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← First Rung Ltd

2025-07-31-accounts

REGISTERED COMPANY NUMBER: 02171777 (England and Wales) REGISTERED CHARITY NUMBER: 800614

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST JULY 2025

FOR

FIRST RUNG LIMITED

Sproull & Co. Chartered Accountants Statutory Auditors First Floor, Jebsen House 53-61 High Street Ruislip Middlesex HA4 7BD

FIRST RUNG LIMITED

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025

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Page
Reference and Administrative Details 1
Report of the Trustees 2 to 6
Statement of Trustees' Responsibilities 7
Report of the Independent Auditors 8 to 10
Statement of Financial Activities 11
Statement of Financial Position 12
Statement of Cash Flows 13
Notes to the Statement of Cash Flows 14
Notes to the Financial Statements 15 to 23
Detailed Statement of Financial Activities 24
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FIRST RUNG LIMITED REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31ST JULY 2025

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TRUSTEES O Ahmed
H Ali
J Carlaw (appointed 10.7.25)
J R Eifion-Jones (Treasurer and Chair of FPC)
J M Hinton
E J Jones Chair (Chair)
I J Lawrence
M Mahajan
C S Pike (Chair of QPRC)
B M Ratcliffe (appointed 10.4.25)
S Riley
T M Young
COMPANY SECRETARY B Tari Anavi
REGISTERED OFFICE 197-205 High Street
Ponders End
Enfield
Middlesex
EN3 4DZ
REGISTERED COMPANY 02171777 (England and Wales)
NUMBER
REGISTERED CHARITY 800614
NUMBER
AUDITORS Sproull & Co.
Chartered Accountants
Statutory Auditors
First Floor, Jebsen House
53-61 High Street
Ruislip
Middlesex
HA4 7BD
BANKERS HSBC Bank plc
1 The Town
Enfield
EN2 6LD
Barclays Bank plc
54 High Street
Ruislip
Middlesex
HA4 7AT
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Page 1

FIRST RUNG LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST JULY 2025

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st July 2025. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Company's objects ('Objects') are specifically restricted to:

Public benefit

Trustees of a charity have a duty to report on their charity's public benefit. The Trustees of First Rung Limited have considered the guidance issued by the Charity Commission. The Trustees have concluded that:-

The trustees can confirm that they are complying with the Charity Commission's guidance on public benefit. First Rung is a registered charity; its only activity is the provision of learning, training and preparing young people for work. Prior to joining us many of our learners struggle to identify the next stage in their education or work. The charity, by providing tailor made courses combined with excellent pastoral care, nurtures the young people, enabling them to make the next step in their journey for the benefit of society, local employers and the economy.

Activities

Study Programme

First Rung continues to deliver the 16-19 years old Study programme, which offers bespoke learning and employability provision to young people based on their needs and prior attainment. The aim is to provide young people with the skills and qualifications to progress to an apprenticeship, employment or further education.

Learners have the opportunity to achieve a vocational qualification in either Accountancy, Business Administration, Customer Service or Health and Social Care. A level 3 qualification was offered in Accountancy for the first time. Learners develop their skills in English, Mathematics and ICT by undertaking the Functional Skills qualification at the appropriate level. First Rung continues to offer Functional Skills and GCSE English and Mathematics provision to learners who did not previously achieve at least a grade 4 in these subjects.

All learners on the programme attend preparation for life and work sessions to support them to develop the necessary skills and attributes to sustain employment and be a good citizen. All learners are also expected to undertake a work placement as part of the programme.

During 2024/25, the Study Programme met the company's objectives by continuing to expand the breadth of provision it offers in response to community need. It met the needs of young people with Special Educational Needs and Disabilities (SEND) by increasing, enhancing and individualising the high needs support it offers. At the same time, it catered for increasing number of higher ability learners through delivery of level 3 vocational qualifications.

Page 2

FIRST RUNG LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST JULY 2025

OBJECTIVES AND ACTIVITIES

Apprenticeships

Apprenticeships offer employers the opportunity both to recruit new staff who will be trained to industry standard while they work, and to up-skill existing staff.

