Registered number: 01666027 Charity number: 513149 The Azure Charitable Foundation (previously Azure Charitable Enterprlses) (A company limlted by guarantee) Annual report 31 January 2025
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmlted by guarantee) Contents Page Reference and administralive details Trustees, report 2-25 Trustees. responslbllitles statement 26 Indop8ndent auditorfs report to the members of The Azure Charitable Foundation 27-30 Consolidated statement of financial activities 31 Con501idated balance sheet 32 Charity balance sheet 33 Consolidated statement of cash flows 34 Notes to the financial statements 35-56
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmlted by guarantee) Reference and admlnistrative details Year ended 31 January 2025 Trust•os G P Barnard. Chair G W Robson. Treasurer & Vice Chairman R J Adams M Boyle (appointed 22 May 20241 A Charlton l Hindle J Moiser J A Robinson (resigned 22 May 2024} C Vaulks (appointed 31 July 2024) J Wake Company reglstered number 01666027 Charlty reglstered number 513149 Registered office Mccallum House Kielder Avenue Cramlington Northumberland NE23 8JT Company secretary C Nesbitt Chlef •x8cutive officer P J Wilson Independent audltor UNW LLP Citygate St James. Boulevard Newcastle upon Tyne NE14JE Bankers Lloyds Bank plc Newcaslle upon Te NE16AG Solicitors Muckle LLP 32 Gallowgate Newcastle upon Tyne NE14BF President Neil Robinson MBE, JP Patron The Viscount Ridley Vice Presidents A.E Kilburn OBE FCIH Nevi118 Fumess FCA
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmlted by guarantee) Trustees. report Year ended 31 January 2025 The trustees present their annual report together with the audited financial slatements of the Charity for th8 1 Febwary 2024 to 31 January 2025. The annual report serves the purposes of both a trustees, report and a directors, report under company law. The trustees confirm that the annual report and financial statements of the charitable company comply wlth the current statutory requir8ments. the requirements of the charitable company's goveming document and th8 provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). The Azure Charitable Foundation {formerfy Azure Charitable Enterprises)I Is a reglstered charity with a mlsslon to °improve the lives of people who are disabled or disadvantaged". The charlty fomied In Norlhumberland in 1979 at a time when attitudes towards 'disabilty' were changing. Families {locally) sought altematives to what was often a life-time of instilutionalSsed care and confinement, while policy makers too were actively engaged in perhaps the firsl meaningful discussions as to the concepts and practices underpinning the delivery of care and support. Most slgnrfi¢antly, in what was something of a tralershed, moment, it was determined that care should be provided and supported in communities (as opposed to what was traditionally provided ou1th the ¢ommunty - and in what might be best described as 'closed communities,). The charity was formalty established in 1982, and has been supporting people with a disability to maximize Iheir quality of life, lrfe chan¢es and personal development for more than 40 years. The Azure Charitable Foundatlon's principal focus is to deliver social value for our client community i.e, those with special education needs andlor disabllltles or who are otherwise disadvantaged. The charity delivers against these objectives through our. Care & Support Services Education Servi¢8S Employment and Training Services Supported Business (Garden Ceftt, Café, Business Centre and Landscaping Business) providing 'Supported Employment. for up lo 50 people with disabilities. The charity employs 229 personnel, and group revenues exceeded £1 Omillion this year. l The charity changed its name to 'The Azure Charitable Foundation, on the 18th of July 2024 to b8tt8r reflect the changing nature and scope of the charity's activities The tTUStees determined that the new name better reflects the strength and longevity of the charity and the breadth of our work which will also now include grant making and the operation of a Specialist (SEND) College. The trustees found that the name 'A2ure Charitable Enterprises, had become too narrowly associated with but a small. albelt stlll Important, part of our activities (social enterprises).
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmlted by guarantee) Trustees. report (continued) Year ended 31 January 2025 Objectlves and actlvltles The geographic scope of the charity's operations has traditionally been confined to th8 North East of England, although this Is not a policy limitation. The overarching mission of the charity is lo "improve the lives of people who are disabled or disadvantaged" by providing services: Education and vocational training supporting our students, personal development and extending opportunities to improve their lrfe chances. Care and support- supporting people to live independently and their engagement In the communlty. Support for those seeking employment and thos8 in 8mploym8nt (lo sustain their employment), Employment (at Azure in our 'Supported Businesses,) where we work with people to develop their skills, competencies and experience which also enables them to pursue employment outwith Azure. Maximising independence. personal development and achievement are our fundamentsl aims that we achieve in a variety of ways - many of which are complementary - with many of our clients accessing more than one type of service. In addition to Care & Support, Education and Employment Services, the charity has estsblished and operales a number of businesses <e.g. Azure Business Centre) and supported businesses2 to generate income and to provide sustainable paid employment and real 'on the job, learning and training opportunities for people with a disability {i.e. Azure Garden Centre (incorporating our horticultural nurseries), Café and Azure Landscapes and Grounds Maintenance businesses. A'supported business, is defined as where more than 50% of the work-force have a disability
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmlted by guarantee) Trustees. report (continued) Year ended 31 January 2025 Strategic report Achievements and performance The management team is stable, flexible and has demonstrated a capability for innovation that will enable the Board of Trustees to embark. with confiden. on Ihe next phase of the charitys development. The scope and scale of their achievements this last year is a testament to their dedication and commitment to the charty and the communities we serve. Azure Property Management Services Limited (formerty Azure Buslness Centres Limlted) The business provides office space and buslness units for small and start up enterprises and is located in Newbum. Newcastle upon Tyne. Occupancy at the centre is at a very satisfactory level generating a profit of £86k, before gift aid to the charity, in the year compared with £44k in 2023124. The business contributes significant value to Azure's balance sheet with both landlbuildings, strong cash generation and by its gift- aldlng any surplus to the charity. Azure Garden Centre The chaiity's wholly owned retail subsidiary, Azure Gard8n Centre Llmlted, returned a profit this year of £463k, before gift aid to the charity, compared to a profit of £498k in 2023124, The Garden Centre and its Café are operated wlth the principal purpos8 of providing (il employment and {11) a setting for educatlon and training for people wlth special educational needs or disabilities. continues to fulfil its purposes of gainfully employing and training people with disability and by the gift aiding of any profit to the charity to SUPF)Ort our broader charitable endeavours" £522.108 in the current year. Azure Landscapes & Grounds Maintenance Azure Landscapes is, like the Garden Centre. operated with the principal purpose of providing (i) employment and (li) a setting for education and training for people with special educational needs or disabilities. The landscapes departmenl had another satisfactory year posting an operating surplus of £47k (£41k surplus in 2023124). The team continues to secure additional work. creating and sustaining Ihe employment of supported employees. Azure is particularly grateful for the ongoing support of Karbon Homes. Coca-cola. Anchor Housing, Greggs. Burbery. Femey Chesters, Miller UK and Blagdon Estate. Education & Trainlng Services Working with local authorities and other partner organisations. the chartty continues to develop a range of education pathways for students. Services are focused on providing programmes for those aged 16 and above in recognition of the fact that this client group is perhaps the least well served by mainstream education and, indeed 'special' or 'SEND13 schools and notwithstanding their best endeavours, 3 Speclal Educational Needs and/or disabilitie5
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmlted by guarantee) Trustees. report (continued) Year ended 31 January 2025 At Azure, our programmes are devised not onty to support our students, personal development but also their social and employability skills. ETllployability is a key facet of each of our educational programmes (horticulture. catering and hospitality, retail and customer service} where each student has the opportunity to develop key skills and meaningful work experience by working in any of our businesses. Learner5 {generally with Educational Health and Care Plans) are referred to Azure's altemative pathways and settings by Northumberland County Council and latterly North Tyneside Council. Our programmes have been developed specifFcalty for leamers (aged 16-24) for whom mainstream schools andlor GFE Colleges have beenlare unsuitable or where it has been deemed that these pathways werela ill-equipped to supporl learners with particularly high needs (moderate to severe leaming difficulties andlor disabilities) ihat include, but are not limited to: Acquired disability (brain injury)" Anxiety; Attachment disorders Epilepsy; Finelgross motor skill difficulties- Hypemiobility,. Obsessive-compulsive Disorder (OCD). Po$t-Traum8tic Stress Disorder (PTSD): Slghvhearing impairment", Social. emotional and mental health needs; Attention {ADHD)' Autism Spectrum Disorder (ASD): Cerebral Palsy; Downs Syndrome,. Dyspraxia. Spina Bifida Deficit Hyperactivity Disorder Speech and language difficulties. Tourette's Syndrome In addition, we also t8ach learners deslgnated as a 'Child in N88d' andlor 'Looked After Children,: A 'Chlld In Need, (CIN) is defined under the Children Act 1989 as a child who is unlikely to reach or maintain a satisfactory level of health or development. or their health or development will be significantly impaired, without the provision of seTvices. or the child is disabled 'Looked After Children. are children and young people for whom the Local Authority becomes their Corporate Parent. this means that the Local Authority is responsible for finding them a safe and stable home. Where it is in the best interests of the child this could be a short-temi arrangement whilsl the family is supported so that children can safely retum home- or this c2n lead to the children and young people being in the Local Authority's care for the longer term Our learners are enrolled on study programmes where core funding is provided by the Education & Skills Funding Agency an(J where additional costs associated with each learner's needs are provided by the Local Authorities e.g. speech and language therapists, occupational health specialists, 8tc, (supporting leamers and their familieslcarers)- In addition, the Local Authority also provides for our leamers, travel costs to and from college (by taxi) rf they do not travel independently and require support within and OLrtwith Azure. As Ihey study with us. we also work wilh leamers to support their personal and social development (learners may, for example, be non-verbal). 5ndependent living skills and to secure local employment where possible (within and outwith Azure). 'Looked Afterf is a tenn introduced in the Children's Act 1989 and many legal aspects have been amended or updated in the Children and Families Acl 2015.
