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)".
Launch It Trust is dedicated to helping young entrepreneurs start and grow successful businesses. We do this by providing affordable business space for two years, as well as advice, support, and mentoring. We are also developing a virtual support programme enabling more young people to access our services.
Over the course of their time with us in one of our centres, they graduate to paying market rent, later moving on and vacating their unit for another start-up. Our beneficiaries have a business idea, but don’t have the financial means to rent commercial premises, or the social and business networks to help them get started or generate the levels of sales needed to make the business sustainable.
We believe self-employment supports social mobility and that for young people it is one route out of unemployment, and as a result, improves their situation and enables them to achieve financial independence. We want to make self-employment accessible to young people with a good idea and the enthusiasm and commitment to turn it into reality; regardless of whether they have the money, family background or social networks to help them.
Aims of the Charity
Our mission:
Our mission is to empower the next generation of business founders.
Who we help?
Our beneficiaries are aged 18-30 and usually unemployed or underemployed. Many come from deprived inner-city areas where our centres are located. We focus our energies on those most in need including young people who are single parents; ex-offenders; young people leaving care and those with few or no qualifications.
How we work
Through our enterprise centres, we offer low cost premises from which young entrepreneurs can develop their businesses, alongside on-site advice, support and mentoring. We build relationships in the communities from which we draw our clients, so that we understand and respond to local needs.
In London, the high levels of commercial rent, coupled with the demand for large deposits, exclude most young people from becoming business-owners. Our low-rent, high-support model is highly effective. Each of our centres has a community culture that is cultivated by our committed centre managers, who encourage businesses to network and trade with each other, and to take up the opportunities that we offer them.
As part of our provision we run a pre-start programme called Launch It Labs which enables young people to explore whether self-employment is an option for them. Typically, they have a business idea or possess a skill which they feel could be put to good use. This may include creative design, fashion, and arts and crafts. Their ideas need developing and so with our support they can create a viable business model that can move them off benefits and into business. Clients explore enterprise, develop skills, test their business idea in a supportive environment and are supported into positive outcomes in a bespoke approach.
We help entrepreneurs:
Develop their business idea, create a viable business plan and help them access and apply for start-up funding.
By providing a subsidised (sub-market rent) space on a sliding scale, reaching commercial levels over 2 years.
By supporting them within our centre for 2 years, giving on-site support from the Centre Manager and a mentor.
The trustees have paid due regard to guidance issued by the Charity Commission in regards to public benefit in deciding what activities the charity should undertake. All of our charitable activities focus on advancement opportunities to allow young people to develop their capabilities, enable them to improve their economic wellbeing, and to reduce or eliminate their reliance on state support.
Grant-making policy
From time to time, the charity may receive restricted funding for partnership projects that require it to distribute funds to third parties. In such cases, these distributions are recorded in the financial statements as grants paid. As this is not a core or regular activity of the charity, and falls outside its standard objectives, a formal grant-making policy is not in place nor considered necessary.
Empowering Young Entrepreneurs. Changing Futures.
2024 was a big one. From new programmes and partnerships to pitch-offs and powerhouse people, Launch It has levelled up in every way and all in the name of unlocking the potential of young people from disadvantaged backgrounds across the UK. We have supported entrepreneurs, created opportunities, sparked ideas, and built real community. Here's a snapshot of the year that was.
The Highlights
New Space, New Energy:
We opened the doors to our brand-new centre Launch It Stoke-on-Trent, expanding our reach and giving even more young people a place to dream big, build businesses, and believe in themselves. We also engaged a new set of trustees to oversee the project and employed a new member of staff, Gemma Bourne, as the Enterprise Manager for Stoke-on-Trent. Gemma brings a wealth of experience from her 25 years working at NatWest bank and has also proved a huge asset to the team at Launch It already.
Launch It Labs Launched:
Our Launch It Labs programme in Neasden kicked off with energy and innovation, backed by the brilliant support of the Blagrave Trust. Launch It Labs also popped up in Angel Yard with funding from Enfield Borough Council via UKSPF. Both these projects were extremely successful, although delivered slightly differently, with each culminating with a pitch off event with a winning prize of £3k. We are extremely grateful to all the people who helped us deliver the programmes from Slaughter and May Solicitors and London Business School alongside a number of individuals, including our mentors, who gave us their time free of charge.
