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← Mental Health Matters

2025-03-31-accounts

Registered number: 1786914 Charity number: 514829

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

MENTAL HEALTH MATTERS

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Company, its Trustees and advisers 1
Chair's statement 2 - 3
Trustees' report 4 - 24
Trustees' responsibilities statement 25
Independent auditor's report on the financial statements 26 - 29
Statement of financial activities 30
Balance sheet 31
Statement of cash flows 32
Notes to the financial statements 33 - 57

MENTAL HEALTH MATTERS

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2025

Trustees S J Baines, Trustee (resigned 25 March 2025)
G Jenkins, Trustee
M Booth, Trustee
P Rolland, Trustee (resigned 26 June 2024)
J Lanham, Trustee
K Evans, Trustee
M Atherton, Trustee
C Kaplan, Trustee
A Tatlow, Trustee
P Sachdev, Trustee (appointed 25 March 2025)
J Whitbread, Chair (appointed 7 February 2025)
Company registered
number
1786914
Charity registered
number
514829
Registered office
Waterside House Wearfield
Sunderland Enterprise Park
Sunderland
Tyne and Wear
SR5 2TZ
Chief executive officer
J Hughes
Independent auditor
Armstrong Watson Audit Limited
Chartered Accountants and Statutory Auditors
One Strawberry Lane
Newcastle upon Tyne
NE1 4BX

Page 1

MENTAL HEALTH MATTERS

(A company limited by guarantee)

CHAIR'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2025

I am delighted to present our Annual Report and Accounts for 2024-25 which provide a summary of the year’s activity and details of our accounts for this financial year. For full details of the impact of our work this year, see our Impact Report which is accessible via this link https://www.mhm.org.uk/our-impact.

This is my first Report as Chair of the Board following my appointment as trustee in February 2025 and taking on the role as Chair from April. I wish to acknowledge and thank Sally Baines who stepped down as Chair of the Board in March 2025 when she reached the end of her tenure. During her seven years as a trustee, including four as Chair, Sally skilfully led the development and implementation of strategies which resulted in significant expansion of the organisation, the range of services offered, and the number of people supported with their mental health. Mental Health Matters has gone from strength to strength with the insight to develop the infrastructure required to support a growing and geographically disparate charity.

In June 2024, Peter Rolland also stepped down from the Board after contributing significantly as a trustee on the Audit and Risk Committee. In March 2025, Pooja Sachdev was appointed as a new trustee to the Board.

Our Quality and Safeguarding and Audit and Risk Committees, provide space for focused scrutiny and monitoring of service quality, financial sustainability and the organisation's risks and opportunities. They provide additional assurance to the Board and are a key pillar of our governance. Our time limited steering groups also bring together trustees with relevant skills, supporting our Executive and Leadership teams with major workstreams, including the implementation of our digital strategies. Our Remuneration Committee continues to oversee the Charity’s remuneration strategy, policies and framework and takes recommendations to the Board on an annual basis.

Despite the challenging environment, a general election and change in government during the year, Mental Health Matters continued to grow and develop services, further widening our geographical footprint to new areas across the country. We have continued to build our portfolio of crisis havens as a non-clinical alternative to A&E for people experiencing a mental health crisis and embedded the expansion of employment advice services.

We continued to fulfil the objectives of our three-year strategy for 2022-2025, cementing our growth, service quality, impact and infrastructure. This strategy followed a significant review of the organisation and brand in 2022 and during 2024 we celebrated 40 years of Mental Health Matters with a relocation to newly refurbished Central Offices in Sunderland.

We took the opportunity to consult with numerous stakeholders who helped us in shaping our new strategy ‘ Proud Past, Bold Future 2025 – 2028'.

Our vision, purpose and values remain unchanged, and at the heart of everything we do.

Our Vision is : That everyone can access support for their mental health to live a meaningful life, in a society free from stigma.

Our Purpose is : To provide innovative, life-changing mental health support for individuals and communities.

Our Values are:

Page 2

MENTAL HEALTH MATTERS

(A company limited by guarantee)

CHAIR'S STATEMENT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

During 2024-25. the four themes of our strategy addressed our future ambitions as a provider of mental health services and as an advocate for those with mental health needs who require access to support. One particular area of focus included collaborating with experts by experience to ensure we provide accessible, impactful, high quality and innovative services that meet locally identified needs. We also helped shape future care and support by influencing the transformation of services, ensuring we take a personalised and place-based approach to deliver life changing impact whilst challenging stigma.

A vital aspect of our role as a charity is to use our voice in external forums to promote mental health and support the development of mental health strategy and services and this forms a major part of our 2025-28 strategy. We continue to do this through our established networks, helping to shape integrated workforces and the evolution of new roles in this sector. We have also worked with our commissioners and partners across health and social care to support the integration of services.

We have supported the developing transformation of community mental health services in various locations where we operate as a provider. This includes chairing the Transformation Leadership Board in Northumberland as well as being an active founder member of the Durham Mental Wellbeing Alliance. We have also played a proactive role in responding to a variety of consultations, including the reform of the Mental Health Act. We continue to be active in the development of support for those potentially facing crisis and have mobilised a range of crisis alternative models including those that open 24/7 and are co-located on a hospital site. We work proactively with system partners to maximise the impact of the crisis alternative models and ensure they relieve pressure on the wider system.

Our focus within the organisation is to build on our work, implementing our strategy and values. Developing a culture that is underpinned by our values will ensure we can attract and retain a skilled, knowledgeable and diverse workforce for the future, that is appropriately recognised and rewarded.

We have transformed our internal systems and processes which will enable us to be more user-friendly and efficient and thereby maximising our impact in helping people to achieve meaningful lives. Our strong financial position is supporting investment in a digital strategy that will modernise the infrastructure, equipment, tools, and resources that support hybrid working and new innovative models of service provision.

The General Election in July impacted new business opportunities and the number of marketing leads that we were able to pursue. Consultations were withdrawn pre-election and not put back out to the market within year. Opportunities to engage with MPs were also limited during this period, in line with guidance and rules from the Charity Commission and NHS England.

We know the next year will continue to provide challenges to us as a charity and service provider as well as to those people accessing our services. I am confident that we will continue to work in a collaborative way alongside our partners and networks, playing our part in the implementation of the NHS 10 Year Plan and focusing on delivering our strategy. We will continue to use our voice to grow our influence in the sector and to advocate for those experiencing mental distress and illness at a time when there are ambitious plans within the health and social care sector to truly transform services and tackle inequalities.

Jasmine Whitbread

Jasmine Whitbread (Dec 15, 2025 18:03:48 GMT)

................................................ J Whitbread

Chair of Trustees Date: 15/12/2025

Page 3

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2025

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Companies Act 2006, and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019).

Objectives and activities

a. Public Benefit

Mental Health Matters (MHM) exists for the benefit of the public through the provision of its services to any member of the public who has a mental or physical health need that impacts on their wellbeing. All of the services provided by MHM are within the aims and objectives as set out in the Articles of Association.

Throughout the Achievements and Performance section of this report (pages 9-20), we have identified and evaluated the benefits that individuals gain from accessing our services and maximising independence through self-directed support. This is particularly reflected in our psychological therapy services and community-based services focusing on positive outcomes for individuals.

In shaping our objectives for the year and planning our activities, the Trustees considered the Charity Commission's guidance on public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

As an organisation we also provide a range of accessible literature, online resources and training courses to educate, inform and guide people with mental and physical health needs, their families, carers and networks, and the wider community.

b. Objectives

The primary objective of the Charity is to act for the benefit of the public, to promote the well-being of persons who are experiencing mental or physical health problems or illnesses, however those problems or illnesses have arisen, and their families and carers, both in the UK and overseas.

During 2024/25 our focus has been on:

During the year, as detailed in the Chair’s statement above, we continued to follow our organisational strategy for 2022-25, developed in consultation with our commissioners, partners, employees, and those who access our services.

Page 4

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Structure, governance and management

a. Governance and trustees

MHM is a charitable company limited by guarantee (registration number 1786914), incorporated in 1984 and governed by its Articles of Association, most recently amended in 2022 to provide clarity around recruitment of trustees, terms of office and the functioning of the Board and its sub-committees. MHM is registered as a charity in England and Wales (registration number 514829).