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmtted by guarantee) Trustees. report (continued) Year ended 31 January 2025 To support enrlchment activitses. th8 charty also makes £20.000 available to the department to ensure that there are no economic barriers to participation in enrichment activities including extra-curricular activities. The Education Servlces Department continues to develop new pathways and a new curriculum that incorporates hospltallty and catering, horticulture, retsil and customer service. We have 69 students enrolled this year and are working with Northumberland County Council and North Tyneside Council to develop programmes for young people (aged 16-24) with social, emotional andlor mentsl health needs. As previously reported. the Hospitalty and Catering Progr8mme launched in September 2020 and was supported by £250k capital investment in the ¢ation of a new teaching kitchen which also attracted financial support from The Reece Foundation and the Molitor Charitable Trust. Working with Northumberland County Council, recwitment to our education and training programmes 'Sklll-builders' (personalised vocational training and personal development programmes) and 'Supported Intemships. has increased. year on year: Working with Northurnberland County Council. recruitment to our education and training programmes 'Skill-builders' (personalised vocational training and personal development programmes) and 'Supported Internshlps. has increased, y8ar on year: Students 95. 90 80 70 69 60 so 45 41 40 33 30 23 20 13 10 201017 2017118 2018119 2019DO 202ty21 202V22 2022123 213124 2024125 2(T25126 'At the time of writing we expect our enrolment (in August) to be circa 95 students.
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A Company Ilmlted by guarantee) Trustees. report (continued) Year ended 31 January 2025 The department is worklng with 6 supporied interns who are presently working in Azure's garden centre café. The department has a dedicated employment advisor who works extensively with students to plan and secure their progression destinations,. this includes securing voluntary and work-placement opportunities for students. identifying suitable job opportunities and assisting students to apply for roles and prepare for interview. This year: Of the 45 students enrolled in 2023124 (all registered with high needs) 95910 progressed to a positive destination. 29 retumed to continue their education (including 8 as Supported Interns - 1 in Corporate SeFvices {admin), 1 in Landscapes (admin), 2 in the Garden Centre (retail) and 4 in the Garden Centre Café) 3 progressed to further sludy at mainstream -GFE colleges 2 obtained paid employment 1 secured a volunteering role 2 progressed onto an employability programme and have secured voluntary work 1 has progressed onto an employability programme only S have entered adult social care 5 left before completion of study 2 no destination 2 of our Support8d Interns are on course lo be off8red a two-year employment contract as supported employees. Of th8 70 students currently enrolled In 2024125 45 are expected to return in September. 6 of whom are expected lo progress into a Supported Internship (2 in the garden centre and 4 in the café) We also expect to enrol an additional 50 students across all programmes (totsl 95 projected) We will also support any employer that provides a progression destination for our students. In the last year. the charity has been in discussions with North Tyneside Council and expects to welcome circa 10 students from North Tyneside in September 2025. The service is regulated by Ofsted. Demand and interest in our Education Services continues to exceed expectations with Mccallum House being adapted still further to accommodate addition81 students and with staff, in all likelihood, to be operating from temporary buildings situated in the Mccallum House car park. Further to consultations with Northumberland County Council and the DE. the charity is in the process of forming a specialist SEND College (Specialist Post 16 Institution) and developing plans for an associated ¢apilal investment at our Cramlington site to support the delivery of vocational education and training, the teaching of independent living skills and employability training. The charity is also in discussions with Northumberland County Council vis-a-vis the development of a residential setting on the site (which is being designed to support young people to experience independent living) and a sports and recreational facility designed to support those with SEND.
The Azure Charitsble Foundation (previously Azure Charitable Enterprises) (A ¢ompany Ilmlted by guarantee) Trustees. report (continued) Year ended 31 January 2025 Employmont S•rvic•s As reported by the ONS: there were 5.5 million disabled people in employment in the UK in Q2 2024. This is an increase of 310.000 on the year the dlsablllty employment rate was 53.0/0 in Q2 2024, compared to 81.6•/0 for non4isabled people. the disability unemployment rate was 6.9QA in Q2 2024, compared to 3.60/• for non4isabled people. the disablllty economle inactivity rate where the person self-reports that they are not in or looking for work - was 43.1 Q/0 in Q2 2024, compared to 15.4Q/o for non-disabled people. the number of working-age disabled people has Increased by 580,000 on the year. This means thal the 0.1 percentage point increase in the disabllity economic inactivity rate equates to an incre8se of 260.000 in the number of economically inactive disabled people between Q2 2023 and Q2 2024 the disability employment gap was 28.6 percentage points in Q2 2024. on average. beeen 2014 and 2023, disabled workers moved out of work at a higher rate {8.6•/0) compared wlth non4isabled workers (4.9 /•). Workless disabled people moved into work at nearly one-third of the rate (10.1 Yo) of workless non-disabled people (27.20/0) The latest data shows that nearly one in four of the working-age population are classed as disabled. the number of people reporting a long-tetm health condition and the number classed as disabled continue to rise. and the increase in disability prevalence ts associated with an increase in people reporting mental health conditions and "other heatth problems or disabilities. The disability employment gap is wider for: males older (aged 50 to 64) people people with no quallfications people living in social housing People not living in a couple people living in Northern Ireland, the North of England, Scotland and Wales The disability employment rate Is lower for disabled people: with a mental health condition with five or more health conditions
The Azure Charitable Foundation (previously Azure Charitable Enterprises) IA company Ilmlled by guarantee) Trustees. report (continued) Yearended 31 January 2025 Disabled people were more likely than non-disabled people to: be working in Health, Retail and Education be working in lower-skilled occupations be self*mployed be working part-time (and subsequenlly fewer hours) be working in the public sector be Vmrking in a small workplace (less than 50 employees) be underemploy8d (looking for and availabl8 to stsrt anotherjob or WO longer hours) be working in low pay be working on a zero-hour contract be working in a job with less career opportunities be working in a job with less employee involvement hav8 Iow8r av8rag8 W8llb8ing scores, this was lower for those who w8re not in employment have higher average anxiety scores, this was generalty higher for those who w8re not in employment Disabled people were more likely to be economically inactive and for those that were: the majority gav8 long-t8rm sickn8ss as th8ir main reason for b8ing inactive they were more likely (than non-disabled people) to want a job they were less likaly (than non-disabled people) to have had a job in th8 last years Azure administers and operates, in accordan with demand, pre-employment, basic and key skills, infonnation technology and vocational training courses so that clients may develop transferable work skllls enabling disabled or disadvantaged people to find and secure sustsinable employment. Our work also includes supporting clients to overcome personal barriers to employment and support their P8rsonal dev81opm8nt r8gard18ss of whether this is linked to Specific (fomial} qualffications or Job outcomes. In ccFoperation with the Departm8nt for Work & Pensions (DWP) and local employers, clients are assisted to secure valuable work placements (including in our supported businesses) and sustainable employment. Our Employment SeNices department has a holistlc approach to ellents: it recognlses and understsnds the Important, Intrinslc link between many factors that may ultimately Impact on employm8nt. The department's work therefore does not stop at employment. we support and signpost clients for expert support in areas outside of our area of expertise such as liaising with homelessness teams or bereavement counsellors. Azure continues lo be commissioned directly by DWP to provide these services and has. since 2020. sought to increase the scope and scale of our work with support from NECA and European Social & Inveslment Fun and by working in partnership with the North East Autism Society. Working in partnership with the North East Autism Society our Employment Services team has been delivering two programmes called ProgressNE and Empower Works which were both funded (by the UKSPF) until the end of March 2025.
