**Company registration number SC223108 (Scotland) Charity registration number SC032160 (Scotland)**
## **FRONT LOUNGE LIMITED**
# **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025**
## **FRONT LOUNGE LIMITED**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Ashley Ross - Chair||
|---|---|---|
||Layla Brown - Vice Chair||
||Emma Simpson-Faichney||
||Emma Charleson||
||Chelsie Denise Bruce||
||Nicole Doig|(Appointed 24 October 2024)|
||Kerry Livie|(Appointed 24 October 2024)|
||Alex Mitchell|(Appointed 24 October 2024)|
|**Secretary**|Thorntons Law LLP||
|**Charity number (Scotland)**|SC032160||
|**Company number**|SC223108||
|**Registered office**|Whitehall House||
||33 Yeaman Shore||
||Dundee||
||DD1 4BJ||
|**Independent examiner**|Findlays||
||Chartered Accountants||
||11 Dudhope Terrace||
||Dundee||
||DD3 6TS||
|**Bankers**|HSBC PLC||
||82-84 High Street||
||Perth||
||PH1 5TH||
## **FRONT LOUNGE LIMITED**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 5|
|Independent examiner's report|6|
|Statement of financial activities|7 - 8|
|Balance sheet|9|
|Notes to the financial statements|10 - 21|
## **FRONT LOUNGE LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2025**_
The Trustees present their annual report and financial statements for the year ended 30 September 2025.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's constitution, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
## **Objectives and activities**
The Front Lounge mission steadfastly remains:
- To empower people to be more engaged, motivated and resilient
- To help people attain more through education
- To help people gain better access to services
- To work to improve the life chances of the most marginalised in society
The primary focus of Front Lounge in the year has been to complete the necessary activities required to become an SQA approved Learning Centre.
## **Achievements and performance**
## **January – March 2025**
Adventures of the Little People ran a puppet making series of sessions led by HowItFelt alongside a series of filmmaking sessions led by Mark McGreehin. These sessions climaxed in an event attended by friends and family and featuring their puppet show, A World of Emotions, and the premier of the film, ‘Breaking The News’.
## **March – July 2025**
The amazing transformation of the exterior of 205 – 211 Hilltown, aka Front Lounge HQ, was designed by Louise Kirby with input from the Front Lounge diaspora and was implemented by Robert Signs who put up the feature stickers on the windows, and Boyle Decorators who painted the exterior of the property.
## **February 2025**
Vision Day took place at Flour Mill, Dundee and focussed on what Front Lounge’s future would look like on becoming a learning centre.
## **May 2025**
A focus group event - Future Focus – brought children, young people and adults together as a follow up to Vision Day earlier on in the year to consult more deeply with a cross section of the Front Lounge community on the kind of Learning Centre the organisation should become. For the attending families Wild Science provided a unique animal handling experience.
## **May – June 2025**
Kindred Clothing delivered in person in 205 -207 Hilltown, Dundee with 4 learners and Kindred Clothing delivered remotely by Christie Wanless to 3 learners in Kirkwall, Orkney supported by Kirsteen Stewart. This was the first in person supported course outside of Dundee ever. It also featured a four-week Evolution programme with a group of 3 young people.
- 1 -
## **FRONT LOUNGE LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2025**_
## **January – March 2025**
Adventures of the Little People ran a puppet making series of sessions led by HowItFelt alongside a series of filmmaking sessions led by Mark McGreehin. These sessions climaxed in an event attended by friends and family and featuring their puppet show, A World of Emotions, and the premier of the film, ‘Breaking The News’.
## **March – July 2025**
The amazing transformation of the exterior of 205 – 211 Hilltown, aka Front Lounge HQ, was designed by Louise Kirby with input from the Front Lounge diaspora and was implemented by Robert Signs who put up the feature stickers on the windows, and Boyle Decorators who painted the exterior of the property.
## **February 2025**
Vision Day took place at Flour Mill, Dundee and focussed on what Front Lounge’s future would look like on becoming a learning centre.
## **May 2025**
A focus group event - Future Focus – brought children, young people and adults together as a follow up to Vision Day earlier on in the year to consult more deeply with a cross section of the Front Lounge community on the kind of Learning Centre the organisation should become. For the attending families Wild Science provided a unique animal handling experience.