The Board of Trustees has ultimate responsibility for the strategic direction of MHM. The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of this report were:

S J Baines, Chair (Resigned 25 March 2025) J Whitbread (appointed Trustee 7 February 2025; appointed Chair 1 April 2025) G Jenkins M Booth J Lanham P Rolland (resigned 26 June 2025) K Evans M Atherton A Tatlow C Kaplan P Sachdev (appointed 25 March 2025)

At 31 March 2025 and at the date of signing this report had 9 serving trustees.

b. Organisation

The Board of Trustees meets quarterly during the year to ensure that MHM achieves its charitable objectives. The Board's role includes strategic oversight, and monitoring of quality and effectiveness of governance arrangements, operational performance and financial performance, business plans, budgets, and the schedule of delegation. Terms of reference for the committees (Audit & Risk, Quality & Safeguarding and Remuneration Committees) and the Executive Team are reviewed and agreed annually and monitored by the Board of Trustees.

The Audit & Risk Committee meets quarterly and seeks assurance over the organisation's financial and governance systems, including the annual financial auditing process and the corporate risk framework. The findings from the organisation's annual cycle of internal quality and assurance systems auditing are reported to this committee.

The Quality & Safeguarding Committee, established in December 2022 and embedded during 23/24, also meets quarterly. Its purpose is to support the Board of Trustees in discharging its responsibilities for the safe and effective delivery of services and to oversee the strive for excellence and continuous quality improvement.

Board of Trustees meetings are held either in person or using online platforms. Committee meetings are generally held online.

A Chief Executive Officer is appointed by the Trustees to manage the day-to-day operations of the Charity. The Board of Trustees has systems in place for the delegation of authority to the Chief Executive Officer and the Executive Team.

Page 5

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Structure, governance and management (continued)

c. Trustee induction and training

MHM's Board of Trustees is made up of individuals with the skills, competences and experience required to govern the organisation. The Trustees keep these requirements under review in order to ensure that the organisation is effectively governed. Recruitment to the Charity's Board of Trustees complies with the process detailed in its Articles of Association.

Each year the Board of Trustees, Chief Executive Officer and Executive Team meet with their charitable and company law legal advisor. The purpose of the meeting is to refresh their knowledge of the respective duties of trustees and employees, and also to update them on any key amendments in charity law and Charity Commission expectations, with a view to potential impact on the Charity's governing framework.

The Trustees have access to the MHM intranet and to a range of e-learning, including modules that are mandatory for trustees, covering a range of relevant content. For example, these include the organisation induction, mental health awareness, safeguarding, information governance, and health and safety. They also receive regular refresher training around their roles and responsibilities.

d. Related parties and co-operation with other organisations

None of the Trustees receives remuneration or other benefit from their work with the Charity.

Three current Trustees have connections with organisations that provide funding to MHM; the details are presented in note 26. Where decisions are made by the Board of Trustees that relate to those organisations, the Trustees concerned do not participate in the decision-making process.

MHM has continued to work with many NHS and third sector organisations during the year and entered into contracts with several new commissioners. Our commissioners are listed on page 17.

MHM has a wholly owned trading company, Moorpark Limited. This subsidiary ceased its trading activities in June 2013 and is currently inactive.

Page 6

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Structure, governance and management (continued)

e. Fundraising

In 2024 we continued to support and develop our fundraising opportunities, appointing a 2 day a week temporary Fundraising Officer that became a permanent 3 day a week position in January 2025.

During the year we have continued to develop and adapt our fundraising activity and have started to build strong foundations and an infrastructure to support future growth. The team has delivered an impressive performance, raising £151,283 including a £45,000 legacy donation thanks to the generosity of our supporters. This was against a target of £50,000 for the financial year. We are grateful to all those who participated at events such as Tough Mudder, Ultra Challenge or any other events chosen by our fundraisers. It is thanks to their dedication and tenacity that we have received a higher-than-expected level of donations.

We are also continuing to work hard on our internal infrastructure to build on the success and growth of recent years. We are improving our supporter experience, modernising our offer, and streamlining our processes.

Fundraising operational policies are in place for all our main fundraising areas: individual giving, community and events fundraising, corporate fundraising, and major giving. We are registered with the Fundraising Regulator and adhere to the Code of Fundraising Practice. We monitor amendments to the Code of Fundraising Practice to make sure we comply with the latest fundraising standards, and our operational policies and practices are regularly updated in line with these. Reviewing the standards recently we are satisfied that we meet all current obligations. As fundraising is set to become a larger income stream in the future it may be necessary to review roles and responsibilities and provide further clarity on expenditure of funds.

Donations received during the year totalled £151,283 (2024: £67,959).

f. Pay policy for key management personnel

The Trustees consider that key management is comprised of the Chief Executive Officer and Executive Team who are in charge of directing and controlling, running and operating the Charity on a day-to-day basis.

The pay of the Executive Team is reviewed annually and normally increased to reflect cost of living changes. In view of the nature of the Charity, the Trustees also benchmark against pay levels in other similar organisations and of a similar size. The ratio of the Chief Executive Officer's rate of pay to the average rate of pay for all employees in March 2025 was 3.05:1 (2024: 3.3:1) .

g. Gender pay gap

For MHM at April 2024 the mean gender pay gap was 0% (April 2023: -4%) and the median gender pay gap was 0% (April 2023: 0%). Policies and procedures ensure that employees in directly comparable roles are paid at the same rate. The mean gap is attributable to the fact that the management team at the time was predominantly female. MHM is committed to providing equal opportunities in recruitment and in learning and development to male and female employees and prospective employees. MHM remains alert to barriers that might affect the balance of male and female employees in each type of role and is committed to addressing those barriers if it has the power to do so.

MHM operates a pay and grading structure in which all roles are evaluated against the HR Xpert framework and benchmarked against industry standards using Brightmine. The pay structure includes a two-tier pay recognition structure and allows employees to receive a higher rate of pay based on their contribution to the organisation. Through the implementation of the structure, all employees have the same opportunities for pay progression, regardless of their protected characteristic.

Page 7

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Structure, governance and management (continued)

h. Equality

MHM incorporates equal opportunities throughout its policies. These policies ensure that, in accordance with both current legislation and best practice, no service user, person employed or job applicant will be treated unfavourably by reason of their 'protected characteristic' as set out in the Equality Act 2010.

i. Disability Confident Employer

MHM are privileged to be recognised as a Disability Confident Employer and this year it has been increased to Level 2 due to our consistent application of the commitments detailed within the award. This includes a guaranteed interview scheme for anyone with a disability whose application meets the minimum criteria for that post, and to always put in place any reasonable adjustments to ensure that applicants are treated fairly and safely within both the recruitment process and the working environment. Where employees disclose a disability during their employment, MHM will engage in consultation with them to determine whether any reasonable adjustments can be made and/or to consider any alternative roles available.

j. Employee engagement

As an accredited Investor in People (Silver Award) employer, MHM believes in recognising people’s skills and knowledge, and in developing its employees through learning and development. All employees have an agreed personal development plan to ensure that their learning and development is appropriate to both their role and their personal circumstances.

MHM uses its intranet to be the source of all information regarding policy, procedure, news and other matters of concern to employees.

Employees are consulted on matters directly affecting their employment and are encouraged to give feedback on an annual basis through an employee survey that enables them to give their views anonymously on matters ranging from leadership to rewards and benefits, to help inform organisational development. An action plan ensures MHM acts on and responds to views received. Feedback is also sought through a range of other means including Hive HR Engagement pulse surveys, “Tea and Chat” sessions, task and finish groups as well as a number of professional networks.

Feedback from employees informs our annual business plan for the organisation that demonstrates how strategic objectives will be achieved, helps employees understand how their role and their team's role contributes, and leads to employees taking ownership of the personal contribution they make towards the Charity's performance. This process, along with intranet updates and the reporting of key issues through regular manager meetings, service team meetings, and employee 1 to 1 meetings, ensures that a common awareness of financial and economic factors affecting performance is achieved.

Further development of employee engagement is a key focus within our 2025-26 People Strategy, and the evolution of Hive Engagement will see the introduction of the “Open Door” facility which allows for anonymous two way discussions directly between colleagues and leaders.

Page 8

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Strategic report

Achievements and performance

a. Overview

During 2024, MHM engaged with a broad cross section of its stakeholders to inform the development of its three-year strategic plan covering the period from 2025 to 2028. This included an externally commissioned evaluation incorporating the feedback of existing commissioners and strategic partners and engagement across the workforce as well as seeking the views of those individuals accessing our services.

In implementing the annual business plan for 2024/25, MHM continued to deliver NHS Talking Therapies services, generic and mental-health-specific housing provision, employment services, safe haven provision for people at risk of experiencing a mental health crisis, a helpline that operates 24/7 365 days a year providing wellbeing support and crisis intervention, and community services that provide innovative and tailored solutions to specific system challenges.