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company limited by guarantee) Trustees. report (continued) Year ended 31 January 2025 ProgressNE This programme exclusively supported those who were economically inactive with neurodiverse conditions on their journey towards employment and personal development. ProgressNE was oversubscribed by 5DA. We are pleased to report we supported: 25 people to gain employment 20 people to move into education or training 72 people in personal development 65 people to actively engage in job searching 65 peopte to reduce barriers to employment Empower Works This programme supported both those who were economically inactive and those unemployed. We are pleased lo report we supported: 24 people to gain employment 70 to improve their life skills 11 volunteering 80 reduce barriers to employment Clients have secured roles across the region with a range of employers that included: Employer NCFE Role Casual Northumbria Foundation Trust Healthcare NHS Senior Healthcare Support Worker Apprenticeship Level 3 Fenwick Warehouse Assistant Enigma Morrisons Software Developer Custorner Assistant North East Law Cent Business Support Administrator (Data and Digital) Customer Assistant Marks & Spencer Stonegate Group RCCN Cleaning Services North East Thealre Trust Cleaner Cleaner Customer Servlce Assistant Northumberland Wildlife Trust Biodiversity Boost Trainee Radio ProducerlJoumalist BBC Coutyard Café Royal Mail Skills for People Café Assistant Seasonal Mail Sorter Expert by Experience Trainer 10
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmlted by guarantee) Trustees. report (continued) Year ended 31 January 2025 Employer Waffling On Euro Garages Ltd Cklip Limited Connect Health Role Online Admin and Communications w0er Customer Assistant Cleaner Patient Care Advisor Azure Charitable Foundation Landscapes Assistsnt Café Assistant Azure Charitable Foundation Park Holidays T3 Security Odeon Cinemas Limited Customer Service Assistsnt Security Office Cinema Host Newcastle University Groundwork Postgraduat8 Demonstrator Peatlands Survey Assistant Sales Assistant Animal Home Group Aspers Casino English Heritage Halfords Autocentre Customer Service Assistant Trainee Croupier Food and Beverage Assistant T1 Vehicle Technician LMG Sthare Developer Apprentice Recruitrnent Support Assistant Kitchen Assistant First Face to Face Ltd Gingerinos Kitchen Limited Team Leader Enhanced Care Group KB Engineering R8CePtionist Production Assistant Clients are also supported to access training programmes to support their personal development and employability skills delivered online andlor in person by Adult Education providers that include independent training Providers, charities, FE Colleges and universities. By way of example. online training has included: Health and Safety Miuosoft Excel and Google Sheets for Beginners Resilience Training Personal Asslstant Training Safeguarding Adults {18V813)
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A ¢ompany limited by guarantee) Trustees. report (continued) Year ended 31 January 2025 Clients have also been supported to pursue: Counselling (level 3) BA Hons Animation BA Hons Criminology and Psychology BA Hons Linguistics Data Technician Skills Boot Camp Digital and IT Skills (level 2 diploma) Essential Skills Mathematics (level 2} Extended Certificate in Animal Care (levg12) FdS¢ Psychology and Sociology ITV Making Creativity Works Medlcal Office AwardlOffic8 Skills Training Navigating the Archives Warehousing and Storage (NVQ level 1) Worklng with the NorthEast Autism Society, we have been successful in securing funding (again from the UK Shared Prosperity Fund administered by the North of Tyne Combined Authority} to continue to deliver Empower Works. This programme runs until March 2026 and aims to support 80 cllents In total. We are also supporting clients in a number of other areas including developing interpersonal skills, accessing volunteering opportunities, educatlon or training, qualffications, sourcing basic skills support and assistance with re-training. The department continues lo develop its strong relationship with Education Services and now providing careers sessions on a one-to-one basis with learners, delivering employability sessions to Supported Intems as well as sourcing work placements and providing on-placement support whilst clients and our students are in the vmrkplace. It has long been recognised that there is a funding gap for Ihose tearners, leaving education and clients referred for employability support some years later. W& recognise the need to seGure funding for a programme to transition learner5 from ESFA funded education PTogrammes into independent living while alsc being supported to continue to aGcess support for volunteering. personal development and employability skills (including employment). We continue to look for ways for this to b8 funded. The department was su¢¢essful is winning a contract with DWP to deliver a personal developmenvconfiden building provision for 80 clients across the dislrict covering Northumberland. North Tyneside. Newcastle, Gateshead, South Tyneside and Sunderland. 12
The Azure Charitable Foundation (previously Azure Charitable Enterprises) {A company limited by guarantee) Trustees. report (continued) Year ended 31 January 2025 Supported Employment at Azure The number of people in supported employment a¢ross the charity (in Corporate Services, Garden Centre. Garden Centre Café. Nurseries, Landscaping business and Education Services) was 30 al Ihe year end {30 at year end 23124; 31 al year end 22123; 18 at year end 21122). Employment Services Gontinue to provide infomiation. advice. guidance. job ¢oa¢hing. job aiding and emotional support to our intemal supported employees who work throughout the charity. We work closety with departmental managers and supervisors and provide job coaching and support personal development where additional support may be required. Over the last year this support has been wide-ranging and demonstrates the value of a holistic approach with our staff providing 'supported employees. with extensive support beyond the work-place. Supporl Services Support Services provides a range of care servIS to individuals with disabilities in the North East region. The companvs residential based work in the housing departments of Cramlington. Washington, Tyneda18, and Newcastle, as well as its enabling support activity around the North East, are of the highest quality and are regularly verified by third paty inspections. Azure's aim is to support clients to achieve autonomy, exercise their personal freedoms and make choices about the lives they lead. Our services are tailored to individual needs and are delivered in 8 flexible. personalised way to support all our clients including 2417 if required. Our staff are expert and experienced in mentoring and supporting the development of life-skills and assisting our clients to engage with the broader community. We work with each of our clients to understand and support their personal aspirallons. thelr interests and their active participation in not onty leisure and recreational activities but also employment opportunities. As an organisation. we are committed to delivering high quality care and support that affords our clients with a sense of continuty and accounlability for all worklng practi$ and vrfe are r8gist8r8d with th8 Care Qualty Commisslon to provide personal care. Above all. we are detemlined to protect and secure our clients. rights to high quality care and lo ensure that our clients live happy and fulfilling lives. Azure employs highly trained professional staff to support people with a disability to live in homes appropriate to their needs and to support them to live as independently as they are able. The charity works Closely with local authorities and partner organisations that provide homes for people with 8 disabilty whilst also providing an enabling service for clients to better access the communtyl¢ommunity facilities and public amenities. The funding stream mix is complex and variable, but it allows the company to continue providing high-qualty support seTvices to those who need it most. 13
The Azure Charitable Foundation (previously Azure Charitable Enterprises) IA company limited by guarantee) Trustees. report (continued) Year ended 31 January 2025 Resldential Care: Support Services have been providing residential care support to individuals with disabilities in two homes in Washington (for 29 yearsl- at the end of the year, 10 residents were being supported in the homes through this service. The quality of the support provided is regularly verified by third party inspections to ensure that it meets the highest standards of care. As reported last year. Azure agreed with Service Commissioners that the two homes would be deregistered and re-registered as independent supported living homes. The process of deregistering the service is now complete, and both services are now registered as ISL seNi¢es. As part of this proGess. client needs have been re-assessed with additional hours of 1-1 support commissioned that will support clients, emotional health and well-being. A satellite service has also been established for a client that has been supported lo move from childrèn's services out of county back into Sunderland, to live in their own home with 1-1 support. We are now working with Sunderland Cty Council and their Adult Social Care teams to develop and grow our offer in and around Sunderland in thls vein. Supported Llvlng: In addition to residential support, Support SeNic8s also provldes Supported Living services across Northumb8rland and Newcastle. Supported Living aims to enable clients with disabilitles to liv8 independently in their own homes andlor with others (in environments that are safe, inclusive. and integrated) with support provided by trained professionals. Thls Servi allows individuals to have more control over their lives and live with greater independence. The level of support provided varies depending on the client's needs, but it can include support wlth daily living tasks, such as cooking, cleaning, managing finances, accessing healthcare, and maintsining social ¢onneclions. Support is tailored to each person's specrfic requirements, preferences, and goals. promoting their autonomy. choice, and control over their lives. Support includes: Assistance with daily living tasks (e.g.. cooking, cleaning, personal care) Budgeting and financial management Accessing healthcare and community resources Building and maintaining social relationships Encouragement and facilitation of community participation Azure places a strong emphasi5 on promoting social interaction, personal growth. and meaningful engagement in the wider community. While support staff are readily available to assist as needed, the primary objective is to empower clients to lake ective control of Iheir lives within a supportive framework. At the end of the year, 62 residents were being supported through the servic8. 14
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company limited by guarantee) Trustees. report (continued) Year ended 31 January 2025 Enabling Support: Support Services also provides Enabling Support Services to people with disabilities throughout the North East region. This service support5 individuals with disabilities to aCsS the community, participate in social activities, and live more independentty. This service aims to encourage invofvement in society. foster inclusivity, and improve Ihe lives of individuals with disabilities. The enabling services give priority to Grafting personalised support plans tailored to the unique needs. preferences. and aspirations of each client. This could encompass everyday tasks like household chores and financial management. Clients receive assistance in improving their skills to maximize independence and self-reliance. This may involve training in communication. mobility. socialisation. and vocational skills: facilitating better integration into both the community and the workforce. Empowering clients to assert their rights and access servIs, resources, and opportunltles of their choosing Is a key aspect of our enabling s8rvices. Enabling support facilitates meaningful engagement in community life by conneding clients with social networks, recreational activities, educational opportunitl8s, and volunt8er opportunities. Thls cultivates a sense of belonging, social connectedness, and fuifilmenl beyond formal support structures. Furthermore. Enabling Services promote overall health and well-being by addressing physical. emotional. and mental health needs. This encompasses facilitating access to healthcare $8rvices. promoting healthy lifestyles. and offering emotional support and counselling as required. For clients und8rgoing transitions from institutional settings or experlencing lrfe changes, our Enabling Support provldes support with transition planning. resettlement, and integration into communty living. This often involves ¢oordinating services. collaborating with relevant agencies. and delivering ongoing support throughout periods of change. At the end of the year, 53 dients were reivIng support through the Community Access Enabling Service. At the time of writing. we are now supporting 56 seNice users. Corporate (Centrall Services A variety of corporate functions are centralised and performed by a small, dedicated team Ihat supports the charity to deliver services and operate the charity's constituent businesses. It also assures compliance with all legal and other requirements. Key function5 include finance, administration. human resource management including recruitment, perfomiance management, payroll, work force development. IT infrastructure, maintenance, janitorial and security. 15