## **May – June 2025**
Kindred Clothing delivered in person in 205 -207 Hilltown, Dundee with 4 learners and Kindred Clothing delivered remotely by Christie Wanless to 3 learners in Kirkwall, Orkney supported by Kirsteen Stewart. This was the first in person supported course outside of Dundee ever. It also featured a four-week Evolution programme with a group of 3 young people.
- 2 -
## **FRONT LOUNGE LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2025**_
## **June 2025**
Front Lounge’s third SQA external verification visit was attended by Kindred Clothing Learning Coordinator Chika Inatimi, internal verifier Georgia McLaren, trainee assessors, together with an SQA external verifier, and a couple of staff from Polaris Learning (our parent Learning Centre). Another successful visit helped consolidate Front Lounge’s confidence that the organisation is now ready to become a learning centre in its own right.
## **July 2025**
Week long Award in Dance Leadership course delivered by Linzi McLagan of YDance, supported by Amy Deans and Claire Gardiner, hosted by The Vine, Dundee, and featuring 10 learners.
## **August 2025**
Adventures of the Little People Summer Camp with Beth Gildea of YDance + Amy Deans hosted at Hot Chocolate in the city centre, Dundee and climaxed in a dance show attended by a small audience off family and friends.
## **September 2025**
Graduation Day was hosted by The Vine, Dundee and featured 8 graduates for the Award in Dance Leadership; 2 graduates for the YDance Participation Award; 17 graduates for Kindred Clothing Award (Garment Construction); and 4 graduates for the Learning & Development 9D Assessor Award. 31 graduated in total, the largest number to gradate at once.
## **PRIORITIES**
Our priorities for 2025-2026 are as follows:
1. Infrastructure Development which includes embedding the Most Significant Change monitoring and evaluation protocol within Front Lounge’s day-to-day operations, and developing a Client Relations Management system to better monitor our learners through all the projects and programmes they engage with.
2. Development Of New Courses which includes embedding the full suite of Workplace Core Skills within Kindred Clothing; and establishing and delivering the Personal Development Award through our children and youth programmes; and gaining approval for in-house Assessor Training to continue building learning centre capacity.
3. Orkney Case Study driven by the level of demand in Orkney for Kindred Clothing despite no formal presence on the archipelago. Gaining an understanding of all the elements responsible for this proliferation will give Front Lounge the knowledge to replicate this success elsewhere.
4. AOTLP Delivery + Volunteers Training - the community represented by the children and families of AOTLP is one of the foremost reasons Front Lounge is now a learning centre, and through promoting holistic education experiences Front Lounge is working to see generational impact in the lives of children and families currently members of AOTLP.
## **Financial review**
## **GOING CONCERN**
The charity has reported a deficit on its unrestricted funds at the year end. Trustees note that a significant proportion of income relates to restricted funds or trust monies which cannot be applied to general operating expenditure, and which are not guaranteed on a recurring annual basis. The trustees have been working towards securing funding for 2025/2026 to ensure the charity continues to operate as a going concern and at the time of signing the report have secured funding from the following bodies.
Angus Hunter Foundation £10,000; Soutar Charitable Trust £3,000; The Mrs Janet T Isles Denny Trust £4,000; Westray Junior High School (Orkney Council) £2,200; William S Phillips Fund £2,000 and Young Start (National Lottery Community Fund) £30,000. We anticipate further support through ongoing fundraising efforts.
- 3 -
## **FRONT LOUNGE LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2025**_
## **Reserves policy**
Front Lounge is a charity based in Dundee which works creatively to support and improve the life chances of vulnerable young people and young families. Front Lounge is mainly funded through grants to run particular projects. The board recognises this can lead to challenges covering the ongoing running costs of the charity leading to unrestricted deficits.
The charity's current reserves policy is to maintain unrestricted funds, which are the free reserves of the charity, at a level which equates to approximately 3 months unrestricted expenditure. This ensures there will be sufficient funds to cover basic operating costs. Unrestricted funds are gained from various direct fundraising activities, from fees for work completed for third party organisations, and from full cost recovery. As the organisation grows so a larger reserve will be necessary to reflect increased turnover and give Front Lounge improved resilience in the face of the unexpected. This will be put into effect in the coming year. The trustees are aware that the charity does not currently meet this policy but the board of trustee's are actively working towards resolving this.
The board will review the reserves policy annually. At 30 September 2025 the charity has a deficit in unrestricted reserves amounting to £14,372 (2024 - Surplus £1,591) and no restricted reserves. (2024 - £7,553).