MHM continued to invest time and resource to retain and acquire new services across England, building on our strong brand for delivering high quality health and social care services alongside strategic partners. This has included ongoing review and refinement of MHM’s portfolio of service to ensure that our services remain impactful and strategically relevant. Our focus is to respond to the changing needs of people in our communities by delivering evidence-based services and building trusted relationships with our service commissioners.

Page 9

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Strategic report (continued)

Achievements and performance (continued)

b. Achievements and performance

MHM continues to be proud of the delivery of high-quality services focused on service users' recovery and wellbeing, and of successful bids for new services and the extension or renewal of existing services which allow MHM to expand its reach.

MHM's focus for 2024/25 was on:

There have been many successes during the year, with contracts won to deliver new services and with many existing contracts extended. MHM's approach of devising bespoke delivery models suited to individual commissioners’ requirements, bidding for funds to deliver services based on a combination of MHM's areas of specialism, and seeking funding to deliver services in new markets, continues to prove effective.

MHM has further grown its networks and partnerships, raising the Charity’s profile and seeking to influence policy at a national level. These networks have been built with organisations across health and social care and within the charity sector. Directors have engaged with activity at national, regional and local levels, participating in opportunities to work with the new Integrated Care Systems and the transformation of local community mental health services.

Internal investment in our workforce resources has continued, adding new posts to our organisational structure and focusing on the development of management skills.

During the year to March 2025:

Page 10

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Strategic report (continued)

Achievements and performance (continued)

c. Quality and Operations in 2023/24

24/7 Helpline

Our helpline continued to offer a confidential and non-judgemental space for individuals to receive emotional support and crisis intervention from our highly skilled team, responding to 46,565 phone calls from people through 2024/25

Our 24/7 Helpline was accredited for another three years by Helplines Partnership, the UK's only membership body for helpline organisations. The accreditation recognised our dedication to providing a high-quality service and showing best practice for the benefit of our callers, funders, colleagues and everyone impacted by our service.

The Midlands Op Courage partnership, including our 24/7 Helpline was recognised as a finalist in the Working Together category at the Soldiering on Awards. These Awards showcase the achievements of serving personnel, veterans, and their families, and their role in strengthening our society,

NHS Talking Therapies Services in 2024/25

Page 11

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Strategic report (continued)

Achievements and performance (continued)

Employment Services in 2024/25

Our Employment Advisors provide flexible, personalised support focused on helping people to find, stay in or return to work. We worked in partnership with clinical commissioning groups, NHS Trusts, local authorities and voluntary sector organisations to deliver community-based employment support and Employment Advisors in NHS Talking Therapies services.

At the start of 2024, we proudly launched two new Employment Advisors in Talking Therapies services in Solihull and Durham & Darlington. These services offer their communities valuable support including access to training programmes and help to speak to employers about mental health issues. Our existing services also celebrated achievements throughout the year. Our NHS Warrington Talking Therapies Employment Service marked its fifth anniversary in 2024, delivering over 10,000 appointments.

In April, we were proud to launch our Mid Essex Employment Service, offering anyone accessing the Mid Essex Talking Therapy service the opportunity to work with a dedicated Employment Advisor. The programme brings together the skills of therapists and employment advisors to support people with common mental health challenges such as stress, anxiety, and depression in finding, sustaining, or returning to meaningful work. Just a month later, we reached a key milestone with the launch of our tenth Employment Advisors in Talking Therapies service in Northumberland.

8,853 people were assisted to remain in work, find paid employment or access training, education and volunteering opportunities to help develop employability skills.

Community Services

MHM’s community services include innovative and emerging models of delivery piloting new approaches focusing on prevention and alternatives to hospital treatment. During 2024/25 we provided 9,425 hours of advice, navigation and community support via a range of bespoke services including a specialist autism service which provided 325 support sessions. A total of 987 people were supported via our community services throughout the year.

Page 12

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Strategic report (continued)

Achievements and performance (continued)

Crisis Services

The second quarter of 2024/25 saw an increase in our crisis support with 43,545 support sessions provided to people in crisis throughout the year.

Three years ago, only 14% of adults surveyed felt they were provided with the right response when in crisis and only half of the community mental health teams nationally were able to offer 24/7 same day crisis support. (NHS Long Term Plan). July saw the launch of Rotherham Safe Space, our third Crisis Alternative service in South Yorkshire. The introduction of a drop-in offer provided access to immediate, in-person support for people in a mental health crisis. The community launch event brought together partners from across the NHS, emergency services, and community organisations to raise awareness of the support on offer. In Kent, following a Mental Health Urgent and Emergency Care Transformation Programme, NHS Kent and Medway expanded our Safe Haven provision to nine sites, seven community-based and two 24/7 sites located on acute hospital sites. Since launch, the sites have been visited over 15,000 times and there has been a recognised decline in mental health visits to Accident & Emergency.

In June, we were honoured to receive national recognition at the Positive Practice in Mental Health Awards. Our Exeter team at The Moorings in Devon won the Crisis Care Pathways Award which was judged by a panel of 120 people, including people accessing services and carers. In the past year, 5,889 people told us they felt less anxious or stressed after accessing the service, and 5,864 people felt less isolated. These outcomes are testament to the commitment of the team in helping local people in a mental health crisis

In Kent, our Safe Havens were recognised with a Healthwatch Recognition Award in the 'Excellence in enabling local people to monitor standards and make improvements’ category, standing out among strong competition from local Trusts and statutory services. This award acknowledged how the service had undergone transformation and expansion and ensured that local voices were heard and central to decision-making. One example included Lived Experience Leads mystery shopping the service and gathering feedback to measure community awareness.

Housing Services in 2024/25

The aim continues to be to ensure that wherever possible those accessing our housing services live as independently as they can, within their local community. During the year to March 2025, we continued to work with individuals accessing services to support their recovery, providing accommodation and support to 29 individuals. 3 individuals moved into independent living.

As part of our review of our service portfolio and planning for our new strategy for 2025-28, the decision was taken to move away from providing housing services. This will be a coordinated move during 2025-26 in conjunction and consultation with all relevant stakeholders. Priority will be to ensure those being supported by these services have a safely managed transition where continued support is maintained as required.

Page 13

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Strategic report (continued)

Achievements and performance (continued)

d. Development in 2024/25

MHM’s development team leads on the generation of new business opportunities, tendering for new contracts and retention of existing contracts, on relationship development and collaboration and on enhancing MHM’s profile.

During the year to March 2025:

Our Alternative to Crisis Model expanded with 9 Crisis Haven sites going live on 1st June 2024, this included 2 hospital co-located options in Thanet and Medway. With the Medway site operating 24/7. This also saw the development of a new partnership with The Sunlight Centre to deliver the Haven in Gillingham as a subcontractor to MHM. This was followed by a 10th site in Ashford, again co-located on Hospital Grounds in February 2025.

Rotherham Support Hub expanded our South Yorkshire Alternative to Crisis Offer in July 2024.

An increased focus on external affairs activity and a drive to influence and shape policy was supported by work including:

We were cited in the Acknowledgements of the Darzi Review, one of fewer than 250 organisations to be mentioned in this way. https://assets.publishing.service.gov.uk/media/66f42ae630536cb92748271f/Lord-DarziIndependent-Investigation-of-the-National-Health-Service-in-England-Updated-25-September.pdf.

Our Marketing and Communications and External Affairs colleagues delivered two campaigns in the year: Rural campaign (July-November 2024) In 2023, the House of Commons Environment, Food and Rural Affairs Committee Report into Rural Mental Health, noted an inability to draw many conclusions due to gaps in data. As a provider of services in rural communities, from Northumberland to Devon, we committed to exploring the inequalities that exist through a research project. Recognising the immediate need for support, we were proud to establish a national 24/7 rural helpline pilot, offering emotional support to the community, including those we engaged with during the research. By attending county shows across the country and developing a survey for those living in rural communities across England, our responses showed:

Page 14

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Strategic report (continued)

Achievements and performance (continued)

The second Campaign was a ‘Gift of Support’ Fundraising Campaign that we ran in December 2024, MHM’s first pro-active direct donations campaign. The campaign was a small-scale pilot to explore the effectiveness of online direct donations in supporting our fundraising objectives. The campaign drove 58 new users to the website donations page, resulting in 11 direct donations which generated £181.

Page 15

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Strategic report (continued)

Achievements and performance (continued)

e. Central Services in 2024/25

MHM’s central services sit within 4 directorates (People and Organisational Development, Finance & Risk, Development, and Strategy and Performance), These directorates have an extensive portfolio of business support activities comprising of quality and compliance, board support, finance, human resources, organisational development, learning and development, policy and procedural review, health and safety, colleague safety, information technology, information governance, transformation and innovation and development.

