CONFIDENTIAL COMPANY REGISTRATION NUMBER.. 08064488 CHARITY REGISTRATION NUMBER: 1147400 The Costa Foundation Company Limited by Guarantee Financial Statements 31 December 2025
CONFIDENTIAL The Costa Foundation Company Limited by Guarantee Financial Statements Year ended 31 December 2025 Page Trustees, annual report lincorporaling the direclovs reporti Independent auditor's report lo the members 13 ststement of financial activities (including income and expenditure accounti 16 Statement of financial position 17 statement of cash flows 18 Notes lo the financial statements 19
CONFIDENTIAL The Costa Foundation Company Limited by Guarantee Trustees, Annual Report (Incorporatlng the Directorfs Report) Year ended 31 December 2025 The trustees, who are also the directors for the PLJrposes of company law. present their report and the financial stalemènts of the charity for the year ended 31 December 2025. Chalr's report 2025 has been another year of solid progress. strengthening our team, driving income and delivering on our core misston of improving the life chances of children and young people in coffee-growing communities by providing access to a safe. qL¢ality education. For the first lime we have also approved funding for projects to change children's lives in the UK. During the year we have continued to strengthen our Costa Foundation team. We have increased the hours of our Executive Director. made the position of our Project Officer permanent and recruited Fundraising and Engagement Officer lo help drive income. There have also been changes within the board. After six years, we say a massive thank you and goodbye to trustee and Chair of the Projects Committee, Professor Laura Camfield. Laura has made a huge ¢onlribLJlion to the charity during her temi in office, and we wish her all the best for the future. I am really pleased that Hannah Bellamy, an existing trustee and member of the Committee. has agreed to lake on the role of Committee Chair. To further strengthen the expertise of our board and Projects Committee we have undertaken a trustee recruitment campaign. Having received hundreds of applications I'm delighted to annoLJnce that we have appointed Keith Kibirango, and Professor Freda Wolfenden. Both bring extensive and highly relevant expertise to the board and to the Projects Committee. Having apwinted an extemal company secretary in 2024, we have spent time in 2025 working through the recommendations of our external governance audit. We have updated many of our policies and embarked on some formal training of the board. Whilst there is more to do, we have made significant progress, and I thank all those who have been involved in improving our governance. Charitable income increased to £2.08m in 2025, a 9% YOY increase. This is only the second time in our history that our income has exceeded £2m and, given all the challenges in the UK economy, it is a very positive outcome. I would like lo thank every team member, customer and partrer associated wrth the Costs Coffee business who has helped lo deliver this. Whilst individual store fund raising remains our blggesl single source of income, there are some other very significant income streams. Event income is growing, including the Costa Coffee golf day and first independent franchise gala dinner. and this year saw the tenth anniversary of Costa Coffee's sponsored bike ride. This one event raised £140k. We also saw a 30Qh increase in our income derived from products sold in stores where a donation is made to the charity. The single biggest conlribulor is a range of reusable cups. A huge thank you to everyone who helped us raise fvnds for the Costa Foundation. In 2025 we have approved grants for 14 projects. In 7 countries, totaling £1.8m. Significantly, and in line with our strategy, ol these are UK projects. This will be the first time that we have supported communities in the UK, the country in which the majority of the Foundation's funds are raised. Working with our partners in coffee growing communities of the world we have completed 12 projects this year, supporting over 6,500 children and young people. On behalf of the board, I would like to reccgnise the dedication of so many who make everything possible- our Costa Foundation team-. Kale, Faye & Karra, our in-county delivery partners, all Ihose supporh.ng us within Costa Coffee, and all our other partners, supporters and volunteers.
CONFIDENTIAL The Costa Foundation Company Limlted by Guarantee Trustees, Annual Report (Incorporating the Directorfs Reporti Year ended 31 December 2025 l also would personally like to thank my fellow trustees, who selflessly give their time to support the Foundation. With such a small team we would be unable lo deliver so much wilhoLrt the board's dedication and expertise.. .thank youl In the year ahead, as we move towards celebrating 20 years of the Cosla Foundation, I look forward to seeing the Foundation build on the successes of 2025, helping lo change the lrfe stories of even more children and young people across the world. RfJJSwr 7¥376MTt1} Jul 20, 2026 Rob SYry¢r- Chalr, Thè Costa Foundation
CONFIDENTIAL The Costa Foundation Company Llmlted by Guarantee Trustees. Annual Report (Incorporatlng the Dlrector's Report) Yèar ended 31 December 2025 Reference and admlnbtrative details Registered charily name The Cosla Foundation Charity registration number 1147400 Company Tegi5tration number 08064488 Prlneipal olfice and registered offlce 3 Knaves Beech Business Park Davies Way Loudwaler High Wcombe Bedfordshire HP10 9QR UK The trustees A Aggaal L Camfield H Finn C Balfour-Poole H Bellamy R Svryer R Blyth N Orrin C Angrand K Kibirango F Wolfenden {R8sKJned 31 December 2025) (Appointed 28 April 20251 {Appoinled 14 April 20261 (Appointed 14 April 2026} L Camfield resigned from the board following six years in the role of trustee and Projects Committee. The Foundab"on was incorporated at Companies House on 10 May 2012, registered as a charity with the Charity Commission on 23 May 2012 and with the Office of the Scottish Charity Regulator on 17 September 2012. Prior to the incorporation of the Foundation. donations were collected in an account maintained by Charities Trust, an independent registered charity, pursuant to an agreement with Costa Limited and with the intent Ihat the monies in the account would be used for similar charitable purposes to those adopted by the Foundation. Following incorporation, Charities Trust transferred the fvnds then hetd by them to the Foundation. The Articles of Association of the Foundation established the objects and powers of the Foundation. In the event of the Foundation being wound up, members are required to contribute an amount not exceeding £1 each. Company secretary Gillian Long Executlve Dlrector Kate O'Brien