## **Plans for future periods**
## **PRIORITIES**
Our priorities for the coming year are as follows:
1. **Education:** Becoming an accredited Learning Centre, activity driven by the ongoing rollout of Kindred Clothing plus the addition of other qualifications to broaden our educational offering.
2. **Social Enterprise:** Development of income generating possibilities in partnership with others to reduce Front Lounge’s reliance on funding income.
3. **Community Development:** focusing on mental health, and providing additional support to our users through one to one and group work, and continued development and implementation of social justice strategies, through highlighting best practice, making use of the current research base, and involving service users in the design and delivery of the programmes and services Front Lounge provides.
## **Structure, governance and management**
## **Governing document**
Front Lounge Limited is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
|Ashley Ross - Chair||
|---|---|
|Layla Brown - Vice Chair||
|Camilla Plekker|(Resigned 4 November 2025)|
|Emma Simpson-Faichney||
|Emma Charleson||
|Chelsie Denise Bruce||
|Nicole Doig|(Appointed 24 October 2024)|
|Kerry Livie|(Appointed 24 October 2024)|
|Alex Mitchell|(Appointed 24 October 2024)|
|Maria Manuela De Los Rios Oakes|(Appointed 24 October 2024 and resigned 27 April 2026)|
|Bomo Edward-Inatimi|(Resigned 23 June 2025)|
|Kristina Dearsley|(Resigned 23 June 2025)|
## **Methods of appointment or election of Trustees**
As set out in the Articles of Association, each of the first members of the Management Committee (the founder members) shall be entitled to nominate further Management Committee members. The committee members are elected at each Annual General Meeting and should be eligible for re-election at the following Annual General Meeting.
- 4 -
## **FRONT LOUNGE LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2025**_
Day-to-day management of the charity is undertaken by Bomo Inatimi (project leader).
## **Financial risk management**
The Trustees have assessed the major risks to which the Company is exposed, in particular those related to the operations and finances of the Company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
The Trustees' report was approved by the Board of Trustees.
Alex Mitchell
29 June 2026
- 5 -
## **FRONT LOUNGE LIMITED**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF FRONT LOUNGE LIMITED**
I report on the financial statements of the Charity for the year ended 30 September 2025, which are set out on pages 7 to 21.
## **Respective responsibilities of Trustees and examiner**
The charity trustees (who are also the directors of Front Lounge Limited for the purposes of company law) are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006.The Charity Trustees consider that the audit requirement of Regulation 10(1)(a)-(c) of the Charities Accounts (Scotland) Regulations 2006 does not apply.
It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and to state whether particular matters have come to my attention.
## **Basis of independent examiner's statement**
My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
## **Independent examiner's qualified statement**
In the course of my examination, no matter has come to my attention other than disclosed below
1. which gives me reasonable cause to believe that in any material respect the requirements:
- to keep accounting records in accordance with Section 44(1)(a) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006, and
- to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Charities Accounts (Scotland) Regulations 2006
- have not been met, or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
I have identified a material uncertainty with regards going concern
The material uncertainty is due to the current deficit in reserves and the amount of guaranteed funding to date. The trustees have secured funding for 2025/26 which is detailed in the trustees report. Funding in general is received from mainly trusts which is not guaranteed and does not cover core operating costs. The Trustees believe they will obtain enough funding to cover the ongoing costs. We wish to draw attention to this fact and more details can be found in note 1.2 of the financial statements.