A levy is charged by the Government to larger employers. These funds are accessed through the Digital Apprenticeship Service (DAS) system. Apprenticeship standards provide a structure of industry relevant to both on and off the job training. Off the job training is delivered by First Rung either in centre or on-line. On the job training is delivered in work by the employer. Apprenticeships are both level 2 and 3 and are delivered in a range of vocational areas.

Smaller employers who are not required to pay the apprenticeship levy can also employ and train apprentices. Due to a change in government policy, these apprenticeships are now fully funded for apprentices aged 16-21 or 22-24 if they have an EHCP and SME employers no longer have to contribute.

During the year ended 31 July 2025 First Rung delivered apprenticeships in the areas of Early Years, Teaching Assistant, Accountancy and Business Administration.

During 2024/25, the company increased its apprenticeship achievement rate to 75% putting it well ahead of the national Minimum Level of performance for this provision.

Back on Track Targeted NEET Greater London Authority

This NEET (Not in Employment, Education or Training) programme launched in April 2024, was designed to focus on young Londoners who are furthest from the labour market and experiencing multiple forms of disadvantage and/or have significant additional support needs including:

The GLA divided the programme into 4 areas of London. First Rung was awarded a grant for the Ponders End site in the North & East London area. All participants are supported on a one-to-one basis by an advisor.

Jobs and Skills for Londoners Greater London Authority

First Rung launched Health and Social Care programmes through a project called "Skills and Jobs for Londoners" for learners aged 19 and over study qualifications at levels 2 and 3.

High Needs Support

First Rung has become a specialist provider of support to learners aged 16-25 who have additional needs identified in an Education, Health and Care Plan (EHCP). First Rung supported 20 learners during the year, another increase on the previous year. The programme is funded jointly through the Department for Education and local authorities.

- UK Shared Prosperity Fund UKSPF Multiply Programme

First Rung delivered Government initiative a subcontractor to Harrow, Richmond and Uxbridge College. The programme provided numeracy training to young people aged 16-25.

Page 3

FIRST RUNG LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST JULY 2025

ACHIEVEMENTS AND PERFORMANCE Achievements

Delivery of Learning

First Rung supported 264 Study Programme and 102 apprentice learners during the year.

Quality of Provision

The Charity's aim is continuously to improve the quality of the learning that it provides. To achieve this aim, each year a critical self-assessment is undertaken, the findings from which are used to produce a Quality Improvement Plan (QIP) which identifies the areas requiring attention, the person tasked with the work and the deadline of completion.

Ofsted

The Apprenticeship, Study Programme and High Needs provision is subject to inspection by Ofsted. First Rung was inspected by Ofsted in December 2022 and was graded "Good" overall. This included a "Good" judgement in the new areas of Apprenticeships and High Needs support.

Fundraising activities

During this financial year, the Trustees decided that the environment and circumstances were still not conducive to active fundraising. In the future, we may return to active fundraising when the time is right and opportunities arise.

Audit

No external audits were undertaken during this financial year.

Articles of Association

The organisation updated its articles of association during the 24-25 financial year to bring clarity and improve Board governance. They are available on the Companies House website.

FINANCIAL REVIEW

Results for the Financial Year and Long Term Strategy

The financial health of the organisation has continued to improve resulting in a surplus of £135,596 for the year ended 31 July 2025 (2024 - £179,726 surplus). During the year the organisation continued to invest in staff development, including teacher training and purchased IT hardware for staff and learners.

Risks attached to achievement of objectives

First Rung faces risks from changes in Government priorities in employment and skills provision; to mitigate this risk the Charity is proactively looking to diversify into alternative income streams, so that there is less dependence on the Department for Education contract which at present constitutes the majority of our income. There has been some success in this area with the securing of UKSPF Fund and First Rung was awarded two Greater London Authority contracts over the past two years.

The risk appetite of the Board was reviewed this year and a risk framework, with revised risk register, was implemented. Risks are reviewed quarterly through the Finance & Premises committee.