CONFIDENTIAL The Costa Foundation Company Limited by Guarantee Trustees, Annual Report (Incorporating the Directorfs Report) Year ended 310ecember 2025 Aud]tor MC Audit Limited Slatulory Auditors Station House North Street Havanl Hampshire P09 1QU Bankers National Westminster Bank PIC PO Box 12263 1 Princes Street London EC2R 8PH
CONFIDENTIAL The Costa Foundation C(Thpany Limited by Guarantee Trustees. Annual Report (Incorporats"ng the Directorfs Report) Year ended 31 December 2025 Structure, govfrrnanco and management Relationship with Costa Limiteil Under the Articles of Association of the FoundatT"on. Costa Limited I'costa'l has the power to appoint Trustees of the Foundation provided at least Trustees are appointed by the Board of Trustees. Cosla is party lo a Commercial Participation AgTeement with the Foundation lo enable Costs to ra1se funds through the sale of certain products from which it has agreed to donate certain proceeds to the FoLJndalion. Funds were also raised via fundraising from Costa's employees and members of the public. Fundrnlsing Approach The Foundaty'on's approach to fundraising is to predominantly use the relationship with Costa, its employees, custorners and pathers to raise funds through fundraising activities and the sale of products. The Foundation does nol carry out street fundraising, fundraising mail shots or telephone canvassing- The Foundation works with Costa to ensure fundraising for the Foundation complies with recognised standards. Fundt3ising practi is monitored by the trustees of the charity, includin9 any fundraising complaints {none were received during 20251 and always seek to protect the public, including vulnerable people, from unreasonably intrusive or persistent fundraising approaches and undue pressure to donate. Goyernlng Document The Foundation is incorporated as a private company limited by guarantee No.08064488. The Costa Foundation is a registered charity in England and Wales No. 1147400. a registered charity in Scotland No.SC043414. The Articles of Association of the Foundation estrdblished the objects and powers of the FDundation. Oryanisational Stwcture The Board of Trustees meets at least four times a year and oversees finance, Current project work and the future strategy of the Foundation. The Foundation also has one sub-committee." thè Projects Committee. The purpose and duties of this committee is set out in the terms of reference and are broadly outlined below.. al To recommend lo the Board the projects strategy in fulfilment of the Foundation's Theory of Change bl To prepare annual budgets for projects and other matters wtthin the remit of the Committee cl To consider for approval all projects presented for funding by the Foundation dl To develop and implement a system for the monitoring and evaluation of Foundation projects el To monitor all external delivery partners for Foundation projects and lo recommend new partners lo the Board as relevant Th& Projects Committee use$ a $trategi¢ matrix to assist in the evaluation of project proposals and collects detailed monitoring and evaluation information on Foundation projects to measure their impact and success acro$s several key performance indicators. It reviews delivery partner performance and approves new delivery partners when appropriate. Trustees visit projects to improve their understsnding of the educational needs in coffee growing communities and to ehe¢k that the fvnds are being used appropriately. The Foundation held Trustee Indemnity Insurance during the period.
CONFIDENTIAL The Costa Foundation Company Limited by Guarantee Trustees, Annual Report (Incorporating the Director's Report} Yèar ended 31 December 2025 Karra Jones was recruited as Fundraising & Engagement Officer in Novembèr 2025 to join the Foundation team and provide additional support to Kate O'Brien, Executive Director of the Foundation. Prlnclpal rlsks and uncertalntles The Trustees have examined the major strategic, financial, operational and reputstional risks which the charity faces and regulady review what actions can be taken to mitigate these risks. The five risks that would have the highest impact are.. a significant decrease in income, especially given reliance on a single supporter Icosta Coffee and related entttiesl", a safety or security incident on a monitoring visit to one of the countries the Foundation funds,. safeguarding issues in Foundation funded 5chi)ols', a reduction in purchasing power due to inflation or currency movements and relian on a small team lo deliver the work of the Foundation. These risks are mitigated by ongoing investment in building and maintaining strong and positive relationships with Cosla and the Foundation's delivery partners. In addition, the Foundation has a safeguarding policy, conducts due diligence with delivery partners, and visits projects lo mitigate against the risk of misconduct Of breaches of safety. All Iruslees undertook safeguarding training in 2025, and a thorough review of the safeguarding policy was completed. A full risk assessment is conducted before any overseas th"p with appropriate training and monitoring measures in place for all Iravellers. Grants are given based on the funds available in the bank and no project applications are fully approved unless the Foundation has sufficient funds lo cover the entire budget required for that project. The Foundation purchases any required currency once a project has been approved to mitlgate any rfsk of unaffordability as a result of currency flU¢atIOns. Objectives and activities The Foundation's Articles slate the charity's purpose is.. Prevention or relief of poverty., Advancement of education. including the establishment & operation of schools & other educational establishments,. Advancement of health or the saving of lives,. and Advancement of environmental protection or environmental improvement, in all cases anywhere in the world, in particular (without lirnitation) within coffee growing communities and surrounding areas. The charity's vision is to eradicate poverty in wffee growing communities. and its mission is to improve the life chances of children and young people in coffee growing communits'es by providing the opportunty of a safe, quality education. In the consideration of projects, the Trustees have due regard to the Charity Commission's guidance on public benefit. The Trustees always ensure that the projects undertaken are in line with the aims and objectives of the Foundation and use its Theory of Change to guide their decisions. All projects eA)ntinue to be implemented via delivery partners based in the countries where the projects are undertaken. The delivery partners range from charitable non-governmental organisab.ons to the sustainability teams of coffee companies. Most grants awarded by the Foundation fund schools that provide access lo a safe, quality education for children and young people within coffee growing communities. All new school construction projects are required to have fresh water and separate sanitation facilib.es for boys and girls. The Foundation also awards grants to expand schools previously built with Foundation fvnds. Depending upon local needs, the Foundation funds electricity installations. boarding accommodation, teachers, accommodation, libraries, science labs, computer labs, sports pitches and safety infrastructure, such as perimeter fencing, safety lighting and flood barriers. It also funds equipment to enhance educab'on. such as for extra curricula activities. The Foundation fvnds training for teachers and school leaders lo improve the quality and safety of
