The directors present their annual report and financial statements for the year ended 31 March 2025.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the provisions of the Charities SORP (FRS 102) “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) and provisions of the Companies Act 2006 applicable to small companies. Given the size of the entity it is the opinion of the directors that the information given below is sufficient to comply with the Statement of Recommended Practice.
The Ripple Project was established in 1996 by the congregation of St. Margaret's Parish church with the aim of improving the quality of life for all residents in the regeneration area of Restalrig and Lochend in Edinburgh by providing a range of support and services which will address inequalities and social exclusion and help local people to help themselves.
This report highlights a year of growth, resilience, and deep community engagement in Restalrig, Lochend, and Craigentinny—areas among Scotland’s most deprived. Rooted in it’s mission to help people help themselves, The Ripple tackled poverty and inequality through holistic, creative, and values-driven initiatives.
Key achievements include the launch of the Refillery, addressing food insecurity and enhancing food dignity, and the opening of new office space at St Margaret’s Church to support the development of the organisation and partner with the Binks Hub and Edinburgh University to empower local voices through art and storytelling.
Over 100 volunteers contributed nearly 10,000 hours, and the youth programme reached 134 young people through clubs, sports, creative groups, and school partnerships. The Wellbeing Programme offered yoga, nature trips, and a “Catch Your Breath” service for those with chronic lung conditions, helping participants reduce isolation, improve emotional health, and regain independence.
Support for older adults included lunch and social clubs, a shopping service, and transport provision, all aimed at maintaining dignity and independence. The community café, fruit and veg market, and Pantry partnerships provided low-cost, healthy food options, with over 8,600 items served and 3,440 volunteer hours contributed.
Participatory Budgeting events brought £10,000 into local initiatives with over 1,100 community votes cast. Consultations, repair cafés, and newsletters ensured ongoing community engagement and local empowerment.
All of this work contributes to significant improvements in community connection, confidence and health awareness. The Ripple continues to evolve, rooted in values of justice, creativity, collective action, and community-led change led by our community and thanks to dedicated staff, volunteers, funders, and partners.
Budgetary constraints, the lack of opportunities for core public funding and the continuing climate of austerity will always be a challenge however robust forward planning means the charitable company was successful in controlling its expenditure levels within planned spending limits.
The charity's income for the year totalled £412,077 (2024 - £490,540) of which £85,742 (2024 - £74,512) was unrestricted and £326,335 (2024 - £416,028) was restricted.
The charity incurred revenue expenditure of £463,970 (2024 - £475,066) of which £60,214 (2024 - £50,291) was unrestricted and £403,756 (2024 - £424,775) was restricted.
At 31 March 2025, the charity held total funds of £183,386 (2024 - £236,147) of which £81,251 (2024 - £56,591) was unrestricted and £102,135 (2024 - £179,556) was restricted.
It is the policy of the company to maintain unrestricted funds, which are the free reserves of the company, at a level sufficient to sustain current expenditure without creating a deficit. This provides sufficient funds to cover management and administration costs and to cover costs incurred in furtherance of the charitable objectives.
The directors have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
As we look forward to the year ahead, despite a difficult funding landscape we are energized by the momentum we’ve built and the relationships that continue to strengthen our work. A key highlight from this past year has been our collaboration with the Binks Hub, which has proven to be a resounding success. Together, we have created inclusive, impactful spaces for dialogue, learning, and community-led innovation—redefining what collaboration can look like across sectors.
Building on this foundation, the next year holds exciting new opportunities for partnership working. We are actively exploring joint initiatives with local organisations, academic institutions, and grassroots groups to co-design programmes that address community needs in fresh and meaningful ways. These future collaborations are not just about shared resources—they are about shared purpose.
In challenging times our focus remains firmly on improving the community we serve, with an emphasis on inclusivity, empowerment, and sustainable growth. Whether through projects, research-driven policy engagement, or expanding our outreach, we are committed to listening closely, acting boldly, and making space for diverse voices to lead the way.
