REGISTERED COMPANY NUMBER: 03318141 (England and Wales)

REGISTERED CHARITY NUMBER: 1083233

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

FOR

NATURAL ENTERPRISE LTD

Page

Report of the Trustees

1

to

4

Independent Examiner's Report

5

Statement of Financial Activities

6

Balance Sheet

7

to

8

Cash Flow Statement

9

Notes to the Cash Flow Statement

10

Notes to the Financial Statements

11

to

22

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 31 March 2025. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Objects and aims

The objects of the Trust are to:

-

undertake economic and environmental development through the delivery of programmes, projects and contracts;

-

promote and support sustainable development, strategic planning and delivery in the fields of economic and/or environmental development and social inclusion;

-

promote and support education, training and retraining to improve the skills of the workforce and to promote the development of industry, commerce and enterprise of all forms for the benefit of the community;

-

promote the development of existing businesses and the establishment of new businesses;

-

provide a means of securing corporate and individual involvement on the Isle of Wight to develop business links with and between enterprises, authorities and agencies to develop and foster working relationships that will enhance the prosperity of the area and to stimulate public awareness;

-

collect, analyse and disseminate economic, environmental and other information on all subjects of interest to the Members, partners and others;

-

promote social inclusion in the sustainable economic and environmental development;

-

offer commercial services for the conservation, protection, reinstatement and improvement of the physical and natural environment to include the research and development of environmental thinking, policy and strategy and advise businesses on environmental sustainability and social responsibility;

-

seek, assess and secure investment in the areas of economic and environmental development;

-

support this work by entering into any arrangements with any government, authority, department, person or institution, whether European, national, local or otherwise, that may seem conducive to the Company's objects or any of them; and to obtain from any of them any grant assistance, rights, privileges, licences, contracts and concessions; and to carry out exercise and comply with any such arrangements, grant assistance, rights, privileges, licences, contracts and concessions.

In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission's guidance on public benefit.

Public benefit

All the activities of the Trust focus on delivering community benefit and are in accordance with the objects of the Trust.

The Trustees have complied with their duty to have due regard to the Charity Commission's public benefit guidance when exercising any powers or duties to which the guidance is relevant.

ACHIEVEMENTS AND PERFORMANCE

Review of the business

Another excellent year with a number of projects coming to a conclusion and new activities introduced. Our operational base has successfully broadened within our Charitable Objects.

After nine years of planning and behind the scenes work the renovations to Appley Tower were completed, returning the tower to community use. This iconic building is now open to the public and once again a valued community asset. Natural Enterprise holds a 25 lease over the tower and 4 newly constructed beach huts.

The National Lottery, Heritage Lottery Fund engagement and restoration project drew to a very successful conclusion, with all the milestones and outputs exceeded. The level and breadth of engagement has been excellent and the work on the tower has been completed to a high standard. The challenge is now to ensure the tower is financially sustainable.

Working with partners Natural Enterprise stepped in to retain Catchment Sensitive Farming on the Island. This important support for the farming sector, to encourages actions to help achieve environmental improvements for water quality, air quality and flood risk mitigation and to support farmers and land manager through agricultural transition is considered to be very important.

We delivered another successful year of the Non Native Plants project, with its work to protect the island's natural environment by controlling the spread of invasive plants. This work is co-ordinated and managed by the Natural Enterprise team with tremendous help from a strong band of volunteers. Landowners both from the public and private sectors are benefiting from this work. This is set to continue in 2025/26.

Our work co-ordinating and leading the Island Rivers Partnership on behalf of the Environmental Agency has continued, with over 20 local and national groups and organisations engaged. This partnership has developed well and provides a coherent and dynamic approach to the development of the Island's watercourses. Complementary site specific projects are being delivered.

Natural Enterprise's flag ship environmental project Gift to Nature benefitted from investment in new plant and machinery, which greatly enhanced our day to day work to keep our 32 sites in good heart. A proactive policy of site enhancements continued.

Support for the Royal Isle of Wight Agricultural Society manifested itself in another successful Royal Isle of Wight County Show, with increased visitors numbers and exhibitors. The Society's well established Education Day was once again oversubscribed and was a great success, taking part in the Society's new permanent building.

The Defra funded Future Farming Resilience Fund (FFRF) project to support farmers and land managers via our Wight Rural Hub reached its conclusion. Working with partners, in view of the value delivered by the hub, it was decided to continue the work of the hub in 2025/26 and hopefully beyond.

Natural Enterprise via the Wight Rural Hub arranged the inaugural Isle of Wight Farming Conference in February, which brought together 160 farmers, land managers and ancillary trades. The conference was a great success and will be repeated in 2026.

Our partnership working and collaborative ethos continue to be key principles to our work.

Governance remains strong with the Trustees and Directors meeting on a regular basis, both formally and informally.

FINANCIAL REVIEW

Financial position

Total income for the year amounted to £752,720 (2024 - £632,295). Costs of generating funds amounted to £17,501 (2024 - £50,144). Costs of charitable activities amounted to £671,226 (2024 - £569,866).