During the year to March 2025 our corporate teams have:

Page 16

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Strategic report (continued)

Achievements and performance (continued)

f. Commissioners, funders and customers

MHM gratefully acknowledges the funding provided for its 2024/25 services by the following commissioners, organisations and customers:

Avon and Wiltshire MHP NHST Canterbury Christ Church University Combat Stress Coventry & Warwickshire Partnership Trust Cumbria Northumberland Tyne and Wear NHS Foundation Trust Devon Partnership NHS Trust East Midlands Shared Services Essex Partnership University Gateshead Council Gloucestershire Health and Care Herefordshire & Worcestershire Health and Care NHS Trust Hertfordshire Partnership NHS Foundation Trust Home Group Management Ltd Karbon Homes Knowsley Council Leicester City Council Leicestershire Partnership NHS Trust Lincolnshire Partnership NHS Trust Livewell Southwest LM Global Telecoms Making Space Mersey Care NHS Foundation Trust Middlesbrough Council Midlands Partnership NHS Foundation Trust Newcastle City Council NHS Cheshire & Merseyside ICB NHS Devon ICB NHS England NHS Frimley ICB NHS Humber and North Yorkshire NHS Kent and Medway ICB NHS Leicester and Rutland ICB NHS Northeast & Cumbria ICB NHS South Yorkshire ICB Oxford Health NHS Foundation Penderels Trust Porchlight Solihull MB Council South Tyneside Council Tees Esk & Wear Valley NHS Victim Support Walking With the Wounded

Page 17

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Strategic report (continued)

Achievements and performance (continued)

g. Risk Management

MHM has a comprehensive risk management framework in place, and the Trustees and the Executive Team maintain a continuous review of the risks the Charity may face and the systems and procedures to mitigate and minimise any potential impact on the Charity should those risks materialise.

MHM has reviewed the risks to achievement of its strategic objectives during the year to ensure they are fully integrated into the risk assessment, management and mitigation procedures. Risks are assessed within the following areas: strategic impact, market, commissioners, people who access MHM services, third party reliance, legal/regulatory, reputation, financial, IT/digital, information governance, and climate change/environmental.

The Audit & Risk Committee, comprising suitably qualified and experienced trustees, meets four times per year, and receives reports from senior management. The Committee’s remit includes providing assurance to the Board that there are effective systems in place for financial and wider governance, including risk management and compliance with all aspects of the law, relevant regulations, and good practice. In addition, specific areas of risk to the Charity are monitored by the full Board of Trustees, including consideration of the issues related to identification, mitigation and elimination of the risk. In addition, the Board and Executive Team began a review of the risk appetite as part of the development of the new strategy for 2025-28.

The key risks facing the Charity were monitored and appropriately mitigated during the year.

Page 18

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Strategic report (continued)

Achievements and performance (continued)

h. Principal Risks and Uncertainties

The vision of national policy changes are to continue transforming mental health and community mental health services to improve access to appropriate and timely care for those needing support. MHM must monitor and manage the implications for our organisation. We continue to take proactive steps to influence and shape future commissioning and available resource through our networking and advocacy at local and national levels. Our engagement with stakeholders, policy and decision makers enables us to understand evolving policy and contribute to the dialogue around future services and commissioning.

The principal risks and uncertainties facing the Charity are considered to be:

Page 19

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Strategic report (continued)

Achievements and performance (continued)

Financial review

a. Financial review

MHM principal funding sources are shown in note 4 to the financial statements. There has been an 10% increase in incoming resources for the year, due to new services in talking therapies and community support and to expansion of existing employment and talking therapies services.

The £599,683 surplus generated for the year reflects:

Following the Trustees decision to leave the TPT Retirement Solutions pension scheme during 2021-22, remaining estimated exit debts of £40,027 remain fully provided for within these accounts. There remains uncertainty about the final exit debt, due to a review of the application of rules by the administrator of this multiemployer scheme, for which the scheme Trustee is seeking court direction. Possible additional costs cannot be calculated at this time. However, MHM’s advisors indicate that these will not be material.

Governance costs amount to 0.5% of expenditure.

Potential bad debts amounting to £628 were identified at 31 March 2025, and provision has been made for this amount. All other outstanding debts are considered recoverable.

The cash position has fluctuated greatly throughout this year due to a combination of circumstances including a general election, NHS reform, and a tighter funding environment creating some uncertainty. Cash balances continue to be monitored to ensure that they are adequate to support the Charity's aims and objectives; funds are held on notice deposits when not required for short term cashflow, and it is intended to undertake more proactive investment of cash balances during 2025/26.

Page 20

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Major factors likely to affect the financial position of the Charity in 2025/26 are MHM's ability to design contemporary talking therapies and community services that meet the requirements of commissioners and other customers; to develop and sustain strong relationships with commissioners; to continue to respond effectively to commissioning through provider collaboratives and alliances; and to continue to develop a diverse portfolio of funding in order to mitigate the impact of contracts at risk. The Trustees are confident of MHM’s ability to achieve these goals, supported by continued investment in a robust workforce and infrastructure, and planning for a range of possible funding scenarios as part of MHM’s strategic planning in 2025/26 and beyond, particularly in light of current economic forecasting, including inflation.

The Trustees have assessed MHM’s ability to continue as a going concern by reviewing budgets, reserves and cashflow forecasts, and the impact of a range of possible scenarios. This assessment demonstrated that in the worst-case scenario, MHM could sustain its status as a going concern over the next 12 months from the date of sign off of these financial statements. In support of this conclusion, financial performance in 2025/26 to date is ahead of budget.

b. Investment Powers and Policy

The Trustees, having regard to the liquidity requirements of delivering the current services, and to the reserve policy set out below, have operated a policy of keeping available funds in interest-bearing accounts, and seek to diversify risk whilst achieving the highest possible return from investing in appropriate institutions. The invested funds held on deposit achieved interest payments of £26,027 during the year to 31 March 2025.

Page 21

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

c. Reserves Policy and Going Concern

The Charity Commission expects trustees to decide, publish, implement and monitor their charity’s reserves policy to comply with their legal duties to; act in the interests of their charity and its beneficiaries; protect and safeguard the assets of their charity; act with reasonable care and skill; and ensure their charity is accountable.

MHM Trustees review MHM’s policy on reserves held by the Charity at least annually to ensure that it complies with these Charity Commission requirements, supports the achievement of MHM’s strategic objectives, and remains appropriate for the economic environment, the health and social care sectors, and other relevant factors affecting MHM’s activities.

The Trustees recognise that reserves are required to:

The financial obligations associated with MHM’s commissioned services tend to be aligned with the funding of those services. However, it is important for MHM to hold reserves to cover financial obligations that are not directly funded, in order that those obligations can continue to be met if unforeseen circumstances lead to a reduction in incoming resources. The Trustees believe that free reserves are required to cover six months of projected central and infrastructure costs, plus an additional allowance agreed annually to be in a position to fund development activity as the need arises, including investment in facilities and adoption of best practice systems and procedures within the fields of health and social care.

For the year 2024/25 the amount of free reserves required is assessed by the Trustees as £2.8m. This level of reserves allows for 6 months of central office costs (including enhanced central capacity to support organisational growth). It also allows for infrastructure development.

MHM total reserves at 31 March 2025 amount to £5,424,346. and consist of:

From unrestricted funds, the Trustees have designated an amount totalling £856,119 towards future projects.

General funds therefore amount to £4,204,145. After deducting fixed assets and investments totalling £780,211, the value of free reserves available is £3,423,934, exceeding the required value.

Compliance with this reserves policy will be monitored on an ongoing basis by the Audit & Risk Committee, which will report any non-compliance to the Board of Trustees in order that any corrective action required can be agreed.

The Trustees have considered budgets to March 2026 and cashflow forecasts to September 2026. As noted above, MHM incoming resources have grown during the year. Costs remain under careful review, and the Trustees believe that the level of reserves available for 2025/26 is sufficient, and the net current assets and cash flow of the Charity are at such a level, that the Charity is able to operate for the foreseeable future, and that the going concern basis is appropriate for these financial statements.

Close monitoring of reserves, along with relevant scenario planning, will continue in order to ensure that MHM’s financial strength is maintained. The degree of certainty over future funding streams will be kept under review, and the Trustees intend that MHM will continue to position itself as a provider and partner of choice, able to meet the opportunities presented by commissioners to meet the expected increased demand for mental health services, and to adapt delivery models to offer blended services which feature both digital and face-to-face delivery.

Page 22

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

d. Plans for future periods

The Trustees have established a new strategic plan for the three years commencing April 2025.