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmlled by guarantee) Trustees. report (continued) Year ended 31 January 2025 Financial review The charity continues to grow revenues (from the delivery of services and the operation of our businesses). Total Gross Income £ii£(o.cDJ £10,466.275 £),( £9..(ml £9,221.693 £9.(XXI,(KXI 7%532 £8.767,989 £8,377,968 É8,221.468 £8.119.45*8.061.019 E7,808.037 £4(U),C £7,5,(KY É7.324.9a7,418 422 £7,),(N) £6.$[1.( £6,(W( 2014115 2015116 2016117 2017118 2018119 2019120 2020DI 202V22 202V23 202¥24 2024125 The sustained improvement in the group's financial performance has allowed the charty not only to create a 'Charitable Reserve. as a safeguard against financial and operational uncerlainties but also improve pay and remuneration across the group as we endeavour to become a Real LNing Wage Employer. More significantly, the perforniance has provided a platfonn from which the charity can develop and expand our charitable activities and which will support a Iransformation81 investment in our education facilities and which may also include residential and sportinglrecreational facilities. 16
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmlted by guarantep) Trustees. report (continued) Year ended 31 January 2025 Annual Operating Surplus/ Deficit {Gros5°1 £1,0,( £820.748 £&1)0 £736,072 £606.286 £ffj( £395,615 £400,CtJO £200.¢XN) £6.685 .£2(KJ,C( -É69,650 -£20,930 .-£108,579 4122,110- -£258.740 .£4(K)P(XJ 2014115 •201¥16 • 2016117 •2017118 28/19 •2019120 ll 2020nl ll202V22 •2022123 • 2023D4 w 2024125 'Excluding exceptional costs that included the impairment of the Gateshead Buwness Centre and repair to Newburn roof inCUrd in 2017/18, the cosls of seNicing Sn emergency (£400k) loan to support restruGluring costs incu@d 2019/20 and 2020/21 and 8 £300k c8pltal In$(ment In the Garden Centre Café in 2020/21. Summary The charty continues to deliver an outstanding range of services (Care & Support, Education and Employment) and operates a number of businesses (Garden Centre, Garden Centre Café and Landscapes), with the purpose of providing education and training {in each of these settings) and provldlng 'supported employment. for our clients in what remain very challenging circumstances. The Garden Centre. Business Centre and our Landscapes business conlinue to perfonn well supporting the delivery of a very healthy operating surplus (see overleaf). The delivery of Commissioned Services (Adutt Care services to Lo¢al Authorities) remains challenging as Local Authority fee rales have failed to keep pace with inflation in (real terms) and for many years and where the delivery of services has andlor is becoming increasingly 'marginal' with services returning operating deficits i.e. where real costs of delivery exceed the fee income from Local Authorities (and which are generally calculated to support the employment of support staff at no more than the National Living Wage rate in any event>. This, in our considered opinion, continues to debase and devalue the work of our staff (and which continues to frustrate staff recruitment and retention). The Board of Directors are mindful that Azure was founded to provide added-value in our communities and to enhance to the dellvery of services; it is not Azure's role to subsidise the delivery of local authorty obligations and we are determined to ensure that Azure's improved financial perfonnance and resources are devoled to Ihe fonner. With our operating surplus retumlng to what we could conslder a 'healthy' and. most importantly, sustainable level our focus remains on the dev81opment and sustainability of our charitable seNlces. 17
The Azure Charitable Foundatlon (previously Azure Charitable Enterprises) (A Company Ilmlted by guarantee) Trustees. report (continued) Year ended 31 January 2025 Annual Operating Surplus/ Deficit (Net.) £i.(woo) £820,748 £8)O,OX) -£736,072 £606,286 £f,() £395,615 £4CQ.(D) £200.(KK) É3,685 -£20,930 .ll(L).{X 11950 -£102,866 -£265.579 -E4(K)KNII -E304.540 • 2014115 ll 2015116 • 2016117 •2017118 • 2018119 • 2019120 • 2(Y20121 • 2021122 • 2022123 ll 202¥24 • 2024125 '"After exceptional costs noted above. The delivery of much-needed Employment Services remains contingent on securing funds or service contracts for the delivery of the same. Supported Employment and our Supported Business status remains dependent on the trading perfonTtance of our 'ventures' i.e., Garden Centre, Business Centre and Landscaping businesses and the patronage of locavregional organisations. The charity will continue to be a strong advocate for those we support and their families, challenging inequality and to make concerted efforts to shape policy (national and local) by working more collaboratively with other seNices providers - particularly as regards 'strategic commissioning. and budg8t setting (for the provision of support services) inlby Local Authorities with the aim of supporting improved pay and conditions for our Support Services Staff. To this end. the Board of Directors and the Executive are committed to working locally, regionally and nationally to ensure that the work of Adutt Care staff Is more wldely understood, acknowledged and properly valued. 18
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmited by guarantee) Trustees. report (continued) Year ended 31 January 2025 Reserves and Golng Concern The results for the year provide the Azure group with a net asset position of £6.211.30712024: £5,390,559). At the year end, the group had a net current asset position of £2,656.047 (2024.. £1,842,312). This is a mu¢h-improv8d position on the previous year end and gives confidence that the group is in a strong position with sufficient cash to meet its current and future obligations. The charity's forecasts and projections for the next iwelve months show that the charity should be able to continue in op8rational existence for that perlod, tsking into account reasonable possible changes In trading performance and the potential impact of adverse events political, economic OT environmentsl {nationallinternational). The charity and its trading subsldlarfes have strong positive Cash balances and is forecastlng for this to continue to be the case. The twstees have stress-tested their forecasts, taking into account various scenarios, and remain confident that while the economic UnrtaIntieS remain. they do not cast signlficant doubt on the company's ability to continue as a going ¢oncem. The totsl funds of the Azure Group at year end are £6.211.307, which are all unrestricted. Free reserves {total fijnds less fixed assets and investment property) are £2,656.047 which is in excess of that required in the current reserves policy (£200kl. Fundraislng Pollcy The charity is required to report how It deals with fundraising from the public. The charity does not use a professlonal fundraiser or commercial particlpator to raise funds. Any monies ralsed directly from the public follows all guidelines set out by the Charty Commission and UK law in every respect. We respect the privacy and contsct preferences of all public donors. Publlc Benefrt Statement The trustees have referred to th8 guidance contained in the Charity Commission's general guidance on public benefit when revlewing the aims and objectives and in plannlng future activities. The charitable objectives also are set in order to provide a clear and demonstrable public benefit. Princlplal Rlsks and Uncertainties Risk Management The charity has a comprehensive risk review process and this is fully updated every year. The resultant risk analysis is considered by the Audit & Rk8k Committee In the first instance then is taken to the Board for approval. With respect to health and safety, a senior manager is the Charivs safety advisor and saf8ty representatives are appolnted In the various areas of the organisation. The Board receive {dir8Ctly) regular reports on health and safety matters (including accident and °near miss. statistics). The Charity has discharged all borrowings and has established a Charitable Reserve and also has placed sums on deposit at a higher rate of interest. The twstees are satlsfied that the systems and prOdureS in place are sufficlent to ad8quately mitigate identified risks to an acceptable level in the charity's day-ldaY operations. The financial statements have been prepared in acwrdan¢e with the Statement of Recommended Pracllce: Accountlng and Reporting by Charities (SORP FRS102) and conform to current statutory requirements and compty with the charitable company's goveming documents. 19
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company limited by guarantee) Trustees. report (continued) Year ended 31 January 2025 Investment powers and restrictions The charity funds are controlled by the directors, who also act as trustees, who invest with a vi8W to safely optimising annual investment income while maintaining Capital growth in line with market trends. The trustees can invest any sums or investments received by them which they are by law authorised to invest money (including trading subsidiaries), with powerfrom lime to time to change for others of a like nature. Plans for future periods The Board and Executive are committed to a process of continuous improvement to optimise both the financial performance and the actlvltles of the charity and its subsidiaries. It is envisaged that economi¢ conditions will remain challenging and with the potential lo affect all departments. An organisation-wide cost control strategy exists with close scrutiny of all discr8tionary spending. The trustees have approved a budget for the forthcoming year consistent with these comments and the chariws overall strategic plan. The d)arity remains concerned to protect itself from the 'seasonality' and associated risks to Garden Centre revenues (which remain weather dependant) and continues to develop plans to expand the garden ntre to increase and diversify its income streams. Further to consultstions wlth Northumberland County Council, North Tyneside Council and the DfE, the charity is now working to address an inherent weakness in the locallregional education and skills infrastructure and which has prompted Ure to develop plans to establish a specialist, vocational SEND co118ge (Specialist Post 16 Institution) and to develop a response to a lack of accommodation designeé to support young people moving into independent livlng settings. 20
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company limited by guarantee) Trustees. report (continued) Year ended 31 January 2025 Structure, governance and management Governlng Instrument and Constitution The organisation is a charitable company limlted by guarantee, incorporated on 21st Septemb8r 1982 and registered as a charity on 13th October 1982. Th8 charitable company was established under a Memorandum of Association that established the objects and powers of the charitable company and is govemed under its Articles of Association. The company's membership is limited to 50 members. The members devolve authority to a Board of Non-Ex8cutive Directors (Trustees) who meet bi-monthly who in turn devolve the executive management to the Chief Executive and senior managers. In the event of the charilable company being wound up. members are required to contribute an amount not exceeding £1 each. The govemlng Instruments Were revised at an Extraordinary General Meeting on 5th of February 2025. Board of Dlrectors (Trustees) The charity is governed by its Board of Directors (Twstees) - who are th8 appointed directors of the company. Th8 number of trustees at present Is 9 (the requir8ment being that the number is not less than 6 nor more than 20). Trustees are elected to serve 3-year terms, retire by rotstion and are able to stsnd for re-alection: At the 2025 Annual General Meeting Geoff Robson, Robin Adams and Angela Chartton retire by rotation (und8r Article 29) and belng ellgible. offer themselves for re-818Ction. At the 2025 Annual General Meeting Chris Vaulks, being a new Member of the Board appointed on the 31st of July, offers himse for re-electlon (under Article 34> The trustees meet as a nomi not less Ihan six times a year. They receive regular, detai18d management accounts (including cash flow projections) as well as reports on operational activities every month. They regularly receive presentations and reports on any major developments or proposals. They particlpate In the strategic planning process and have ultimate responsibility. The Board of Trustees and Exeoutive wish to 8xpress and record their thanks to Mr Graham Bamard (Chair of the Board of Trustees) who will retire at the AGM in July 2025. Graham joined Azure as a trustee In July 2009 and has seNed on the charity's Risk and Audit Committee, Remuneration Committee and Corporate Services Committee. Graham was elecled Vice Chair of the Board of Trustees in 2012 and Chair of the Board of Trustees in 2016. As Chair. Graham has led the Board through a p8riod of great challenge and transformation that has included overseeing Ihe development and implementation of strategies and plans designed to extend the charity's services and assure its long-term future. 21