The safety of our learners, many of whom are vulnerable, is of paramount importance to First Rung. To mitigate the risks, all staff and trustees are DBS (Disclosure and Barring Service) checked and have regular training in Safeguarding, 'Prevent' and bullying awareness. Safeguarding is included as a topic for discussion at every Board meeting.

Investment policy and objectives

It is the policy of the Trustees to invest surplus cash in short term cash deposits. From time to time the Trustees, via the Finance & Premises Committee, look at the overall resources of the organisation and its future needs in order to establish whether there is scope for extending the range of investments. The organisation's improving financial position now allows for over half of our reserves to be held in short term deposits.

Page 4

FIRST RUNG LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST JULY 2025

FINANCIAL REVIEW

Reserves policy

The purpose of maintaining reserves is to ensure the charity's long term financial stability, safeguard its ability to deliver educational programmes and training to young people, and manage financial risks arising from fluctuations in income or unexpected costs.

Having considered such matters as predictability of income, expenditure levels, liquidity, planned commitments external and operational risks the Trustees have determined that, in the short term, free reserves (defined as net current assets) should be maintained at a minimum level of three months of operating costs, in order to provide cover in the event of any interruption of income and to enable opportunities to invest in the organisation as they arise.

The free reserves at 31 July 2025 were £510,421 (£401,474 as at 31 July 2024) which represents 3 months (2024 - 3 months) average operating costs.

The acquisition of a new learning centre during 2026 will reduce free reserves in the short-term but the Trustees are committed to restoring this to target levels as soon as practical and continuing to operate at a surplus will support this policy.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Day to day decisions regarding the charity are made by the senior management team, led by the CEO. There are two Board sub-committees covering Finance & Premises (FPC) and Quality, Personnel and Remuneration (QPRC).

Page 5

FIRST RUNG LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST JULY 2025

eee

STRUCTURE, GOVERNANCE AND MANAGEMENT

Board of Trustees The following list includes all Trustees and Key Management who served during the financial year.

Chair Elizabeth Joan Jones

Treasurer Jonathan Richard Eifion-Jones

Other Trustees Sonal Riley Omar Ahmed Emmamuella Emovon Resigned 01.10.2024 Mohit Mahajan Iain James Lawrence Calvin Sidney Pike Hafiza Ali Timothy Michael Young Appointed 21.01.2025 Jacqueline Mary Hinton Appointed 21.01.2025 Brona Mary Ratcliffe Appointed 10.04.2025 Janine Carlaw Appointed 10.07.2025 Company Secretary Hannah Julie Warwick Resigned 05.02.2025 Beril Tari Anavi Appointed 05.02.2025 Senior Staff Chief Executive Steve Woolcock Deputy CEO/Operations Manager Denis Dillon Head of Centres and Inclusion Francesca Muratori Finance and performance manager Druvi Attygalle

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the trustees are aware, there is no relevant information (as defined by Section 418 of the Companies Act 2006) of which the charitable company's auditors are unaware, and each trustee has taken all the steps that they ought to have taken as a trustee in order to make them aware of any audit information and to establish that the charitable company's auditors are aware of that information. AUDITORS Under section 487(2) of the Companies Act 2006, Sproull & Co., Chartered Accountants and Statutory Auditors, are deemed to be reappointed as auditors. Approved LY) ‘ : by order ofthe board oftrustees on wd |e and signed on its behalf by: —<// EJ Jones N ir - Trustee

ge

Page 6

FIRST RUNG LIMITED

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31ST JULY 2025

The trustees (who are also the directors of First Rung Limited for the purposes of company law) are responsible for preparing the Report of the Trustees 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 year. Under that law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF FIRST RUNG LIMITED

Opinion

We have audited the financial statements of First Rung Limited (the 'charitable company') for the year ended 31st July 2025 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF FIRST RUNG LIMITED

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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

Responsibilities of trustees

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

In preparing the financial statements, the trustees are responsible for assessing the 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.

Our 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 a Report of the Independent Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company and the sector in which it operates, we identified the principle risks of non-compliance with laws and regulations related to charitable companies and the application of charitable funds. We also considered those laws and regulations which have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities SORP (FRS 102).

