The trustees present their annual report and financial statements for the year ended 31 December 2024.
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, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)".
A year of transformation and purpose - president's introduction
Welcome to this year’s annual report from Socitm.
I reflect on the last 12 months as someone working at the heart of digital transformation in local government, so I know first-hand how challenging it has been for councils and public service teams. Financial pressures are increasing, expectations are rising, and we’re being asked to do more with less – all while trying to modernise services and build digital capability.
That’s why being part of this community matters more than ever.
Over the past year, we’ve seen how powerful it can be when members come together – to share insights, solve problems, build skills, and speak with a stronger collective voice. From AI benchmarking and professional development programmes, to national forums and peer networks, this organisation has provided a vital space for support, learning and influence.
Looking ahead, we all face difficult decisions. Some councils are being forced to reorganise, many are reassessing their priorities, and all of us are under pressure to make smarter use of data, technology and partnerships. In times like these, the temptation can be to turn inward – but the real strength lies in staying connected.
Next year marks the 40th anniversary of this organisation, and that milestone is a timely reminder: we’ve lasted this long not by standing still, but by evolving with the sector, for the sector. If we’re going to keep making a difference, we need your voice, your involvement, and your commitment. This is your network – and it’s most powerful when it’s active, visible and supported by all of us.
Thank you to everyone who contributed this year. Your time, expertise and openness continue to shape a better future for digital public services.
Carol Williams - Socitm president
The evolution of Socitm - a word from our CEO
As we reflect on the last 12 months, it’s clear that our community continues to deliver meaningful impact in the face of complexity and change. This year, our strategic focus remained firmly on supporting public sector members to harness innovation and digital technologies to improve outcomes for people and places.
We concentrated our efforts where they were most needed: helping members use data and AI responsibly; developing leadership and professional skills through courses such as Place-based Leadership and Empowering Women; amplifying member voice in national conversations; and making it easier to access shared insight, resources and communities of practice.
Our achievements reflect that commitment. We launched a ground-breaking AI benchmarking pilot to understand real-world adoption in local government. We supported councils like Argyll and Bute to use benchmarking data for ICT improvement, and we shared strategic foresight through our Digital Trends collection – helping leaders navigate a fast-moving digital landscape. Most importantly, we’ve deepened member engagement through regional and national events, and ensured your voices influence the direction of digital public services.
Looking ahead, we are under no illusions about the scale of the challenges facing local government. Financial pressures, demand for reform, and the ongoing need to reorganise how we work and deliver services will continue to test us. In this environment, the value of our community has never been greater. Working together, rather than in isolation, will be essential – to share learning, avoid duplication, and ensure sustainable progress.
Next year marks our 40th anniversary – a moment to celebrate how far we’ve come, but also to renew our commitment to the future. We will continue to evolve, to support you in navigating uncertainty, and to champion the innovation, collaboration and leadership needed to shape a resilient, people-focused public sector.
Thank you to our members, partners, and staff. Your passion and purpose continue to drive everything we do.
Nadira Hussain - Chief executive officer (CEO), Socitm
What has the Socitm Institute done for you?
Now in our second year we have expanded our offer based on the feedback our members have provided to us. This includes entirely new areas of Cyber, Procurement and Social Value and, of course, services to support councils through Local Government Reorganisation & Devolution. We have also brought the existing benchmarking service into the Institute as part of our Data workstream and added new people to the team to cover the volume and diverse nature of work.
Cyber - Following the success of our AI hub (AI@Socitm) we have created Cyber@Socitm which is a live collection of curated resources that provide practical help, skills and a deeper understanding of cyber security in public services.
AI@Socitm itself has been revamped with a focus on case studies, training & group and networks and new content updated on a regular basis
Procurement & Social Value - In collaboration with the Crown Commercial Service (CCS) we hosted a series of roundtables in early 2025 to explore how the Procurement Act 2023 impacts the integration of social value into public sector procurement and the write up of that adds to our support of this area.
