The trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of Design South East Limited (the company) for the year ended 31 March 2025. The Trustees confirm that the Annual report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), 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).
Design South East is a Company Limited by Guarantee governed by its Memorandum and Articles of Association dated 18 December 2014. It is registered as a charity with the Charity Commission.
Directors are either 'A' or 'B' directors. 'A' directors are those appointed by 'A' members. 'A' members are currently:
Medway Council
University of Greenwich
Gravesham Borough Council
Each 'A' member may nominate one 'A' director, carried out in accordance with our Articles of Association.
A 'B' member is a member admitted as a 'B' member in accordance with the Articles of Association. A 'B' director is any director appointed as a 'B' member. Anyone wishing to become a B director must make an application for membership and an appointment is subject to approval by a majority of the directors. When considering applications the Board has regard to the requirement for any specialist skills on the board and geographic representation, in addition to the understanding of and alignment with the objects of the company.
New trustees undergo an orientation session to brief them on their legal obligations under charity and company law, the Charity Commission guidance on public benefit; and to inform them of the content of the memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the charity. During induction they meet key employees and other trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.
The board administers the charity. The board meets quarterly, or more frequently, if necessary. There is a finance subcommittee which also meets quarterly, or more frequently if required.
A Chief Executive whose working title is Director (though he is not a director for legal purposes) is appointed by the trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the trustees, for operational matters including finance, employment and programme-related activity.
Our objects are:
To advance public education and to develop and improve the skills and capabilities of people of all ages by encouraging the understanding of the arts, architecture and the built environment;
To promote social inclusion for the public benefit in particular those that are, or feel they are, excluded from society by helping local people to participate in the improvement of the quality of their built environment (being "excluded" from society, or part of society, as a result of being a member of a socially and economically deprived community or on the grounds of their social and economic position);
To promote sustainable development for public benefit in particular best practice in the field of sustainable development. Sustainable development means "development which meets the needs of the present without compromising the ability of future generations to meet their own needs";
To advance the education of the public in urban and rural regeneration by promoting best practice in the field of regeneration in areas of social and economic deprivation for the public benefit;
To help young people advance in life by developing their skills in the arts, architecture and the built environment; and
To further such other charitable purposes (charitable under English law) as the Directors see fit from time to time primarily, but not exclusively in the south of England.
Our work this year has focused primarily on three of our objectives:
Object 2: to promote social inclusion;
Object 3: to promote sustainable development for public benefit;
Object 4: to develop and improve the skills and capabilities of people.
Though independent design review remained our primary activity - helping to promote sustainable development and develop and improve people’s skills - we have continued to broaden the range of activities we deliver, including ones that promoted social inclusion.
Promoting social inclusion
Thurrock Council commissioned us to lead several local walking tours through which to discuss with local people the existing context and an emerging vision and focus for Thurrock’s updated Residential Design Code, following the process in the National Model Design Code (NMDC). The walkabout provided an opportunity for collaborative conversation between the Council and community, mediated and facilitated by Design South East, to help the Council better understand what ‘good design’ means to residents in their neighbourhoods. One of our key takeaways from the event was the importance of ‘deep’ engagement with the community – allowing sufficient time for in-depth, detailed conversations, to build trust and facilitate engagement with local people.
Medway Council commissioned us to lead the co-creation of a Vision and Action Plan for Gillingham Town Centre, supporting the Council with the recruitment and selection of a demographically representative community panel to ensure that diverse voices were part of the co-creation process. A series of three in-person workshops designed and facilitated by DSE allowed for the sharing of perspectives through interactive discussions about what local people value and where there are opportunities for improvements to the town centre to support the health and well-being of the wider community. By working with the community to develop an action plan to deliver on the shared vision, the programme fostered long-term stewardship of the town centre and built community resilience through shared responsibility for and ownership of the process of change.
Promoting sustainable development for public benefit
We continued to increase promotion of sustainable development through our core activity; design review by embedding into the structure of the sessions. This was particularly important in relation to larger urban projects, where we sought coherent sustainability strategies to underpin design development, and for specific measures and actions, including the reuse of existing built forms and the inclusion of sustainable urban drainage. On major rural sites, we promoted the importance of a sustainability strategy, commitment to sustainable travel and drainage, and a zero-carbon approach.
We continued to create opportunities to engage earlier in the planning process than design review typically allows, at the visioning, strategy, policy, or plan-making stages of projects. We achieved this through design code support, co-production, and community engagement activities. This early engagement enabled us to help clients and communities embed the principles of sustainable development at the formative stage of projects.