CONFIDENTIAL The Costa Foundation Company Limited by Guarantee Trustees, Annual Report (Incorporating the Directorfs Report) Yoar ended 31 December 2025 education, as well as other programmes to improve the quality and accessibility (espeGially for girls} of education, wellking and safely, such as providing bicycles for studenls. The Foundation works with communities and local authorities where its school projects are locat via ils delDiery partners bul does not employ leaching staff or fund s¢hool pla¢es. The schools funded in Uganda and Zambia are operated by the charity Promoling Equality in AfrIn Schools IPEAS) where the teachers are employed and paid by PEAS. More information is on the PEAS websrte at www.peas.org.uk. All other Foundation knnded schools are run by teachers trained and funded by the government in country or other NGOS. This system ensures the sustainability of the schools as they a not reliant upon continued funding from the Foundation to operale. Achlevements and p8rformanc8 Projects Funded from 1 January 2025 to 31 December2025 During the year ended 31 December 2025, 12 projects funded by the Foundation were ¢ompleted by our partners, supporting over 6,500 children and young people in coffee growing countries. Global inflation and geopolib.cal challenges, the impact of the climate crisis causing delays due to adverse weather conditions, and local administrative delays continue to challenge our partners, and mean the cost of implementing projects is continuing to rise. Thanks to exceptional fundraising from the teams across Costa Coffee and our partners, we've been able to approve 14 projects in 2025, totalling £1,595,796.68, including eight school constructions and one programme. Three of Ihese are not included in Ihe total amount granted in the accounts as the grant agreements were not signed until early 2026. This included two projects approved in the UK for the first time to give back to the coThnunities who support the Costa Foundation via the Costa Coffee stores. The new projects awarded fvnding in 2025 are as follows: Name of $¢hooll ecl Improvement of rural education in Olopita Community Grant mount Descrf tion New school Count Guatemala Partnor Seeds for Progress Torn7 2025- 2026 85 535.48 Basura primary & secondary school sanitalitsn bl¢cks Expansion Ethiopia Imagine1 Day 2025- 2026 £56,211.27 Konga Secondary School Growing futures.. Improving secondary education for marginaltzed students in coffee growing communities. 2025- 2026 New school Programme Elhio ia Uganda inelDa PEAS £274,540.74 2025- 2026 £203,554.00
CONFIDENTIAL The Costa Foundation Company Limited by Guarantee Trustees, Annual Report Ilncorporating the Directorfs Report) Year ended 31 December 202S 20110 Nong Truong Nursery, Gia Lai Province New school Vietnarn ACOM 2025- 2026 2025- 2026 £223,617.64 £67,439.00 Empowerment of new generations in coffee communits'es - 4 schools School projeGt Colombia FNC £290,928.55 2025- 2026 Lemlem Secondary School Increasing access to quality science education in marginalized coffee growing ommunilies in anda - Noble Increasing access lo quality science education in marginalized coffee growing communities in anda - Frontiers Increasing access to quality science education in marginalized coffee growing communities in anda - Pioneer Classrooms for Nueslra Sefiora del Camien New School Expansion Ethio Uganda Ima ine1Da £49,584.00 2025- 2026 Expansion Uganda PEAS £64,569.00 2025- 2026 Expansion Uganda PEAS £64.569.00 2025- 2026 New school Colombia Fundacion Carcafe £215,250.00 202& 2026 Total lundlng awarded 2025: £1,595.796.68 ddilional projects approved for fvnding in 2025, with funding agreements signed in 2026. N.B These are not included in the 2025 accounts. San Pedro de New school Buculmay School xpansion & renovation proje¢t Nicaragua Fundacion Nlcafrance £176,710.50 2026 'FAWcused Flavours, _ repurpose of eaching kllchen Expansion UK Five Acre Wood £24,999.95 2026
CONFIDENTIAL The Costa Foundation Company Limited by Guarantee Trustees, Annual Report (Incorporating the Directorfs Report) Year ended 31 December 2025 Planting Possibilities'_ Supporting disabled children and young people to develop enterprise skills hrou h horticulture Programme UK reloar's £25,000.00 2026 Total approvod additional proj¢¢ts: Total approvgd projects 2025: £226,71 OA5 £1,822,507.13 An overview of projects completed and funded in 2025 is as follows.. Compleled 2025 Appfovad for funding 2025 Grant agreements si ned 2025 New schools School ansions Pro rammes 12 14 11 Totsl all ects Total rant value of ro ects Total # children and young people su orted via rants ro £1,046,316.51 6,515 £1,822.507.13 95,988 £1,595,796.68 95,286 N.B. Project 13E3 PEAS Hibiscus sports pitch was cancelled due to challenges around acquisition of land and addib.onal funds of £6,123 were allocated to project 48E8 PEAS Aspire sports pitch due lo constructson Ghallenges. What scffie ofthe children and young people and members from the communities we have supported say.. "I want otherstud&nts to have this chance. Thanks to the Costa Foundab'on and Imaginelday, TaRL helped me love malh. I hop6 every student ¢anioin andleam like I did. I ngver thought I'd say it, but now math is my favorite subject.. - Hibrot, 14 years old- TaRL programme, Imagln81 Day. Ethiopla 'The Community comment il as °th8 b8st school th8y've everseen in 77 Gl)mmun8s in W8Stom Gia Lai province."11 shines like a spark of light in th8 remot8 mountains.. - ACOM toam. la Pet Nursery. ACOM. Wietnam °My heart is happy, I feel grateful and blessed becaus8 w8 finalty achieved 8 dream projoct. The school was abandoned and the Chdren were going to study in the neAghboring communitiés, it was not fair th81 our children did not have 8 school and now we hav8 achieved it. May God bless the donors, the intem]edi8ries and aach parent who contnbuted work and d8dication, we all dNd our part.. - Milvian Judlth Garela, Pre$(dent of the Parents, Organization at El Zapotal School. Seeds For progress. Guatemala 'When the school was built here, everything chang8d. The school Game to Us. This school changed my lrfe. It protects girls fvom child Malage and giv8s us a chanGe to build a better futur&.' - Fetra, 17 years old - Chekata Secondary School build. Imagine1 Day> Ethiopla 10