The Azure Charitable Foundation (previously Azure Charitable Enterprises) IA company limited by guarantee) Trustees. report (continued) Year ended 31 January 2025 Recruitment of trustees Any trustee vacancies which arise are filled by search with due regard lo maintaining a proper balance of skills and experience within the Boar(l. All appointments are subjecl to Ihe approval by members at a General Meeting. With the notice of such meeting. members are provided with a profile of prospective new trustees - and equivalent information for any trustee offering themselves for relectIOn. Additionally, a full attendance record is made available to members. Trustee induction and tralnlng New trustees are provided wilh a proper induction process and all relevant papers and associated guidance to properly fulfil their responsibilities. Briefing papers and familiarisation training is effeGted for all truste8s, as deemed necessary. Sub commlttees The Board of Truslees has four special subiommittees that assist the Board: A Corporate Servi¢•s Committee consisting of four memb8rs of the Board and chaired by the treasurer meets 6 tSmes a year to support the Board to establish and implement policies. procedures and controls to facilitate financial govemance, which includes financial planning, budgel approvals. expenditure approvals and financial reporting. The committee.. Functions in Conjunction with the Board and the Executive on major areas of change. innovation and development. Undertakes iasks delegated by the Board that are within the committee's terms of reference. Reviews and comments upon management accounts and financial forecasts. Considers the financial implications of proposals for areas of major new strategic development on behalf of the Board and makes recommendations to the Board in respect of Iheir suitability. Maintains an overview of financial performance. Reviews the trust's financial policies, induding Its financial r8S8rves policy. and comments upon proposed Changes before making recommendations to the Board. Decisions are ultimately the responsibility of the trustee members of the committee. and in reaching their decisions and recommendations they will, so far as possible. lake account of the views of the executive direGtors and any CCH)Pted advisors. The Audlt and Risk Commlttee consisting of four members of the Board meets hvice a year to support the Board and Executive reviawing the Gomprehensiveness and reliabilty of assurances on governance. risk management, the control environment and the integrity of financial statements and the annual report. The ommittee: o Keeps a watching brief and provides advice. where appropriate. on potential and actual financial opportunities and threats. Assists the Board lo identify the charity's major risks and developing appropriate approaches to risk management. This includes periodic reviews of the charity's insurance cover. Oversees the process for appointing the external auditor, approving the audit fee. considering any questions of resignation or dismissal of the external auditor. and making recommendations to the Board Discusses with th8 extemal auditor. before the audit Commences, the nature and scope of the audit 22
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company limited by guarantee) Trustees. report (continued) Year ended 31 January 2025 Reviews the annual audited financial statements before submission to the Board focusing particularly on any changes in accounting policies, major areas ofjudgement, significant adjustments resulting from the audit, Complian with charity legal requiTements and financial reporting standards. and presentation of the accounts from a non-financial perspective Discusses with the auditor significant matters arising from the audil Reviews policy and procedures in respect of intemal financial controls o Reports periodically to the Board. The Services Committee consisting of four members of the Board. the Chief Executive and Heads of Service meets at the instruction of the Board to review the nature and scope of services, quality of services and opportunities for development to support the development of strategy and plans. The broad role of the committee is to consider matters not otheThvise reported to the Board of Trustees and which may relate, for example, to the development and delivery of services (including regulated $8rvices) provided by Azure under contract to government departments, executive agencies (e.g.. ESFA), local authorities. etc. and which presently inGlude'. (i) Adult Social Car8 (1.8., 'Support ServSces'): (li) Education & Training Services. and (iii) Employrnent SeNices {Including 'Supported Business.). More specifically. the committee may be convened by the Board of Trustees to.. Review the achlevement and maintenanc8 of high standards of teaching. learning and assessment (Education Services). andlor Assess the nature, level of support and client impact {for Support Servic8s & Employment Services clients). andlor Provlde a fowm for the Board of Trustees and senior managers to test new ideas relating to the development and delivery of servSces Including assessments of their 8ffectiveness; andlor Monitor the outcomes of Azure's quality assurance system regarding learner andlor client experiences. including destinations, satisfaction surveys and mplaInts. andlor Receive, consider and monitor Azure's self-assessment reports and the associated action plans, to include the effectiveness of quality control of all services and report appropriately to the Board: andlor Monitor P2ure's development and compliance with all policies and proGedures regarding equality of opportunty and diversty,. andlor Receive reports of formal internal inspections of areas of Support Services. Education & Training and Employment Services and the associated action plans and consider them in the context of each service's strategy., andlor o Receive and consider reports detailing studenvclient recruitment. retenlion and progress including changes to the profile of recruitment and report to the Board on their potential significance for th8 charity's curriculum andlor financial strategy. andlor Receive and consider reports on any other quality requirements identified by the CQC, OFSTED or other inspectorate or funding body. 23
The Azure Charitable Foundation (previously Azure Charitable Enterprises) IA company Ilmlted by guarantee) Trustees, report (continued) Year ended 31 January 2025 The Remuneration Commlttee consisting of four members of the Board meets at least once each year to ensure that Azure's Pay & Reward strategy and policies attract and motivate personnel to achieve the long-tem interests of the charity and deliver services to the communities we serve. More specifically, the committee is responsible for and the scope of: Annual cost of living or performance related awards. The remuneration of all personnel including senior staff and Ihe Chief Executive. Ensuring the policy and application of the remuneration policy is equitable, fair and transparent Ovarse8ing any major changes in employee benefrts structures throughout the organisation Day to day management Day to day management of the charity and its constituent businesses and servi8 is vested in a professional team led by the charity's Chief Executive. The ChSef Executive meets regularly with the chair of the Board of Trustees (in addition to the formal meetings) and appraises the Chair of any significant issues as they may arise between meetings. The Chief Executive, Chief Operating Officer, Chief Financial Officer (and Company Secretary) attend the Board meetings (and other senior post-holders by rotation) but there is proper provision for the Board to discuss any matter without management attendance when they so wish. Key Management Personnel The key management personnel are those listed in the 'Reference and administrative details, page. In addition to thelr own attendance at the fonnal trustee Board meetings, the Chi8f Ex8CUtive, Chief Operatlng Officer 2nd Chief Financial Officer meel together with other Executive Directors and manager5 as needed. lo address all relevant operational issues. Pay Pollcy for Key Management Porsonnel Azure has identif18d key management personnel in the 'Referen¢e and admlnlstrative details, section. The remuneration of the key personnel is determined by the Remuneration Committee. with due reference to the Corporate Services Committee and the budget agreed directly by the Board and from which the Chief Executive is excluded in relation to any specific discussion of their remuneration. The Corporate Services and Remuneration Committees are guided by fomial reports which sets out all available relevant information which includes legislative obligations, best available benchmark data in relation to salaries and settlem8nt18V81s, internal differentials, recruitment difficulties, the recent settlement history at Azure. the proposed costs and ability to pay. 24
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A Company Ilmlted by guaranteo) Trustees. report (continued) Year ended 31 January 2025 Related Parties The charity has three subsidiaries, namely.. Azure Garden Centre Limited which is operated with the principal purpose of providing (i) employment. including 'supported employment, and (li) a setting for education and training for people with special educational needs or disabilities. Revenues generated by the garden centre supports our charitabl8 purposes which includes the delivery of care services. employability and education programmes. Azur8 College Limited which h8s been estsblished (in February of this year) to advan and provide education, training and care those with learning diffieuliies, special education needs or disabilities in a caring and sheltered environment. The College aims to {1) support the development of leamers, vocational, personal, Independent living and employability skills,. {ii} promo18 learners, self•esteem, confidence and sense of well-being; {iii) enable leamers to secure and sustain employment and actively engage in and with their community (iv) assure our learners, welfare. Azure Propety Management Services Ltd which op8rat8s Azure's investment propety (Newburn Business Centre) and which provides supported employment opportunities for our beneficiaries and which generates revenue for the charity to support its charitable purposes, The Charity and its subsidiaries work with Setvice Commissioners including Northumberland County Council, Newcaslle City Council, North Tyneside Council and Sunderland City Council, DfE, DWP. housing associations and other charities le.g. the NorthEast Autism Society) in the delivery of services to our beneficiaries. The Charity is a member of the Brilish Association of Supported Employment {BASEI Disclosure of information to auditor Each of the persons who are trustees at the time when this Trustees. report is approved has confirmed that: so far as that trustee is aware, there is no levant audit infomiation of which the charitable group's auditor is unaware, and that trustee has taken all th8 Steps that ought to have been taken as a trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditor is aware of that information. Auditor The auditor. UNW LLP. has indicated his willingn8SS to contlnue In office. The designated trustees will propose a rnotion reappointing the auditor at a meeting of the trustees. Approved by order of the memb 'rs of the board of trustees on 9 June 2025 and signed on their behalf by: GPBarna Chair 25