Angel Yard Making Moves:
Thanks to the support from Enfield Borough Council, Angel Yard buzzed with creativity and hustle all year with various evets including quarterly makers markets and community led creative workshops. This all culminated in our community-loved Christmas Lights Switch-On, which also raised funds for local charity, Hand Out to Help Out. The lights switch on goes from strength to strength and has quickly become a major event in the calendar for local people.
Next Generation Rising:
We delivered the Next Generation Programme in Buckinghamshire, inspiring young minds and planting seeds for future founders. This was a popular programme again ending with a pitch off event and receiving huge support from both existing and new mentors.
Big Moments in Business
Pitch Off Power:
We teamed up with Taylor Woodrow to host a showstopping Pitch Off where the young entrepreneurs on Angel Yard went head-to-head to win a game-changing £3,500 of business funding.
25 and Thriving:
We’ve written a bold 3-year strategy to take us into our next chapter. With 2025 marking our 25th anniversary, we’re not just celebrating we’re planning our biggest impact yet. The strategy planning day was a huge success involving the whole staff team from across the country. This also enabled us to develop more localised strategies for each of the area Launch Its which have proved extremely effective.
Green and Growing:
Team members Julian Allen and Sarah Campbell became certified sustainability workshop leaders through Youth Business International, helping us future-proof young businesses with green thinking.
People-Powered Progress
37 Active Mentors
That's 37 incredible professionals giving their time and talent to mentor young entrepreneurs across our network. The mentoring programme has developed significantly over the past 12 months. Their support has enabled the young people we work with not only to grow their business but also develop their business and personal skills. We would like to say a huge thank you to all the mentors who are now a main pillar of support provided by Launch It.
Team Level-Up:
Our staff completed a full training programme including public speaking and Safeguarding. We also connected through a fun, refreshing team bonding day in London where we undertook a treasure hunt. This was great day out which was enjoyed by all. Investing in our people means investing in our mission.
A Champion CEO:
Our CEO Pat Shelley won CEO of the Year for Youth Entrepreneurship in London again! That’s two years running.
Representing on the World Stage:
Julian Allen flew the Launch It flag at the Youth Business International Annual Conference in Kenya, sharing our impact and learning from global partners. Being part of YBI is great for both the connections we make and the publicity it gives us. We are looking forward to developing this relationship over the next 12 months.
Staffing Movers and Shakers:
Our Enterprise Manager in Paisley, Sarah Campbell, moved on to pastures new. We would like to thank her for all her hard work and wish her the best for the future. Our new Enterprise Manager in Paisley is Rebecca McEwan who has quickly fitted into the team and made a huge impact from the outset. We look forward to the centre going from strength to strength under her management.
Celebration & Recognition
Charity of the Year x2:
A huge shoutout to both Real Deals Media and AIMS Accountants for Business for naming us their Charity of the Year. Both organisations have engaged with us in their own way over the past 12 months and we can only thank them for their continued and on-going support.
Dundee Turns Five:
Launch It Dundee celebrated its fifth anniversary in style, with an event that brought together alumni, community, and supporters to reflect on the incredible journey so far.
The Launch It Network:
Thriving centres:
The Launch It Network continues to grow with Launch It Stoke-on-Trent the newest addition. Alongside our centres in Dundee, Sheerness and Paisley Launch It continues to grow and make a positive impact on the lives of many young people in various parts of the UK.
Key Statistics for 2024:
485 young entrepreneurs supported
857 people reached via community and outreach events
1 new enterprise centre opened
734 hours of business and personal support provided by Launch It Enterprise Managers
87 hours of workshops and training events provided
333 hours of community support provided through the Launch It Social Impact clause
27 young entrepreneurs engaged with a mentor
34 young people worked with a coach to develop a pitch for funding
£20,000 worth of business funding and prizes distributed to young people
172,823 social media interactions and content reached
Social media traffic via various mediums has increased by 146% in 2024
A Word from Pat Shelley, CEO
“2024 was about laying new foundations while staying true to our roots. Every new centre, every young person we support, every partnership we build, it’s all driven by belief. Belief that when young people are given the tools and space to thrive, there’s no limit to what they can achieve. Here’s to 25 years of Launch It, and the next 25 to come.”