CONFIDENTIAL The Costa Foundation Company Limited by Guaranta8 Trustses, Annual Report (Incorporating th8 Dir8Ctorfs Report Year ended 31 December 2025 We would like to lake this opportunity to thank all at Cosla Coffee, their partner$ who have supported the Foundation and other donors for their partnership and support. This includes the Moto Foundation, Roadchef, Odeon, Jim's Organi¢ Coffee and independent franchise partners such as Scoffs. The first gala dinner for Costa's store independent franchise partners look place in September 2025 to raise funds for the Costa Foundab'on. We would also like lo give $pe¢ial thanks to our delivery partners who work so eflectively with local communities and other key stakeholders, often in challenging circumstances. We are delighted that we've been able lo report continued activity al the levels shown above and Iruty appreciate their hard work, resilience, commitment and absolute focus on providing the opportunities to positively change the lrfe story of so many children and young people in coffee growing communits'es. Communl¢ation Our website contains vldeos. case studies and stories from around the world. For more informatton visit www.co$tsfoundab'on.com. In addition, our Inslagram page (@costafoundalionl and Linkedln page Ihttps'.Ilwww.linkedin.comlcompanylcostafoundationl are regularly updated with image5 from coffee-growing ¢ommunilie5 around the woild that have benefited from a Costa Foundatson funded project plus many stories and images frn our inspiratiollal fLbndraisers in Costa Coffee stores and beyond. Flnanclal reviow Total income for the year ended 31 December 2025 was £2,080,93612024' £1.912,36012023.' £1,589,57412022.. £1,287,715}. The increase in income is predominantly due to brilliant fundraising in Costa Coffee sloTe5 in the UK and Ireland, a fantastic year of merchandise sales where £1 is donated lo the Foundation for specific reusable cups and from events such as the annual bike ride organised by Costa Coffee teams, which celebrated its 10th anniversary. and lle Costa Golf Day, which raised double the funds in 2025 than 2024. £1,460,559 was paid out or formal committed lo in the year to 31 December 2025 and at the balance sheet date a further £594,749 was committed but not accrued as the relevant milestones were subject to conditions that had not yel been met. Other expenditure of £264,916 was made in respect of management of the projects and costs relating lo the running of the Foundation. ReseNe8 at 31 December 2025 amounted to £1.848.342131 December 2024.. £1.476,726131 December 2023.. £1,094,488131 December 2022.. £1.173,5861. Resèrves and Investment Policy The ReseeS at the year*rid of £1,848.342 comprising £1,468.573 of cash are held by Nat Wesl and varK)us notice and terni cash deposit accounts on the Flagstone banking platform. The Trustees monitor reseNe levels regularly to ensure that all commitrnents are met and that future project requests are reviewed on a timely basis. Funds are only committed lo new projects once the income has been received. As a result, there is a delay of some months between the r8ceipl of funds, the approval of projects and the subsequent expenditure of funds lo complete those projects. Those funds identified for fubjre projects are held in cash balances for safekeeping pending their expenditure. The reseNes policy was chartged in 2024 to increase from £75.000 to £200,000 in order to provid& for a close down of the Foundation. This is calculated based on the costs of li) keeping currently employed staff in position for one year lill contracted in Board Secretarial and accounting foi one year and liiil an allowance for ad hoc addibonal costs such as travel. As projects are not signed off until funds are received, reserved fvnds are not required for uncertainty of future income, or 'lroughs" in the cash budget. Investment Poll¢y investment poliGy was agreed in 2024 to slate that £200,000 reserves are to b8 invested in interest
CONFIDENTIAL The Costa Foundation Company Limited by Guarantee Trustees. Annual Report (Incorporats"ng the Directoffs Report) Year ended 31 December 2025 bearing savings accounts. All savings are to be invested in FSCS protected institutions, with no more than the protected £120,000 invested in a single instttution. Savings accounts are lo be GBP denominated and may be'notice deposits, requiring advance notic8 of withdrawals. Investment may be made through a trusted investment portal such as the Flagstone portal endorsed by th8 Charili6s Aid Foundation. Trusteos. responslbllltles ststement The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees, report and the financial 8tstements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)- Company law requires the charty trustees lo prepare financial statements for each year which give true and fair view of the slate of affairs of the charitable company arbd the incoming resources and application of resources, Including the income and expenditure, for that pèriod. In prepaTing these financial statements, the trustees are required to.. select suitable accounting poliaes and then apply them ¢onsislenlly', observe the methods and principles In the applicable Charities SORP., make judgments and a¢¢ounting estimates that are reasonable and prudent,. prepare the financial statements on the going concern basis unless il is inappropriate to presume that the charity will continue in bLJsiness. The trustees afe responsible for keeping adequat8 accounting records that are SUffient to show and explain the charity's transactions and disclose wf(h reasonable accuracy at any lime the financial position of the charity and enable them lo ensure that the financial slalements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the PTevenb"on arKI detection of fraud and other irregularities. Thetrustees, annual reF)Ortwas approved on 201hJuly 2026 and signed on behalfof the board of tnjstees by.. Jbr 2U,1017¥6v1(lt+f1 Jul 20, 2026 R Swyer Trustee 12
