COMPANY REGISTRATION NUMBER: N1704203 CHARITY REGISTRATION NUMBER.. 109929 The ARN Foundation Company Limited by Guarantee Financial Statements 24 July 2025 MANEELY Mc CANN AUDIT LIMITED Chartered Accounlants & Statutory Auditor Aisling House 50 Stranmillis Embankment Belfast BT9 5FL
The ARN Foundation Company Limited by Guarantee Flnancial Statements Year ended 24 July 2025 Contents Page Trustees, annual report (incorporating the directorfs report) Independent auditor's report to the members Consolidated Statement of Financial Activities (including the consolidaled income and expenditure account) Consolidated statement of financial position Company statement of financial position Consolidaled statement of changes in equity Company slatement of changes in equity Consolidated statement of cash ftows 10 11 12 13 14 15 Notes to the financial statements 16
The ARN Foundation Company Limited by Guarantee Trustees. Annual Report (Incorporatlng the Director's Report) Year ended 24 Jul 2025 The Iruslees, who are also the directors of the parent charitable company for the purposes of company law. present their report and the financial slalements of the charity for the year ended 24 July 2025. Reference and admlnlstratlve details Reglstered charlty name The ARN Foundation Charity reglstratlon number 109929 Company reglstratlon number N1704203 Principal offlce and reglstered CIO Maneely Mc Cann offlce 50 Stranmillls Embankment Belfast Northern Ireland The trustee$ Alan Nappln Michael Blair Alan Campbell Alice Kerr Jill Holden-Downes Celia Worthinglon Audltor Maneely Mc Cann Audit Limited Chartered Accountants & Slalulory Auditor Aisling House 50 Stranmillis Embankment Belfast BT9 SFL Bankers Danske Bank Donegall Square West Belfast BT1 6JS Structure. governance and managemgnt The ARN Foundation Limited was registered as an incorporated charity with the Northern Ireland Charity Commission on 29th February 2024 operating under Memorandum and Articles of Associatlon dated 3rd November 2023. New trustees can be appointed al any lime by a resolution of a meetlng of the trustees.
The ARN Foundation Company Llmited by Guarantee Trustees. Annual Report (Incorporating the Director's Report) (continu Year ended 24 Jul 2025 Objectlves and activities The purpose of the chatlty 18 to provide grants to or for the benefit of any institution which is defined as a charity for the purposes of UK legislation. The charity seeks lo benefit other charities which support the purposes of advancing health or saving of lives and the relief of those in need by reason of youth. age, ill health. disability. finaneial hardship or other disadvantage. Support is provided by way of grants with the aim of.. reducing social isolation improving people's health providing relief and opportunlties for the elderfy and those suffering with ill health. disability. financial hardship Of Other disadvantages, or physical or mental health issues promoting community development and citizenship projects improving employment prospects for youth. persons with disabilities or other disadvantages funding medical research, end of life care. humanitarian aid, health awareness and promotion projects funding emotional and financial support lo patients and famllies funding projects lo improvo healthcare and research into a number of diseases affecting the public generally or which aim lo improve the comfort and wellbeing of patients through the provision of care. residential facilities and advice. The trustees are satisfied that the purposes of the charity satisfy both elements of the public benef requirement. The direct benefits whlch flow from the purposes are the financial contribution lo or for the benefit of any institution which Is a charity as defined by UK legislation. All grants are assessed pr¢or lo being awarded to ensure the purposes are fulfilled, and also to ensure that the benefits outweigh any potential harm. The beneficiaries of those charitable organisations will be the ultimate beneficiaries, which will usually be the general public. and while specific grants may be more limited in scope, they will be assessed lo ensure that the public benefit requirement is fulfilled. Through the assessment process the trustees satisfy themselves that the recipiènt charities are charitsble under the law of England, Wales, Northern Ireland or Scotland. In addition to direct grants lo UK charities decided upon by the Board of Trustees. The Community Foundation for Northern Ireland. which is itself a charity, assists the Board in publicising funding rounds to the charitable sector. CFNI assists with assimilating and evaluating applications received for funding and makes Tecommendalions to the Board. The decision on which charitable projects to support is taken by the Board. Strateglc report The followng seelions for achievements and performance and financial review fonm the strategic report of the charty.
