The trustees present their trustee's report and financial statements for the year ended 31 March 2025.
The financial statement have been prepared in accordance with the accounting policies set out in notes to the financial statements and comply with the Charities Act 20111 and "Accounting and Reporting by Charities: Statement of Recommended Practise 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 Alacrity Foundation in the UK is established with the mandate to mentor and train the most suitable graduates and create a new generation of British technology-based companies. The Alacrity scheme is based on a proven methodology for commercialising technology and creating successful entrepreneurs.
The objectives of the Foundation are specifically restricted to the advancement of education and learning, in particular but not limited to business studies, business management practice and the development of engineering and technology for the benefit of the public.
The Alacrity Foundation provides an intensive training environment with mentors and industry partners to prepare graduates for entrepreneurship in the technology sector. During the 12 month Alacrity programme graduates will develop essential product management, commercialisation and entrepreneurial skills. In addition to this applied learning, graduates will be mentored by experts and senior executives in a variety of disciplines. This training will prepare graduates to run a successful scalable high technology company.
The program is experiential in nature, where graduates are assigned to projects that form the basis of a real technology product or service opportunity. The Foundation facilitates industry sponsors bringing known problems from the marketplace to the project teams. The teams then try to build products to solve these real-world business issues. If successful, the project team will have created an opportunity to start a commercial relationship with the industry sponsor. Together they will form a new technology company, with continuing support and funding assistance to give the graduates an invaluable head-start to an entrepreneurial future.
Public benefit
We have referred to the guidance contained in the Charity Commissions' general guidance on public benefit when reviewing our aims and objectives and in planning future activities. In particular the trustees consider how planned activities will contribute to the aims and objectives they have set.
The specific highlights that have occurred since last year include the following;
Continued the incremental development of the programme core programme and inclusion of the Cyber Innovation Hub.
Enrolled 22 graduate recruits on to the 2024-2025 programme.
Successfully delivered two five-week bootcamps, one in coding and the other in business.
Continued to develop Alacrity Foundation's network of project and mentoring partners.
Maintained the financial viability of operations through sound fiscal management.
The Foundation made a surplus of £242,765 (2024 - £25,858) during the year. Included in the income and expenditure account for the year is an impairment loss on investments of £27,200 (2024 - £65,246).
As at 31 March 2025, the Foundation reported retained funds of £1,133,415 (2024 - £890,650). Surplus funds will be allocated to the recruitment of additional graduates (over the projected 18 per cohort) and other improvements to the programme delivery as the current funding round moves towards completion.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Under the Memorandum and Articles of Association the charity has the power to invest for the furtherance of the charity's principle activity. All investments comply with the Charity Commission guidelines.
The Trustees, having regard to the liquidity requirements of the charity have operated a policy of keeping surplus cash balances as liquid as possible and any surplus balances will be invested in fixed term deposit accounts that can be accessed easily when needed.
The objectives going forward into the next year are:
To further develop and implement the Alacrity Foundation programme.
To continue to enhance the breadth and quality of entrepreneurship training for the teams.
To develop a network of strategic partners for team projects.
Maintain relationships with Higher Education providers.
To expand the operations of the Foundation in terms of its range of programmes and geographic coverage in the UK.
To further develop the Cyber Innovation Hub programme.
To be a catalyst in connecting businesses to create a community hub within Newport.
Develop a more focussed and intentional stakeholder network linked to mentors and investment.
The Alacrity Foundation ('the Foundation') is a registered charity and is governed by a Board of Trustees that oversees the following activities of the Foundation;
1. To agree and regularly monitor the Foundation's strategic directions and ensure that it pursues its stated objectives.
2. Ensure that the organisation functions within the legal, charitable and financial requirements of a charitable organisation.
3. Setting overall policy, defining goals, setting targets, and evaluating performance against agreed targets.
4. To ensure the financial stability of the organisation and the proper investment of funds in accordance with the Foundation's stated aims and objectives and relevant legislation.
The executive team's purpose is to implement strategies and conduct activities in accordance with the overall objectives of the Foundation and appropriate steer and governance from the Board of Trustees.
As Chairman, Simon Gibson is a founding member of the Board of Trustees with responsibility for overseeing the executive team of the Foundation and providing strategic and operational support for its activities. He is also responsible for stakeholder relationships and developing funding streams for the Foundation.
graduates and create a new generation of British technology-based companies. The Alacrity scheme is based on a proven methodology for commercialising technology and creating successful entrepreneurs.
The trustees for the year are as follows:
Complying with the statement of recommended practice (SORP) (2015), Trustees are appointed, inducted and trained transparently, effectively and efficiently.
The Articles of Association state that there shall not be more than seven Trustees and they shall be appointed as follows:
one may be appointed from time to time by Wesley Clover (for as long as Wesley Clover remains a Member);
one may be appointed from time to time by the Welsh Ministers (for as long as the Welsh Ministers remain a Member);
one may be appointed from time to time by the Trustees of The Waterloo Foundation (for as long as the Trustees of The Waterloo Foundation remain a Member); and
The Trustees may, with the prior written approval of Wesley Clover and the Welsh Ministers (in each case for as long as such party shall remain a Member), appoint any other person as a Trustee.
The Articles of Association also require that there are not less than three Trustees at all times and the Trustees shall from time to time, subject to the consent of Wesley Clover and the Welsh Ministers (in each case for as long as such party shall remain a Member), appoint one of their number as Chairman.
Where an annual general meeting is held it shall note the retirement of those Trustees who have retired during the previous financial year and the appointment of replacement or additional Trustees. There were no changes in the composition of the Board of Trustees in the period.
Care is taken to ensure that the Trustees should have the diverse range of skills, experience and knowledge needed to run an organisation effectively and Trustees ensure that they receive the necessary induction, training and on-going support they need to discharge their duties.
The trustees, who are also the directors of Alacrity Foundation for the purpose of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In accordance with the company's articles, a resolution proposing that Kilsby & Williams LLP be reappointed as auditor of the company will be put at a General Meeting.
The trustees report was approved by the Board of Trustees.
Opinion
We have audited the financial statements of Alacrity Foundation (the ‘charity’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the trustees report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of trustees responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Kilsby & Williams LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Alacrity Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is Alacrity House, Moderator Wharf, Kingsway, Newport, NP20 1HG.
The financial statements have been prepared in accordance with 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 financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors 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.
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.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding-up is limited to £1.
None of the trustees received any remuneration or benefits from the charity during the year or previous year.
The average monthly number of employees during the year was:
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 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.
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.
During the year, it was identified that there existed an error in the calculation of the impairment charge relating to the mixed motive investments in the prior year. An incorrect methodology has been applied, resulting in an overstatement of the impairment loss of £29,346 in the Statement of Financial Activities for the year end 31 March 2024.
This error has been corrected by retrospectively restating the comparative figures. The effect of this adjustment is to reduce the charitable expenditure in the prior year by £29,346 and increase the carrying value of the investments and total funds by the same amount as at 31 March 2024.
During the year, the Charity identified a classification error relating to the treatment of certain income streams in the prior year. Income totalling £1,016,167 had previously been recognised within unrestricted income, but on review it was determined that the associated funding carried restrictions on its use and should have been classified as restricted income. The related expenditure has also been reclassified as restricted.
As a result, the comparative figures for the prior year have been restated to reflect this correction. This restatement has no impact on the total net movement in funds or the total funds carried forward for the prior year, and no restricted funds were carried forward at the year end. The adjustment affects only the split between restricted and unrestricted income and expenditure.
There were no disclosable related party transactions during the year (2024 - none).
The charity had no material debt during the year.