LGR & Devolution - Our approach to supporting members through LGR & Devolution started (as always) with listening and through a series of regional workshops we have identified several key themes; including the need for all councils affected to 'get their houses in order' (something that can start now), as well as an acknowledgement that the risks around Cyber, Digital & Technology need to be more prominent in preparing business cases and planning for new authorities.
The Institute’s research programme remains a cornerstone of our offer. Our Public Sector Digital Trends analysis is designed to support your digital journey, learning from others and applying insights to your own organisation and circumstances. For our 2025 iteration launched in January, we have focused on three trends prioritised by Socitm’s Nation & Regions Forum (formerly Local CIO Council) and representatives from our international partners. These top three trends are: Reimagining services, Cyber security & Harnessing data.
Supporting the learning of our members continues to be a priority and as well as continuing to provide our Leadership Academy courses supporting the hugely popular Change Agent courses we have identified other courses run by third parties that could be beneficial to members and have negotiated discounts on these for you. More information coming soon
Benchmarking - From January 2025 the management of our longstanding Benchmarking services will fall under the Socitm Institute. These services allow participants to support their business decisions with data relating to the cost and performance of their IT service or how it is perceived by their users. To build on our considerable historical data and provide a greater benefit for our membership, this year each organisation can take advantage of one complimentary module.
Sam Smith - Director of Institute
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
As a registered charity, Socitm’s activities are designed to support individuals and organisations in using technology and data to improve public services. Everything we do aligns with our charitable objective: to support our members in delivering better outcomes for the people and the communities they serve.
We provide practical tools, data insights, learning opportunities, and a collaborative network that professionals reimagine how services are delivered. By supporting digital leadership, innovation, and transformation, we enable members to meet the needs of local communities in a way that is more responsive, inclusive, and efficient.
Beneficiaries and engagement
Our beneficiaries are the individuals, teams, and organisations working across the public sector — and we actively engage them to ensure their needs shape our work and priorities.
How we engage
We maintain a continuous conversation with our members and stakeholders through a wide range of formal and informal channels:
Digital communications: Weekly newsletters and active social media channels keep members up to date with key resources, events and interesting further reading. Social media, particularly LinkedIn also creates two-way dialogue.
Events: Regional and national conferences, networking days, and online webinars connect members to new ideas, peers, and innovation.
Member Voice Group: A dedicated working group of members that provides early feedback and guidance on our programmes and proposals.
Annual member survey: A formal mechanism to evaluate member satisfaction and identify emerging priorities for support.
Workshops / focus groups / monthly drop-in session: Thematic sessions that allow deep dives into current issues such as AI, accessibility, cyber, and leadership.
Advocacy and representation: We represent members’ views in national policy conversations, including with central government, regulators, and professional bodies.
Socitm National and Regions Policy Forum (SNRF): This connects representatives across devolved nations and English regions to shape place-based policy and practice.
Regional committee meetings: These meetings provide grassroots feedback and ensure regional perspectives influence our planning and priorities.
Why it matters
This continuous engagement ensures that Socitm remains responsive, relevant, and inclusive. It shapes our research, informs our training and development offers, guides our advocacy priorities, and strengthens our community. Ultimately, it enables our members to deliver better services and outcomes.
Voices of the sector
Our members and private sector partners are at the heart of everything we do. Their voices reflect the real-world impact of our work — from professional development and leadership support to using data insights to drive improvements in public service delivery.