The ARN Foundation Company Limlted by Guarantee Trustees. Annual Report (Incorporating the Director's Report) (1ned) Year ended 24 July 2025 Achievements and performance The charity ggnerates funds from investments and donations. During the perlod. the eharily received donations of £567,098 (including £446,582 of a gift of the issued share capital of the subsidiaries and £80,516 from the transfer of funds from cessation of the unincorporated ARN Foundation charity) and made grants of £223,500. During the year, the charity received a gift of 760A of the issued share capital of Green Road Properties Limited and ARN Properties Limited. This has been recognised in the accounts as a gift in kind income of £446,582 and as an investment in group undertakings. The subsidiaries will be used to carry out trading activities to support the charity's objectives. The beneficiaries of grants for the period include.. Angel Eyes Camphill Communities Trust {N.l.I Caneer Fund for Children Children to Lapland Cystic Fybrosis Homeslart Horatio's Garden Integrated Education Ulster Orchestra Finan¢lal ieview As at 24th July 2025, the charity had unrestricted reserves of £387,380. The charity holds reserves for future grants. In the year ended 24th July 2025, the parent charitable company had a positive riel movement of £659,197. Trustees, responsibilities statement The trustees. who are also the directors of the parent charitable company for the purposes of company law, are responsible for preparing the trustees, report and the financial slalements in accordance with applicable law and United Kingdom Accounting Standards {Uniled Kingdom Generally Accepted Actr)unting Practice). Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the stale of affairs of the charitsble company and the incoming Tesources and application of resources. including the income and expenditure, for that period. In preparing these financial stalemenls. the trustees are required to: select suitable accounting policies and then apply them consistently. observe the methods and principles in the applicable Charities SORP., make judgments and accounting estimateg that are reasonable and prudent; slate whether applicable UK Accounting Standards have been followed, subject to any malerfal departures disclosed and explained in the financial statements,. prepare the financial statements on the going concern basis unless il is inappropriate lo presume that the charity will continue in business.
The ARN Foundation Company Limited by Guarantee Trustees, Annual Report (Incorporating the Dlrector's Report) Icontinuedj Year ended 24 July 2025 The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy al any lime the financial position of the charity and enable them to ensure that the financial slalemenls comply with the Companies Act 2006. They are also responslble for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and deteclK&n of fraud and other irregularrties. statement of disclosure of Infomiatlon to audltors Each of the persons who is a Iruslee at the date of this report eonfirms that: there is no relevant audit inlormalion of the Charltable Companls consolidated financial slalemenls for the year ended 24 July 2025 of which the company's auditors are unaware.. and the Iruslee has taken all the steps that they ought lo have taken as their duty as a trustee In order lo make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. Small company provlslons This report has beon prepared in accordance with the provisions applicable to companies enlilled to the small companies exemption. The trustees, annual report and the strategic rett)rt were approved on 22 May 2026 and signed on behalf of the board of trustees by.. Alan Nappin Director
The ARN Foundation Company Limited by Guarantee Independent Auditor's Report to the Members of The ARN Foundation Year ended 24 July 2025 Oplnlon We have audited the financial statements of The ARN Foundation (the 'parenl charitable Company'l and its subsidiaries (the 'group'l for the year ended 24 July 2025 which comprise the consolidated slalemenl of comprehensive income, consolidated statement of financial position, cornpany statement of financial position, consolidated slalemenl of changes in equity, company slalemenl of changes in equity, consolidated statement of cash flows and the related notes, irkcluding 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 FRS 102 The Financial Reporting standard applicable in the UK and Republic of Ireland {United Kingdom Generally Accepted Accounting Practice)- In our opinion the financial statements= give a true and fair view of the stale of the group's and of the parent charitable companls affairs as at 24 July 2025 and of the group's incoming resources and application of resources. inclLtding ils income and expenditure for the year then ended., have been properly prepared in accordance with Unlted Kingdom Generally Accepted Accounting Practice- have been prepared in accordance with the requirements of the Charities Act (Northern lielandl 2008. Basls for oplnlon We conducted our 8udil in 8ccordance with International Standards on Auditing (UK} {ISAs IUKI} and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the UK. including Ihe FRC'S Ethical Standard, and we have fulfilled our other ethical responsibiltties in accordance with these requirements. We believe that the atjdil evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relatlng to golng concem In auditing the financial stalemenls, 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 lo events or conditions that. individually or collectively, may cast significant doubl on the group or the parent charitable company's ability to continue as a going concern for a Peri of al least twelve months from when the financial statements are aulhorised for issue. OLtr reswnsibilities and the responsibilities of Ihe director with respect to going concern are described in the relevant sections of this report.