## **Lesley Campbell CA Independent Examiner**
Findlays Audit Limited Chartered Accountants 11 Dudhope Terrace Dundee DD3 6TS 29 June 2026
- 6 -
## **FRONT LOUNGE LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 30 SEPTEMBER 2025**_
|**Current financial year**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2025**
**2025**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**2**
1,067
114,460
Investments
**3**
1
-
**Total income**
1,068
114,460
**Expenditure on:**
Charitable activities
**4**
14,844
124,200
**Net outgoing resources before transfers**
(13,776)
(9,740)
Gross transfers between funds
(2,187)
2,187
**Net expenditure for the year/**
**Net movement in funds**
(15,963)
(7,553)
Fund balances at 1 October 2024
1,591
7,553
**Fund balances at 30 September 2025**
(14,372)
-|**Total**
**2025**
**£**
115,527
1
115,528
139,044
(23,516)
-
(23,516)
9,144
(14,372)|**Total**
**2024**
**£**
97,508
10
97,518
113,603
(16,085)
-
(16,085)
25,229
9,144|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
The notes set out on pages 10 - 21 form part of these financial statements
- 7 -
## **FRONT LOUNGE LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 30 SEPTEMBER 2025**_
## **Prior financial year**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2024**
**2024**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**2**
27,298
70,210
Investments
**3**
10
-
**Total income**
27,308
70,210
**Expenditure on:**
Charitable activities
**4**
37,761
75,842
**Net expenditure for the year/**
**Net movement in funds**
(10,453)
(5,632)
Fund balances at 1 October 2023
12,044
13,185
**Fund balances at 30 September 2024**
1,591
7,553|**Total**
**2024**
**£**
97,508
10
97,518
113,603
(16,085)
25,229
9,144|
|---|---|
- 8 -
## **FRONT LOUNGE LIMITED**
## **BALANCE SHEET**
## _**AS AT 30 SEPTEMBER 2025**_
|**2025**
**2024**
**Notes**
**£**
**£**
**£**
**Fixed assets**
Tangible assets
**10**
113
**Current assets**
Debtors
**11**
-
628
Cash at bank and in hand
1,046
27,741
1,046
28,369
**Creditors: amounts falling due within**
**one year**
**13**
(15,531)
(19,784)
Net current (liabilities)/assets
(14,485)
**Total assets less current liabilities**
(14,372)
**Income funds**
Restricted funds
**17**
-
Unrestricted funds
(14,372)
(14,372)|**£**
559
8,585|
|---|---|
||9,144|
||7,553
1,591|
||9,144|
The notes on pages 10 to 21 form part of these financial statements.
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 September 2025.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 29 June 2026
Alex Mitchell
## **Company registration number SC223108**
- 9 -
## **FRONT LOUNGE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2025**_
## **1 Accounting policies**
## **Charity information**
Front Lounge Limited (SC223108) is a private company limited by guarantee incorporated in Scotland. The registered office is Whitehall House, 33 Yeaman Shore, Dundee, DD1 4BJ.
## **1.1 Basis of preparation**
The financial statements have been prepared in accordance with the Charity's constitution, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.
The Charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
These financial statements are prepared on the going concern basis. The Trustees have a reasonable expectation that the Charity will continue in operational existence for the foreseeable future, however, the Trustees are aware of certain material uncertainties which may cause doubt on the charity's ability to continue as a going concern. The charity has reported a deficit on its unrestricted funds. Trustees note that a significant proportion of income relates to restricted funds or trust monies which cannot be applied to general operating expenditure, and which are not guaranteed on a recurring annual basis. These factors indicate the existence of a material uncertainty which may cast doubt on the charity’s ability to continue as a going concern.
The Trustees however believe that enough funding can be secured for the forthcoming year, and the trustees have considered cash flow forecasts and planned activities. On this basis, they consider it appropriate to prepare the financial statements on a going concern basis, as set out in more detail in the Trustees’ Annual Report
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charity.
## **1.4 Income**
Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
- 10 -
## **FRONT LOUNGE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2025**_
## **1 Accounting policies**
## **(Continued)**
Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
## **1.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings 4 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
## **1.7 Impairment of fixed assets**
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).
## **1.8 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
- 11 -
## **FRONT LOUNGE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2025**_
## **1 Accounting policies**
## **(Continued)**
## **1.9 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**_
Basic financial liabilities, including creditors and bank loans are initially recognised 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 recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.