Through enquiry of management we gained an understanding of their relevant laws and regulations; the entity's policies and procedures regarding compliance; and how they identify, evaluate and account for litigation claims. We understand that the company complies with the framework through having in place robust procedures and policies and by outsourcing and taking external professional legal, tax and accounting advice on relevant specialist functions and areas.

The senior statutory auditor led a discussion with all members of the engagement team regarding the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. The areas identified in this discussion were:

Page 9

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF FIRST RUNG LIMITED

The procedures we carried out to gain sufficient appropriate audit evidence in the above areas included:

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 Report of the Independent Auditors.

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 auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Michelle Wickwar A.C.A., F.C.C.A. (Senior Statutory Auditor) for and on behalf of Sproull & Co. Chartered Accountants Statutory Auditors First Floor, Jebsen House 53-61 High Street Ruislip Middlesex HA4 7BD

13/02/2026 Date: .............................................

Page 10

FIRST RUNG LIMITED

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST JULY 2025

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Charitable activities
4
Main charitable activities
2,262,383
Investment income
3
10,339
Total
2,272,722
EXPENDITURE ON
Charitable activities
5
Main charitable activities
1,598,347
Support costs
538,779
Total
2,137,126
NET INCOME
135,596
RECONCILIATION OF FUNDS
Total funds brought forward
471,970
TOTAL FUNDS CARRIED FORWARD
607,566		 Restricted
fund
£
-
-
-
-
-
-
-
-
-		 2025
Total
funds
£
2,262,383
10,339
2,272,722
1,598,347
538,779
2,137,126
135,596
471,970
607,566		 2024
Total
funds
£
2,004,710
2,879
2,007,589
1,336,564
491,299
1,827,863
179,726
292,244
471,970

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

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

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

The notes form part of these financial statements

Page 11

FIRST RUNG LIMITED

STATEMENT OF FINANCIAL POSITION

31ST JULY 2025

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||||||| |---|---|---|---|---|---| |SSS| |2025|2024| |Notes|£|£| |FIXED|ASSETS| |Tangible|assets|12|97,145|70,496| |CURRENT|ASSETS| |Debtors|13|203,248|382,380| |Cash|at bank and in hand|684,862|342,745| |888,110|725,125| |CREDITORS| |Amounts|falling due|within one year|14|(377,689)|(323,651)| |NET CURRENT ASSETS|510,421|401,474| |TOTAL ASSETS|LESS CURRENT| |LIABILITIES|607,566|471,970| |NET ASSETS|607,566|471,970| |FUNDS|17| |Unrestricted|funds|607,566|471,970| |TOTAL FUNDS|607,566|471,970|

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These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on Hititeeetsitiseteneneseeeseseeseeceeees aNd Were signed on its behalf by:

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EJ Jo‘ air - Trustee
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The notes form part of these financial statements

Page 12

FIRST RUNG LIMITED

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST JULY 2025

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2025
£
395,653
395,653
(63,875)
10,339
(53,536)
342,117
342,745
684,862		 2024
£
139,944
139,944
(15,511)
2,879
(12,632)
127,312
215,433
342,745

The notes form part of these financial statements

Page 13

FIRST RUNG LIMITED NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST JULY 2025

1.
RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM
Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Interest received
Decrease/(increase) in debtors
Increase in creditors		 OPERATING ACTIVITIES
2025
2024
£
£
135,596
179,726
37,226
28,312
(10,339)
(2,879)
179,132
(133,786)
54,038
68,571
Net cash provided by operations 395,653
139,944

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.8.24
£
Net cash
Cash at bank and in hand
342,745		 Cash flow
£
342,117		 At 31.7.25
£
684,862
342,745 342,117 684,862
Total
342,745		 342,117 684,862

The notes form part of these financial statements

Page 14

FIRST RUNG LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025

1. GENERAL INFORMATION

First Rung Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 197 – 205 High Street, Ponders End, Enfield, EN3 4DZ. First Rung Limited is also a registered charity in England and Wales. Charity number is 800614.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. There were no critical accounting estimates and judgements made in preparing these financial statements.

Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. This view has been reinforced by First Rung's ability to maintain a positive cash balance, without recourse to borrowing. This position is strengthened by the continuation of our existing DfE funding contract until July 2026.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Government grants

The company recognises income arising from government grants using the performance model.

Tangible fixed assets and impairment of fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

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FIRST RUNG LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2025

2. ACCOUNTING POLICIES - continued

Tangible fixed assets and impairment of fixed assets

Leasehold improvements Over the term of the lease Plant and machinery 33.33% Straight line Fixtures, fittings and equipment 20% Straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and carrying value of the asset, and is recognized in net income/(expenditure) for the year.

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Payments in respect of other post-retirement benefits are charged to the Statement of Financial Activities in the period to which they relate.

Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity’s balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

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FIRST RUNG LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2025

2. ACCOUNTING POLICIES - continued

Financial instruments

Basic financial liabilities, including creditors are initially recognized at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognized initially at transaction price and subsequently measured at amortised cost using the effective interest method.

3. INVESTMENT INCOME

Interest receivable
4.
INCOME FROM CHARITABLE ACTIVITIES
Activity
DfE Study programme and
traineeships
Main charitable activities
Apprenticeships
Main charitable activities
Other
Main charitable activities		 2025
£
10,339
2025
£
1,459,834
327,613
474,936
2,262,383		 2024
£
2,879
2024
£
1,224,046
291,082
489,582
2,004,710

5. CHARITABLE ACTIVITIES COSTS

Main charitable activities
Support costs		 Direct
Costs (see
note 6)
£
1,598,347
-
1,598,347		 Support
costs (see
note 7)
£
-
538,779
538,779		 Totals
£
1,598,347
538,779
2,137,126

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FIRST RUNG LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2025

6. DIRECT COSTS OF CHARITABLE ACTIVITIES

2025
£
Staff costs
1,485,068
Learner support costs
4,961
Training costs and materials
9,837
Registration fees
98,481
1,598,347
7.
SUPPORT COSTS
Governance
Management
costs
£
£
Support costs
526,479
12,300
Support costs, included in the above, are as follows:
2025
Support
costs
£
Sundries
234
Premises costs
315,423
Office costs
83,561
Legal and professional
24,256
Bank charges
481
Staff expenses
65,298
Depreciation of tangible and heritage assets
37,226
Auditors' remuneration
12,300
Auditors' remuneration for non audit work
-
538,779
8.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
2025
£
Auditors' remuneration
12,300
Auditors' remuneration for non audit work
-
Depreciation - owned assets
37,226		 2024
£
1,234,426
5,555
24,676
71,907
1,336,564
Totals
£
538,779
2024
Total
activities
£
-
336,755
63,197
9,202
336
42,085
28,312
10,500
912
491,299
2024
£
10,500
912
28,312

Page 18

FIRST RUNG LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2025

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st July 2025 nor for the year ended 31st July 2024.

Trustees' expenses

During the year two trustees were reimbursed travel expenses totalling £110 (2024 - one trustee was reimbursed travelling expenses of £81).

10. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Direct charitable services		 2025
£
1,350,281
107,237
27,550
1,485,068
2025
37		 2024
£
1,131,739
80,246
22,441
1,234,426
2024
30

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

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

Of the employees whose emoluments exceed £60,000, two (2024: one) have retirement benefits accruing under a defined benefit scheme of £529 (2024: £529). Pension contributions relating to those staff earning over £60,000 totalled £6,377 in the current year (2024: £6,196).

The senior management team (consisting of Senior Staff Chief Executive, Deputy CEO and Operational Manager and Head of Centres and Inclusion) received total remuneration of £204,693 (2024: £200,770).