CONFIDENTIAL The Costa Foundation Company Limitsd by Guarantse Independent Auditorfs Report to the Members ot The Costa Foundation Year ended 31 December 2025 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE COSTA FOUNDATION Opinion We have audited the financial statements of The Costa Foundation {the 'charitable MpanY') for the year ended 31 December 2a25 which comprise the Statement of Financial Aclivits'es, the Balance Sheet and notes lo the financial statements, including a summary of significant accounting policies. The financial repDrting framework that has been applied in their preparation is applicable law and United Kingdom AcGounling Stsndards {United Kingdom Generally Accepted Accounting Practice). In our opinion the finanGEal slatemenls.. give a true and fair view of the state of the charitable company's affairs as al 31 December 2025 and of its incoming resources and application of resources. including its result, for Ihe year then ended., have been property prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. have been prepared in accordance with the requiremenls of the Charities and Trustee Investment (Scoand) Act 20D5 and regulation 8 of the Charits'e$ Acwunts (SlIand} Re9ulalions 2006 {as amended}. Basis for opinion We conducted our audit in accordance with Intemational Standards on Audlts'ng {UK) IISAS IUK}l and applicable law. Our responsibilrties under those standards are further described in the Auditors, responsibilities for the audii of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirement5 that are relevant lo our audit of the financial stalemenls in the UK, induding the FRC'S Ethical Standard, and we have ftjlfilled our other ethical responsibilf(ies in accordance with these requiremen15. We believe that the audit evidence we have obtained is suffiaent and appropriate to provide a basis for our opinion. Con¢lusion$ relating to going concern In auditing the financial statements, we have concluded that the trustees, Use of the going concern basi$ of acwunling in the preparation of the financial ststemenls is appropriate. Bas on the work we have performed, we have not idenlffied any material uncertainties relating to events or ndItionS that, individually or collectivety, may cast significant doubl on the charitable company's ability to continue as a going concem for a period of at least twelve months from when the financial ststements are authorised for issue. Our responsibilities and the restx)nsibilities of the trustees with respect to going concem are described In the relevant sections of this report. Other Infomiatlon The trustees are responsible for the other infomiab'on. 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 doès not cover the other information and, except lo the extent otherwise explicitly staled in our reFQrt, we do not express any form of assurance conclusion Ihereon. 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 infom)ation is materially inconsistent with the financial statements or our knowledge obtained in the audrt or otherwise appears to be materially misstated. If we identify such material inconsistencies 13
CONFIDENTIAL The Costa Foundatlon Company Limited by Guarantee Independent Auditorfs Report to the Members of The Costa Foundation Year ended 31 December 2025 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 th& Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit the infonT)ation gtven in the Report of the Tnjstees for the financial year forwhich the financial slatements are prepared is consistent with the financial statements,. and the Rep)rt of the Trustees has been prepared in accordance with applicable legal requirements. Matter5 on which we are requlrrfl to report by exception In the light of the knowledge and tjnderstanding of the charitable company and its environment obtained in the course of the audi( 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 lo you if, in our opinion.. adequate accounting records have not been kept or returns tequate for our aLKJit have not been received from branches not visited by u5., or the financial ststemenls are not in agreement wlth the a¢ntIng records and returns- or certain disclosures of tmstees, remuneration specthed by law are not made,. or we have not received all the informab'on and explanations we require for our audit-, or ihe trustees were not entiued lo take advantage of the small companies exemption from the requirement io prepare a Strategic Report or in preparing the Report of the Trustees. Responslbllltles of trustees As explained more fijlly in the Statement of Trustees, Rèsponsibilities, the trustees {who are also the directors of the Charitable company for the purposes of company lawl are responsible ft)r 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 thal are free from material misstatement, whether due to fraud or error. In preparing the financlal slalements, 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 lo cease operations. or have no realisti¢ altemative but lo do $0. Our responsibilities for thg audit of the financial statements Our ubjective5 are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error, and lo issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in a¢cordan¢e with ISAS {UKI will aayS detecl a mateiial misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they cou5d reasonably be expected lo influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are ¢apable of detecting irregularities, including fraud is detailed below. From discussion with management and those ¢harged with governance information about the entity is documented to assess the activity wilhin the organisation. We discuss management's assessment of risk in res¢1 of irregularities, fraud and going concern. 14
CONFIDENTIAL The Costa Foundation Company Limlted by Guarantee Indèpendent Audito$ Report to the Mèmbèrs of The Cosla Foundation Year ended 31 December 2025 Based on these discussions and our own assessments we determined that the key risk areas were income recognition in respect of cul off issues and management override concerning the size of the organisation. We sel financial statement materiality level based on the level of income. As a not for profit organisation raising income is its primary focus which is why income was used to determine the level of materiality. Our overall assessment of risk was used lo detemiine performance materiality at an appropnale level. Substantive audit tests were designed after assessing and performing walkthrough tests. The walkthrough tests.ng confirmed documented systems which have been designed to act as a preventative measure against fraud and error which appear to be operating as documented. Substsnlive teskn.ng tested a sample of the population, representative of the population, to ideritify errors. The testing did not identify any material misstatements in areas tested. Audit