In 2024, we celebrated our 40th anniversary and the organisation’s proud history and significant achievements made over many years. Our strategy for 2025 – 2028, titled ‘Proud Past, Bold Future’ is grounded in recognition of our ongoing impact, strong foundations, and an ambitious vision for the future. It was built around five core commitments:

  1. We will be courageous and bold, fearlessly pursuing our vision and purpose.

  2. We will be led by lived experience.

  3. We will value and empower our people.

  4. We will collaborate for greatest impact.

  5. We will inspire, influence, and drive meaningful change.

Service Delivery and Strategic Focus

We will continue to deliver high-quality, impactful, and co-produced services across our established areas, including:

Expanding Our Reach

In response to identified unmet needs, we aspire to broaden our impact by extending our services into new and emerging priority areas. Specifically, we will focus on:

Research and Innovation

A key ambition underpinning our strategy is to deepen our involvement in research and innovation. We will actively seek partnerships with educational institutions and research organisations to undertake meaningful studies aimed at improving outcomes in mental health provision.

Digital Transformation

Building on our recent progress in digital transformation, we will continue to explore how emerging technologies can enhance the experience of those accessing our support and increase efficiency in how we work. We aim to harness innovation to deliver more efficient, effective, and user-friendly services.

Social Value and Sustainability

We remain deeply committed to creating meaningful and lasting social value. This includes a strong focus on sustainability and environmental responsibility. Through all our work, we will strive to ensure that the people and communities we support experience positive, transformative change.

Page 23

MENTAL HEALTH MATTERS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditor

The auditor, Armstrong Watson Audit Limited, has indicated his willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Jasmine Whitbread

Jasmine Whitbread (Dec 15, 2025 18:03:48 GMT) ................................................ J Whitbread Chair of Trustees Date: 15 December 2025

Page 24

MENTAL HEALTH MATTERS

(A company limited by guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2025

The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' report including the Strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by order of the members of the board of Trustees and signed on its behalf by:

Jasmine Whitbread

Jasmine Whitbread (Dec 15, 2025 18:03:48 GMT)

................................................ J Whitbread Trustee Date: 15 December 2025

Page 25

MENTAL HEALTH MATTERS

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MENTAL HEALTH MATTERS

Opinion

We have audited the financial statements of Mental Health Matters (the 'charitable company') for the year ended 31 March 2025 which comprise the Statement of financial activities, the Balance sheet, the Statement 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 Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 26

MENTAL HEALTH MATTERS

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MENTAL HEALTH MATTERS (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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 if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees on page 5 (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 27

MENTAL HEALTH MATTERS

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MENTAL HEALTH MATTERS (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non detection of irregularities, as these may involve collusion, forgery, internal omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non compliance with laws and regulations and cannot be expected to detect all fraud and non compliance with laws and regulations.

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

Page 28

MENTAL HEALTH MATTERS

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MENTAL HEALTH MATTERS (CONTINUED)

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Simon Turner (Dec 16, 2025 08:34:46 GMT)

Simon Turner (Senior statutory auditor) for and on behalf of

Armstrong Watson Audit Limited Chartered Accountants & Statutory Auditors Newcastle upon Tyne

15 December 2025

Page 29

MENTAL HEALTH MATTERS

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2025

Note
Income and
endowments from:
Donations and
legacies
Charitable activities
4
Investments
5
Other income
Total income and
endowments
Expenditure on:
Charitable activities
Other expenditure
9
Total expenditure
Net
income/(expenditure
)
Transfers between
funds
18
Net movement in
funds
Reconciliation of
funds:
Total funds brought
forward
Net movement in
funds
Total funds carried
forward		 Unrestricted
funds
2025
£
151,283
24,520,156
26,027
32,703
24,730,169
23,339,916
-
23,339,916
1,390,253
(1,206,778)
183,475
4,020,670
183,475
4,204,145		 Restricted
funds
2025
£
-
3,467,680
-
-
3,467,680
3,478,235
-
3,478,235
(10,555)
(10,384)
(20,939)
385,021
(20,939)
364,082		 Designated
funds
2025
£
-
-
-
-
-
502,175
277,840
780,015
(780,015)
1,217,162
437,147
418,972
437,147
856,119		 Total
funds
2025
£
151,283
27,987,836
26,027
32,703
28,197,849
27,320,326
277,840
27,598,166
599,683
-
599,683
4,824,663
599,683
5,424,346		 Total
funds
2024
£
67,959
25,402,384
26,530
37,565
25,534,438
25,340,736
-
25,340,736
193,702
-
193,702
4,630,961
193,702
4,824,663

Other expenditure consists of expenditure incurred relating to non-capitalised project costs from designated funds.

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 33 to 57 form part of these financial statements.

Page 30

MENTAL HEALTH MATTERS (A company limited by guarantee) REGISTERED NUMBER: 1786914

BALANCE SHEET AS AT 31 MARCH 2025

Note
Fixed assets
Intangible assets
13
Tangible assets
14
Investments
15
Current assets
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within one
year
17
Net current assets
Total net assets
Charity funds
Designated funds
18
Restricted funds
18
Unrestricted funds
18
Total funds		 5,376,025
2,576,578
7,952,603
(3,308,468)		 2025
£
710,534
69,676
1
780,211
4,644,135
5,424,346
856,119
364,082
4,204,145
5,424,346		 4,637,649
1,882,863
6,520,512
(1,950,709)		 2024
£
231,508
23,351
1
254,860
4,569,803
4,824,663
418,972
385,021
4,020,670
4,824,663

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 authorised for issue by the Trustees and signed on their behalf by:

Jasmine Whitbread

Jasmine Whitbread (Dec 15, 2025 18:03:48 GMT)

................................................

J Whitbread

Trustee Date: 15 December 2025

The notes on pages 33 to 57 form part of these financial statements.

Page 31

MENTAL HEALTH MATTERS

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025

Note
Cash flows from operating activities
Net cash used in operating activities
21
Cash flows from investing activities
Disposal of tangible fixed assets
Purchase of intangible assets
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
22
The notes on pages 33 to 57 form part of these financial statements		 2025
£
1,236,935
-
(502,177)
(67,070)
26,027
(543,220)
693,715
1,882,863
2,576,578		 2024
£
(1,949,934)
978
(231,507)
(31,504)
26,530
(235,503)
(2,185,437)
4,068,300
1,882,863

Page 32

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

1. General information

Mental Health Matters (the 'charitable company') is a charitable company limited by guarantee, incorporated in England and Wales. The registered office is Waterside House Wearfield, Sunderland Enterprise Park, Sunderland, Tyne and Wear, SR5 2TZ.

The charity exists for the benefit of the public through the provision of its services to any member of the public who has mental or physical health needs.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting 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 Companies Act 2006.

Mental Health Matters meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

These accounts set out the results of the charitable company only. The trustees consider that the charitable company's subsidiary is not material to the group and so no consolidated accounts have been prepared in accordance with exemption under section 405 of the Companies Act.

2.2 Company status

The charitable company is a company limited by guarantee. The members of the 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. The trustees are directors for the purposes of the Companies Act 2006. At 31 March 2025 there were nine members (2024: nine members).

2.3 Going concern

FRS 102 requires that, if appropriate, the charitable company’s financial statements are prepared on the going concern basis, which means that the organisation is able to operate for the foreseeable future on the basis of known and reasonable projected resources. Cash flow forecasts have been prepared covering 12 months from the date of approval of the financial statements. Forecasts indicate that adequate cash and reserves will be available throughout the period under review, with no financing required. There are no material uncertainties in respect of the charity’s ability to continue as a going concern. Consequently, the trustees believe that the charity is well placed to manage its risks successfully and thus have adopted the going concern basis.

Page 33

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

2. Accounting policies (continued)

2.4 Income

Incoming resources are recognised in the Statement of Financial Activities when the charity has entitlement to the funds; any conditions attached to the item(s) of income have been met; it is probable that the income will be received; and the amount can be measured reliably.

Grants and contracted funding

Grants and contracted funding, including capital grants for the purchase of tangible fixed assets, are recognised in full in the Statement of Financial Activities in the year in which they become receivable. Where the conditions of receipt have not yet been met, the income is transferred to deferred income in the balance sheet and recognised in the statement of financial activities in a future accounting period.

Rental and support income

Rental and support income is recognised in full in the Statement of Financial Activities in the year in which it is receivable, net of any provision for arrears. Where rent and support income is received in advance for a future accounting period, the income is deferred and included in rents in advance and recognised in the Statement of Financial Activities in a future accounting period

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Donations and legacies

Donations and legacies are recognised as income when the charity has entitlement, receipt is probable, and the amount can be measured reliably. Where donations are subject to conditions or restrictions, income is deferred until those conditions are met or recognised within restricted funds in accordance with donor intent.