Looking Ahead: 2025
Next year is a milestone: 25 years of Launch It. We’re planning bold celebrations, deep impact, and fresh innovations to ensure we continue showing up loudly and proudly for the next generation of entrepreneurs.
Thank you to everyone who’s been part of our journey this year, funders, mentors, partners, trustees and, most of all, the young people who inspire us every single day.
As at 31st December 2024, the charity held total reserves of £379,584 (2023 - £245,477) of which £288,597 (2023 - £180,235) were restricted and could only be used to fund the projects for which they were received. Unrestricted reserves have increased to £90,987 (2023 - £65,242).
Reserves policy
In formulating our reserves policy, we have taken account of the regular commitments of the Charity. Our aim is to achieve a position where we hold sufficient unrestricted reserves to fund our core costs for several months, including rent subsidy as this is an integral part of our activity. This would create a buffer against any unexpected events affecting the Charity's financial position including a fall in funds raised from outside the Charity. Our target is to maintain unrestricted reserves of £150k (actual as at 31st December 2024 - £90,987). We continue to work towards building our unrestricted reserves in order to meet our reserves policy.
Principal funding sources
The Charity’s main sources of income include rental income from clients and commercial tenants, as well as grants and donations received for specific projects. This funding supports the operation of the Charity’s centres and the delivery of support and mentoring services to its clients.
Fundraising activities
The Charity does not carry out significant fundraising activities. Two fund-raising staff are employed, with their purpose to seek out grant-funding opportunities from a variety of charitable organisations, corporate funders, public sector and private individuals. Fundraising activities do not include that of direct marketing or telephone campaigns and the charity remains mindful at all times to protect vulnerable groups. The charity conducted a one-off golf day event to raise funds, and no professional fundraiser or commercial participator was engaged for this event.
Risk management
Major risks have been reviewed and systems or procedures have been established to manage those risks. The principal risks and uncertainties that the Charity faces and the strategies the trustees have taken to mitigate these are detailed as follows.
Over reliance on grant income
Strategy: ensure grant income sources are well diversified. Maintain good relationships with funders. Increase public sector support either by securing funding or by obtaining premises at a low cost. Develop relationships with corporate organsations. Trialing new methods of income generation such as sponsorship opportunities for local and national businesses.
Difficulty of maintaining low-cost property model in London
Strategy: increase our support for out of London activities. Develop a strategy to persuade London Boroughs to let us use redundant council buildings. Consider other ways of helping young start-ups in London to allow us to maintain the same level of support through satellite buildings and by developing a virtual support programme.
Level of reserves
Strategy: look to find a funder or backer who is willing to provide support to the Charity through multi-year unrestricted grants. Adopt a robust reserves policy which is regularly monitored.
Over dependence on a few key staff especially centre managers
Strategy: continue to train team members. Our experience of successfully employing centre managers for the out of London centres indicates we have sufficient expertise to overcome this risk.
Economic uncertainty and high inflation
Strategy: identify any potential savings through assessing spend on services such as utilities and IT support and understand how the financial support available from the government can help alongside maintaining positive relationships with our long-term supporters.
Governing document
Launch It Trust is a company limited by guarantee and a registered charity governed by its Memorandum and Articles of Association dated 7 December 2000 as amended by special resolution dated 17 May 2001. It was registered as a charity with the Charity Commission on 31 May 2001. The name of the company was changed from London Youth Support Trust to Launch It Trust on 26 February 2020.
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:
Appointment of new Trustees
As set out in the Articles of Association, the trustees are also the members and have the power to appoint new trustees.
Organisational structure
The trustees are responsible for the overall policies and direction of Launch It Trust. The day-to-day management of the Charity is delegated to our staff team; Chief Executive and Centre Managers.
The trustees meet at least four times a year to review strategy, planning, development, financial and administrative matters. In addition, the Chair meets the Chief Executive on a regular basis to discuss and deal with issues that emerge between the meetings of trustees.