Unrestricted and restricted funds carried forward at the end of the year amounted to £269,085 (2024 - £209,318) and £75,399 (2024 - £71,173) respectively.

Investment policy

The trustees have the power to invest in such assets as they see fit.

Reserves policy

The reserves policy remains the retention of a level of unrestricted funds, not committed or invested in fixed assets, equivalent to six months operational costs. This reserve provides a buffer against sudden or unexpected financial change and would allow the charity time to adjust accordingly.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

Natural Enterprise is constituted under a Memorandum and Articles of Association incorporated 13 February 1997, and amended 5 October 2010, 11 June 2019 and 22 July 2020, and is a registered company (03318141). It is also a registered charity (1083233).

Induction and training of new trustees

All members of the trustee board are inducted and trained in a timely fashion and understand their responsibilities. New Trustees undergo orientation related to their obligations in respect of charity and company law, the memorandum and articles of association, and the decision making process.

Risk management

The risk management strategy is to consider and regularly review the main risks the charity may face. Systems are in place to mitigate these risks and to implement procedures to minimise the impact of difficult events. A Risk Register is maintained and updated on a regular basis. The Register is formally reviewed by the Trustees at least annually or as required. It is the view of the Trustees that prudent risk management should aim to increase the level of financial protection, and organisational flexibility and is achieved by the current reserves policy.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

03318141 (England and Wales)

Registered Charity number

1083233

Registered office

Shide Meadows Centre

Shide Road

Newport

Isle of Wight

PO30 1HR

Trustees

The trustees serving during the year were as follows:

Mrs L A Clarke - Vice Chairman

B G P Friend - Chairman

G R Biss

R Lovegrove

P D Thomas

No trustee held any interest in the company during the two years ended 31 March 2025.

The Memorandum and Articles of Association gives prescribed minimum and maximum numbers of Trustees allowed, being no less than two and no more than sixteen.

Company Secretary

G R Biss

Independent Examiner

Bright Brown Limited

Chartered Accountants

Exchange House

St. Cross Lane

Newport

Isle of Wight

PO30 5BZ

Approved by order of the board of trustees on 8 December 2025 and signed on its behalf by:

B G P Friend - Trustee

Independent examiner's report to the trustees of Natural Enterprise Ltd ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2025.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company 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 your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, 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:

1.	accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts 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

4.

the accounts 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 accounts to be reached.

J Palmer

The Institute of Chartered Accountants in England and Wales

Bright Brown Limited

Chartered Accountants

Isle of Wight

Date: .............................................

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

2

9,467

9,469

5,680

Charitable activities

5

Gift to Nature

-

125,075

125,075

133,921

Charitable activities

340,184

224,579

564,763

407,558

Island Rivers

-

15,000

15,000

15,000

Royal IW Agricultural Society

26,543

-

26,543

34,816

Other trading activities

3

-

1,057

1,057

29,664

Investment income

4

9,293

-

9,293

5,356

Other income

6

1,220

300

1,520

300

Total

377,242

375,478

752,720

632,295

EXPENDITURE ON

Raising funds

7

12,746

4,755

17,501

50,144

Charitable activities

8

Gift to Nature

-

126,375

126,375

125,307

Charitable activities

244,164

231,698

475,862

390,768

Island Rivers

-

28,467

28,467

15,040

Royal IW Agricultural Society

40,522

-

40,522

38,751

Total

297,432

391,295

688,727

620,010

NET INCOME/(EXPENDITURE)

79,810

(15,817

)

63,993

12,285

Transfers between funds

19

(20,043

)

20,043

-

-

Net movement in funds

59,767

4,226

63,993

12,285

RECONCILIATION OF FUNDS

Total funds brought forward

209,318

71,173

280,491

268,206

TOTAL FUNDS CARRIED FORWARD

269,085

75,399

344,484

280,491

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

14

66,248

-

66,248

9,008

CURRENT ASSETS

Stocks

15

-

-

-

1,950

Debtors

16

54,826

-

54,826

121,537

Cash at bank and in hand

326,300

75,402

401,702

434,672

381,126

75,402

456,528

558,159

CREDITORS

Amounts falling due within one year

17

(178,292

)

-

(178,292

)

(286,676

)

NET CURRENT ASSETS

202,834

75,402

278,236

271,483

TOTAL ASSETS LESS CURRENT LIABILITIES

269,082

75,402

344,484

280,491

NET ASSETS

269,082

75,402

344,484

280,491

FUNDS

19

Unrestricted funds

269,082

209,318

Restricted funds

75,402

71,173

TOTAL FUNDS

344,484

280,491

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2025 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 8 December 2025 and were signed on its behalf by:

B G P Friend - Trustee

Cash flows from operating activities

Cash generated from operations

1

33,531

10,547

Net cash provided by operating activities

33,531

10,547

Cash flows from investing activities

Purchase of tangible fixed assets

(75,794

)