2.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party; it is probable that settlement will be required; and the amount of the obligation can be measured reliably. Expenditure is all considered as expenditure on charitable activities, and is subdivided into the four main activities of the charity being employment services, community support and personalised services, housing services and talking therapies services. Costs of charitable activities comprise all costs incurred in the pursuit of the charitable objects of the charity. These costs include both the direct costs of providing services to the charity’s beneficiaries and an apportionment of support and governance costs.

Support costs comprise the central management and support services. They have been apportioned between charitable activities as shown in note 7, based on the proportion of expenditure within each charitable activity.

Governance costs comprise all costs in connection with the strategic management of the charity and compliance with constitutional and statutory requirements. Specific costs on a particular charitable activity are included as such. Shared governance costs are apportioned based on time spent across each charitable activity. They have been apportioned between charitable activities as shown in note 7.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

Page 34

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

2. Accounting policies (continued)

2.6 Taxation

The Company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.7 Intangible assets and amortisation

Intangible assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.

Amortisation is provided on the following basis:

Computer software - % 10%-33% straight line

2.8 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits 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 impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 35

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

2. Accounting policies (continued)

2.8 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of financial activities.

2.9 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet 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 ‘Gains/(Losses) on investments’ in the Statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

2.10 Debtors

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

2.11 Cash at bank and in hand

Cash at bank and in hand 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 deposit or similar account.

2.12 Liabilities and provisions

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

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

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

Page 36

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

2. Accounting policies (continued)

2.13 Financial instruments

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

2.14 Operating leases

The charity as a lessee

Rentals paid under operating leases are charged to the Statement of financial activities on a straight-line basis over the lease term.

The charity as a lessor

Rental income from assets leased under operating leases is recognised on a straight line basis over the term of the lease.

2.15 Pensions

The charity participates in two multi-employer pension schemes for its employees. For both schemes, contributions are recognised as income and expenditure in the period to which they relate as there is insufficient information available to use defined benefit accounting.

Where applicable, a liability is recognised for contributions arising from an agreement with the multiemployer plan that determines how the charity will fund a deficit. Contributions are discounted, at a rate according to FRS 102, when they are not expected to be settled wholly within 12 months of the period end. The unwinding of the discount rate is recognised as a finance cost.

2.16 Fund accounting

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

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company 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 statements.

Investment income, gains and losses are allocated to the appropriate fund.

Page 37

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

3. Judgement in applying accounting policies and key sources of estimation uncertainty

The preparation of these financial statements require management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.

Judgement and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results.

Critical accounting estimates and assumptions:

(i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 14 for the carrying amount of the property, plant and equipment and note 2.8 for the useful economic lives for each class of assets.

(ii) Determining the exit value for commitments to a defined benefit pension scheme liability

The calculation of the exit value for commitments to a defined benefit pension scheme liability is subjective, due to the estimation uncertainty associated with the choice of actuarial assumptions used to determine the overall defined benefit pension scheme liability. Management uses an external actuarial expert to perform the calculation.

Page 38

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

4. Income from charitable activities

Community
Services		 Community
Services		 Crisis Helpline
Employment
Services		 Helpline
Employment
Services		 Housing
Services		 Talking
Therapies		 Total
2025		 Total
2024
£ £ £ £ £ £ £ £
Grants & contracted funding 440,350 5,260,108 552,153 4,205,237 186,713 17,048,870 27,693,431 25,135,431
Other income - - - - 294,405 - 294,405 266,953
440,350 5,260,108 552,153 4,205,237 481,118 17,048,870 27,987,836 25,402,384
Analysis by fund
For the year ended 31 March 2025
Unrestricted funds 440,350 1,792,428 552,153 4,205,237 481,118 17,048,870 24,520,156
Restricted funds - 3,467,680 - - - - 3,467,680
Total
Analysis by fund
For the year ended 31 March 2024		 440,350 5,260,108 552,153 4,205,237 481,118 17,048,870 27,987,836
Unrestricted funds 1,075,802 1,937,108 1,275,894 2,387,044 410,216 16,884,329 23,970,392
Restricted funds - 1,431,992 - - - - 1,431,992

Page 39

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

4 Income from charitable activities (continued)

Grants and contracted funding

Local authority funding
Health authority and NHS trust funding
Other charities & trusts
Client direct payments
Housing associations		 2025
£
412,159
26,547,574
527,261
-
206,437
27,693,431		 2024
£
798,133
23,482,648
689,553
-
165,097
25,135,431

5. Investment income

Unrestricted Total Total
funds funds funds
2025 2025 2024
£ £ £
Bank interest 26,027 26,027 26,530

Page 40

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

6. Analysis of expenditure on charitable activities

Community
Services		 Community
Services		 Crisis Helpline
Employment
Services		 Helpline
Employment
Services		 Housing
Services		 Talking
Therapies		 Total
2025		 Total
2024
£ £ £ £ £ £ £ £
Staff salary costs 362,784 2,986,349 808,732 3,021,424 186,697 9,850,055 17,216,041 16,348,053
Other staff costs 7,986 57,382 8,375 53,163 14,568 1,177,608 1,319,082 1,902,566
Payments to subcontractors - 185,227 - 5,804 - 1,504,477 1,695,508 289,590
Property costs 20,497 367,351 35,979 20,689 149,125 630,737 1,224,378 1,124,122
Other operating costs 62,607 147,047 146,141 60,766 15,401 920,218 1,352,180 1,491,949
Depreciation and amortisation 453 7,234 1,298 431 - 6,263 15,679 47,654
Total 454,327 3,750,590 1,000,525 3,162,277 365,791 14,089,358 22,822,868 21,203,934
Share of support costs (see note 7) 86,841 716,897 191,243 604,445 69,918 2,693,069 4,362,413 4,013,171
Share of governance costs (see note 7) 2,688 22,193 5,920 18,712 2,164 83,368 135,045 123,631
Total 543,856 4,489,680 1,197,688 3,785,434 437,873 16,865,795 27,320,326 25,340,736
Analysis by fund
For the year ended 31 March 2025
Unrestricted funds 543,856 1,011,445 1,197,688 3,785,434 437,873 16,865,795 23,842,091
Restricted funds - 3,478,235 - - - - 3,478,235
Total 543,856 4,489,680 1,197,688 3,785,434 437,873 16,865,795 27,320,326
Analysis by fund
For the year ended 31 March 2024
Unrestricted funds 1,022,016 2,059,122 1,392,048 2,169,025 394,392 16,629,148 23,665,751
Restricted funds - 1,674,985 - - - - 1,674,985
Total 1,022,016 3,734,107 1,392,048 2,169,025 394,392 16,629,148 25,340,736

Page 41

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

7. Support costs

Support
costs		 Governance
costs		 2025 2024
£ £ £ £
Staff salary costs 2,254,520 - 2,254,520 2,096,593
Other staff costs 503,366 - 503,366 345,490
Property costs 167,808 - 167,808 91,642
Other operating costs 1,388,163 - 1,388,163 1,429,312
Depreciation and amortisation 28,217 - 28,217 25,426
Legal fees 20,339 - 20,339 24,708
Staff costs - 95,053 95,053 88,608
Professional fees - 25,800 25,800 23,400
Office costs - 10,272 10,272 9,063
Trustee meetings - 3,920 3,920 2,560
4,362,413 135,045 4,497,458 4,136,802
Analysed as

8. Net movement in funds Net movement in funds is stated after charging/(crediting):

2025 2024
£ £
Depreciation of owned tangible fixed assets 20,745 68,804
Amortisation of intangible assets 23,151 20,774
Operating lease charges - equipment 7,004 -
Operating lease charges - land and buildings 680,886 817,098

9. Other expenditure

Project costs Designated
funds
2025
£
277,840
277,840		 Total
funds
2025
£
277,840
277,840		 Total
funds
2024
£
-
-

Page 42

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

10. Auditor's remuneration

2025 2024
£ £
Fees payable to the Company's auditor for the audit of the Company's
annual accounts 21,500 15,375
Fees payable to the Company's auditor in respect of:
All non-audit services not included above 4,335 4,125

11. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2025
£
17,304,098
1,743,303
638,935
19,686,336		 2024
£
16,487,555
1,481,571
564,015
18,533,141

The average number of persons employed by the Company during the year was as follows:

Employment services
Community support and personalised services
Housing services
Talking therapies services
Administration and support		 2025
No.
93
195
7
251
58
604		 2024
No.
57
194
6
251
56
564

Page 43

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

11. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2025 2024
No. No.
In the band £60,001 - £70,000 5 2
In the band £70,001 - £80,000 5 2
In the band £80,001 - £90,000 1 2
In the band £90,001 - £100,000 4 -
In the band £100,001 - £110,000 - 1
In the band £110,001 - £120,000 1 -

The key management personnel of the charity comprise the chief executive officer and the executive team. The remuneration of key management personnel is as follows:

2025 2024
£ £
Aggregate compensation 592,462 522,305

12. Trustees' remuneration and expenses

The Trustees received no remuneration during the year (2024: £NIL) and no Trustees received payment for professional or other services supplied to the charity (2024: £NIL) .

