The Trustees who are also Directors of the Charity for the purposes of the Companies Act 2006, present their report with the financial statements of the Charity for the year ended 31st 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 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
About Emmaus Hull & East Riding
Emmaus Hull & East Riding (Emmaus) is a homelessness charity with a difference. We support people who have experienced, or have been at risk of, homelessness. We do this by providing a stable home alongside care, support and supervision that is individually tailored to enable them to recover and to achieve their goals and aspirations. For many people who have experienced homelessness, losing their self-esteem can be the most damaging part of their experience.
Emmaus is different because it provides a home for as long as someone needs it in an Emmaus community. This gives Companions, as we call our residents, the opportunity to take stock of their lives, deal with any issues they might have, regain their self-esteem and develop their ambitions for the future.
Aims and Activities
Emmaus is an independent charity, governed by a local Board of Trustees. It is a member of the Federal Body of Emmaus UK.
Emmaus established a residence on Lockwood Street in Hull, which opened to accept companions in February 2016. The residence offers a safe home for up to 30 formerly homeless people at any one time. Since its opening the Companions have worked to make the community self-funding principally through the collection and sale of donated goods (furniture, clothes and household goods). The charity also provides rough sleeper street outreach services for East Riding of Yorkshire Council.
Emmaus operates from a purpose-built warehouse incorporating a sales outlet on the site at Lockwood Street, Hull. This also collects donated goods and distributes them to its customers or to our Whitefriargate store and our smaller shop in Newland Avenue.
Emmaus has a small, dedicated staff team to provide support to the Companions and provide structure for the retail and outreach activities.
Our Vision is for:
A world in which everyone has a home and a sense of belonging.
Our Mission is:
To work together to overcome homelessness and social exclusion while using our voice to achieve social change.
Our Values:
Value and respect every person, opposing injustice
Be transparent and honest in all our dealings
Demonstrate solidarity and support to those in need
Create an environment of empowerment
Share and exchange resources, skills and learning
Support and foster inter-dependence and cherish independence
Work to live and give
Strategic aims
To provide high quality facilities and nurture a positive, supportive environment to help Companions to successfully return to independent living.
To be the most effective organisation in supporting homeless people to improve their situation in Hull and the East Riding, through both partnership initiatives and directly provided services.
To maintain financial self-sufficiency by building our social enterprise income (particularly retail) together with non-compromising public funding.
Donations and legacies
The wider community in Hull and the East Riding have been very generous in contributing time and money and goods for resale to Emmaus and we are very grateful to all our volunteers and our individual and corporate donors for their generosity. Financial donations of all kinds totalled £89,503 in 2024 (2023 £79,034).
The Orchard
The number of Companions resident in total in 2024 in the Orchard amounted to 54 for different periods of time to suit their needs. Our income from donations and legacies and from Trading Activities fund the specialised support staff and activities to help our Companions recover from their experience of homelessness and move on into employment and/or independent accommodation. We also provide training in skills and capabilities beneficial for employment to Companions.
Our staff have been key to helping Companions successfully move on positively into employment and/or independent accommodation.
30 Companions left the community of which 74.5% had positive move-ons rising from 30% in 2023. The Trustees offer their grateful thanks to our staff and the Companions for their hard work to achieve these results.
We also have a former Companion resident in a bungalow in Bridlington which was gifted by a kind donor in 2022.
Community support
Our staff, supported by Companions, provide a Rough Sleeper Outreach Service on behalf of East Riding of Yorkshire Council. We are very proud of being able to find and help rough sleepers offering 80 interventions in 2024 in a geographical area stretching from Bridlington through to Goole.
Strategic Report
Trading activities
Our main trading activities include three shops, recycling of non-saleable material, and supply of goods to meet the needs of relocated families through local authority voucher schemes, together with the associated logistics. Under the direction of our staff members, these activities are largely run by our Companions. In addition to the income generated, this provides valuable on the job training and opportunities for Companions. We aim to manage our shops more effectively and we look forward to developing our trading activities further in the coming years.
Finance and Reserves
In 2024 our income increased across all activity areas, and our costs were carefully managed despite inflationary pressures. This resulted in a surplus for the year of £67,018 which was a very satisfactory result.
Reserves Policy
The total funds of the charity at 31st December 2024 amounted to £1,145,820 compared with £1,078,802 at 31st December 2023 of which £193,352 (2023 £126,015) are unrestricted and £952,468 (2023 £952,787) are designated funds in relation to The Orchard, Emmaus Trading Activities and Outreach services. The Trustees consider these funds to be adequate to continue to maintain the charity’s assets and continue its activities for the foreseeable future.
2024 was a difficult year for the retail sector, but we managed to increase our overall retail income. This is a step forward in the development of our retail sales towards our strategic goal of 50% of income and will hopefully strengthen the financial position of the Charity into the future.
Our key social ambitions include increasing the number of Companions who are successful in moving on into independent accommodation and/or employment; and to progressively reduce the number of Rough Sleepers in the East Riding through our Outreach services.