“Socitm’s data helps us spot gaps, take action, and check we’ve made progress. It’s a valuable cycle of insight and improvement.” John McVey, ICT Production Manager, Argyll and Bute Council
“This (Empowering Women course) was going to challenge me — in how I thought about myself as a leader, to think about diversity, and to enhance the skills I already had. It’s made a difference not just to my team, but to the wider ICT environment too." Alison Lincoln, ICT Manager of Projects and Customers, Blackpool Council
“This (Socitm's Digital Trends 2025 research) is a really timely publication… Digital leadership must now encompass systems change beyond organisational boundaries if we’re to harness AI to tackle inequalities and create new value for residents.” Alison McKenzie-Folan, Chief Executive, Wigan Council
“Taking part in the (AI benchmarking) pilot helped us understand how to develop our internal approach to AI in a structured and measurable way.” Tracy Ledwidge, ICT Operational Delivery Manager, Coventry City Council
“I recently had the pleasure of attending the Midlands Socitm Meeting in person this November, and I was immediately struck by the energy in the room. It was packed with representatives from local authorities and other public sector organisations, all eager to engage.” Eman Al-Hillawi, CEO, Entec Si
“I’ve been appointed co-chair of the Microsoft Local Government Collaboration Group for Digital Accessibility... It’s a great opportunity for me and for Kirklees Council. My appointment came directly from being a Socitm alumnus. I chose to be mentored — Jodi became my mentor, and 18 months on, she’s now my co-chair. A big thank you to Socitm.” Graeme Murrell, IT Principal Officer: Digital Services, Kirklees Council
Here are some more in-depth case studies demonstrating Socitm's impact:
AI benchmarking in local government
To understand how AI is transforming ICT delivery, Socitm launched an AI benchmarking pilot ahead of the 2024 President’s Conference. The project focused on measuring real-world AI capabilities across local government — covering areas such as staffing, costs, governance, automation, and savings — rather than just future aspirations.
Coventry City Council were among the early participants. Tracy Ledwidge, ICT Operational Delivery Manager, shared their hands-on experience during the conference, including:
A three-month Microsoft 365 Copilot trial
The development of AI governance, policies, and strategies
A six-week pilot using AI in adult social care
“Taking part in the pilot helped us understand how to develop our internal approach to AI in a structured and measurable way.” – Tracy Ledwidge, Coventry City Council
This is a link to the case study
Improving Decision Making with Data-Driven Insights
Argyll and Bute Council have been using Socitm’s data and tools for more than 20 years to identify gaps in service delivery and track improvements over time. This long-term approach to evidence-based decision making has helped the council continuously refine its ICT services.
“Socitm’s data helps us spot gaps, take action, and check we’ve made progress. It’s a valuable cycle of insight and improvement.” – John McVey, ICT Production Manager, Argyll and Bute Council
This is a link to the case study
Socitm's Leadership Academy
Our Empowering Women programme continues to support women working in digital and ICT roles to grow as confident, inclusive leaders. For Alison Lincoln, ICT Manager of Projects and Customers at Blackpool Council, the experience was transformational.
“Working in a predominantly male ICT team, and as a new member of senior management, I jumped at the chance to join the Empowering Women programme. I’d done management training before — but this was different. It challenged the way I thought about myself as a leader, helped me consider diversity more deeply, and enhanced the skills I already had. It’s made a difference not just to my team, but to the wider ICT environment too.” – Alison Lincoln, Blackpool Council
This is a link to the case study
Thought Leadership
Our Digital Trends research continues to inform strategic thinking across local government. The 2025 collection explored how technologies like AI, data, and automation can support transformation beyond organisational boundaries — helping leaders reimagine public services to reduce inequalities and improve lives.
Alison McKenzie-Folan, Chief Executive of Wigan Council, reflected on how the publication supports their local mission:
“This is a really timely publication. It speaks very much to our data-driven, AI-enabled pillar supporting our mission of Progress with Unity. Digital leadership must now encompass systems change beyond organisational boundaries if we’re to harness AI to tackle inequalities and create new value for residents. We need central government to work with us — especially on unlocking barriers around procurement, data security, ethics and transparency.” – Alison McKenzie-Folan, Chief Executive, Wigan Council
This is a link to the Digitial Trends collection
Summary of income and expenditure (£'000’s)
The following is a summary of the financial accounts for the year ended 31 December 2024 as reviewed by our auditors, Cottons Accountants.
Financial year | 2024 | 2023 |
Income | 1,103 | 1,342 |
Expenditure | 1,482 | 1,427 |
Investment gains (losses) | 84 | 3,793 |
Net income (expenditure) | (295) | 3,550 |
Fund balance at 31 December | 3,933 | 4,228 |
Funding sources and grant allocations
Socitm is primarily funded through the membership income generated from organisations delivering local public services. This is augmented by income provided by Socitm Commercial Ltd which is a 100% owned trading company that generates income from corporate sponsorships and partnerships. The strategy of the charity is to build on the existing funding sources and seek additional funding from appropriate grant bodies, working in partnership with local authorities and higher education bodies.