Starting in September 2024, we worked in partnership with the Ministry of Housing, Communities and Local Government (MHCLG) to support the latest group of Pathfinder authorities in the delivery of exemplary design codes across the country. Our programme of support is built on our expertise from our involvement in the 2021 NMDC pilot programme to provide critical friend support and design code review for 10 local authorities across the country. Our bespoke panel comprised experts with extensive experience in the preparation and application of design codes. As part of the national Design Network, we can draw on experts from Design Midlands, Design Yorkshire, and Design North East to bring local knowledge and to reflect the geographical diversity of the Pathfinder programme.
We complemented these activities with several training sessions to promote sustainable development:
One year on from the policy requiring all new developments to deliver 10% Biodiversity Net Gain (BNG), we organised a workshop-based training session to share perspectives and learning on how was working in practice, helping professionals unpick and troubleshoot some of the recurring issues. This was a three-hour session that started with a Kent local authority perspective, followed by three case studies.
We also delivered several shorter online sessions, including one to support sustainable development through sensitive approaches to housing densification and another that explored masterplanning Best Practice and how to plan and design sustainable settlements, taking landscape, water and ecology as the starting point.
Developing and improving the skills and capabilities of people
We delivered a significant amount of our work to develop and improve the skills and capabilities of people through our Kent Design programme, which supports built environment professionals through place-specific learning focused on high-quality, sustainable design.
Through this programme, we delivered a range of online sessions, in addition to events described above, including:
Effective Parking Solutions for New Development - Successfully integrating car parking is a common challenge for delivering high-quality and people-focused developments, and this webinar explored solutions for car parking that do not result in car-dominated streets or bleak parking courts
New Technologies in Planning and Design explored how technologies such as artificial intelligence, virtual reality and digital twins are disrupting the planning and design sectors and explored how they can enhance public engagement, speed up the design process and provide an evidence-based approach to development.
Urban Design in Town Centres about urban design principles in town centre regeneration and development projects, which explored the townscape and design that responds to the local context.
Landscape and Visual Impact Assessments
A major training workshop brought public and private sectors together to learn about alternative models of housing delivery and tenure and how they can contribute to addressing the housing crisis. Topics include community-led housing, custom-build and co-housing. This reflected the fact that over the coming decades, tens of thousands of homes will be delivered in Kent and Medway, which presents an opportunity to complement mainstream delivery approaches with alternative housing models, which may offer people more flexibility, customisation, community-building and affordability.
To support the development of design coding skills in local authorities, we developed a Design Code Network through which we delivered four events, using expert speakers, but promoting knowledge sharing. The series included:
Getting Started with Design Coding
Exploring Different Types of Codes
Building Evidence-Based and Community Support
Creating Effective Design Codes
Our Urban Design Foundation Course comprised 3 online webinars, a study tour and culminated in a full-day urban design skills training. The study tour was of Ebbsfleet and provided an opportunity to hear from the team behind the development of the new garden city. The final session provided participants with a basic understanding of urban design principles and helped to develop practical skills through a guided walking tour of Dartford, a design review exercise of a real scheme and a chance to design a concept masterplan for part of the town centre led by experienced urban designers.
We also organised a study tour of Folkestone Town Centre and Seafront, which provided an opportunity to hear about coastal regeneration.
Going Concern
After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
Income
The charity reported total income of £891k for the year, marking an increase of 10% compared to the previous year (£807k). This represents a strong recovery from the previous year's decline (2022-23: £860k falling to £807k in 2023-24), which had been affected by reduced client demand due to economic uncertainty. The current growth was driven by:
Charitable activities, which contributed £884k (up 10% from 2024)
Investment income, which rose by 28% to £7k
Expenditure
Total expenditure was £824k, an increase of 6% from 2024 (£774k). This follows significant efficiency improvements in recent years, where cost reductions were achieved through careful budget management, including:
Reduced administrative costs
Renegotiated contracts
Streamlined service delivery processes (without compromising quality)
Financial Position
The charity achieved a surplus of £67k, a substantial improvement from:
£32k surplus in 2023-24
£69k deficit in 2022-23
Unrestricted funds grew from £211k to £278k, strengthening our financial resilience.
The balance held in the Community Savings Account represents unrestricted funds earmarked internally for future community engagement activity.
Risks and Mitigation
Key risks to financial performance include:
Economic recession and its effect on the planning and development sector
Changes to government planning policy affecting demand for our core services
To address these, we are:
Diversifying revenue streams
Expanding service offerings
Maintaining strict cost controls
Conclusion
The 2024/25 results demonstrate successful recovery and sustainable financial management. While mindful of economic challenges, our strong reserves and efficiency measures position us well to continue delivering our mission effectively.
The trustees have maintained the core reserves policy established in 2023-24, with the operational reserve policy set at 3 months' operational coverage plus 10% to be adjusted annually. Moving into 25/26 our required operational reserves is thus set at a minimum of £225k.
Additionally, from the 2024/25 surplus, the trustees have approved the creation of a new £50k infrastructure reserve to fund essential capital improvements and strategic investments.