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmfted by guarantee} Statement of trustees. responsibilities Year ended 31 January 2025 The trustees (who are also the directors of the charity for the purposes of company law) are responsible for preparing the Trustees, report including Ihe Strategic report and the financial slatements in accordance with applicable law and United Kingdom Acunting Standards {United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial ststements for each financial . Under company law. th8 trustees must not approve the financial statements unless they are satisfied thal they give a true and fair view of the stste of affairs of the group and the charity and of Iheir incoming resources and application of resources, including Iheir income and expenditure, for that period. In preparing these financial ststements, the trustees are required to: select suitable accounting policies and then apply them ¢onsistently' observe the methods and principles of the Charities SORP (FRS 102). make judgments and accounting estimates that are reasonable and prudent" state whether applicable UK Accounting Standards (FRS 102) hav8 b8en followed, subject to any materlal departu$ disclosed and explained in Ihe financial ststements; prepare the financial statements on the going concem basis unless it is inappropriat8 to presume that the group will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain Ihe group and the charitys transactions and disclose with reasonable accuracy at any time the financial position of the group and the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding Ihe assets of the group and the charity and hence for tsking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by order of the membe f the board of twstees on 9 June 2025 and signed on its behalf by: G P Barnard Chair 26
Independent auditor's report to the members of The Azure Charitabl8 Foundation (prevlously Azure Charltable Enterprlses) Oplnlon We have audited the financial staternents of The Azure Charitable Foundation {previously Azure Charitable Enterprises} {the 'parent charitable company) and its subsidiaries (the 'group') for the year ended 31 January 2025 which comprise the consolidated ststement of financial activities, the consolidated balance sheet. the charitable company balance sheet. the consolidated stalemenl of cash flows and the related notes, 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 Stsndard 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: give a true and fair view of the state of the group's and of the parent charitable companls affairs as at 31 January 2025 and of the group's incoming resources and applicatlon of resources. Including its income and expenditure for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companles Act 2006. Basls for oplnlon We Conducted our audit in accordance with Intemational Standards on Audtting (UK) ('ISAs (UK),) and applicable law. Our responsibilities under those standards are further described in the 'Auditorfs 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 lo our audit of the financial ststements in the United Kingdom. including the Financial Reporling CounGiI's Ethical Standard. and we have fu¥lled our other ethical responsibilities in accordance wilh these requirements. We believe that the audit evidence V have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relatlng to golng concern In auditing the finan(aal statements. we have concluded that the trustees. use of the going concem basis of accounting in the pparatiOn of the financial statements is appropriate. Based on the work we have performed, we have not identtfied any material uncertaintie5 relating to events or conditions that, individualty or collectively. may cast significant doubt on the group's or the PanI charitable companys ability to continue as a going concem for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibllities of the trustees with respect to going concem are described in the relevant seclions of thls report. 27
Independent auditor's report to the members of The Azure Charitable Foundatlon (previously Azure Charltable Enterprises) (continued) Other information The other information comprises the information included in the annual report other than the financial statements and our auditorfs report thereon. The trustees are restx)nsible for Ihe olher infonnation contained within the annual report. Our opinion on the financial statements does not cover Ihe olher information and, excepl to the extent otherwise explicitly stated in our report, we do not express any fomi of assurance conclusion thereon. Our responsibility is to read the other infomiation and, in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be malerially misstated. If identify such material inconsistencies or apparent material misstatements, y are required to detemiina whether this gives rise lo a material misstatement in the financial statements themselves. If. based on the work we have perfomied. we conclude that there is a material misstatement of this other information, w8 are required to report that fact. We have nothing to report in this regard. Oplnlon on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the Course of the audit: the information given in the trustees, report including the strateglc report for the financial year for which the financial slatements are prepared is consistent with the financial ststements. the trustees, report and the strategic report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of Ihe audit. we have not identified material rnisstatements in the trustees. report including the strategic report. We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you rf. in our opinion: the parent charitable company has not kept adequate and sufficient accounting records. or retums adequate for our audit have not been received from branches not visited by us; or the parent charitsble company financial statements are not in agreement with the accounting records and returns. or certain disdosures of trustees, remuneration specified by law are not made. or we have not recelved all the infomiation and explanations we require for our audit. 28
Independent auditorfs report to the members of The Azuro Charltable Foundation (prevlously Azure Charitable Enterprlses) (continued) Responsibllltles of trustees As explained more fully in the truslees. responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are SponsIble for the preparation of the financial statements and for being satisfied that they give a true and fair view. and for such intemal control as the trustees detennine is necessary to enable the preparation of financial statements that are free from material rnisstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group's and the parent charitable companls ability to continue as a going concern, disclosing, as applicable, matters related to going oncern and using the going concern basis of accounting unless the trustees either intend to liqui(tate the group or the parent charitable cornpany or to cease operations. or have no realistic alternative but to do so. Auditorfs responsibilities for the audil 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 auditorfs 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 a consider8d material if, individualty or in the aggregate, they could r8asonably be expected to Influence the economic decisions of users taken on the basis of th8s8 financial statements. Irregularities, including fraud, are Instances of nonwcompliance with laws and regulatlons. We design procedures in line with our responslbillties. outlined above, to detect material mlsstatements in respect of irregulariti8s, including fraud. The exlenl to which our procedures are Capable of detecting irregularities, including fraud is detailed below: We identified areas of law and regulations that could reasonably be expected to have a material effect on the financial statements from our general and sector experience and through discussions with the trustees and other management (as required by Auditing Standards) and from inspection of the group's legal correspondence and we discussed with the trustees and other management the policies and prOdureS in place regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our audit team and remained alert to any indications of non-compliance throughout the audit. Flrstly, the group is subject to laws and regulations that directly affect the financial statements includlng financial reporting legislation (including related companies legislation), distributsble profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement ilems. Secondly. the group is subject to many other laws and regulations where the consequences of non-compliance could have a material effecl on amounts or disclosures in Ihe financial statements. for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect. health and safety. safeguarding, employTnent law, data protection and certain aspects of company legislation, recognising the nature of the group's activities. Auditing Standards limit the required audit procedures to identrfy non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, rf any. Through these procedures, we did nol become aware of any actual or suspected non-compliance material to the financial statements. 29
Independent auditorfs report to the members of The Azure Charitable Foundation (previously Azure Charitable Enterprises) (continued) 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 r8gulation 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 Ihe audit of the financial statements is located on the Financial Reporting Council's website at- www.frc.or .uklauditorsres onsibilities. This description fornis part of our auditorfs report. Use of our report This report is made solely to the charitable companls 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 companys members those matters are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibilty to anyone other than the charitable company and its m8mb8rs, as a body. for our audit work, for this r8port, or for the opinions w8 have fonned. Anne Hallowell Bsc DChA FCA (Senlor Statutory Audltor) for and on behalf of UNW LLP. Statutory Auditor Chartered Accountants Neastle upon Tyne 9 June 2025 30
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmlted by guarantee) Consolidated statement of financial activities (incorporating inGome and expenditure account) For the year ended 31 January 2025 Unrestricted funds 2025 Restricted funds 2025 Total funds 2025 Total funds 2024 Income from: Donations and legacies CharFtable activities Other trading activities Investments 2.412 6.057.148 4,380,796 22,319 3,600 6,012 6,057,148 4.380,796 22,319 21,681 5.118.267 4,081,745 Total Income 10,462,675 3,600 10,466,275 9,221,893 Expendlture on: Raising funds Charitable activities 3.791902 5.847.025 3,794.902 5,850,625 3,508,150 5.107.257 3,600 Total expenditure 9.641.927 3.600 9,645,527 8.615.407 Net movement in funds 820,748 820,748 606,286 Reconciliation of funds: Total funds brought forward Net movement in funds 5,390.559 820,748 5,390,559 820,748 4,784.273 606,286 Total funds carried forward 20 6,211.307 6,211,307 5,390,559 The consolidated statement of financial activities includes all gains and losses recognised in the year. The notes on pages 3510 56 form part of these financial ststements. 31
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmlted by guarantse) Consolidated balance sheet At 31 January 2025 2025 2024 Note Flxed assets Tanglble assets Investment property 14 15 2.560.260 995,000 2.553,247 995.000 3,555,260 3,548,247 Current assets Stocks Debtors Cash at bank and in hand 17 18 402,948 971,670 2.247.301 440,694 512,319 1,712,216 3,621.919 2.665.229 Creditors: amounts falling due within one year 19 1965,872) (822,917) Net current assets 2,656.047 1.842.312 Total assets less current IlabllltSes 6,211,307 5,390,559 Total net assets 6,211,307 5,390,559 Charity funds Restricled funds Unrestricted funds 20 20 6.211.307 5,390,559 Total funds 6,211,307 5,390.559 The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements were approved and authorlsed for issue by the trustees on 09 June 2025 and signed on their behalf by.. G W Robson Treasurer & Vice Chairman The notes on pages 35 to 56 form part of these financial ststements. 32
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmlted by guarantee) Balance sheet At 31 January 2025 2025 2024 Note Flxed assets Tangible assets Investments 14 16 2,439,937 2.416.552 2,439,939 2,416,554 Current assets Debtors Cash at bank and in hand 18 815,254 2,101,417 818.194 1.077.273 2.916,671 1.895.467 Creditors: amounts falling due within one year 19 (1,172,532) (963,665) Net current assets 1.744,139 931,802 Total assets less current liabllitlos 4,184,078 3.348,356 Total net assets 4,184,078 3.348,356 Charlty funds Restricted funds Unrestrscted funds 4,184,078 3,348,356 Total funds 4.184,078 3,348,356 The charitys net movement in ndS for the year was £835,722 (2024 - £563,416). The trust88s acknow18dge th8ir responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements were approved and authorised for issue by the trustees on 09 June 2025 and sned on their behalf by.. G W Robson Treasurer & Vice Chaimian Company registered number.. 01666027 The notes on pages 35 to 56 form part of these fsnanci81 statements. 33
