The PSL Group (Pentra Services Ltd) Trustees are pleased to present this report together with the financial statements of the charity for the year ended 31st March 2025. The company ceased trading on Friday 28th March 2025.
Charity Name and Status
Pentra Services Limited, trading as PSL / The PSL Group is a company limited by guarantee
Company No: 04109425
Registered Charity No: 1085304
Registered address
Unit C5 Stanlaw Abbey Business Centre, Dover Drive, Ellesmere Port, England CH65 9BF
Governing Document
PSL (Pentra Services Ltd) is a charitable, private organisation limited by guarantee. The objects and powers of the organisation were established under its Articles of Association on the 16th November 2000 and amended Memorandum of Association adopted on the 18th January 2005 to confirm current governance arrangements.
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 governing document, the Companies Act 2006 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 of the Charity
The charity objectives are to move people into sustainable employment and to achieve a stable lifestyle.
Over the past 12 months Pentra focussed entirely on identifying funding opportunities which would enable the company to continue supporting ex-offenders, the unemployed and clients suffering with mental health issues.
Trustee Selection
Currently, the selection method for charity trustees is:
Appointed by existing trustees
Approved by application and appointed at annual AGM
Appointment by the Local Authority
Appointment of Trustees
The directors of PSL (Pentra Services Ltd) for purpose of charity law and under the company’s Articles are known as trustees. Under the requirements of the Memorandum and Articles of Association the Board of trustees are elected to serve for a period of one year after which they must be re-elected at the next Annual General Meeting.
The Board of Trustees meet on a minimum of three times per year. The quorum consists of a minimum of three Trustees. Additional meetings may be called by the Chair (whose position is reviewed at each AGM (Annual General Meeting) or at the request of a minimum of two PSL Board members.
Trustees adhere to a written code of practice regarding their responsibilities and personal liability as the accountable body for the Organisation, which confirms their responsibilities to ensure that suitable accounting practices are applied consistently within the company in line with SORP (Statement of Recommended Practices 2005) and are aware of updates from the Charities Commission which impact on their role as a Pentra trustee. The company ensures all Trustees are indemnified as a safeguard of their appointment to the PSL Board.
Names of the Charity Trustees
The following were trustees and directors of the charity during the year and up to the date of signature of the financial statements:
Mrs L R Garwood, Chair
Mrs L Jones
Mr I Horton
Mrs J Lewis-Santo
Ms A Roberts
Mr D Mahar
Mrs H Mahar
Names of the Senior Management
Business Manager / Company Secretary: Mrs E Kinnish
Deputy Business Manager: Mr J Howard
Volunteer Support: Mr K Donnelly (Contract & Finance Consultant)
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Financial review for year ended 31st March 2025
The financial year April 2024 to end of March 2025 has been a VERY difficult year for Pentra. The contracts Pentra were delivering on behalf of the Probation and Prison services were all withdrawn in August 2023 due to restraints on their funding streams. It was initially expected the contracts would resume in April 2024, unfortunately this did not happen.
We have continuously been in contact with partner agencies including Achieve NorthWest/Probation to try and secure funding. We were advised in December 2024 by Achieve/Probation there is still no funding available to support ex-offenders.
Despite contacting Job Centre Plus and the Local Authority regarding tendering opportunities we were advised they did not have any funds available that we could apply for. During this period of time April 2024-March 2025 Pentra continued to seek out new contracts and secure additional funding without success.
The Board discussed at the meeting following the AGM in October, what the next steps could/should be and it was decided that the cut off point would be reached in December, that if no funding was secured by this point, we would need to address making staff redundant and closing the company as there would only be sufficient funding to continue until the end of the financial year, settling all monies owing at that point. This would meet the timings of statutory obligations.
On Thursday 6th February 2025 a further Board meeting was held at Pentra and the decision was accepted by all Board members to regretfully close the company, due to the inability to attract any funding to continue.
On Friday 28th March the company ceased trading.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Pentra Services Limited (the charity) for the year ended 31 March 2025.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the Companies Act 2006.
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Pentra Services Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Unit C5, Stanlaw Abbey Business Centre, Dover Drive, Ellesmere Port, CH65 9BF.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, 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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of appeal, and fall into one of the two sub-classes: restricted income funds or endowment funds.
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.
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.
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:
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.
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).
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.
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, 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, 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.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Rent, rates and utilities
Insurance
Telephone
Accountancy
Donations
Subscriptions
Other office costs
The average monthly number of employees during the year was:
The remuneration of key management personnel was as follows:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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.
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.
Pentra Services Limited has close working relationships with Wirral Borough Council, Cheshire West and Chester Council, all of whom could nominate trustees to sit on the Board of Directors.
All transactions with these parties are at arms length and no individual party has an overall controlling interest in the charity.