## **1.10 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.
## **1.11 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
- 12 -
##
||Total||2024|£|1,158|96,350|97,508|||43,010|-|3,000|27,500|-|-|-|-|5,000|-|17,840|96,350|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||Restricted|funds|2024|£|-|70,210|70,210|||28,010|-|-|25,000|-|-|-|-|-|-|17,200|70,210|
||Unrestricted|funds|2024|£|1,158|26,140|27,298|||15,000|-|3,000|2,500|-|-|-|-|5,000|-|640|26,140|
||**Total**||**2025**|**£**|100|115,427|115,527|||600|10,000|367|500|50,000|14,500|27,000|10,000|960|1,500|-|115,427|
||**Restricted**|**funds**|**2025**|**£**|-|114,460|114,460|||-|10,000|-|500|50,000|14,500|27,000|10,000|960|1,500|-|114,460|
||**Unrestricted**|**funds**|**2025**|**£**|100|967|1,067|||600|-|367|-|-|-|-|-|-|-|-|967|
|**Donations and legacies**|||||Donations and gifts|Grants|||**Grants receivable for core activities**|Dundee City Council - Baldragon Workshops|Kindred Clothing - Angnes Hunter Trust|Misc|Foundation Scotland|Kindred Clothing - National Lottery|Kindred Clothing - Dundee City Council|Dundee City Council - Communiyt Mental Health|Orkney Kindred Clothing|Dundee Bairns|Changemakers Hub|Other||
|**2**||||||||||||||||||||||
## **FRONT LOUNGE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2025**_
## **3 Income from investments**
|||**Unrestricted**|**Unrestricted**|
|---|---|---|---|
|||**funds**|**funds**|
|||**2025**|**2024**|
|||**£**|**£**|
||Interest receivable|1|10|
|**4**|**Expenditure on charitable activities**|||
|||**Charitable**|**Charitable**|
|||**expenses**|**expenses**|
|||**2025**|**2024**|
|||**£**|**£**|
||**Direct costs**|||
||Staff costs|-|22,545|
||Depreciation and impairment|446|611|
||Short term contracts|99,309|61,891|
||Rent and rates|1,001|924|
||Heat and light|1,890|3,817|
||Repairs and maintenance|805|925|
||Insurance|518|503|
||Venue hire|5,855|1,018|
||Travel and subsistence|12,643|7,757|
||IT costs|4,591|700|
||Office expenses|1,929|1,335|
||Bank charges|51|61|
||Project costs|4,103|5,566|
||Enter ac918 in database|1,489|-|
||Emergency assistance|-|1,271|
|||134,630|108,924|
||**Share of support and governance costs (see note 5)**|||
||Governance|4,414|4,679|
|||139,044|113,603|
||**Analysis by fund**|||
||Unrestricted funds|14,844|37,761|
||Restricted funds|124,200|75,842|
|||139,044|113,603|
- 14 -
## **FRONT LOUNGE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2025**_
|**5**
**Support & governance costs**
**Governance**
**costs**
**2025** Governance
costs
2024
**£**
**£**
£
£
Accountancy
3,960
3,960
4,225
4,225
Legal fees
454
454
454
454
4,414
4,414
4,679
4,679
Analysed between
Charitable activities
4,414
4,414
4,679
4,679
Governance costs includes payments to the independent examiner of £4,225 (2023 - £3,803) for independent
examination of the Charity's financial statements.
**6**
**Net movement in funds**
**2025**
**2024**
**£**
**£**
The net movement in funds is stated after charging/(crediting):
Fees payable for the independent examination of the charity's financial
statements
3,960
4,225
Depreciation of owned tangible fixed assets
446
611|**2025** Governance
costs
**£**
£
3,960
4,225
454
454
4,414
4,679
4,414
4,679|2024
£
4,225
454|
|---|---|---|
|||4,679|
|||4,679|
||||
## **7 Trustees**
During the year ended 30 September 2025, no Trustee expenses were incurred (2024 - £NIL).
## **8 Employees**
The average monthly number of employees during the year was:
||**2025**|**2024**|
|---|---|---|
||**Number**|**Number**|
||-|2|
|**Employment costs**|**2025**|**2024**|
||**£**|**£**|
|Wages and salaries|-|22,123|
|Other pension costs|-|422|
||-|22,545|
There were no employees whose annual remuneration was more than £60,000.
- 15 -
## **FRONT LOUNGE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2025**_
|**8**|**Employees**||**(Continued)**|
|---|---|---|---|
||**Remuneration of key management personnel**|||
||The remuneration of key management personnel was as follows:|||
|||**2025**|**2024**|
|||**£**|**£**|
||Aggregate compensation|48,500|27,475|
The charity's project leader is considered to be key management personnel and was contracted to oversee various projects.
## **9 Taxation**
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
## **10 Tangible fixed assets**
||||**Fixtures and**|
|---|---|---|---|
||||**fittings**|
||||**£**|
||**Cost**|||
||At 1 October 2024||24,364|
||At 30 September 2025||24,364|
||**Depreciation and impairment**|||
||At 1 October 2024||23,805|
||Depreciation charged in the year||446|
||At 30 September 2025||24,251|
||**Carrying amount**|||
||At 30 September 2025||113|
||At 30 September 2024||559|
|**11**|**Debtors**|||
|||**2025**|**2024**|
||**Amounts falling due within one year:**|**£**|**£**|
||Prepayments and accrued income|-|628|
- 16 -
## **FRONT LOUNGE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2025**_
## **12 Loans and overdrafts**
|Other loans
Payable within one year|**2025**
**£**
11,196
11,196|**2024**
**£**
11,196|
|---|---|---|
|||11,196|
The charity has a loan outstanding to a project leader of £11,196. This will be repaid when the charity has more secure cashflow.