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmlted by guarantee) Consolidated statement of cash flows For the year ended 31 January 2025 2025 2024 Note Cash flows from operatlng activities Net cash used in operating activities 22 685,312 1,115.423 Cash flows from Investing activities Purchase of tangible fixed assets (150,227> (331,184) Net cash used In Investing activities (150,227> (331,184) Cash flow3 from financlng actlvltles RepanentS of borrowing (65.047) Net cash used in financing activities (65,047) Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year $35,085 1.712,216 719,192 993,024 Cash and cash equlvalents at the end of the year 23 2,247,301 1,712,216 The notes on pages 35 to 56 form part of these financial statements
The Azure Charitable Foundation (previously Azure Charitable Enterprises) IA company Ilmlted by guarantee) Notes to the financlal statements For the year ended 31 January 2025 General information The d)aritable company is a company limited by guarantee. The members of the charitsble company are the trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company. Accounting policles 2.1 Basis of preparation of financlal statsments The financial statements have been prepared in accordance with thg Charities SORP {FRS 102) Accounting and Reporting by Chariti@s.' Statement of Recommended Practice applicable to charities prepartng their accounts in accordance with the Financial Reportlng Standard applicable in the UK and Republic of Ireland {FRS 102) (effective 1 January 2019). the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) and the Companies Act 2006. They are presented in pound sterling and rounded to the nearest £. The Azure Charitable Foundation (previously Azure Charitable Enterprises) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless olherwise stated in the relevant accounting policy. The consolidaled statement of financial activities (SOFA) and consolidated balance sheet consolidate the financial statements of the charity and its subsidiary undertakingss. The results of the subsidiaries are Consolidated on a line by line basis. The charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not psented its own statement of financial activities in these financial statements. 2.2 Going concern The charitys forecasts and projections for the next e1ve months show that the group should be able to continue in operational existence for Ihal period, taking into account reasonable possible changes in trading performance. This also considers the effectiveness of available measures to assist in mitigating the impact. The charity and its trading subsidiaries have strong positive cash balances and is forecasting for this to continue to be the case. The trustees have stress t8Sted their forecasts. taking into account various scenarios, and remaln confident that the uncertainties do not cast signlficant doubt on the group's ability to continue as a going concern. 35
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmltad by guarantee) Notes to the financlal statements For the year ended 31 January 2025 Accounting policies (continued) 2.3 Income All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Income from govemment and other granls. whether'capital, grants or'revenue. grants. is recognised when the charity has entitlemenl to the funds. any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Income from commercial trading 8Ctivities is recognised as earned (as the related goods and services are provided) and as the rental and service charges fall due. Interesl receivablg is rocognis@d on a receivable basis, when the amount can be measured reliabty - this is nomially upon notification of the interest paid or payable by the bank. Income from charitable activities includes Income received under contract or where entitlement to grant fundlng is subject to specific performance conditions is recognised as eamed (as the related goods or services are provlded). Grant income Included in this category provides funding to support client service activities and is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Income is deferred when related grants are received and the performance conditions relating to its entitlement are not met. 2.4 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditu is classified by activity. The costs of each actlvlty are made up of the total of dired costs and shared costs. including support costs involved in undertaking each activty. Direct costs attributable to a single activity are allorated directly to that activity. Shared ¢osts which contribute to more than one activity and support costs which ara not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent. and depreciation charges allocated on the portion of the asset's use. Expenditure on raising funds includes all expendilure incurred by the group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading. Expenditure on charitable activities is incurred on directly undertaking the activities which further the group's objectives. as well as any associated support costs. All expenditure is inclusive of IeCoVerable VAT. 36
The Azure Charitsble Foundation (previously Azure Charitable Enterprises) (A company Ilmlted by guarantee) Notes to the financlal statements For the year ended 31 January 2025 Accounting pollcles (contlnued) 2.5 Tanglble flxed assets and depre¢lation Tangible fixed assets costing £500 or more are capitalised and recognSsed when future economic beneffts are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model. tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impainnent losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. using the straighl-line method. Depreciation is provided on the following bases.. Freehold property Long-tem) leasehold propety Short-tem) leasehold property Plant and equipment Motor vehicles Fixtures and fittings Office equipment 50 years straight-line or over the lease temi 40 years stralght-llne or over the lease tem) 40 years straight-line or over the lease term 3- 4 years straight-line 4 years straight-line 3 - 5 years straight-line 3- 5 years straight-line 2.6 Investment property Investment properties are measured at fair value at ead) reporting date, with any changes in fair value recognised in the consolidated statement of financial activities. Investment properti8s are not depreciated. 2.7 Investments Fixed asset investments are a form of financial insttument and are initially rewgnised at their transaction cost and subsequently measured at fair v£lue at the Balan sheel date. unless the 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 presented as 'Gainsl(Losses) on investments, In the Consolidated statement of financial aclivities. Investments in subsidiaries are valued at cost less provision for impaiment. 2.8 Stocks Stocks are stated at the lower of cost and net realisable value, being the estlmated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in. first out basis. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impaiment loss is recognised immediately in profit or loss. 37
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company limited by guarantee) Notes to the financial statements For the year ended 31 January 2025 Accounting policies (continued) 2.9 Cash at bank and in hand Cash at bank and in hantj includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposil or similar account. 2.10 Financial instruments The group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaclion value and subsequently measured at their settlement value with the exception of bank loans whlch are subsequently measured at amortised cost using the effective interest method. 2.11 Operatlng leases Rentals paid under op8rating leases are charged to the consolidated statement ol financial activities on 8 Straight Ilne basis over the lease lerm. 2.12 Pensions The group contributes to personal pension plans taken out by employees. Contributions are charged to the income and expenditure account as Ihey become payable. 2.13 Fund accounting General funds are unrestricted fvnds whith are available for use at the discretion of the trustees in furtherance of the general objectives of the group and which have not been design8ted for other purposes. Restricted funds are funds whlch are to be used in accordance with speclflc restrictions imposed by donors or which have been raised by the group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial ststements. Investment income, gains and losses are allocated to the appropriate fund. 38
The Azure Charitable Foundation (previously A2ure Charitable Enterprises) (A company Ilmlted by guarantee) Notes to the financial statements For the year ended 31 January 2025 Critical accountlng estimatès and areas of Judgment Estimates and judgments are continually evaluated and are based on historical experien and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Estimates included within these financial statements include depreclats'on charges, bad debt provlslons and the stock provislon. None of these estimates are considered to carry significant estimation uncertainty, nor to bear signlflcant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next financial year. The valuation of investment properties requires the use of significant judgement and estimation. Under FRS 102, the company determines the fair value of investment properties based on market conditions, comparable transactlons, and, where applicable. independent professional valuations. Key assumptions used in Ihe valuation process include: Market rental yields and growth expectations Property-specific characteristics, including location, condition, and occupancy rat8s Discount rates applied to future cash flows Comparable market transactions Changes in these assumptions or fiuctuations in markel conditions Uld significantly impact th8 fair value of investment properties, affecting reported profits and financial position. The company regularly reviews these estimates to 8nsure they reflect current markel conditions and adjusts valuations accordingly. In preparing these financial statements the tNstees do not consid8r there were any significant areas of judgment that were required in applying the groups a¢wunting policies as set out above. 39
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmited by guarantee) Notes to the financial statements For the year ended 31 January 2025 Income from donations and legacies Unrestrid•d Restricted funds funds 2025 2025 Total funds 2025 Donations 2.412 3,600 6.012 Unrestricted funds 2024 Restricted funds 2024 Total funds 2024 Donations 13,081 8,600 21,681 Income from charitsble actlvitiés Unrestrleted funds 2025 Total funds 2025 Total funds 2024 Provision of client services 6,057,148 6.057.148 5,118,267 All income from charitable activib'es in the current and prior year was unrestricted. 40
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company limlted by guarantee) Notes to the financlal statements For the year ended 31 January 2025 Income from trading activities Incom• from non charltable trading activities Unrestrlctsd funds 2025 Total funds 2025 Total funds 2024 Subsidiary trading income Nursery income Landscapes income Feed in tariff income 3,887.055 46,000 447,741 3,887,055 46.000 447.741 3,623,576 42,333 414,749 1,087 4,380,796 4,380.796 4.081,745 All income from trading activities in the current and prior year was unrestricted. Investment income Unrestrieted funds 2025 Total funds 2025 Total funds 2024 Interest receivable 22.319 22,319 41
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmited by guarantee) Notes to the financial statements For the year ended 31 January 2025 Expenditure on raising funds Fundraising trading expenses Unrestricted funds 2025 Total funds 2025 Total funds 2024 Cost of goods sold Rent and rates Advertising Heat. light and water Insurances Training Other Wages and salarles Depreclation 1,957.098 5.746 33.472 95.835 43.954 480 463,705 1.102,499 92.133 1,957,098 5,746 33,472 95,835 43,954 460 463,705 1,102,499 92,133 1.797,553 5,721 27.427 109.112 36.411 345 498,335 950.731 82,515 3,794,902 3.794,902 3,508.150 All expenditure from raising funds in the currenl and prior year was unrestricted. Income and expenditure from the Garden Centre is classifed as trading due to the 'Yor profrt" nature of the business to subsidise other charitable activities. However, the Trustees consider that the operations of the Garden Centre align with the objectives of the charity, providing education, training and employment opportunities alongside the other charitable activities of the group. 42
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmltsd by guarantee) Notes to the financial statements For the year ended 31 January 2025 alysis of axpondlturo on Charl1ab actlvltles Summary by fund type Unrestrl¢ted Restrleted funds funds 2025 2025 Total funds 2025 Provision of charitable activities 5.847.025 3.600 5.850,625 Unrestricted funds 2024 Restricted funds 2024 Total funds 2024 Provision of charitable activities 5.098,657 8,600 5,107,257 10. Analysis of expenditure by activities Support costs 2025 Total funds 2025 Dlre¢t costs 2025 Provision of charitable activities 4,978,112 872.513 5.850.625 Support costs 2024 Totsl funds 2024 Direct costs 2024 Provision of charitable activities 4,269,863 837,394 5,107.257 43
