------------ ------------ ------------ ------------ ------------
Total unrestricted funds 12,495 12,244 (9,522) 302 234 15,753
------------ ------------ ------------ ------------ ------------ ------------
Total funds 12,761 12,987 (10,030) 308 - 16,026
===== ==== ===== ===== ===== ======

38

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2025

15. FUNDS (continued) - 2024

Opening Investment Closing
balance Income Expenditure Gains Transfers Balance
£’000 £’000 £’000 £’000 £’000 £’000
Restricted funds
Inpatient care funds - 196 (196) - - -
Outpatient care funds - 63 (63) - - -
Community care funds - 112 (92) - - 20
General Clinical funds - 5 (5) - - -
Capital funds - 6 - - - 6
Fundraising Programme - - - - - -
------------ ----------- ----------- ----------- ----------- ------------
Total restrictedfunds - 382 (356) - - 26
------------ ----------- ----------- ----------- ----------- ------------
Endowment funds
Alice Wisbey Capital Fund 25 - - 1 - 26
D D McPhail 203 - - 11 - 214
------------ ----------- ----------- ----------- ----------- ------------
Total endowmentfunds 228 - - 12 - 240
------------ ----------- ----------- ----------- ----------- ------------
Unrestrictedfunds
Designated fixed asset fund 5,294 - - - (61) 5,233
Designated
shops		 assets 512 (132) 380
fund - - -
Designated risk -
management fund 1,372 - - 39 - 1,411
Pension liability reserve 300 - - - - 300
------------ ----------- ----------- ----------- ----------- ------------
Total designatedfunds 7,478 - - 39 (193) 7,324
------------ ----------- ----------- ----------- ----------- ------------
Unrestricted funds
General charitable funds 5,173 6,872 (7,371) 151 346 5,171
General non-charitable
trading funds - 2,324 (2,171) - (153) -
------------ ----------- ----------- ----------- ----------- ------------
Total generalfunds 5,173 9,196 (9,542) 151 193 5,171
------------ ----------- ----------- ----------- ----------- ------------
Total unrestricted funds 12,651 9,196 (9,542) 190
-		 12,495
------------ ----------- ----------- ----------- ----------- ------------
Total funds 12,879 9,578 (9,898) 202 - 12,761
===== ==== ===== ===== ===== ======

39

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2025

15. FUNDS (continued)

A Pension Liability Reserve was set up in 2016 to reflect potential increases in the pension liability. When it was provided in full in 2017, the reserve was reduced. The balance in this fund will be used towards the cost of any future buy-out of the liability.

The late Mrs Alice Wisbey made a bequest to the Hospice with the instruction that the income therefrom should be applied for the comfort of the nursing staff. This is split between Income and Capital funds.

The restricted funds represent grants and donations received, from Trusts and individuals, where the use of the funds was restricted to a specific purpose by the donor. These funds have included contributions towards the cost of our Inpatient unit, Day care services, Community and Homecare services, to the provision of complementary therapies and a number of other items.

The D D McPhail Charitable Settlement originally gave £150,000 as an endowment fund. No instructions were given about income so this is applied for the general purposes of the charity. The difference between the original fund value and the current fund value arises through revaluation of the underlying investment.

The designated fixed asset fund represents the net book value of the Hospice's fixed assets. It has been set up to assist in identifying funds which are not free funds. Similarly, the designated shops asset fund has been set up to identify fixed assets of the shops company not covered by their working capital.

The designated risk management fund is intended to cover unexpected costs or income shortfalls, ensuring the longterm sustainability of the Hospice. The balance in this fund as at 31 December 2025 was £1,291k (2024 - £1,411k) most of which is managed by Rathbones, our investment manager.

The surplus arising out of the operating activities during the year resulted in the increase in unrestricted general charitable funds of £3.2m (2024 - decrease £700k).

The general funds represent the unrestricted funds of the group and are therefore “free reserves”.

40

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2025

16. OPERATING LEASE COMMITMENTS

The group has the following total commitments under non-cancellable operating leases:

Group Charity
2025 2024 2025 2024
£’000 £’000 £’000 £’000
Amounts due:
Within 1 year 622 434 142 66
Within two to five years 1,148 1,191 260 158
After five years 435 666 - 10
----------- ----------- ----------- -----------
2,205
2,291 402 234
===== ===== ====== ======

17. CAPITAL COMMITMENTS

The group has committed to a cost of £235k of capital investment on the premises of Kenton Grange. Based on the prior year’s feasibility report capital refurbishment will take place in the year 2026. (2024: £60k feasibility study on the premises of Kenton Grange which took place in 2025).

18. RELATED PARTY TRANSACTIONS

During the year, Trustees, Executive Team members and their close family members contributed a total of £409 through donations and purchases of lottery tickets during the year (2024: £533). There were no other transactions with related parties during the year (2024: none).

19. STATEMENT OF FINANCIAL ACTIVITIES IN THE PREVIOUS YEAR (2024)

Unrestricted Restricted Endowment Total
funds Funds Funds 2024
£’000 £’000 £’000 £’000
Income from:
Donations and legacies
. Donations 1,712 382 - 2,094
. Legacies 1,754 - - 1,754
---------------------- ----------------------- ---------------------- ------------------------
3,466 382 - 3,848
Charitable Activities --------------- --------------- --------------- ---------------
. NHS commissioning 3,007 - - 3,007
. Other income 25 - - 25
---------------- ------------------------- ----------------------- ----------------------
3,032 - - 3,032
Other trading activities ------------------ ---------------- --------------- ------------------
. Fundraising events 236 - - 236
. Gross income from shops and lottery 2,324 - - 2,324
----------------- ------------------ ----------------- -----------------
2,560 - - 2,560
------------------------- ------------------------- ------------------------- ------------------------
Investments 137 - - 137
------------------------ ------------------------ ---------------------- -----------------------
Total income 9,195 382 - 9,577
----------------- ---------------- --------------- -----------------