## **13 Creditors: amounts falling due within one year**
|Loans and overdrafts
Other taxation and social security
Other creditors
Accruals and deferred income
**14**
**Retirement benefit schemes**
**Defined contribution schemes**
Charge to profit or loss in respect of defined contribution schemes|**2025**
**£**
11,196
-
-
4,335
15,531
**2025**
**£**
-|**2024**
**£**
11,196
103
3,960
4,525|
|---|---|---|
|||19,784|
|||**2024**
**£**
422|
The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.
## **15 Unrestricted funds**
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
||**At**|**1**|**October**|**Incoming**|**Resources**|**Transfers**|**At 30**|
|---|---|---|---|---|---|---|---|
||||**2024**|**resources**|**expended**||**September**|
||||||||**2025**|
||||**£**|**£**|**£**|**£**|**£**|
|General funds|||1,591|1,068|(14,844)|(2,187)|(14,372)|
- 17 -
## **FRONT LOUNGE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2025**_
|**15**|**Unrestricted funds**|||||**(Continued)**|
|---|---|---|---|---|---|---|
||**Previous year:**|**At 1 October**|**Incoming**|**Resources**|**Transfers**|**At 30**|
|||**2023**|**resources**|**expended**||**September**|
|||||||**2024**|
|||**£**|**£**|**£**|**£**|**£**|
||General funds|12,044|27,308|(37,761)|-|1,591|
|**16**|**Analysis of net assets between**|**funds**|||||
|||||**Unrestricted**|**Restricted**|**Total**|
|||||**funds**|**funds**||
|||||**2025**|**2025**|**2025**|
|||||**£**|**£**|**£**|
||**At 30 September 2025:**||||||
||Tangible assets|||113|-|113|
||Current assets/(liabilities)|||(14,485)|-|(14,485)|
|||||(14,372)|-|(14,372)|
|||||**Unrestricted**|**Restricted**|**Total**|
|||||**funds**|**funds**||
|||||**2024**|**2024**|**2024**|
|||||**£**|**£**|**£**|
||**At 30 September 2024:**||||||
||Tangible assets|||559|-|559|
||Current assets/(liabilities)|||1,032|7,553|8,585|
|||||1,591|7,553|9,144|
- 18 -
##
|**Restricted funds**|The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may|be used.|**Movement in funds**
**Movement in funds**|**Balance at**
**Incoming**
**Resources**
**Balance at**
**Incoming**
**Resources**
**Transfers**
**Balance at**|**1 October 2023**
**resources**
**expended**
**1 October 2024**
**resources**
**expended**
**30 September**|**2025**|**£**
**£**
**£**
**£**
**£**
**£**
**£**
**£**|Dundee City Council - Core Skills Development
-
-
-
-
14,500
(14,500)
-
-|Kindred Clothing - Agnes Hunter Trust
-
-
-
-
10,000
(10,000)
-
-|Kindred Clothing/Ufi VocTech Challenge Fund
7,646
28,010
(35,545)
111
-
(111)
-
-|Robertson Trust
-
25,000
(25,000)
-
-
-
-
-|Awards for All - Adventures of Little People
5,376
-
(5,376)
-
-
-
-
-|Hope Hub 2
163
-
(163)
-
-
-
-
-|National Lottery Community Fund
-
-
-
-
50,000
(50,000)
-
-|Orkney Kindred Clothing
-
-
-
-
10,000
(11,926)
1,926
-|Foundation Scotland
-
-
-
-
500
(500)
-
-|Changemakers Hub
-
3,000
(3,000)
-
1,500
(1,589)
89
-|Communities Mental Health and Wellbeing Fund
-
13,000
(5,558)
7,442
27,000
(34,442)
-
-|AOPL Dundee Bairns
-
1,200
(1,200)
-
960
(1,132)
172
-|13,185
70,210
(75,842)
7,553
114,460
(124,200)
2,187
-|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|**17**|||||||||||||||||||||
##
## **FRONT LOUNGE LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2025**_
## **18 Related party transactions**
The charity received a loan during the year from Bomo Inatimi (project leader) of £11,196 which is to be repaid only when the charity has enough resources to repay.
- 21 -