During the year, no Trustees received any remuneration or other benefits (2024 - £NIL) .

During the year ended 31 March 2025, travel expenses totalling £ 920 were reimbursed or paid directly to 3 Trustees (2024 - £431 paid to 2 Trustees) .

Page 44

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

13.
Intangible assets
Cost
At 1 April 2024
Additions
At 31 March 2025
Amortisation
At 1 April 2024
Charge for the year
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 Computer
software
£
746,503
502,177
1,248,680
514,995
23,151
538,146
710,534
231,508

The amortisation charge for the year is recognised within expenditure on charitable activities. There are no contractual commitments to acquire intangible assets at 31 March 2025 (2024: £NIL) .

Page 45

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

14. Tangible fixed assets

Cost or valuation
At 1 April 2024
Additions
Disposals
At 31 March 2025
Depreciation
At 1 April 2024
Charge for the year
On disposals
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 Long-term
leasehold
property
£
14,641
40,097
-
54,738
3,624
7,541
-
11,165
43,573
11,017		 Fixtures and
fittings
£
214,303
20,231
(50,405)
184,129
212,737
2,296
(50,405)
164,628
19,501
1,566		 Computer
equipment
£
814,235
6,742
(537,460)
283,517
803,467
10,908
(537,460)
276,915
6,602
10,768		 Total
£
1,043,179
67,070
(587,865)
522,384
1,019,828
20,745
(587,865)
452,708
69,676
23,351

Page 46

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

15.
Fixed asset investments
Cost or valuation
At 1 April 2024
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024
Principal subsidiaries
The following was a subsidiary undertaking of the Company:
Name
Principal activity
Moorpark Limited
Dormant company
16.
Debtors
2025
£
Due within one year
Trade debtors
4,182,059
Amounts owed by group undertakings
2,727
Other debtors
14,342
Prepayments and accrued income
1,160,601
Other debtor arrears
16,296
5,376,025		 15.
Fixed asset investments
Cost or valuation
At 1 April 2024
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024
Principal subsidiaries
The following was a subsidiary undertaking of the Company:
Name
Principal activity
Moorpark Limited
Dormant company
16.
Debtors
2025
£
Due within one year
Trade debtors
4,182,059
Amounts owed by group undertakings
2,727
Other debtors
14,342
Prepayments and accrued income
1,160,601
Other debtor arrears
16,296
5,376,025		 Investments
in
subsidiary
companies
£
1
1
1
1
Holding
100%
2024
£
3,854,442
2,727
2,995
777,974
(489)
4,637,649
5,376,025

Page 47

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

17. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Deferred income
Other creditor arrears
Other creditors and accruals
Provision for pension contributions
Deferred income at 1 April
Resources deferred during the year
Amounts released from previous periods
Deferred income at 31 March		 2025
£
331,699
422,878
1,943,458
2,177
459,752
148,504
3,308,468
2025
£
355,946
1,918,479
(330,967)
1,943,458		 2024
£
464,728
349,493
355,946
1,304
644,563
134,675
1,950,709
2024
£
1,466,655
276,226
(1,386,935)
355,946

Page 48

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

18. Statement of funds

Statement of funds - current year

Unrestricted funds
General funds
Designated funds
Designated funds
Restricted funds
Central
Community support and
personalised services
Total of funds		 Balance at 1
April 2024
£
4,020,670
418,972
125,032
259,989
385,021
4,824,663		 Income
£
24,730,169
-
-
3,467,680
3,467,680
28,197,849		 Expenditure
£
(23,339,916)
(780,015)
-
(3,478,235)
(3,478,235)
(27,598,166)		 Transfers
in/out
£
(1,206,778)
1,217,162
-
(10,384)
(10,384)
-		 Balance at
31 March
2025
£
4,204,145
856,119
125,032
239,050
364,082
5,424,346

During the prior year management determined that separate disclosure of designated funds on the face of the Statement of Financial Activities provided the user of the accounts with a clearer and true and fair view of the activities and performance of the Charity. They amended the presentation of the Statement of Financial Activities to reflect that in the prior year. Management have considered this presentation for the financial year and determine that it is remains appropriate to maintain this presentation. Management will continue to annually consider the appropriateness of this presentation.

Page 49

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

18. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General funds
Designated funds
Designated funds
Restricted funds
Central
Employment services
Community support and
personalised services
Total of funds		 Balance at
1 April 2023
£
3,420,326
490,280
125,032
82,272
513,051
720,355
4,630,961		 Income
£
24,102,446
-
-
-
1,431,992
1,431,992
25,534,438		 Expenditure
£
(23,629,471)
(36,280)
-
-
(1,674,985)
(1,674,985)
(25,340,736)		 Transfers
in/out
£
127,369
(35,028)
-
(82,272)
(10,069)
(92,341)
-		 Balance at
31 March
2024
£
4,020,670
418,972
125,032
-
259,989
385,021
4,824,663

Page 50

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

19. Summary of funds

Summary of funds - current year

Balance at
Balance at 1 Transfers 31 March
April 2024 Income Expenditure in/out 2025
£ £ £ £ £
General funds 4,020,670 24,730,169 (23,339,916) (1,206,778) 4,204,145
Designated funds 418,972 - (780,015) 1,217,162 856,119
Restricted funds 385,021 3,467,680 (3,478,235) (10,384) 364,082
4,824,663 28,197,849 (27,598,166) - 5,424,346
Summary of funds - prior year
Balance at
Balance at Transfers 31 March
1 April 2023 Income Expenditure in/out 2024
£ £ £ £ £
General funds 3,420,326 24,102,446 (23,629,471) 127,369 4,020,670
Designated funds 490,280 - (36,280) (35,028) 418,972
Restricted funds 720,355 1,431,992 (1,674,985) (92,341) 385,021
4,630,961 25,534,438 (25,340,736) - 4,824,663

Page 51

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

20. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2025
£
Tangible fixed assets
69,676
Intangible fixed assets
-
Fixed asset investments
1
Current assets
7,442,936
Creditors due within one year
(3,308,468)
Total
4,204,145
Analysis of net assets between funds - prior year
Unrestricted
funds
2024
£
Tangible fixed assets
23,351
Intangible fixed assets
231,508
Fixed asset investments
1
Current assets
5,716,519
Creditors due within one year
(1,950,709)
Total
4,020,670		 Restricted
funds
2025
£
-
-
-
364,082
-
364,082
Restricted
funds
2024
£
-
-
-
385,021
-
385,021		 Designated
funds
2025
£
-
710,534
-
145,585
-
856,119
Designated
funds
2024
£
-
-
-
418,972
-
418,972		 Total
funds
2025
£
69,676
710,534
1
7,952,603
(3,308,468)
5,424,346
Total
funds
2024
£
23,351
231,508
1
6,520,512
(1,950,709)
4,824,663
Analysis of net assets between funds - prior
Tangible fixed assets
Intangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total

Page 52

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

21. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation and impairment of tangible fixed assets
Amortisation and impairment of intangible assets
Investment income recognised in statement of financial activities
(Increase) in debtors
Increase in creditors
(Decrease) in deferred income
Net cash provided by/(used in) operating activities
22.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
23.
Analysis of changes in net debt
At 1 April
2024
£
Cash at bank and in hand
1,882,863		 2025
2024
£
£
599,683
193,702
20,745
97,139
23,151
33,968
(26,027)
(26,530)
(738,376)
(645,687)
(229,753)
(491,817)
1,587,512
(1,110,709)
1,236,935
(1,949,934)
2025
2024
£
£
2,576,578
1,882,863
2,576,578
1,882,863
Cash flows
At 31 March
2025
£
£
693,715
2,576,578

Page 53

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

24. Pension commitments

Defined contribution scheme

The charitable company 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 £638,935 (2024: £435,576) . Contributions of £108,477 (2024: £76,741) were payable to the fund at the balance sheet date and are included in creditors.