The organisation is a charitable company limited by guarantee, incorporated on 12th August 2007. It was registered with the Charity Commissioners with charity number 1126497 on 29th October 2008. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.
The company is one of 32 Emmaus Communities currently operating in England and one of some four hundred worldwide using the same principles and methods of working.
The management of the charity is the responsibility of the Trustees who are elected under the terms of the company's Memorandum and Articles of Association.
Emmaus Hull and East Riding Trustees are responsible for providing direction, strategy and governance to the charity. Responsibility for the operational activities of the charity is delegated to the Director (non-board member), Mrs Stephanie Dixon.
The Trustees and directors, 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:
Recruitment and appointment of new Trustees
The Directors of the company are also charity trustees for the purposes of charity law and under the company's Articles are known as Trustees. Under the requirements of the Memorandum and Articles of Association, Trustees are elected to serve for a period of three years after which they must be re-elected at the next Annual General Meeting.
Due to the nature of homelessness much of the charity's work inevitably focuses upon vulnerable people. The Trustees seek to ensure that the needs of this group are appropriately reflected through the diversity of the trustee body.
Induction and Training of New Trustees
Emmaus Hull & East Riding follows Emmaus UK’s Trustee Requirement and Selection Process which is based on the National Council for Voluntary Organisations (NCVO) good practice guide and also participates in Emmaus UK’s Trustee Induction and Training Programme.
Remuneration
The charity has an agreed remuneration policy, governance of which is through the charity's remuneration committee. We are committed to ensuring an appropriate balance between paying staff fairly to support recruitment and retention and careful management of our financial resources. Benchmarking information is used where this is available. This includes comparisons with roles in similar organisations and from information collated from Emmaus UK. Local government NJC scales are used as a basis for determining salaries for all posts and a review of pay and cost of living adjustments is made by the remuneration committee annually.
Related Parties
At a National level, Emmaus Hull & East Riding is guided by Emmaus UK which advises members of the Emmaus Federation in the UK.
Risk Management
The Trustees have a duty to identify and review the risks to which the Charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance again fraud and error.
A Risk Register is maintained and reviewed regularly – twice a year at the Board.
Procedures are in place to ensure compliance with Health and Safety of staff, volunteers, customers and visitors to our premises.
The trustees' report was approved by the Board of Trustees And Directors.
I report to the Trustees and directors on my examination of the financial statements of Emmaus Hull & East Riding (the charity) for the year ended 31 December 2024.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
Emmaus Hull & East Riding is a private company limited by guarantee incorporated in England and Wales. The registered office is 32 Lockwood Street, Hull, East Yorkshire, HU2 0HJ, England.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees and directors have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees and directors 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 and directors 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.
All income is recognised once the charitable company has entitlement to the funds after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from government and other grants, whether capital or revenue, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Where grant income covers more than one financial year, the income is deferred and released to the income and expenditure account over the period to which it relates.
Income from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of income can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the charity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually at the point of sale.
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Support costs relate to those functions that assist the work of the charity but do-not directly undertake charitable activities. These include back office costs, finance, personnel, payroll and governance costs.
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.
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at the value at the time the property was bequeathed to the Charity by the donor. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
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).
Where it is impractical to maintain stock records of donated goods, the value of goods is recognised at the point of sale
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.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
In the application of the charity’s accounting policies, the Trustees and directors 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.
The Orchard
Community Support
The Orchard
Community Support
Training
Grants
Housing benefit
None of the Trustees and directors (or any persons connected with them) received any remuneration or benefits from the charity during the year.
The average monthly number of employees during the year was:
The total amount of employee benefits received by key management personnel for the year ended 31st December 2024, for their services to the charity was £58,750 (2023 £88,286)
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The carrying value of land included in land and buildings comprises:
During the year ended 31st December 2023, the freehold property was valued at £565,000 by Scotts Property LLP from an inspection undertaken on 22nd November 2023. The composition of this figure is; £525,000 in relation to property and £40,000 in relation to development land.
The property was valued on the basis of market value on the assumption of vacant possession.
If the assets had not been revalued, the aggregate cost would be £450,000.
The charity does not depreciate freehold property in its accounts. This policy is adopted because the trustees consider that the residual value of the freehold property is not materially different from its carrying value. The carrying value of the property is subject to annual review to ensure that it is not impaired.
Investment property comprises £170,000. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties by the Trustees.
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. Support for the Orchard is a principal charitable aim of the Charity.
Restricted Funds
The Orchard fund relates to capital and revenue investments in the community facility.
The Emmaus Trading Activities fund relates to capital and revenue activities undertaken to generate funds. Contained within this fund balance are £115,000 of non-distributable revaluation reserves.
The Community Support fund relates to the income and expenditure for the provision of rough sleeping and street support services.
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.
Unrestricted Funds
The General fund is not designated for any particular purpose.
Total financial commitments, guarantees and contingencies which are not included in the balance sheet amount to £100,000 (2023 £100,000), for the repayment of a property grant.
The charity had no material debt during the year.