The ARN Foundation Company Limited by Guarantee Independent Auditor's Report to the Members of The ARN Foundation {conllnued) Year ended 24 July 2025 other Information The other informallon eomprises the information inclLJded in the trustees, annual report. other than the financial slalemenls and oui auditor's report Ihereon. The trustees are responsible for the other information. Our oplnion on the financial statements does not cover the other information and, except to the extent otherwise explicitly staled in our report. we do not express any lom) of assurance conclusion thereon. In connection with our audit of the financial slalemenls. oui responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsislenl with the financial statements or our knowledge obtained in the audit or otherwise appears lo be materially misslaled. If we identify such material inconsistencies or apparent material misslalements, we are required to determine whether there is a material rnisstatement in the financial slalemenls or material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other informatiorb. we are required lo report that fact. We have nothing to report in this regard. Matters on which we are required to report by ex¢eptlon We have nothing lo report in respect of the following matters in relation lo which the CharS1ies (Accounts and Reports) Regulations {Northern Ireland) 2015 require us to report to you if, in our op.irbiOn'. the information given in the Iruslees, report is inconsistent in any material respect with the financial stalemenls,. or sufficient accounting records have not been kept- or the financial statements are not in agreement with the accounting records. or we have not received all the information and explanations we require for our audit.
The ARN Foundation Company Limited by Guarantee Independent Auditorfs Report to the Members of The ARN Foundation {CDnfiyJued) Year ended 24 July 2025 Responsibilities of trustees As explained more fully in the tnjslees. responsibilities stslement. the Iruslees (who are also the directors of the parent charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satistied that they give a true and fair view, and for such internal control as the Iruslees detemiine is necessary to enable the preparation of ffinancial statements that are free from material misstalemenl, whether due lo fraud or error. In preparing the financial statements. the trustees are responsible for assessing the group's and the parent charitable company's ability lo continue as a going concern, disclosing, as applicable. matters related to going concem and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations. or has no realistic alternative but to do so. Audltorfs responsibilities for the audlt of the financial statements We have been appointed as auditor under section 65(2}3 of the Charities Act (Northern Ireland) 2008 and report in accordance with the Act and relevant regulations made or having gffect thereunder. Our objectives are to obtain reasonable assurance about whether the flnancial statements as a whole are free from materlal misstalemenl, 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 bul is not 2 guarantee that an audit conducted in accordance with ISAS (UK} will always delecl a material misstatement when It exists. Misslatemenls can arise from fraud or error and are considered material rf, 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 exlenl to which our procedures are capable of detecting irregularities. includlng fraud is detailed below.. Identlfylng and assessing potential risks related to Irregularltles In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulaliorbs, we considered the following.. the nature of the industry and sector, control environment and buslness performance including the design of the Group's remuneration policies, key drivers for directors, remuneration, bonus levels and performance targets., results of our enquiries of management about their own identification and assessment of th9 risks of irregularities- any matters we identified having obtained and reviewed the Group's documentation of their policies and procedures relating to.. identrfying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance-, detecting and responding lo the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud-
The ARN Foundation Company Limited by Guarantee Independent Auditor's Report to Ihe Members of The ARN Foundation (conllnuedj Year ended 24 July 2025 the internal controls established lo mitigate risks of fraud or non-complian with laws and regulations.. the matters discussed among the audll engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. In common with all audits under ISAS IUKI, we are also requlred lo perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that Ihe Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the delerminalion of material amounts and disclosures in the financial slalements. The key laws and regulations we considered in this context included the Companies Act 2006, Taxation Legislatlon. Charities Act (Northern Ireland) 2008 and Charities IA¢counls and Reports) Regulations {Northern Ireland) 2015. Audit response to risks identified Our procedures to respond to risks identtfied included the following- reviewing the financial statement disclosures and tesling lo supporting documentation to assess compliance wlh provisions of relevant laws and regulations described as having a direct effect on the financial slalemenls.. enquiring of management and exlemal legal counsel concerning actual and potential litigation and claims- performing analytical procedures lo Identrfy any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.. reading minutes of meetings of those charged wth govemance and reviewing correspondence with HMRC and The Charity Commission for Northem Ireland,. and in addressing the risk of fraud through management override of controls, lesling the appropriateness of journal entries and other adjustments., assessing whether the judgements made in new making accounting estimates are indicaltve of a potential bias,. and evaluating the business rationale of any significant transactions that are uriusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks lo all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regUlaonS throughout the audit. As part of an audit In accordance with ISAS {UK}, we exercise professional judgment and maintain professional scepticism throughout the audit. We also.. Idenllfy and assess the risks of material misslalemenl of the financial ststements. whether due to fraud or error, design and perform audit prOdureS responsive lo those risks, and obtain audit evidence that is sufficient and appropriate lo provide a basis for our opinion. The risk of not delecling a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion. forgery. intentional omissions. misrepresentations. or the override of internal control.
