Going Concern These financial statements have been prepared on a going concern basis which assumes that the group will continue in operational existence for the foreseeable future. The board has considered a period of 12 months from the date of approval of these financial statements and has determined that the group can continue to operate as a going concern. The board has agreed to support its trading company, The Cresset Limited (TCL), for a further period of 12 months from the date of approval of these financial statements while the out- comes of an external business review are implemented to guide future governance and staff- ing structures and implement a profitable turnaround plan. During this period the board will closely monitor TCL’s ongoing financial performance to ensure there is a sustainable business model. The Trustees have considered the level of support provided to TCL and determined that this does not affect the going concern assessment of the charity noted above. Future Financial Implications The group participates in a closed contributory pension plan providing defined benefits based on final pensionable pay for employees of YMCA’s. Under FRS 102 the pension agreement plan liability is disclosed on the Balance Sheet, fur- ther details are given in note 24 to the financial statements. Reserves The total consolidated reserves of the group are £11,730,425 (2024: £11,559,245). The charity has restricted funds of £0 (2024: £321,403). The Trustees have determined that monies should be set aside for uninterrupted provision of high quality services to young people; this includes keeping their homes in a good state of repair. The charity owns other investment properties including Haywood House which was re-developed to flats in 2016/17. It has also purchased a number of houses for client use. The amount invested in the various buildings at the year-end amounted to £16,456,748 (2024: £12,553,422) and these reserves are tied up in buildings and functional assets as such are not available for the use of the charity. These assets are used by the charity to achieve the charitable objects which is predominately housing focused. The increase in the year is mainly due to investment in the Cresset building including the roof which was fund- ed by the Youth Investment Fund. The balance of free reserves is managed by the Charity/Group for working capital to sup- port the operational activities and revenue funding to deliver services. The Charity/Group calculates that it depends on the cash flow requirement of at least £500,000 in reserves to meet the demands and fluctuations in the current account each year. Since the year-end, the Group has been striving to improve its free reserve position. The strategic plan is to increase the level of reserves by increasing revenue streams from development of services, reduction of costs and fundraising opportunities, which then allow the charity to consider future developments and investments belong, contribute and thrive.
Made with FlippingBook. PDF to flipbook with ease