We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months. It looks at the success of each key activity and the benefits these activities have brought to the people we are set up to help. The review also helps us to ensure that our aims, objectives and activities remain focused on our stated purposes.
Induction and training of trustees
The Board has established procedures for recruiting and supporting trustees. New trustees attend an induction meeting to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the decision-making process, the business plan and recent financial performance of the Charity. They meet key employees, members of the wider staff team, and are given a trustee induction pack enabling them to learn more about the charity.
In accordance with the company's articles, a resolution proposing that Findlays Audit Limited be reappointed as auditor of the company will be put at a General Meeting.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of Launch It Trust 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.
Opinion
We have audited the financial statements of Launch It Trust (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.
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.
Irregularities, including fraud are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, as outlined above, to detect material mis-statements in respect of irregularities, including fraud and non-compliance with laws and regulations as detailed below.
The audit team has appropriate skills and expertise required and through discussions with management and Trustees, knowledge of the sector to ensure any non-compliance is recognised and all necessary disclosures are made. The controls in place help the Charity mitigate the risk of fraud and also aids them in highlighting any instances of fraud that might have occurred.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Inquiry of management about any known or suspected instances of non compliance with laws and regulations, including GDPR, health and safety, employment law and fraud
Inquiry of management as to where they consider there is a susceptibility to fraud and their knowledge of how actual, suspected and alleged fraud might occur
Review of any correspondence with regulators including HMRC
Challenging assumptions and judgements made by management in their significant accounting estimates
Auditing the risk of management override controls, including through testing of journal entries and other judgements for appropriateness
Review of any areas where there is potential of management bias, large & unusual transactions and the risk of undisclosed related parties
Performing analytical procedures to identify any unusual transactions
Because of the field in which the charity operates in, we identified the following areas as those most likely to have a material impact on the financial statements:
Direct impact on financial statements
Companies Act 2006
FRS 102
SORP 2019
Indirect impact on financial statements
Employments laws
GDPR
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.
The notes on pages 16 to 30 form part of these financial statements.
The notes on pages 16 to 30 form part of these financial statements.
The notes on pages 16 to 30 form part of these financial statements.
Launch It Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Unit 2, Angel Yard, 34 Snells Park, Upper Edmonton, London, N18 2FD, England.
The financial statements have been prepared in accordance with the charity's articles, 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 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.
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.
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 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.
Grants including government grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet.
Rental income from letting units to enterprise clients is recognised on a straight-line basis over the term of the rental agreements. Where rents are offered at concessionary rates that increase over time, income is recognised based on the amounts contractually due over the rental period.
Income from fundraising events is recognised when the event takes place and the income can be reliably measured. This includes proceeds from ticket sales, sponsorships, and donations. Donated goods for auction are recognised as income at the point of auction, at the amount raised. Where the fair value of donated goods cannot be reliably measured before sale, no income is recognised until the item is sold.
Income from contracts for the provision of services is recognised when the charity has entitlement to the income, performance obligations have been met, and the amount can be measured reliably. Where income is received in advance of performance, it is deferred and recognised as a liability.
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.
The charity operates a de minimis policy of £1,000 for fixed assets.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
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.
Operating leases
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the Statement of Financial Activities as incurred.
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.
Tangible fixed assets are depreciated over their estimated useful lives, which are reviewed annually to ensure they remain appropriate. This review considers factors such as the asset’s physical condition, maintenance history, and risk of obsolescence.
Assets are also reviewed for indicators of impairment, with consideration given to the ongoing economic viability of the asset’s intended use.
Bad debts are provided for on a 60-day basis. However, collection efforts continue, and any amounts subsequently recovered are written back against the provision.
The charity maintains a small number of restricted funds, primarily designated for direct costs such as specific staff salaries. These are tracked directly through separate departments within their accounting software.
In limited cases, a proportion of central costs is allocated to restricted funds based on management judgement. This estimate is prepared collaboratively by the Finance Manager and CEO, incorporating both financial oversight and operational insight.
Allocations are informed by practical factors such as staff time and office usage. While no formal cost allocation model is in place, a consistent and reasonable approach is applied. There have been no changes to the methodology from previous years.