The ARN Foundation Company Limited by Guarantee Independent Auditor's Report to the Members of The ARN Foundation {conthTruedJ Year ended 24 July 2025 Obtain an understanding of internal control relevant lo the audit in order lo design audit procedures that are appropriate in the circumstances. but not for the purpose of expressing an opinion on the effectiveness of the charitable company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. Conclude on the appropriateness of the trustee's use of the going concern basls of accounting and, based on the audit evidence obtained, whether a material uncertainly exists related lo events or conditions that may cast significant doubt on the group's or the parent charitable company's ability to continue as a going concern. If we conclude that a material uncertainly exists. we are required to draw attention in our auditor's report to the related disclosures in the financial slalemenls or. if such disclosures are inaclequate, lo modify our opinion. Our Conclusions are based on the audit evidence obtained up to the dale of our auditor's report. However. future events or conditions may cause the group or the parent charitable company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures. and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Plan and perform the group audit to obtsin sufficient appropriate audit evidence regarding the financial intormation of the entities or business activities within the group lo express an opinion on the group financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged wlth governance regarding. 8mong other matters. the planned scope and liming of the audit and significant audit firKlings. including any significant deficienctes in internal control that we identify during our audit. Use of our report This report is made solely to the charitable company's Irusl8es, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations (Northern Ireland) 2015. Our audit work has been undertaken so that we might slate to the charitable company's trustees those matters we are required to slate to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not 8ecepl or assume responsibility lo anyone other than the charitable company and the charitable company's Iruslees as a body. for our audit work. for this report. or for the opinions we have fomied. Cathal Maneely (Senior Slatrjtory Auditor) For and on behalf of Maneely Mc Cann Audit Limited Chartered accounlanls & slalulory auditor Aisling House 50 Stranmillis Embankment Belfast BT9 5FL 22 May 2026
The ARN Foundation Company Limited by Guarantee Consolidated Statement of Financial Activities (including the ¢orb$olidated income and gxponditure account) Year ended 24 July 2025 Period from 3Nov23to 24 Jul 24 Year to 24 Jul 25 Unrestricted funds Total funds Totsl funds Note Income and endowments Donations and legacies Rental income Other interest receNable and similar income 567,098 520,770 19,499 567,098 520.770 19,499 Total Income 1,107,367 1,107,367 Expendlture Expenditure on charitable activities Cost of sales Administrative expenses Interest payable and similar expenses Total expendlture 231,363 141,379 111.841 113.073 231,363 141,379 111.841 113,073 597,656 597,656 Net income and net movement in funds 509,711 509,711 Reconciliation of funds Total funds brought forward The trustees of the parent charitable company N(-controllIng interests Total funds carried forward 387,380 122,331 387.380 122,331 509,711 509,711 The slatemenl of financial activities includes all gains and losses recognlsed In the year. All income and expenditure derive from continuing aclivilies. 10
The ARN Foundation Company Limited by Guarantee Consolidated Statement of Financial Position 24 July 2025 2025 2024 Note Flxed assets Tangible assets 16 5,745,318 Current assats Debtors Cash al bank and in hand 18 58,930 1,816,199 1,875,129 Creditors: amounts falllng due wlthln one year Net current Iliabilitlesllassets Total assets less current Ilabilities 19 6.969,710 {5.094.581) 650,737 Credltors: 8mount5 falling due after more than one year Net assets 20 650,737 Funds of the Charity Unrestricted funds 387.380 Total charity funds 387.380 Non-controlllng Interests 263.357 650.737 These financial statements were approved by the board of trustees and authorised for Issue on 22 May 2026, and are signed on behalf of the board by.. Alan Nappin Director Company regislratlon number: N1704203 11
The ARN Foundation Company Limited by Guarantee Company Statement of Financlal Position 24 July 2025 2025 2024 Note Fixed assets Investments 17 446,582 Current assets Cash al bank and in hand 220,835 84,537 Creditors: amounts falling due within one year Net current assets 19 8,220 212.615 4,020 80,517 Total assets less current liabilities 659,197 80.517 Creditors: amounts falllng due after more than one year Net assets 20 80.517 659,197 Funds of the charlty Unrestricted funds 659,197 Total charlty funds 659.197 The profit for the financial year of the parent charitable company was £659,19712024.' £Nil}. These financial slalements were approved by the board of trustees and authorised for issue on 22 May 2026, and are signed on behalf of the board by.. Alan Nappln Director Company registration number.. N1704203 The notes on pages 16 to 26 fom) part of these financial statements. 12