Together with our partners—old and new—we are building something bigger than the sum of its parts. And we couldn’t be more hopeful for what’s next.
The organisation is a charitable company limited by guarantee with no share capital, incorporated and registered as a charity on 3 January 2001 (reference SC214364). The Ripple Project was set up as an unincorporated charity and bound by its constitution dated 3 July 1996. The trust deed was approved by the Inland Revenue on 18 July 1996. The charity was then incorporated on 3 January 2001. On 1 April 2001, the assets, liabilities and reserves of the unincorporated charity, as represented by the unincorporated entity's balance sheet at 31 March 2001, were transferred to the new incorporated charity, also called The Ripple Project.
The directors who served during the year and up to the date of signature of the financial statements were:
The directors of the company are also charitable trustees for the purposes of charity law and under the company's Articles. Under the requirements of the Memorandum and Articles of Association the directors are elected by the members of the company. A formal induction is held for new directors which includes training on relevant regulation and directors' responsibilities.
None of the directors has any beneficial interest in the company. All of the directors are members of the company and guarantee to contribute £1 in the event of a winding up.
The company is managed by the directors, who serve voluntarily. Between meetings, all directors are in regular contact by telephone and email. The day to day running is in the hands of Rachel Green.
The directors' report was approved by the Board of Directors.
I report on the financial statements of the charity for the year ended 31 March 2025, which are set out on pages 5 to 24.
The charity’s directors, who also act as trustees for the charitable activities of The Ripple Project, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The directors consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
Donations and grants
Charitable activities
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The Ripple Project is a private company limited by guarantee incorporated in Scotland. The registered office is Restalrig Lochend Community Hub, 198 Restalrig Road South, Edinburgh, EH7 6DZ, United Kingdom.
The accounts have been prepared in accordance with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the provisions of the Charities SORP (FRS 102) “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), FRS 102 "the Financial Reporting Standard applicable in the UK and Republic of Ireland ("FRS 102") and the provisions of the Companies Act 2006 applicable to small companies. The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is managing costs effectively and is continuing to explore additional funding streams. In the last financial year, despite the difficult funding environment, the company has strengthened its unrestricted funding position and has maintained healthy levels of cash reserves. This has led the directors to be of the opinion that the company will continue to be in operational existence for the foreseeable future, and should 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 directors in furtherance of their charitable objectives.
The charitable company received an unrestricted bequest form Joseph Rowbottom in the 2021-22 financial year. The Directors have agreed to designate these funds, as well as some other unrestricted donations received since then, for the purposes of Joseph Rowbottom Hardship Fund.
Restricted funds are subject to specific conditions by donors as to how they may be used. Restricted funds are grouped together and displayed in note 16 according to the general charity activity headings of Core services, Youth services, Work with the elderly, Community work and Fixed assets.
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.
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs relating to the category. Where costs cannot be directly attributable to particular headings they have been allocated to activities on a basis consistent with the use of resources. Governance costs have been directly attributed to charitable activities.
The charity is not registered for VAT therefore all VAT is charged against the expenditure heading for which it was incurred.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
Previously, the charitable company participated in a multi-employer defined benefit scheme. The fund is valued every three years by a professionally qualified actuary, the rates of contribution payable being determined by the actuary. In the intervening year the actuary reviews the continuing appropriateness of the rates. The scheme closed to further accrual on 31 March 2010.
The deficit on the now closed scheme was cleared during the 2024/25 year. There will be no further deficit reduction contributions due until at least the next valuation as at 30 September 2026.
In accordance with FRS 102, the charity makes provision within the financial statements of the present value of the deficit reduction contributions payable under this agreement.
Further details are set out in note 21.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.
In the application of the charity’s accounting policies, the 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 directors are of the opinion that there no critical accounting estimates or judgements that would have a material impact on the financial statements.