Financial performance and reserves policy
During 2024, the charity has been utilising reserves previously built up to invest in the Socitm Institute which provides the educational services to improve the effective use of information technology and data in the delivery of public services. The financial reserves include some £600,000 which is currently invested in accessible unit trusts. There is a formal financial reserves policy in place and the reserves are substantially higher than the minimum requirement of two months budgeted expenditure.
Statement from the FD and financial oversight
Socitm continues to invest in building alternative income streams and is anticipating that by 2026 it should be generating an operating surplus that can be re-invested in the delivery of the services as defined in its charitable objects.
David Bryant - Finance and commercial director, Socitm
Looking ahead, Socitm’s priorities are focused on sustainable growth, deeper impact, and greater support for public service innovation. We aim to increase membership, including expanding our reach beyond local government, while continuing to support councils in the DDaT (Digital, Data and Technology) space — particularly within the context of local government reform and devolution. A key focus is helping organisations build internal capacity and self-sufficiency, reducing reliance on expensive external consultancy.
To achieve this, we plan to grow the output of the Socitm Institute, increasing the volume of commissioned and paid-for work that supports digital transformation and generates income for reinvestment. We will also pursue strategic partnerships and apply for grant funding, working with academic and sector-relevant organisations to develop impactful, funded initiatives.
Our long-term vision is to become a self-sustaining organisation that can reinvest any surplus back into member services, resources, and community support. By increasing our membership base — aiming to engage more than 80% of UK councils — we hope to strengthen our position as the authoritative, inclusive voice for digital leadership in the public sector.
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:
Socitm is governed according to its Articles of Association which defines the objects and powers of the charity. The majority of the Trustees are practitioners working in the public sand voluntary sectors voted to the Board by the members. These form the president's team which consists of a president, three or four vice president's and an immediate past president. These trustees generally serve for five or six years depending on the number of vice presidents at the time of their election. The presidential term is for one year, during which the president's is also the chair of the Board, before becoming the immediate past president. There is also the option for the Board to elect up to five co-opted trustees with specific expertise to support the Board. During 2024, there were three such trustees. Each co-opted trustee can serve for an initial three year term, renewable by the Board up to two times after which they must resign.
All the trustees have participated in the NCVO charity trustee training induction. There is a remuneration committee that has been delegated by the Board to review and manage all HR and payroll issues and recommendations. This consists of the president, immediate past president and one of the co-opted trustees. The trustees also oversee three committees that focus on the key areas of the charity identified as being the highest risk. These are finance and risk, the Socitm Institute and membership and local government. Each of these is chaired by a trustee, supported by two other trustees and attended by three members of the Executive Management Team.
The trustees, who are also the directors of Socitm for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements 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 prevention and detection of fraud and other irregularities.
In accordance with the company's articles, a resolution proposing that Cottons Accountants LLP be reappointed as auditor of the company will be put at a General Meeting.
As we reflect on another year of progress and transformation, we extend our sincere gratitude to all those who have contributed to our journey. To our members, partners, supporters, funders, and collaborators — thank you. Your commitment, ideas, and passion continue to fuel Socitm’s work and help us drive meaningful impact across the public sector.
Closing remarks from Nadira Hussain, our Chief Executive Officer
When I assumed the role of chief executive three years ago, I was determined to reposition our society as a force for public good — a values-driven organisation grounded in openness and accessibility.
To meet these revised aims and aspirations, we’ve worked hard during this reporting year to deliver real, demonstrable change.
From building stronger engagement through our communities of interest, to extending our reach across devolved nations, health, and academia, we are more inclusive and responsive than ever. We’ve also strengthened our sector voice by working closely with stakeholders like the Local Government Association, Solace, London Office of Technology and Innovation and the Ministry of Housing, Communities and Local Government
Our focus on people, places and communities remains central, with practical tools such as our ‘ethical, digital place-making’ model helping members explore technology with human-centred design.