The ARN Foundation Company Limited by Guarantee Consolidated Statement of Changes in Equity Year ended 24 July 2025 Equity attrlbutable to the owners of the parent Non- Profit and charltable controlling loss account company interests Total At 25 July 2023 Profil for the year At 24 July 2024 Profit for the year Totsl comprehenslve Income for the year 387,380 387.380 387,380 122,331 509,711 509.711 387,380 122,331 Acquisition of subsidiary with minority interest Total investments by and distributions to owners 141,026 141,026 141,026 141,026 At 24 July 2025 387.380 387.380 263,357 650,737 The notes on pages 16 to 26 form part of these flnèneial statements. 13
The ARN Foundation Company Limited by Guarantee Company Statement of Changes in Equlty Year ended 24 July 2025 Profil and loss account At 25 July 2023 Profit for the year At 24 July 2024 Profil for the year 659,197 Total comprehensive Income for the year 659,197 At 24 July 2025 659,197 The notes on pages 16 to 26 form part of these financlal stst•mènts. 14
The ARN Foundation Company Limited by Guarantee Consolldated Statement of Cash Flows Year ended 24 July 2025 2025 2024 Cash flows from operating activities Profit for the financial year 509,711 Adjustments for.. Depreciation of tanglble assets Other interest receivable and similar Income Interest payable and similar expenses Loss on disposal of tangible assets Accrued expenses 93 119,4991 113,073 61,796 12,052 Changes in.- Trade and other debtors Trade and other creditors 528,733 13,578) 1.202.381 Cash generated from operations Interest paid Interest received {113.0731 19,499 Net cash from operating activities 1,108,807 Cash flows from investing activities Proceeds from sale of tangible assets Acquisition of subsidiaries Nel cash from investing actiwlies 1,028,813 (446,582) 582.231 Cash flows from financing actlvltles Proceeds from borrowings Other financing cash flow adjustment Nel cash from financing activities 53,430 71.731 125,161 Net Increase In cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 1,816,199 1,816,199 The notes on pages 16 to 26 fomi part of these financial statements. 15
The ARN Foundation Company Llmited by Guarantee Notes to the Financial Statements Year ended 24 July 2025 General Information The charity is a public benefit entity and a private company limited by guarantee, registered in Northern Ireland and a registered charity in Northern Ireland. The address of the registered office is CIO Maneely Mc Cann. 50 Slranmillis Embankment, Belfast, BT9 5FL, Northern Ireland. statement of compllance These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland,, the 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) (Charities SORP IFRS 102}l and the Companies Act 2006. Accountlng poll¢les Basis of preparation The financial statements have been prepared on the historical cost basls. as modlfied by the revaluation of certain financial assets and liabilities and investment properties measured al fair value through income or expenditure. The financial statements are prepared in sleding. which is the functlonal currency of the entity. The reportlng dales of ARN Properties Limited and Green Road Properties Limited are not coterminous with that of the charitable company. For the purposes of preparing these consolidated financial slalemenls, management informalionlinlerim financial information has been prepared for the subsidlaries lo align thelr results and net assets with the charitable company's reporting date. Adjustments have been made, where necessary. lo reflect significant transactions and events occuming beeen the subsidlaries. statutory reporting dates and the group reporting dale. The trustees. who are also the dlreclors of the parent charitable company for the purposes of company law, have reviewed the management information used for consolidation and are satisfied that il provides a rel¢able basis for including the subsidiaries, results. assets and liabilities in the group financial slalemenls Going concern There are no material UnrtaIntieS about the charity's ability to continue. Judgements and key sources of estimation uncertainty The preparation of the financial statements requires management lo make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other facloTS. including expectations of future events that are believed to be reasonable under the circumstances Dlsclosure exemptlons The parent charitable company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such. advantage has been taken of the following reduced disdosures available under FRS 102: {al No cash flow statement has been presented for the company. {bl Disclosures in spect of financial instruments have not been presented. 16