substantive tests concluded no material errors over the key risk areas of income recojnition and management overrpje. The audit considers the organisation is not exposed to material risk of error as a result of assessing laws and regulations that are appropriate lo the organisation. Management assessed there is no going concern risk. The audlt undertook a review of bud9ets. m8nagement accounts and the review of board mlnutes and came to the same conclusion as management. A lurther description of our responsibillties for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uklauditorsresponsibilities. This description forms part of our Report of the Independent Auditors. Use ol our report This report is made solely to the char(table 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 matter5 we are required lo 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 mèmbers as a body, for our audit work, for this report, or for the opinions we have formed. Stuart Mackne (Senior Statutory Auditor) for and on behalf of MC Audit Limited Stalulory Auditors Lake House 2 Portway Port Solent PortsmoLrth Hampshire P064TY Date.. 15
CONFIDENTIAL The Costa Foundation Company Limited by Guarantee Statement of Financial Activities Ilncluding Income and expenditure account Year ended 31 December 2025 2025 Restricted funds 2024 Unrestr'cted funds Total funds Total funds Income Income and endowments Donations and legacies Investment income Note 2,030,936 8,604 50,000 2,080,936 8,604 1.912,360 Totsl income 2.039 540 50,000 2,089,540 1912360 Expenditure Expenditure on ¢haritsble activities 1.717,924 1725,475 1,808,395 Total expenditure 1.717,924 7,551 1725,475 1808,395 Nel {expendilurellincome and nel movement in funds 321616 364,C65 103.&fj5 Rèconcillatlon of funds Total funds brought forward 1,476,726 7,S51 1,484,277 1,380.312 Total fiinds carried forward 1798,342 1848 342 1,484,277 The slalement of financial activities includes all gains and losses recognised in the year. All income and expendrture derwe from continuing activities. 16
CONFIDENTIAL The Costa Foundation Company Limited by Guarantee Statement of Financial Position Year ended 31 December 2025 2025 2024 Note Current assets Debtors 15 d96.043 324,600 Cash al bank and in hand 1.468,573 1.369.930 1,964,616 1,694.531 Credltors: amounts falling due within one year 16 116,274 210,253 Net current assets 1.848,342 1484 277 Total assets less current liabilities 1.848,342 1484 277 Funds of the ¢harty Restricted funds 50,000 7,551 Unrestricted funds 1798 342 1476 726 Total charlty funds 18 1,848,342 1.484.277 These financial statements have been prepared in accordance with the provisions applicable to companies subject io the small companies, regime. These fi'nancial statements were approved by the board of trustees and authorised for issue on 20 July 2026, and are signed on behalf of the board by.. Jjr Jul 20, 2026 R Swyer Trustee The Costa Foundation is a Company limited by guarantee registered in England and Wales. Company number 08064488. Charity number 1147400.Scottish charty number SC043414. 17
CONFIDENTIAL The Costa Foundation Company Limited by Guarantee statement of Cash Flows Year ended 31 December 2025 2025 2024 Cash flows from operatlng activities Nel (expendire111ncOme Adjustments for.. Interest payable and similar charges 364,065 103,965 Changes in.. Trade and other debtors 1171,442) 42,395 Trade and other credrtors 93,980 630 Cash generated frorn operations 98,643 145,730 Interest paid Net cash (used in) From operating actNilies 98,643 145,730 Net Idecrease)Ilncreas8 in rash and cash equivalents 145 730 Cash and cash equivalents at beginning of year 1 369 930 1,224,200 Cash and cash equivalents at end of year 1,468 573 1.369,930 18
CONFIDENTIAL The Costa Foundatlon Company Limited by Guarantee Notes to the Financial Statements Year ended 31 December 2025 1. G8ngral Infomiatlon The Costa Foundation is a company limited by gL¢arantee, incorporated in England and Wales. The address of ils registered office, its registered numbers and principal place of business is disclosed in the Trustee's Annual ReporL The principal activity of the charity is the advancement of edu¢ation, the relief of poverty and the advancement of health and environment of coffee-growing communities around the world. The financial statements are prepared In steding, and this 1$ the functlonal curren¢y of the Charity. 2. Statement of complianco These financial statements have been piepared in Complian with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ir&land', 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 10211 and the Companies A¢t 2006. 3. A¢¢ounting poli¢les Basis of preparation= The financial statements have been prepared on the historical cost basis, as rnodified by the revaluation of certain financial assets and liabilits'es and investment properties measured at fair value through income or expenditure. The financial statements ar8 prepared in Sterling, which is the fvnctional currency of the entity. Going concern.. These financial ststements have been prepared on the going concern basis. This is based on the charity reserves policy, plus the fact the charity only commits to projects once income has been raised, committed project expenditure is already secure. Therefore, we do not view any going concern risk for the charity. Judgements and key sources of estimation uncertainty.. In applying the company's accounting policies, the trustees are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The trustees, judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made and are based on historical experience and other factors that are consideTed to be applicable. Due to the inherent subjectivty involved in the making such judgements, esb'mates and assumptions, the actual results and outcomes may drffer. The trustees do not consider there to be any significantjudgements, estimates or assumptions in these finanoial Ststements. Foretgn exchange.. Transactions denominated in foreign currencies are translated into steding on the exchange rate ruling on the date of the transacts"on. 19