(4,297

)

Interest received

9,293

5,356

Net cash (used in)/provided by investing activities

(66,501

)

1,059

Change in cash and cash equivalents in the reporting period

(32,970

)

11,606

Cash and cash equivalents at the beginning of the reporting period

434,672

423,066

Cash and cash equivalents at the end of the reporting period

401,702

434,672

1.	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2025

2024

£

£

Net income for the reporting period (as per the Statement of Financial Activities)

63,993

12,285

Adjustments for:

Depreciation charges

18,554

5,544

Interest received

(9,293

)

(5,356

)

Decrease in stocks

1,950

3,990

Decrease/(increase) in debtors

66,711

(52,393

)

(Decrease)/increase in creditors

(108,384

)

46,477

Net cash provided by operations

33,531

10,547

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

434,672

(32,970

)

401,702

434,672

(32,970

)

401,702

Total

434,672

(32,970

)

401,702

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

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 cost 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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Long leasehold

-

Straight line over 125 years

Fixtures and fittings

-

20% on reducing balance and Straight line over 3 years

Motor vehicles

-

25% on reducing balance

The cost of fixed assets is their purchase costs, together with any incidental expenses of acquisition.

The trustees consider the writing down periods are adequate to reflect the useful economic lives of the assets and therefore that no impairment review is necessary.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

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. Expenditure charged against the restricted fund represents revenue costs incurred during the year for the purpose specified.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2.	DONATIONS AND LEGACIES

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Donations

2

9,467

9,469

5,680

3.	OTHER TRADING ACTIVITIES

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Shop income

-

1,057

1,057

29,664

4.	INVESTMENT INCOME

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Deposit account interest

9,135

-

9,135

5,356

HMRC interest received

158

-

158

-

9,293

-

9,293

5,356

5.	INCOME FROM CHARITABLE ACTIVITIES

2025

2024

Activity

£

£

Management IWC

Gift to Nature

64,355

63,869

Town and parish councils

Gift to Nature

27,375

34,141

Grants

Gift to Nature

20,437

20,002

Car park income

Gift to Nature

12,908

15,909

Project income

Charitable activities

92,659

94,371

Grants

Charitable activities

472,104

313,187

Grants

Island Rivers

15,000

15,000

Project income

Royal IW Agricultural Society

26,543

34,816

731,381

591,295

Grants received, included in the above, are as follows:

2025

2024

£

£

Gift to Nature

20,437

20,002

Other grants

136,187

88,989

Island Rivers

15,000

15,000

Future Farming Resilience Fund

107,228

125,684

Appley Tower

219,809

98,514

Rural Payments Agency

8,880

-

507,541

348,189

6.	OTHER INCOME

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Other income

-

300

300

300

Insurance claims

1,220

-

1,220

-

1,220

300

1,520

300

7.	RAISING FUNDS

Raising donations and legacies

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Fundraising expenses

12,334

214

12,548

9,754

Other trading activities

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

£

£

£

£

Opening stock

-

1,950

1,950

5,940

Purchases

-

-

-

8,817

Closing stock

-

-

-

(1,950

)

Staff costs

-

1,504

1,504

16,160

Other operating leases

-

403

403

7,000

Rates and water

412

83

495

866

Insurance

-

78

78

589

Light and heat

-

141

141

489

Staff costs

-

-

-

80

Post and stationery

-

40

40

340

Travelling

-

-

-

52

Computer costs

-

-

-

391

Licences and subscriptions

-

-

-

437

Repairs and renewals

-

236

236

95

Sundry expenses

-

-

-

28

Bank charges

-

106

106

1,056

412

4,541

4,953

40,390

Aggregate amounts

12,746

4,755

17,501

50,144

8.	CHARITABLE ACTIVITIES COSTS

Direct

Costs (see

note 9)

£

Gift to Nature

126,375

Charitable activities

475,862

Island Rivers

28,467

Royal IW Agricultural Society

40,522

671,226

9.	DIRECT COSTS OF CHARITABLE ACTIVITIES

2025

2024

£

£

Staff costs

269,017

207,865

Insurance

12,154

7,459

Light and heat

6,379

6,784

Telephone

889

1,107

Postage and stationery

3,900

2,473

Advertising

9,349

3,626

Sundries

720

286

Local projects

302,960

248,247

Bank charges

866

1,099

Professional fees

5,640

34,255

Motor expenses

5,420

5,866

Travelling expenses

1,125

259

Staff costs

2,411

5,942

Bookkeeping

1,920

1,920

Rates and water

543

1,102

Repairs and renewals

5,509

4,082

Computer costs

3,618

8,525

Licences and subscriptions

170

205

Unclaimable input VAT

15,127

21,770

Donations

3,000

-

Independent examination fees

1,505

1,450

Independent examiners fee for non-IE work

450

-

Depreciation

18,554

5,544

671,226

569,866