Donations and grants
Grants
Charitable activities
The Hub income
The Hub income
Cafe income
Room hire and activity subscriptions
Programme costs
Recruitment costs
Conferences and training
Insurance
Rent and rates
Light and heat
Premises expenses
Post, printing and stationery
Telephone
Publications and subscriptions
Professional fees
Hire Purchase Interest
Other general expenses
Unrestricted expenditure in the current year included staff and pension costs of £31,963 (2024 - £29,523), programme costs of £18,202 (2024 - £14,284), depreciation costs of £3,266 (2024 - £2,725) and other costs totalling £6,781 (2024 - £3,598).
Independent examination fee
During both the current and prior year, none of the directors received remuneration, benefits or expenses from the charity.
The average monthly number of employees during the year was:
The company has no high paid employees receiving emoluments in excess of £60,000.
Obligations under finance leases wholly comprise hire purchase creditors which are secured against fixed assets with a net book value of £14,553 (2024 - £19,403).
Obligations under finance leases wholly comprise hire purchase creditors which are secured against fixed assets with a net book value of £14,553 (2024 - £19,403).
Deferred income is included in the financial statements as follows:
The charity entered into financial leasing arrangements for the vehicle purchased in April 2022. The average term of finance leases entered into is 4.5 years.
The income funds of the company include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Income
Expenditure
Income
Expenditure
The income funds of the company include unrestricted funds comprising the following unexpended balances:
Income
Expenditure
Transfers
Other gains and losses
Income
Expenditure
Transfers
Other gains and losses
Unrestricted funds
Unrestricted funds
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 company incurred expenditure of £2,722 (2024 - £2,218) to Cyrenians. Ewan Aitken, director, is the CEO of Cyrenrians.
The company also received income of £20,092 (2024 - £19,439) from Edinburgh Voluntary Organisations Council (EVOC) and incurred expenditure of £245 (2024 - £68). Rachel Green, Project Director, was a Board Member of EVOC until July 2024.
The remuneration of key management personnel is as follows:
The company participates in the scheme, a multi-employer scheme which provides benefits to some 77 non-associated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2023. This actuarial valuation was certified on 27 June 2024 and showed assets of £86.2m, liabilities of £88.2m and a deficit of £2.0m. From 1 June 2024 the majority of employers no longer pay deficit contributions.
Some employers have agreed concessions (both past and present) with the Trustee and have contributions up to 28 February 2034.
Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2020. This valuation showed assets of £153.3m, liabilities of £160.0m and a deficit of £6.7m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:
Deficit contributions
From 1 April 2022 to 31 May 2024: | £1,473,969 per annum (payable monthly and increasing by 3% each year on 1st April) |
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities.
Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
PRESENT VALUES OF PROVISION
RECONCILIATION OF OPENING AND CLOSING PROVISIONS
| Period Ending 31 March 2025 (£s) | Period Ending 31 March 2024 (£s) |
Provision at start of period | 851 | 5,659 |
Unwinding of the discount factor (interest expense) | 2 | 161 |
Deficit contribution paid | (853) | (4,969) |
Remeasurements - impact of any change in assumptions | - | - |
Remeasurements - amendments to the contribution schedule | - | - |
Provision at end of period | - | 851 |
INCOME AND EXPENDITURE IMPACT
| Period Ending 31 March 2025 (£s) | Period Ending 31 March 2024 (£s) |
Interest expense | 2 | 161 |
Remeasurements – impact of any change in assumptions | - | - |
Remeasurements – amendments to the contribution schedule | - | - |
Contributions paid in respect of future service* | * | * |
Costs recognised in income and expenditure account | * | * |
*includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes. To be completed by the company.
ASSUMPTIONS
| 31 March 2025 % per annum | 31 March 2024 % per annum | 31 March 2023 % per annum |
Rate of discount | 4.98 | 4.90 | 5.40 |
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
The following schedule details the deficit contributions agreed between the company and the scheme at each year end period:
DEFICIT CONTRIBUTIONS SCHEDULE
Year ending | 31 March 2025 (£s) | 31 March 2024 (£s) | 31 March 2023 (£s) |
Year 1 | - | 853 | 4,969 |
Year 2 | - | - | 853 |
The company must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises.
It is these contributions that have been used to derive the company's balance sheet liability.