41

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2025

19. STATEMENT OF FINANCIAL ACTIVITIES IN THE PREVIOUS YEAR (continued)

Unrestricted Restricted Endowment Total
funds Funds Funds 2024
£’000 £’000 £’000 £’000
Expenditure on:
Raising funds
- Fundraising costs 1,380 - - 1,380
. Fundraising events costs 279 - - 279
. Shops and lottery expenditure 2,567 - - 2,567
. Investment management costs 20 - - 20
------------------ ----------------- --------------- ------------------
4,246 - - 4,246
------------------ ----------------- -------------- ------------------
Charitable activities
. Inpatient services 1,901 197 - 2098
. Day care services 628 43 - 671
. Homecare services 1,660 111 - 1,771
. Overall clinical support 1,106 5 - 1,111
-------------------- ------------------ ---------------- ---------------------
5,295 356 - 5,651
-------------------- ------------------ ---------------- ---------------------
Total expenditure 9,541 356 - 9,897
-------------------- ------------------ ---------------- ---------------------
Net Income before
gains on investments (346) 26 - (320)
Net (losses)/gains on investments 190 - 12 202
Pension revaluation gain - - - -
-------------------- ------------------ ---------------- ---------------------
Net Income (156) 26 12 (118)
========= ========= ========= =========

42

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2025

20. THE CAREER AVERAGE REVALUED EARNING SCHEME (THE PENSIONS TRUST)

Up until 1st May 2015, the group offered a multi-employer pension scheme providing a defined benefit (career average) pension for members.

The company participated in the scheme, a multi-employer scheme which provides benefits to some 36 nonassociated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore, the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2022. This valuation showed assets of £49.6m, liabilities of £57.1m and a deficit of £7.5m. To eliminate this funding shortfall, the Pension Trustee asked the participating employers to pay additional contributions to fund the scheme deficit of £1.67m. The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities and increase by 3% per annum on 1[st] April each year. It was anticipated that the deficit would be cleared by 31[st] March 2027.

During 2025, St Luke’s contributed £74,690 towards the deficit (2024 - £72,229).

Note that the previous valuation was carried out with an effective date of 30[th] September 2019. This valuation showed assets of £79m, liabilities of £93.9m and a deficit of £14.9m. To eliminate this funding shortfall, the Pension Trustee asked the participating employers to pay additional contributions to fund the scheme deficit. Annual deficit contributions by participating employers then total £1.53m pa due to the annual 3% increases, and the deficit to be cleared by 30[th] September 2027.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

PRESENT VALUES OF PROVISION 31 December 2025 31 December 2024
(£000s) (£000s)
Present value of provision 94 162
===== ======

43

ST. LUKE’S HOSPICE (HARROW & BRENT) LTD. (continued)

FOR THE YEAR ENDED 31 DECEMBER 2025

20. THE CAREER AVERAGE REVALUED EARNING SCHEME (PENSIONS TRUST) (continued)

RECONCILIATION OF OPENING AND CLOSING PROVISIONS

2025 2024
£’000 £’000
Provision at start of period 162 226
Unwinding of the discount factor (interest expense) 6 9
Deficit contribution paid (75) (73)
Remeasurements - impact of any change in assumptions 1 -
------------- -------------
Provision at end of period 94 162
====== ======
2025 2024
£’000 £’000
Amounts due within one year 77 74
Amounts due after one year 19 97
----------------- -----------------
96 171
======== ========

*includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes.

ASSUMPTIONS 31 December 2025 31 December 2024
% per annum % per annum
Rate of discount 3.92 4.96
===== ======

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

44

10. REFERENCE AND ADMINISTRATIVE INFORMATION Company Number 02141770 Charity Number 298555 Registered Office Kenton Grange, Kenton Road, Harrow, Middlesex HA3 0YG Trustees The trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows: Margaret Lustman (Chair of Trustees) Natalie Butler Sarah Gigg Christine Glenn (Chair of Remuneration Committee) Paul Hill (Chair of Finance & Performance Committee) Sarah Livingston (Chair of Clinical Governance Committee) Jatin Patel Claire Melia-Tompkins (Chair of People Committee) Chandia Radia Neel Radia Professor Stephen Spiro (Vice Chair) Elizabeth Jewitt-Cross (resigned 13/03/2025) Raj Thakrar Sarah Muir (appointed 01/05/2026) Tracy Routledge (appointed 18/09/2025, resigned 02/03/2026)

Key management personnel

Interim Chief Executive Joanna Pearce (appointed 08/12/25)
Officer
Chief Executive Officer Lindsey Bennister (resigned 21/11/25)
Director of Clinical Services Claire Porter
Director of Operations Fran Deane (resigned 31//03/26)
Director of Finance &
Commercial Stewart Sether (appointed 23/03/2026)
Director of Finance Geethanjali Umaasuthan (resigned 11/10/25)
Director of People &
Organisational Development Lorna Campbell (resigned 19/03/25)
Renee Bullock (appointed 1/10/25, resigned 15/04/26)
Director of Fundraising
& Communications Joanna Pearce (until 07/12/25)
Principal Bankers Barclays Bank plc, Leicester LE87 2BB
Auditors HaysMac LLP, 10 Queen Street Place, London EC4R 1AG
Investment Managers Rathbone Investment Management
8 Finsbury Circus, London EC2M 7AZ
Solicitors Curry Popeck, Devonshire House, 582 Honeypot Lane, Middlesex
HA7 1JS
BDB Pitmans LLP, One Bartholomew Close, London EC1A 7BL
Website www.stlukes-hospice.org

45