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FIRST RUNG LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2025

==> picture [483 x 694] intentionally omitted <==

----- Start of picture text -----
11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted Restricted Total
fund fund funds
£ £ £
INCOME AND ENDOWMENTS FROM
Charitable activities
Main charitable activities 2,004,710 - 2,004,710
Investment income 2,879 - 2,879
Total 2,007,589 - 2,007,589
EXPENDITURE ON
Charitable activities
Main charitable activities 1,336,564 - 1,336,564
-
Support costs 491,299 491,299
Total 1,827,863 - 1,827,863
NET INCOME 179,726 - 179,726
RECONCILIATION OF FUNDS
-
Total funds brought forward 292,244 292,244
TOTAL FUNDS CARRIED FORWARD 471,970 - 471,970
12. TANGIBLE FIXED ASSETS
Fixtures
Leasehold Plant and and
improvements machinery fittings Totals
£ £ £ £
COST
At 1st August 2024 236,190 192,279 42,228 470,697
Additions - 63,629 246 63,875
At 31st July 2025 236,190 255,908 42,474 534,572
DEPRECIATION
At 1st August 2024 178,922 180,999 40,280 400,201
Charge for year 24,886 11,793 547 37,226
At 31st July 2025 203,808 192,792 40,827 437,427
NET BOOK VALUE
At 31st July 2025 32,382 63,116 1,647 97,145
At 31st July 2024 57,268 11,280 1,948 70,496
----- End of picture text -----

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FIRST RUNG LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2025

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Other debtors
Prepayments and accrued income
14.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
Other creditors
Accrued expenses		 2025
£
18,943
123,558
60,747
203,248
2025
£
49,017
29,336
215,961
83,375
377,689		 2024
£
21,030
258,377
102,973
382,380
2024
£
42,129
24,039
180,982
76,501
323,651

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years
ANALYSIS OF NET ASSETS BETWEEN FUNDS
Unrestricted
Restricted
fund
fund
£
£
Fixed assets
97,145
-
Current assets
888,110
-
Current liabilities
(377,689)
-
607,566
-		 2025
£
134,906
85,380
220,286
2025
Total
funds
£
97,145
888,110
(377,689)
607,566		 2024
£
137,645
220,286
357,931
2024
Total
funds
£
70,496
725,125
(323,651)
471,970

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

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FIRST RUNG LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2025

17. MOVEMENT IN FUNDS

Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
TOTAL FUNDS
Comparative net movement in funds, included in the above are as
Unrestricted funds
General fund
TOTAL FUNDS		 At 1.8.24
£
471,970
471,970
Incoming
resources
£
2,272,722
2,272,722
At 1.8.23
£
292,244
292,244
follows:
Incoming
resources
£
2,007,589
2,007,589		 Net
movement
in funds
£
135,596
135,596
Resources
expended
£
(2,137,126)
(2,137,126)
Net
movement
in funds
£
179,726
179,726
Resources
expended
£
(1,827,863)
(1,827,863)		 At 31.7.25
£
607,566
607,566
Movement
in funds
£
135,596
135,596
At 31.7.24
£
471,970
471,970
Movement
in funds
£
179,726
179,726

Page 22

FIRST RUNG LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2025

18. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31st July 2025.

Page 23

FIRST RUNG LIMITED

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST JULY 2025

INCOME AND ENDOWMENTS
Investment income
Interest receivable
Charitable activities
DfE Study programme and traineeships
Apprenticeships
Other
Total incoming resources
EXPENDITURE
Charitable activities
Wages
Social security
Pensions
Learner support costs
Training costs and materials
Registration fees
Support costs
Management
Sundries
Premises costs
Office costs
Legal and professional
Bank charges
Staff expenses
Depn of leasehold improvements
Plant and machinery
Fixtures and fittings
Governance costs
Auditors' remuneration
Auditors' remuneration for non audit work
Total resources expended
Net income		 2025
£
10,339
1,459,834
327,613
474,936
2,262,383
2,272,722
1,350,281
107,237
27,550
4,961
9,837
98,481
1,598,347
234
315,423
83,561
24,256
481
65,298
24,886
11,793
547
526,479
12,300
-
12,300
2,137,126
135,596		 2024
£
2,879
1,224,046
291,082
489,582
2,004,710
2,007,589
1,131,739
80,246
22,441
5,555
24,676
71,907
1,336,564
-
336,755
63,197
9,202
336
42,085
24,887
2,455
970
479,887
10,500
912
11,412
1,827,863
179,726

This page does not form part of the statutory financial statements

Page 24