The ARN Foundation Company Limited by Guarantee Notes to the Financlal Statements (continued) Year ended 24 July 2025 Accounting policles (contl*Jued) Consolidation The financial statements consolSdate the financial statements of The ARN Foundation and all ol its SLJbsidiary undertakings. The results of subsidiaries acquired or disposed of during the year are included from or lo the date that control passes. Inlra-group transactions, balances, income and expenditure are eliminated on consolidation. The accounting policies of the subsKliaries have been aligned with those of the charitable company where necessary, A separate Statement of Financial Activities and Income and Expenditure account for The ARN Foundation is not presented, as The ARN Foundation has taken advantage of the exemptions afforded by Section 408 of the Companies Act 2006. In accordance with the provisions of $398 of the Companies Act 2006 the company has elected lo prepare the groLJP accounts as the 'annual accounts. for filing purposes with Companies House. Non.controlllng Snterests Minority interests in the nel assets of consolidated subsidiaries are identified separately from the Group's equity. Minority interests consist of the amount of those interests at the dale of the original business combination and the minority's share of changes in equity since the dale of the combination. The proportions of profit or loss and changes in equity allocated lo the owners of the parent charitable company and to the minority interests are determin on the basis of existing ownership interests and do not reflect the possible exercise or conversion of options or convertible inslrumenls. Fund accounting Unreslricled funds are available for use al the discretion of the Iruslees to further any of the charity's purposes. Designated funds are unreslricled funds earmarked by the trustees for particular future project or commitment. Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal and fall into one of two sub- classes.. restricted income funds or endowment funds. In¢omlng resources All incoming resources are included in the statement of financial activities when entitlement has passed lo the charity. il is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income.. income from donations or grants is recognised when there is evidenco of entitlement to the gift, receipt is probable and its amount can be measured reliably. legacy income Is recognised when receipt is probable and entiuemenl is established. income from donated goods is measured at the fair value of the goods unless this is impractical lo measure reliably. in which case the value is derived from the cost lo the donor or the eslimaled resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers 17
The ARN Foundation Company Limited by Guarantee Notes to the Financial Statements fconllAuedJ Year ended 24 July 2025 Accounting policies (witlnu8dJ income from contracts for the supply of services is recognised with the del¢very of th8 contracted setvice. This is classified as unreslricled funds tjnless there is a contractual requirement for il to be spent on a particular purpose and returned if unspent, in which ase it may be regarded as restricted. Resources expended Expenditure is rocognised on an accruals basis as a liability is Incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the ststement of financial 2Ctivilies to which il relates.. expenditure on raising funds includes the costs of 811 fundraising activities. events. non- charitable trading activities, and the sale of donated goods. expenditure on charitable activities includes all costs Incued by a charity in undertaking activities that further its charitable aims for the benefrt of ils beneficiaries. including those support costs and costs relating to the governance of the charity apportioned to charitable activities. other expenditure includes all expenditure that is neither related lo raising funds for the charity nor part of its expenditure on charitable 8Ctivilies. All costs are allocated to expenditure categories reflecting the use of the resour. Direct costs attributable lo a single activity are allocated directly to that activity. Shared costs are apportioned tseeen the activities they contribute to on a reasonable. justifiable and consistent basis. Tanglble assets Tangible assets are inttially recorded at cost and subsequently stated al cost less any accumulated depreciation and impairment losses. Any tangible assets carried al revalued amounts are recorded al the fair value al the dale of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation. is recognised in other comprehenslve in¢ome and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revalualK)n gains accumulated In eqully in respect of that asset, the excess shall be re¢ognised in profil or loss. Depreclatlon Depreciation is calculated so as to write off the cost or valuatlon of an asset, less Its residual value. over the useful economle life of that asset as follows.. Plant and machinery Fixtures and fillingg 25Vo reduclng balance 25% reducing balance 18