CONFIDENTIAL The Costa Foundation Company Limited by Guaranlee Notes to thè Financial Statsments Year ended 31 December 2025 Fund accounting.. Unreslricled funds are available for use at the discretion of the trustees to rther any of the charity's purposes. Designated knnds are unrestricted fvnds earmarked by the trustees for particular future project or commitrnent. Restricted funds are subjected to restrictions on their expenditrjre declared by the donor or through the terms of an appeal and fall into one of sutrflasses-. restricted income funds or endowment funds. Incoming resources.. All income is included in the statement of financial aclivitses when entlement has passed to the charity, it is probable that the economic benefits associated wlh the Iransactton will flow to the charity and the amount can be reliably measured. Resources expended.. All support costs incurrerj have been allocated beeen charitable expenditure and governance as appropriate. There are no costs relating to more than one fvnctional cost category. All expenditure and liabilities are included on an accruals basis and recognised when there is a legal or constructive obligats.on to pay out resources. Financial instruments.. The Costa Foundation has only financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initialty recognised at transaction values and subsequently measured at their settl8m8nl value. Deffi[l contribution plans.. Contributions to defined contribution plans are re¢ognised as an expense in the period in which the related setvi(E is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refijnd. When contributions are not expected to be settled wholly within 12 months of the end of the repong date in which the employees render the related service, the liability is measured on a discounted psent value basis. The unwinding of the discount is recognised as an expense in the period in which it arises. 4. Limited by guarantee The Foundation is incorporated as a private Company limited by guarantee. The Articles of Association of the Foundation established the objects and powers of the Foundation. In the event of the Foundation being wound up, members are required to contribute an amount not exceeding £1 each. 20
CONFIDENTIAL The Costa Foundation Company Limited by Guarantee Not8S to the Financial Statements Year ended 31 December 2025 5. Donatlons and legacles unrestn.cted Funds Restricted Funds Total Funds 2025 Donations 2025 Donations from sales of products in Costs stores Store Fundraising Matched Giving Donations from Costa Donations from fundraising General and gift aid donations Payroll Giving 602,925 944,218 225,000 602,925 944.218 225.000 205,320 53,473 205.320 103.473 50,000 2,030.936 50,000 2,080,936 Unrestricted Funds Restricted Funds Total Funds 2024 Donatlons 2024 Donations from sales of products in Costa stores Store Fundratsing Matched Giving Lk)nalions from Costa t)onalions from fundraising General and gift aid donations Payroll Giving 262,560 1,010.387 200,000 200.000 462,660 1,010,387 200,000 149,997 89,416 149,997 89,416 1,712,360 200.000 6. Investment Income Investsnenl income CompSeS wholty bank interest £8.60412024'. £01 21
CONFIDENTIAL The Costa Foundation Company Limited by Guarantee Notes to the Financial Ststements Year ended 31 December 2025 7. Expenditura on charitable activiti88 by fund type Unrestricted Funds Restricted Funds Total Funds 2025 Project Expenditure (note 9} Project management costs Costs of raising funds SupkX)rt costs 1,453.008 17.709 30,351 216,856 1717,924 7,551 1,460,559 17,709 30.351 216,856 1725 475 7,S51 Unrestricted Funds Restricted Funds Total Funds 2024 Project Expenditure (note 91 Project management costs Costs of raising funds Supportcosts 1.418,826 28,721 39,101 129,298 1,615,946 192,930 1.611.756 28,721 39,101 128.817 1,808,395 481 192,449 8. Support costs Unrestricted Funds Restricted Funds Total Funds 2025 Govem8nce costs Other support costs 27,967 188,889 216,856 27,967 188,889 216,856 Unreslri¢ted Fund$ Restricted Funds Total Funds 2024 Govemance costs Other support costs 8,822 120476 129,298 8,822 119,995 128 817 481 481 22
CONFIDENTIAL The Costa Foundation Company Limited by Guarantee Notes to the Financial Ststements Year ended 31 December 2025 9. Expenditure on charitable a¢tlvlties by aetlvlty typo Grant funding Activities undertaken directly Totsl Funds 2025 Support Costs Total Funds 2024 activities Project Expenditure (note 9) 1,460.559 1,460,559 1,611.756 Project management costs 17,709 17,709 28,721 Costs of raising funds 30,351 30,351 39,101 Other support 188,889 188,889 119,995 Governance costs 27,967 27,967 8,822 1508619 216 856 1725 475 1,808.395 10. Proj8ct Exp8nditure Total Funds 2025 Total Funds 2024 Unrestricted Funds Restn"cted Funds Included In project expendlturgls: Lien Son Nursery School Tan Chau Nursery School Bridge High school- dormitory El Remolino Perimeter Fence Rural Government School- Zapotal Community Gem)an Pomares Ordohez and Azarlas H. Pallais primary school Chekala Secondary School Land Expansion at PEAS Bridge PEAS Aspire Construction of Sanitary Block with incinerator at PEAS Aspire Aspire, 13E3- Hibiscus. 20E3- Pioneer Building a safe, holistic learning environment- Aspire. Uganda PEAS Noble Construction of Sanitary Block with incinerator at PEAS Noble Building a Better Future for Honduras 4 Rural education and child labour project in the Zapotal Community Monitoring, Evaluation, Reporting, and Learning IMERL) and te¢hnic41 support for Costa Foundation funded Schools in Ethiopia. 105,188 106,071 34,777 55,093 13,669 13,669 100,166 187,338 134,278 13,437 160,414 160,414 19,700 79,785 6.123 6123 19,700 90,000 21,546 21.546 21,546 10,973 23
CONFIDENTIAL The Costa Foundation Company Limited by Guarantee Notes to the Financial Statements Year ended 31 Dècember 2025 Cornputer Lab at Arda aalu 5¢hool Brighter Future- Guatamala Kabuta'Building a Safe, Holistic Leamirbg Environment. Construction of a multi- purpose football pitch at PEAS Kabula Arda Qalu Secondary School Project Monitoring & Evaluab'on for project CF60 Mario 3,6 90,000 72.000 72,000 10,561 128,019 1,829 Teaching al The Right Level ITaRLI for Children in Costa Foundatiun Cycling for Success Uganda La Pet Nursery School Improvem&t)t of rural education in Olopita Community - Guatemala Konga secondary school- Ethiopia 20110 Twong nursery- Vietnam Lemlem Secondary School- Ethiopia Pioneer science project Uganda Noble science project La Paz.. 3 school project- Honduras Basura sanitstion blocks- Ethiopia empowerment of 4 communities- Colombia Growing Futures - Uganda Fronb'ers science project Uganda Repayment of surplus 42,540 42,540 121,571 81,964 104,945 104,945 76,371 247,087 111,809 146,088 32,285 24,792 64,449 50,590 76,371 247,087 111,809 146,088 32,286 24,792 72,000 50,590 7,551 26,976 203,554 32,285 26,976 203,554 32,285 13,0001 Committed, not paid: La Pet Nursery School Aspire, 13E3- HibiscLJS, 2DE3- Pioneer San Jose de Lourdes Classrtsoms for Nueslra Sefiora del Camen 106,462 10,561 82,040 11D,5611 {82,0401 110,561) 182,040) 108,087 108,087 1453 008 1460,559 1611,756 11. Taxatlon The charity's activities fall within the exemptions afforded by the provisions of the Income and Corporation Taxes Act 2010. A¢¢ordingly, there is no tsxatson charge in these a¢¢ounts. 12. Net (expendtturey incom8 Net lexpenditure)lincome is slated after chargingl{creditingl'. 2025 2024 24