The estimation process is straightforward and given the limited scale and nature of these allocations, their impact on the financial statements is considered immaterial.
Grants to Institutions
In the year ended 31 December 2023, Launch It London awarded £12,500 to Launch It Kent to support salary costs as part of a three-year restricted grant received from The Dulverton Trust. The grant had originally been awarded to Launch It London to support the work of Launch It Kent, which was in the process of registering as an independent charity.
During the audit of YE24, it was identified that Launch It Kent had not yet achieved charitable status at the time of the grant. As a result, the £12,500 previously recognised as a grant awarded has been reversed in the current year, and the associated activities have been brought back under Launch It London.
Going forward, all activity and expenditure related to this grant will be administered directly by Launch It London until grant conditions are met.
Grants to Individuals
Throughout the year, the Charity awarded grants as part of its annual awards scheme to 15 individuals (YE23:13 individuals). The total amount granted under this scheme was £9,800 (YE23: £6,846).
The grants were sourced from a combination of unrestricted and restricted project funds.
None of the trustees (or any persons connected with them) received any remuneration or benefits from the year (2023 - £nil).
During the year 2 Trustees (2023 - no Trustees) were reimbursed a total of £754 (2023 - £nil) for costs incurred on behalf of the charity. Neither trustee received any personal benefit from these reimbursements.
During the year the Charity received donations of £73,750 (2023 - £101,750) from the Trustees and charitable funds controlled by the Trustees.
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 restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Purpose of Restricted Funds
Brent Council
Capital funding for the Neasden site; which is being depreciated over the assets’ useful life.
Blagrave Trust
Funding towards the Launch It Labs Programme for 2024.
St. James’s Place Charitable Foundation
Funding towards the salary costs of the Project Manager for the Launch It Labs Programme.
The Britford Bridge Trust
Funding towards the core enterprise support and educational programme for 2024.
The Dulverton Trust
A three-year grant totalling £105,000 to support the Enterprise Manager's salary at Launch It Kent.
John Lyon's Charity
A three-year grant totalling £108,000 to support the Enterprise Manager's salary at the Neasden centre.
The Gosling Foundation
Funding towards the Launch It Labs Programme for 2025.
Youth Business International (YBI)
Restricted funding received from YBI, applied to their specified programme objectives.
Peter Harrison Foundation
The funds are to be used towards to "Masters House Initiative" project.
Enfield Council
Funding towards AY Labs and 123 Fore Street activities.
Swire Charitable Trust
Funding to support the Rocket Launchers Volunteer Programme.
The Access Foundation
Funding to support the Digital Pioneers Programme.
Cognition
Funding for the Pitch-Off event.
Wesleyan Foundation – Equality Fund
Funding for the Rocket Launchers Volunteer Programme.
The Weavers' Company Benevolent Fund
Funding towards the development of the new Stoke-on-Trent centre.
The Clothworkers’ Foundation
Capital funding for the Neasden site; which is being depreciated over the assets’ useful life.
Shanly Foundation
Funding to support the Core Incubation Project.
The Progress Foundation
Funding for the charity's volunteer mentoring programme.
Vinci Construction
Funding towards the Pitch-Off event.
Temple Services Ltd.
Funding towards the Pitch-Off event.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The following entities are considered related parties due to common management (CEO - Pat Shelley):
Launch It Dundee
Transactions:
London to Dundee:
Management charges: £5,000 (YE23: £5,000)
HR fees: £290 (YE23: £580)
Shared conference fees: £nil (YE23: £1,309)
Dundee to London:
Secondment fees: £nil (YE23: £3,900)
Recharged expenses: £nil (YE23: £589)
As at 31st December 2024 Dundee owed London £nil (YE23: £14,869) across sales ledger and inter-company balances.
Launch It Paisley
Transactions:
London to Paisley:
Management charges: £5,000 (YE23: £5,000)
HR fees: £290 (YE23: £290)
Shared conference fees: £nil (YE23: £881)
Paisley to London:
Recharged salary expenses: £3,650 (YE23: £nil)
As at 31st December 2024 Paisley owed London £nil (YE23: £11,014) across sales ledger and inter-company balances.
The charity had no material debt during the year.