The ARN Foundation Company Limited by Guarantee Notes to the Financial Statements (¢onllnuedJ Year ended 24 July 2025 Accounting pollcles f¢ontinuedJ Investment Property Investment property is initlally recorded.at cost, which includes purchase price and any directly attributable expenditure. Investment propety is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss. Investments Fixed asset investments are initially recorded al cost and subsequently stated al cost less any accumulated impairment losses. Listed investments are measured al fair value with changes in fair value being recognised in profit or loss. Investments in assoclatgs Investments in associates are accounted for using the equity method of accounting. whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profil or loss. other comprehenswe income and equity of the associate. Investments In lolnt ventures Irbveslments in joint ventures are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequenlty adjusted to reflect the group's share of the profrt or loss. other comprehensive income and equity of the joint venture. Impalrment of fixed assets A review for indicators of impairment is carried out at each reporting dale, with the recoverable amount being eslimaled where such indicators exist. Where the carrying value exceeds the recoverable amount. the asset is impaired accordingly. Prior impairments are also rewewed for possible reversal at each reporting date. For the purposes of impalrment lesling, when il is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash- generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill. the good11 acquired in a business combination is. from the acquisition date, allocated to each of the cash-generaling units that are expected to benefit from the synergies of the combination. irrespective of whether other assets or liabilities of the company are assigned to those units. 19
The ARN Foundation Company Limited by Guarantee Notes to the Financial Statements (¢onUnued) Year ended 24 July 2025 Accounting policies (¢ontlnued) Fln8nclal Instruments A financial asset or a financial liability is recognised onty when the company becomes 8 party to the conlraclual provisions of the inslrumenl. Basic financlal instruments are initially recognised at the transath'on price. unless the arrangement constitutes a financing trallsaction, where il is recognised at the present value of the future payments discounted at a market rale of interest for a similar debt instrument. Debt instruments are subsequently measured al 8mortised cost. Where investments in non-convertible preference shares and non-pullable ordinary shares or preference shares are publidy traded or their fair value can otherwise be measured reliably. the investment is subsequently measured at fair value with changes in fair value recInIsed in profil or loss. All other such investments are subsequelltly measured at cost less impairment. Other financial Instruments, including derivatives, are Inltially recognlsed at fair value, unless payment for an asset is deferred beyond normal business terms or finaneed at a rate of interest that is not a market rate. In which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt inslrumenl. Other financial instruments are subsequenuy measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship. Financial assets that are measured at cost or amortised cost are reviewed for objective eviden of impairrnent al the end of each reporting dale. If there is objective evidence of impairment, an impairment loss is recognised in profil or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognlsed in profit or loss immediately, to the extent that the reversal does not result in a carrylng amount of the financial asset that exceeds what the carying amount would have been had the Impalrment not previously been recognised. Company1SmSted by guarantee The charity is a private company limited by guarantee without share capital. The liability of each member in the event of winding-up is limited lo £1. 20
The ARN Foundatlon Company Limited by Guarantee Notes to the Financial Statements Icon¢inuedJ Year ended 24 July 2025 Donatlons and legacles Unreslricled Total Funds Unrestricted Total Funds Funds 2025 Funds 2024 Donations Donations Gift in kind of issued share capital of the subsidiaries Gift in kind of transfer of funds from the cessation of unincorporated ARN Foundation 40,000 40,000 446,582 446,582 80,516 567.098 80,516 567,098 Expendlture on charltable actlvltles by fund type Unreslricled Total Funds Unreslricled Total Funds Funds 2025 Funds 2024 Awarding grants Support costs 223.500 7.863 223,500 7,863 231,363 231.363 Expendlture on ¢harltable actlvltles by activity type Activities undertaken directly Support costs Total funds 2025 Total fund 2024 Awarding grants Governance costs 223,500 123 7,740 223.623 7.740 223.500 7,863 231,363 Analysls of support costs Analysis of support costs activity Total 2025 Total 2024 General office 123 123 21