CONFIDENTIAL The Costa Foundation Company Limited by Guaranlee Notes to the Financial Statsments Year ended 31 December 2025 Fees payable for the audit of thè financial statements 6,660 7,680 13. Staff costs The total staff costs and employee benefits for the repoiting period are analysed as follows.. 2025 2024 Wages and salaries.. Employer national insurance costs Employer contributions to pensh)n plans 117,536 4,954 3,526 126,016 87,567 9,888 2,627 100,082 The average head count of employees during the year was 212024.. 21. The avera9e number of fulkb.me equivalent employees during the year is analysed as follows.. 2025 2024 Numberofstatr. The number of employees whose remuneration for the year fell within the following barmls, were.. 2025 No. 2024 No. £60,000 to £69,999 £80,00010 £89,999 Key Managernent Personnel: Key management personnel indude all persons that have authority and responsibilty for planning, directing and controlling the activities of the charty. The total cornpensation paid to key management personnel for services provided to the charity was £%.41212024'. £80,374). 14. Trustee remuneration and expenses No trustee received remunerats'on in the period lo 31 December 2025131 December 2024.. £NILI. Included in the atve is £2,530 of reimbursed expenses lo 4 trustees {31 December 2024.. £5,277 10 3 trustees). Trustee Indemnity Insurance was also In place during the period. 15. Debtors 202S 2024 Amounts ¢Jue from Costa Limited PpayMents and accrued income Other debtors 455,010 22.521 18.512 257.701 15.669 51.230 25
CONFIDENTIAL The Costa Foundation Company Limited by Guarantee Notes to the Financial Statements Year ended 31 December 2025 496.043 324,600 16. Creditors: amounts falling due within one year 2025 2024 Project expenditure committed, not paid other creditors 108.087 199,084 8.187 116,273 11,190 210,253 17. Pensions and other p06t-retirement ben8flts Defined ¢ontribulion plans,, The amount recognised in income or expenditure as an expense in relation to defined contributy'on plans was £3,52612024. £2,627). 18. Analysls of charltable funds A11 Jan 2025 Income ExpenditUTe At 31 De¢ 2025 General funds 1.476,726 2,039,540 1717 924 1798 342 A11 Jan 2024 At 31 Dec 2024 Income Expenditure General fvnds 1,380,312 1,712,360 1,615.946 1,476,726 At1 Jan 2025 Income Expenditure At 31 Dec 2025 Restricted Fund 7,551 50.000 7,551 50.000 At1 Jan 2024 Income At 31 Dec 2024 Expenditure Restricted Fund 200,000 192,449 7,551 Al the start of the year there was £7,551 of restricted funds remaining from the previous year. from a donatson received from Costa Coffee. This was used for the second instalment of Project 56PC - Honduras {£7.5511 as the funds were reslricled to Central America. During the year, the Foundation received £50,000 from Moto Foundats'on, restricted to UK based projects. This leaves a balance of £50,000 of restricted funds to be Carried foNard to 2026. 19. Analysis of Tret assets between funds Unreslri¢ted Funds RestriGled Funds Tolal Funds 2025 26
CONFIDENTIAL The Costa Foundation Company Limited by Guarantee Notes to the Financial Slatements Year ended 31 December 2025 Current assets 1,914,616 50,000 1.964,616 Creditors less than 1 year 116,274 116,2741 Nel assets 1,798,342 50,000 1.848,342 Unrestri¢led Funds Restricted Funds Total Funds 2024 Current assets 1.686,980 7,551 1,694,531 Creditors less than 1 year 210,253 210,253 Net assets 1,476,726 7,551 1,484,277 20. Analysls of changes In net debt At 1 Jan 2025 Cashftows At31 Dec 2025 Cash at bank and in hand 1,369,930 98,643 1,468.573 21. Commitment8 The Costa Foundation had commitments of £594,749131 December 2024.. £563,644) at the year end. These have not been provided for in the financial statements as they are subject to conditions being met before payment. 22. Related partles All unrestricted income received originated from Costa Limited and their employees, apart from donations retsived via the Costs and Costs Foundation websites and third parties. During the y8ar. Costa Foundation Trustee, Nick Orrin was named as directorslofficers on Companies House of Costs Ltd, and they were members of the Costs Ltd Executive Team. In addition. Costa Foundation Trustee Cecile Angrand and Hayley Finn were both members of the Costa Ltd Executive Team. 23. Cash at bank and In hand- Flagstone deposit platforni Cash at bank and in hand includes deposits placed via the Flagslor¢e plattomi. Flagstone operates as an adminislralive deposit platform and does not itself hold charity funds. Instead, funds are placed on deposit with several authortsed UK banks in the name of the Charity. Each deposit is held directly with the underlying bank. At the balance sheet date, deposits held via Ihe Flagstone ptatform were distributed as follows. HSBC Bank plc- Fixed 3-month deposit, £85,000 Standard Chartered Bank- Fixed 3-month deposit. £85,000 27
CONFIDENTIAL The Costa Foundation Company Limited by Guarantee Notes to the Financial Statements Year ended 31 December 2025 Santander International plc- Fixed 3-month deposit.. £29.000 Shawbrook Bank Limited- 95-day noti account.. £13,308.48 Aldermore Bank plc- Fixed 3-month deposit.. £65,000 Aldermore Bank pk- Fixed 3-month deposit.. £5,618.60 Birmingham Bank Limited- 125-day notice account.. £86,677.25 FCMB Bank IUKI Limited - Fixed 3-monlh deposit. £84,000 All institutions listed above are aulhorised UK banks 24. Bad debts wrltten off Bad debts of £15,587 were written off during the year12024'. £nil}. These amounts are Included within expenditure for the year. Debtors are written off when there is no reasonable expectation of recovery. 25. Rèversal of prior yoar accrual- cancelled project An accrual of $102,3261£82,0401 recognised in the 2024 financial statements in respect of the second inslalment of Project 140 was reversed during the year following the cancellation of the project due to project managerrTrent issues. The first instalmelll of $127,9081£102,5501. paid on 20 December 2023, remains r8cognised as expenditure. Further Instalnts under the original agreement have been cancelled. Funds unspent from the f]rst Instalment and previously allocated to this project a expected to be reallocated lo a new project in 2026. In addition, an accrual of £10,561 recognised in the 2024 financial statements in respect of the second instalment of Project 48E8 was reversed during the year. Of this amount, £6,123 was subsequently paid to the same project partner in respect of a revised scope of work for the project. The remaining balance of £4,438 1$ no longer considered lo represent committed funds and has therefore been released. 28