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company limited by guarantee) Notes to the financlal statements For the year ended 31 January 2025 Analysis of support costs 2025 2024 Wages and salaries Depreciation costs Interest 629.937 30,725 564.694 27.968 1.696 35.974 26,192 98.029 10,001 72,840 PoVr 30.485 18.103 71.222 15,751 76,290 Insurances other Legal and other professional costs GovernanrE costs 872,513 837,394 11. Audltorfs remuneration 2025 2024 Fees payable to the group's audttor for the audFt of the charttsble companys annual accounts 13,625 16,500 Fees payable to the group's auditor in respect of- Th8 auditing of accounts of subsidaries of the charitsble company Other services 10.000 1,700 6.000 2,350
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company limited by guarantee) Notes to the flnanclal statements Forthe year ended 31 January 2025 12. Staff costs Group 2025 Group 2024 Charity 2025 Charity 2024 Wages and salaries Social security costs Contribution to defined contribution pension schemes 5,835.053 426,731 5,182,330 363,517 4,997,771 426.731 4,457,033 363,517 285.421 228.510 285,421 228,510 6,547.205 5.774,357 5,709,923 5.049,060 The average number of persons employed by the group during the year was as follows: Group 2025 Group 2024 No. Garden Centre Supported Living Landscapes Support SeNi¢es EMplOent Services Education Administration Azure Business Centres Limited 36 76 16 62 35 78 15 58 12 12 13 224 215 The number of employees whose employee benefrts (excludlng employer pension costs) exceeded £60.000 was: Group 2025 Group 2024 No. In the band £60,001- £70,OIX) In the band £70,001- £80,000 In the band £140.001- £150,000 The key management personnel of th8 charity comprise the Chief Executive, Chief Financial Officer. Chief Operating Officer and Directors of Charitable and Corporate Services. The total employee benefits of the key management personnel of the group were £672,915 (2024: £527,765). 45
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmlted by guarantee) Notes to the flnanclal statements For the year ended 31 January 2025 13. Trust$. remuneratlon and oxpensos During the year, no trustees received any remuneration or other benefits (2024.. none). During the year ended 31 January 2025, no trustee expenses have been incurred (2024: none). 14. Tanglble fixed assets Group Assets Motor Office under vehlcles equlpment constructlon Freehold Plant and property equlpment Total Cost At 1 February 2024 Additions 3.808.048 40,684 646,569 32,133 76.365 785,838 38,188 275,969 5.592.789 39,222 150,227 At 31 January 2025 3,848.732 678.702 76,365 824.026 315,191 5.743,016 Depreciatlon At 1 February 2024 Charge for the year 1,702,492 73,642 542.705 44,366 48,648 9,fA9 745,697 15,557 3,039.$42 143.214 At 31 January 2025 1,776,134 587,071 58,297 761,254 3,182,756 Net book value At 31 January 2025 2.072.598 91.631 18.068 62.T12 315,191 2.560,260 At 31 January 2024 2.105.556 103.864 27.717 40,141 275.969 2.553,247 The net book value of freehold land not depreciated is £750,000 {2024: £750,000). 46
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A Company limited by guarantee) Notes to the financial statements For the year ended 31 January 2025 14. Tangible fixed assels (continued) Charity Assets Motor Offl¢e under vehi¢les equipment construdion Freehold Plant and property equipment Total Cost At 1 February 2024 Additions 3.640.819 40.684 336,024 21,020 76.365 401,708 29,903 275.969 4.730.885 39,222 130,829 At 31 January 2025 3,681,503 357,044 76,365 431.611 315,191 4,861,714 Depreciation At 1 February 2024 Charge for the year 1.574,412 71,339 325.247 12,362 48.648 9.649 366,026 14,094 2,314,333 107,444 At 31 January 2025 1.645,751 337.609 58,297 380,120 2,421,777 Net book value At 31 January 2025 2,035,752 19,435 18.068 51.491 315.191 2,439.937 At 31 January 2024 2.066,407 10.777 27,717 35,682 275,969 2.416,552 The net book value of freehold land not depreciated is £750,000 (2024.. £750,000). 47
The Azure Charitable Foundation {previously Azure Charitable Enterprises) (A company limit•d by guarantee) Notes to the financial statements For the year ended 31 January 2025 15. Invostment property Group Freehold investment property Valuation At 1 February 2024 995,000 At 31 January 2025 995,000 Investment properlies are held in Azure Property Management Services Limiled and were subject to an external valuation in 2023 by Sanderson Weatherall. The valuations were prepared on the basis of open market value and were made in accordance with RICS Valuation Global Standards 2022. These valuations have been updated by the directors to 31 January 2025. Investment property if included on a historical Cost basis would be stated at: Group 2025 Group 2024 Historic cost 567,990 597,884 48
The Azure Charitable Foundation (previously Azure Charitable Enterprises) IA company Ilmlted by guarantee) Notes to the flnan¢lal statements For the year ended 31 January 2025 16. Fixed asset Invoslmonts Investments In subsidiary companles Company Cost At 1 February 2024 At 31 January 2025 Net book value At 31 January 2025 At 31 January 2024 Princlpal 8ub$ldlaries The following We subsidiary undertakings of the charity. Names Company Country of number Incorporatlon Class of Holding shares Azure Garden Centre Limited AZU Property Management Services Limit8d 02746143 England 04642254 England Ordinary NIA 100% Azure Property Management Services Limited is a private company limited by guarantee without share capital and therefore no shares are held by The Azure Charitable Foundation. The financial results of the subsidiaries for the year were: Names Income Expenditure Profit for Iho year Nel assets Azure Garden Centre Limited Azure Property Management Services Limited 3.752,705 214,554 3.289,300 128.780 463,405 85,774 652,271 1.375,861 49
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmlted by guarant•o) Notes to the financial statements For the year ended 31 January 2025 17. Stocks Group 2025 Group 2024 Finished goods and goods for resale 402,948 440,694 18. Debtors Group 2025 Group 2024 Charity 2025 Charity 2024 Trade deblors Amounts owed by group undertakings Other debtors Prepayments and accwed income 298,759 154,239 261,912 468 25,007 527,867 113,117 369,059 1.144 334.874 26,738 646,173 3.134 354,946 971,670 512,319 815,254 818,194 The amounts owed by group undertakings are unsecured and repayable on demand. 50
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmited by guarantee) Notes to the financial statements For the year ended 31 January 2025 19. Credltors: amounts falling due wlthln ono year Group 2025 Group 2024 Charity 2025 Charity 2024 Trade credrtors Amounts owed to group undertakings Other taxation and Social security Other creditors Accruals and deferred income 293,691 194,655 147,142 443.901 352.685 61,530 167.274 101,054 306.558 329,301 49,096 177.656 356,761 73,195 242.225 340.140 60.644 227,478 965,872 822,917 1,172.532 963,665 The amounts owed to group undertakings are unsecured and repayable on demand. Deferred income Group 2025 Group 2024 Charlty 2025 Charity 2024 Deferred income at 1 February 2024 Resources deferred during the year Amounts released from previous p8riods 47.910 34,743 (47,910 47.910 34,743 {47.910) 47,910 47.910 Deferred income at 31 January 2025 34,743 47.910 34,743 47,910 51
The Azure Charitable Foundation (previously Azure Charitsble Enterprises) (A company Ilmlted by guarantee) Notes to the financial statements For the year ended 31 January 2025 20. Statemont of funds Statement of funds - current year Balance at 1 February 2024 Balance at 31 January 2025 Income Expendlture Unrestrietod funds General funds 5,390,559 10.462.675 (9.641.927) 6,211.307 Restricted funds Residents activities for Keele Drive 3,600 (3,600 Total of funds 5,390,559 10.466,275 {9,645,527) 6,211,307 Statement of funds - prior year As restated Balance at 1 February 2023 Balance at 31 January 2024 Income Expenditure Unrestricted funds General funds 4,784,273 9.213,093 (8.606.807) 5,390.559 Restri¢t•d funds Residents activities for Keele Drive 8,600 (8.600) Total of funds 4,784,273 9.221,693 {8.615,407) 5,390.559 Residents actlvltles for Keele Drlve: Various donations were received from Damant ML during the year towards the cost of providing social activities for the residents of Keele Driv8. 52
The Azure Charitsble Foundation (previously Azure Charitable Enterprises) (A company Ilmitod by guarantee) Notes to the financial statements For the year ended 31 January 2025 21. Analysis of net assets batwèen funds Analysls of net assets between funds - current perlod Unrestricted funds 2025 Total funds 2025 Tangible fixed assets Investment prop8ty Current assets Creditors due within one year 2,560,260 2,560,260 995,000 995,000 3.621.919 3.621,919 (965.872) (965.872) Total 6.211,307 6,211,307 Anatysis of net as58ts between funds - prlor period Unrestricted funds 2024 Total funds 2024 Tangible fixed assets Investment property Current assets Creditors due within one year 2.553,247 2,553,247 995.000 995,000 2,665,229 2.665,229 {822.917) (822.917) Total 5.390.559 5,390,559 53
The Azure Charitsble Foundation (previously Azure Charitable Enterprises) (A company Ilmlted by guarantee) Notes to the flnancial statements For the year ended 31 January 2025 22. Reconciliation of net movement in funds to net cash flow from operating activities Group 2026 Group 2024 Net income for the year (as per statement of financial activities) 820,748 606,286 Adjustments for: Depreciation charges Decrease in stocks (Increase)Idecrease in debtors Increase in creditors 143.214 37.746 (459.351) 142,955 127,767 54,089 190,081 137,200 Net cash provided by operating actlvllles 685,312 1,115,423 23. Analysls of cash and cash equivalents Group 2025 Group 2024 Cash in hand 2.247.301 1.712,216 Total cash and Cash oquivalents 2.247.301 1.712.216 24. Analysis of changes in net debt At31 January 2025 February 2024 Cash flows Cash at bank and in hand 1.712.216 535,085 2,247,301 1,712,216 535,085 2.247.301
The Azure Charitsble Foundation (previously Azure Charitable Enterprises) (A company Ilmlted by guarantee) Notes to the financlal statements For the year ended 31 January 2025 25. P•n$ion commitments The group 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 by the group to the fund and amounted to £285,421 {2024.. £228,510). Contributions totalllng £42,973 (2024: £36.708) were payable to the fund at the balance sheet date and are Included in creditors. 26. Operating lease commitments At 31 January 2025 the group and the charity had commitments to make fulure minimum lease payments under non-cancellable operating leases as follows: Group 2025 Group 2024 Charity 2025 Charity 2024 Not later than 1 year Later than 1 year and not later than 5 years 15,788 1.050 10.940 1,101 15,788 1,050 10,940 1.101 16,838 12,041 16,838 12,041 27. Related party transactlons DurirwJ the course of the year, the charity purchased goods from its subsidiary Azure Garden Centre Limited amounting to £623 (2024: £4,747) on norrnal commercial terms. During Ihe course of the year, the charity sold goods to its subsidiary Azure Garden Centre Limited amounting to £2,717 (2024: £2,470). During the course of the year. the charity provided management services to Azure Garden Centre Limited amounting to £130,980 (2024: £172,348)- During th8 year there were also recharges of costs betsveen the d)arity and Azure Garden Centre Limlted. The net amount outstanding al the year end was £87,116 owing to the charity (2024.. £356,624 owing to the charity). During the course of the year, the charity purchased goods from its subsidlary Azure Property Management Limited amounling to £18,695 {2024: £14,268) on nomial commercial terms. During the course of the year, the charity sold goods to its subsidiary Azure Property Management Limrted amounting to £780 (2024.. £815) on normal commercial terms. During the course of the year the charity provided management services to Azure Property Managernent Limited amounting to £7,705 (2024: £9,660>. During the year there were also recharges of costs betsveen the charity and Azure Property Management Limited. The net amount outstanding at Ihe year end was £356.317 owing from the charity (2024.. £294,123 owing from the charity). Durlng the course of the year the charity sold goods to l Hindle, a trustee, totalling £7,667 (2024: £10,261) on normal commercial terms. The amount outstsnding at the year end, included in the charitable company's debtors, is £697 (2024: £1,843). Durlng the course of the year the charty purchased services from Muckle LLP, a company where RJ Adams is a partner, totalling £7,128 (2024: £2,880), on normal commercial terms. The amount outstanding at the yearend, included in the charitable companls creditors. is £nil (2024: £nil). 55
The Azure Charitable Foundation (previously Azure Charitable Enterprises) (A company Ilmlted by guarantee) Notes to the flnanclal statements For the year ended 31 January 2025 28. Controlllng party In the opinion of the trustees there is no ultimate controlling party, other than the trustees themselves. 56