Defined benefit schemes

The charity participated in two multi-employer pension plans, being TPT Retirement Solutions’ Growth Plan (formerly the Pensions Trust’s Growth Plan) and the NHS Pension Scheme. The assets of the schemes are held separately from those of the charity in independently administered funds.

The contributions payable by the charity charged to income and expenditure amounted to:

The Growth Plan
NHS Pension Scheme		 2025
£
-
-
-		 2024
£
-
128,587
128,587

Expenditure on pensions is allocated to service line according to staff time. Costs are split between restricted and unrestricted based upon project specific cost accounting.

Page 54

MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

NHS Pension Scheme

The NHS Pension Scheme ('the scheme') is an unfunded, multi-employer defined benefit scheme that covers NHS employers, General Practices and other bodies, allowed under the direction of the Secretary of State, in England and Wales. The scheme is not designed to be run in a way that would enable participating bodies to identify their share of the underlying Scheme assets and liabilities. Therefore, the Scheme is accounted for as if it were a defined contribution scheme: the cost to the charity of participating in the Scheme is taken as equal to the contributions payable to the Scheme for the accounting period.

At the balance sheet date there were 26 active members of the Scheme employed by the charity. The Scheme is not open to new employees unless they are transferred under TUPE agreements from an NHS Foundation Trust.

The Scheme has a number of different benefit structures. For the 1995 section annual pensions are normally based on 1/80th of the best of the last 3 years' pensionable pay for each year of service; for the 2008 section annual pensions are normally based on 1/60th of the average of the best three consecutive years' pensionable pay in the final ten years of service for each year of service; for the 2015 section, which is a career average revalued earnings scheme, annual pensions are based on 1/54th of each year's pensionable pay.

Members of the 1995 section normally receive a lump sum on retirement of three times their annual pension. Members of the 2008 and 2015 sections receive a lump sum which may be a maximum of 25% of the value of their pension at retirement, their choice subsequently affecting the level of annual pension due. In all cases, the lump sum available is subject to a maximum amount permitted under HMRC rules. Annual increases are applied to pension payments at rates defined by the Pensions (Increase) Act 1971, and are based on changes in the Consumer Price Index in the twelve months ending 30 September in the previous calendar year.

On death, a pension of 50%, 37.5% or 33.75% of the member's pension is normally payable to the surviving spouse, civil partner or nominated partner. The percentage payable depends on whether the member was in the 1995, 2008 or 2015 section. In addition, each section provides for a lump sum payable on death.

The Scheme is subject to a full actuarial valuation every four years, and an FRS 102 accounting valuation every year. At the conclusion of the 2016 full valuation the Scheme actuary reported that employer contributions should increase to 20.6% from 14.3% from April 2019. In addition, employers are required to pay a scheme administration levy of 0.08% of pensionable pay. For the 2019-20, 2020-21 and 2021-22 scheme years, employers were responsible for paying 14.38% of contributions, with the remaining 6.3% being funded centrally.

The valuation of scheme liability in accordance with FRS 102 is carried out annually by the Scheme Actuary. The latest assessment of the liabilities of the Scheme is contained in the Scheme Actuary report, which forms part of the NHS Pension Scheme Annual Accounts, published annually. These accounts can be viewed on the NHS Pensions website.

TPT Retirement Solutions’ Growth Plan

TPT Retirement Solutions’ Growth Plan (‘the Plan’) is funded and was not contracted out of the state scheme. Contributions paid into the Plan up to and including September 2001 were converted to defined amounts of pension payable from Normal Retirement Date. From October 2001 contributions were invested in personal funds which have a capital guarantee and which are converted to pension on retirement, either within the Plan or by the purchase of an annuity. For contributions from November 2012 the capital guarantee was removed.

It is not possible in the normal course of events to identify the share of underlying assets and liabilities belonging to individual participating employers. The Plan is a multi-employer scheme, where the assets are co-mingled for investment purposes, and benefits are paid out of the Plan’s total assets. Therefore,

The Plan is accounted for as if it were a defined contribution scheme. The cost to the charity of participating in the Plan is taken as equal to the contributions payable to the Plan for the accounting

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MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

period.

There is a potential debt on the employer that would be levied by the trustee of the Plan in the event of the employer ceasing to participate in the Plan or the Plan winding up. The debt for the Plan as a whole is calculated by comparing the liabilities for the Plan (calculated on a buyout basis i.e. the cost of securing guaranteed benefits by purchasing annuity policies from an insurer, plus an allowance for expenses) with the assets of the Plan. If the liabilities exceed assets there is a buy-out debt.

The leaving employer's share of the buy-out debt is the proportion of the Plan's liability attributable to employment with the leaving employer compared to the total amount of the Plan's liabilities (relating to employment with all the currently participating employers). The leaving employer's debt therefore includes a share of any 'orphan' liabilities in respect of previously participating employers. The amount of the debt therefore depends on many factors including total Plan liabilities, Plan investment performance, the liabilities in respect of current and former employees of the employer, financial conditions at the time of the cessation event and the insurance buy-out market. The amounts of debt can therefore be volatile over time.

When an employer withdraws from a multi-employer defined benefit pension scheme which is in deficit, the employer is required by law to pay its share of the deficit, calculated on a statutory basis (known as the buy-out basis). The Plan is a "last man standing" multi-employer scheme. This means that if a withdrawing employer is unable to pay its debt on withdrawal the liability is shared amongst the remaining employers. The participating employers are therefore jointly and severally liable for the deficit in the Plan.

During 2021/22 the trustees carefully considered the pros and cons of opting to withdraw from the TPT Retirement Solutions’ Growth Plan scheme and decided to do so with effect from 30 September 2021.

At the balance sheet date there were 0 active members of the Plan employed by the charity. The charity no longer offers membership of the Plan to its employees.

Following the Trustees' decision to leave the TPT Retirement Solutions pension scheme during 2021-22, remaining estimated exit debts of £40,027 remain fully provided for within these accounts. There remains uncertainty about the final exit debt, due to a review of the application of rules by the administrator of this multi-employer scheme, for which the scheme Trustee is seeking court direction. Possible additional costs can not be calculated at this time. However, MHM’s advisors indicate that these will not be material.

There are potential additional liabilities associated with an ongoing review of the way in which changes to benefits have been implemented. The Scheme Trustee is seeking court directions on how to interpret the rules. Until this matter is resolved, it is not possible to assess with any degree of certainty the likelihood or value of additional liabilities. However, the trustees do not expect these to be material.

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MENTAL HEALTH MATTERS

(A company limited by guarantee)

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

25. Operating lease commitments

The charity as a lessee:

At 31 March 2025 the Company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Within 1 year
Between 1 and 5 years		 2025
£
523,719
782,540
1,306,259		 2024
£
693,269
1,131,442
1,824,711

The charity as a lessor:

The charity has a large number of tenancy agreements with tenants utilising the services of the charity. The lease agreements have varying terms, however all leases are cancellable as the intention of the charity is that tenants vacate premises once they are recovered.

At the year end, the charity had no contracts with tenants under non-cancellable operating leases.

26. Related party transactions

During the year the Charity entered into transactions with the following related parties:

No related party has had any involvement in the delivery of the services nor have they had any involvement in decision making in relation to the contracts in question.

The income generated by MHM in the year from each of these contractual arrangements with related parties is as follows:

Health Education England
Combat Stress
Cumbria, Northumberland, Tyne and Wear NHS Foundation Trust		 2025
£
755,960
377,819
5,917,593
7,051,372		 2024
£
768,013
261,999
5,409,731
6,439,743

Page 57

2025-12-16

Mental Health Matters Accounts Signing

Final Audit Report

Created: 2025-12-15 By: Jake Higgins (Jake.Higgins@armstrongwatson.co.uk) Status: Signed Transaction ID: CBJCHBCAABAAfOy6XO07_9sr0uYO0zC67twPMWZIhgmT

"Mental Health Matters Accounts Signing" History

2025-12-15 - 12:25:36 GMT- IP address: 62.89.150.154

Document emailed to jwhitbread@mhm.org.uk for signature

2025-12-15 - 12:29:19 GMT

2025-12-15 - 12:29:28 GMT- IP address: 72.145.83.106

Signature Date: 2025-12-15 - 18:03:48 GMT - Time Source: server- IP address: 86.173.249.142

Document emailed to Simon Turner (simon.turner@armstrongwatson.co.uk) for signature 2025-12-15 - 18:03:50 GMT

Email viewed by Simon Turner (simon.turner@armstrongwatson.co.uk) 2025-12-15 - 18:03:59 GMT- IP address: 172.186.8.64

Agreement completed.

2025-12-16 - 08:34:46 GMT