This year’s rapid rise of AI has shown how agile we can be. We’ve acted quickly to support our members with guidance, insight, and benchmarking — ensuring they’re equipped to respond to new opportunities.
The continuing challenging landscape is difficult for us all. But it’s also inspired growth and creativity. Our community continues to thrive, and the demand for Socitm’s support has never been greater.
And finally, achieving charity status is a major milestone — the cherry on the cake. It reinforces our mission to do public good and strengthens our ambition to secure funding that enables collaboration, standardisation, and lasting change across the sector.
If you need any further information, please email us at hello@socitm.net.
The trustees' report was approved by the Board of Trustees.
Opinion
We have audited the financial statements of Socitm (the ‘charity’) for the year ended 31 December 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We draw attention to note 31 of the financial statements, which describes the effects of a restructuring of certain loan and equity holdings of the charity in May 2025. Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies 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 the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for 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 that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’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 to cease operations, or have no realistic alternative but to do so.
Our objectives 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 to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the computer component manufacturing and supply sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006 and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;
- investigated the rationale behind significant or unusual transactions;
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims;
- reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors;
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable 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 matters we are required to state to them in an auditor’s 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Socitm is a private company limited by guarantee incorporated in England and Wales. The registered office is 2 Shenley Grove, Stafford, ST17 9PT.
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" 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)". The charity is a Public Benefit Entity as defined by FRS 102.
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.
The Charitable Company has taken advantage of the exemption under section 399 of the Companies Act 2006 and Appendix 3 of the Charities SORP not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
In making their assessment of the ability of the charity to continue in operational existence for the foreseeable future, the trustees have considered a period of at least twelve months beyond the date of approval of the financial statements. They have given due regard to the history of operating deficits of the charity and the impact of the matters disclosed in note 31. The trustees have devised a cost reduction strategy to reduce the level of the deficits and have considered the value of the investment portfolio and have indicated a willingness to realise these investments to support the cash-flow requirements of the charity.
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.
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.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
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.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the charity holds a long-term interest and where the charity has significant influence. The charity considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible 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.
On the 19th February 2024 the Company became a Charitable Company. The Financial Statements for the period ended 31st December 2024 have been prepared under FRS102 and the Charities SORP and the comparatives have been restated.
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.
In determining the conditions that existed at the balance sheet date and whether, therefore, the amounts recognized in the accounts need to be adjusted, the trustees have exercised significant judgement. The trustees have considered whether the events disclosed in note 31 were indicative of conditions that existed at the balance sheet date or of conditions that arose after the balance sheet date.
The trustees have concluded that the material deterioration in trading arose during spring of 2025, accordingly, they have concluded that this is a non-adjusting event.
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
During the period expenses of £1,050 were reimbursed to 5 of the trustees.
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Deferred income is included in the financial statements as follows:
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.
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.
During the year the charity entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
The following amounts were outstanding at the reporting end date:
These financial statements are separate charity financial statements for Socitm.
The Charitable Company has taken advantage of the exemption under section 399 of the Companies Act 2006 and Appendix 3 of the Charities SORP not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
Details of the charity's subsidiaries at 31 December 2024 are as follows:
Investments in subsidiaries are all stated at cost.
These financial statements are separate charity financial statements for Socitm.
Details of the charity's associates at 31 December 2024 are as follows:
Investments in associates are all stated at cost.
The charity had no material debt during the year.
On 28 May 2025, Civiteq Limited undertook a restructuring of its debt and equity. As a result of the restructuring 99% of the loan balances owed by Civiteq Limited to SOCITM were converted to equity. As a result, the par value of the loans outstanding was reduced from £3,837,400 to £38,374 and the equity shareholding increased from 200 Ordinary shares to 3,837 Ordinary shares. As a result of options held by other shareholders and a proposed management incentive plan, the holding would represent 1.1% of the share capital on a fully-diluted basis.