The ARN Foundation Company Limited by Guarantee Notes to the Financial Statements (contsnuedl Year ended 24 July 2025 Turnover Turnover arises from.. 2025 2024 Income from donations Rental Income Other interest reIvable and similar income 567,098 520,770 19,499 1.107.367 The whole of the turnover is attributable to the principal activity of the company wholly underiaken in the United Kingdom. 10. Auditor's remuneration 2025 2024 Fees payable for the audit of the financial slalements 4.500 11. Operating proflt Operating profil or loss is staled after charging= 2025 2024 Depreciation of tangible assets Loss on disposal of tangible assets 93 61.796 12. Othor intgrest recelvable and similar Income 2025 2024 Interest on cash and cash equivalents 19,499 13. Interest payable and slmllar expenses 2025 2024 Interest on banks loans and overdrafts Other interest payable and similar charges 123 112,950 113.073 14. Staff costs The average head count of employees during the period was Nil. No employee recelved employee benefits of more than £60,000 during the year. 15. Trustee remuneration and expenses No remuneratson or other beneffts from employment with the charity or a related enlty were received by the trustees. No trustee expenses have been incurred in the period to 24 July 2025. 22
The ARN Foundation Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 24 July 2025 16. Tangible assets Group Investment property Plant and maehinery Total Cost At 25 July 2024 Additions Disposals At 24 July 2025 Dopreclation At 25 July 2024 Charge for the year At 24 July 2025 Carrylng amount At 24 July 2025 At 24 July 2024 6.835.723 {1,090,609) 5,745.114 297 6.836,020 {1.090,6091 5,745,411 297 93 93 93 93 5.745.114 204 5,745,318 The company has no tangible assets. Investment property comprises of residential property. The fair value of the investment property has been arrived at on the basis of a valuation-carried out by the Director. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. 17. Investments The group has no investments. Company Shares in group undertakings Cost At 25 July 2024 Addltions 446.582 At 24 July 2025 446,582 Impairment At 25 July 2024 and 24 Juty 2025 Carrying amount At 24 July 2025 At 24 July 2024 446.582 23
The ARN Foundation Company Limited by Guarantee Notes to the Financial Statements (¢oAllnts Year ended 24 July 2025 17. Investments fcontlnue Subsidlaries, associates and other investments Detsils of the investments in which the parent charitable company has an interest of 200/0 or more are as follows.. Percentage of Class of share shares held Subsldlary undertaklngs Green Road Properties Limited ARN Properties Limited Ordinary Ordinary 76 76 18. Debtors Group 2025 Company 2025 2024 2024 Trade debtors Prepayments and accrued income Other debtors 43,940 10,743 4.247 58.930 19. Credltors: amounts falllng due within one year Group 2025 Company 2025 2024 2024 Trade creditors Accruals and deferred income Social security and other taxes Director loan accounts 17,595 45,379 8,005 6,898,731 7,740 4,020 480 6,969,710 8,220 4,020 24
The ARN Foundation Company Limited by Guarantee Notes to the Financial Statements {conlinuedJ Year ended 24 July 2025 20. Creditors: amounts falling due after more than one year Group 2025 Company 2025 2024 2024 Amounts owed to undertakings in which the charity has a participating interest 80.517 21. Analysis of ¢harltable funds Unrestrlcted funds At 25 July 2024 At Income Expenditure 24 July 2025 General funds 1,107.367 1597.6561 509,711 Al Income Expenditure 24 July 2024 Al 3 Nov 2023 General funds 22. Analysis of net assets batwean funds Unrestricted Total Funds Funds 2025 Tangible fixed assets Current assets Creditors less than 1 year Creditors greater than 1 year Net assets 5.745.318 5.745.318 1.875,129 1.875,129 (6.969.710) (6.969.710) 650,737 650,737 Unieslrieled Total Funds Funds 2024 Tangible fixed assets Current assets Creditors less than 1 year Creditors greater than 1 year Net assets 25
The ARN Foundation Company Limited by Guarantee Notes to the Financial Statements (¢ontinuedJ Year ended 24 July 2025 23. Analysis of changès in net debt At Al 25 Jul 2024 Cash lows 24 Jul 2025 Cash at bank and in hand Debt due within one year Debt due after one year 1,816,199 1,816,199 {6,898,731} 16,898,731) 15,082,532) 15,082,532) 24. DSre¢tors' advances, credits and guarantees During the year the dlrectors entered into the following advances and credits with the company: 2025 Advancesl Icredilsl lo Balance the directors outstanding Balance brought forward Mr A Nappin 16,898,731) 16,898,731) 2024 Advancesl leredits} to Balance the directors oulslanding Balance brought forward Mr A Nappin The director's current account is interest bearing if demanded. The interest rate is below bank base rate. Any interest paid is approved by the non-eonflieled trustees. 25. Related parties Donations have been received from companies in which a trustee services as a director of £40.000 in the current year. The donations have no terms and conditions applied and have therefore been included in unrestricted funds as shown in Note 5. There is no ultimate controlling party. The charitable company has taken advantage of the exemption, provisioned of FRS 102 and has not disclosed in its consolidated accounts any transactions or balances between group enlff(ies which have been eliminated on consolidation. Details of the subsidiarie$ are included wilhin the consolidation are disclosed al Note 17. 26