This two-tier reserve approach ensures the charity can:
Operational Security: Sustain core activities during income fluctuations
Strategic Development: Fund vital infrastructure upgrades without compromising services
As of 31 March 2025, our financial position supports this policy with £278k in unrestricted funds.
The trustees will review both reserve levels annually, considering:
Sector-specific economic risks
Evolving operational requirements
Capital investment opportunities
This enhanced policy demonstrates our commitment to both financial resilience and sustainable growth, ensuring we can continue delivering our mission effectively.
This policy complies with Charity Commission guidance on financial governance and forward planning.
In addition to the unrestricted reserves, DSE maintains a designated Community Fund to support community-led design and engagement projects. This fund is treated as a designated pot within unrestricted funds, ring-fenced by trustees for its specific purpose. At 31 March 2025, the balance stood at £9,500. The fund will be drawn down over the next few financial years to support the delivery of community projects.
Our short-term objectives are to improve operational efficiency, enhance our service delivery, and transform our communications. Specific short-term goals include:
Increased Efficiency: We will continue to streamline our administrative processes.
Continued diversification: We will continue to increase our range of activities by engaging with new and existing client and stakeholder groups.
Improved communications with stakeholders
Our long-term objectives are designed to ensure the sustainability and growth of our charity, while also expanding our impact on the communities we work in. These objectives include:
Sustainable growth: Over the next five years, we aim to grow and diversify our funding sources and activities.
Strengthening our capacity: To support our long-term growth we are focused on building our internal capacity. This includes investing in staff development, improving our operating processes and making greater use of technology.
To achieve these objectives, the following key activities are planned.
Stakeholder Engagement: We will conduct surveys and meet stakeholder groups to better understand their needs and refine our service offerings accordingly and hold a stakeholder forum.
Monitoring and Evaluation: We will implement a robust monitoring and evaluation framework to measure our impact.
Partnership Building: We will establish new partnerships with local authorities and government departments
Staff Training and Development: Continuous professional development will be provided to our staff to ensure they have the skills necessary to implement our strategic objectives effectively.
Strengthening our executive management structure and our board of trustees.
Experience has influenced our plans and decisions in terms of:
The importance of responding rapidly to a changing operating environment.
The need for effective pricing of our activities.
The need for investment in systems and processes.
The value of being responsive to feedback from stakeholders.
All employees of Design South East are subject to annual appraisal and mid-term reviews.
In the case of the Chief Executive, the appraisal is conducted with the Chair of the Board. The remuneration committee comprises three directors of the company, advised by the Chief Executive. A total sum available for staff team pay raises and the salaries of key staff were agreed by this committee. The pay of the Chief Executive was also agreed by the committee but without the presence of the Chief Executive. Decisions are reached in accordance with our remuneration policy, including factors such as performance as judged by the appraisal process, and the financial position of the company.
The charity is a company limited by guarantee.
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:
None of the trustees has any beneficial interest in the company.
The Trustees (who are also directors of Design South East Limited for the purposes 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. Under Company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the situation of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. 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 judgments and accounting 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;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Design South East Limited (the charity) for the year ended 31 March 2025.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 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 ACCA, 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.
Design South East Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 70 Cowcross Street, London, EC1M 6EJ.
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. The principal accounting policies adopted are set out below.
Design South East Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The company's functional and presentational currency is GBP.
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.
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for the other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charges against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Grants received from County Council and Medway Council and are accounted for on receivable basis.
Project income is recognised when the company obtains the right to consideration under the terms of the individual contract. Where the right to consideration occurs before the service is invoiced the income is accrued. When the right to consideration occurs after the service is invoiced the income is deferred.
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.
Charitable activities and Governance costs are costs incurred on the company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.
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.
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.
Company status
The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
Pensions
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.
All charitable activities
Unrestricted funds
Unrestricted funds
Panel fees
Panel expenses
Venue hire
Gifts and samples
Wages and salaries
National insurance
Pension cost
Seminars and conference fees
Marketing and communications
BHL delivery costs
Premises costs
Travel & entertainment
Office costs
Accountancy fees
Professional fees
Marketing and communications
Bad debts
Wages and salaries
National insurance
Independent examiners' remuneration
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year, other than what is disclosed in note 15.
The average monthly number of employees during the year was:
The key management personnel of the charity comprise the Chief Executive Officer, Head of Service Delivery and the Head of Programmes. The total employee benefits of the key management personnel of the Charity were £207,228 (2024 - £189,781).
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 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.
Community Fund - to support community led design and engagement projects.
During the year under review the following transactions took place with the company Tibbalds Planning and Urban Design Ltd, a company in which H Satchwell is a Director and shareholder;
Sales of £720 (2024 - £720)
All transactions were at arms' length and as at 31 March 2025 £Nil (2024 - £Nil) was due from Tibbalds Planning and Urban Design Ltd.