REGISTERED COMPANY NUMBER: 02304489 (England and Wales)

REGISTERED CHARITY NUMBER: 1003257

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

HASTINGS FURNITURE SERVICE LTD.

Page

Report of the Trustees

1

to

5

Independent Examiner's Report

6

Statement of Financial Activities

7

Balance Sheet

8

to

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

to

21

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

Objectives and aims

Introduction

HFS is the local independent furniture & electrical reuse charity that has been fighting furniture poverty in Hastings & Rother since 1988.

Our Vision - We believe every person, across Hastings and Rother, should have a bed to sleep on, a cooker to prepare basic meals with, and the essential furniture to create a comfortable, safe home.

Our Mission - To help alleviate poverty by providing low-cost quality re-used furniture and electrical goods to low-income households; creating opportunities to enable individuals to improve their lives; diverting waste from landfill and reducing CO2 emissions.

What is furniture poverty?

Furniture poverty, including white goods, is the inability to access, or afford to buy or maintain, any household furniture or appliance item that is essential to achieve a socially acceptable standard of living.

For example:

- Without a cooker or microwave, families relying on food banks cannot safely prepare the food they are given.

- Without a fridge, donated fresh produce often perishes before it can be eaten.

- Without a bed, families end up sharing mattresses or sleeping on the floor.

HFS plays a crucial role in ensuring that vulnerable households have access to these essentials.

Our Volunteers

Volunteers remain at the heart of HFS. In 2024-25, over 45 individuals contributed almost 14,000 hours, their skills, and energy across our stores, logistics, and community programmes.

Their contribution enabled us to support thousands of households, deliver starter packs, and divert nearly 150 tonnes of furniture and electricals from landfill. Many volunteers progress into employment or further training, while others find renewed confidence and community connection. Without them, HFS could not deliver services at the scale or quality achieved this year.

STRATEGIC REPORT

Achievements and performance

Charitable activities

What We Do

HFS currently operates two stores:

o HFS Essentials - Our core retail outlet offering reused furniture and electricals at affordable prices, with up to 50% discount for low-income households.

o HFS Eco-living - Launched in 2024, this new store sells donated antique and mid-century pieces, supporting financial sustainability while promoting reuse and the circular economy.

We run volunteer employment programmes that provide practical opportunities for local people to gain skills, experience, and confidence.

We also provide essential starter packs - bedding, cooking utensils, toiletries, and cleaning products - for families moving into social housing, refugees being resettled, and women and children leaving refuges.

Impact in 2024-25:

- Supported over 4,100 households.

- Delivered household savings of nearly £500,000

- Prevented 147,875kg of CO2 emissions - equivalent to 370,000 miles driven in a petrol car, powering 18,000 LED bulbs for a year, or the absorption capacity of 6,700 mature trees.

A Year of Strategic Renewal

The 2024-25 financial year marked a turning point for HFS.

- Sale of the Bexhill site, with proceeds ringfenced for future investment.

- Launch of Eco living, diversifying income streams.

- Acquisition of a new van through National Lottery and Clothworkers' Foundation grants.

- Appointment of five new trustees following strategy away days, bringing fresh expertise and renewed energy.

Strategic Aims

1. People - Inspire staff and volunteers, ensuring they feel empowered, valued, and involved.

2. Services - Increase access to affordable reused furniture and develop initiatives to help people move beyond poverty.

3. Environmental - Lead locally on tackling climate change, aiming to be climate positive.

4. Community - Work in partnership to reduce poverty and its impact.

5. Awareness Raising - Campaign to end furniture poverty and challenge throwaway culture.

6. Performance - Diversify income streams, expand fundraising, and broaden partnerships with the commercial sector to reinforce financial resilience and community impact.

Financial review

Significant Events Affecting Financial Performance

- Sale of the Bexhill site.

- Launch of Eco living.

- Rising operational costs (fuel, utilities, insurance).

Financial Effect of Significant Events

- One off gain from property sale ringfenced for future investment.

- Eco living generated new unrestricted income.

- Inflationary pressures contributed to an operating deficit excluding the property sale.

Investment policy and objectives

- Proceeds from the Bexhill sale held in low risk deposit accounts pending reinvestment.

- Policy prioritises capital preservation, liquidity, and ethical alignment.

Reserves policy

- Amount of Reserves Held: £977,168 of which £404,742 are restricted and £325,000 is designated.

- Purpose: Safeguard against income volatility, cover unexpected expenditure, and ensure continuity of services.

- Designated Funds: Proceeds from Bexhill sale designated for future capital investment (expected within 3 years).

- Timing of Expenditure: Strategic reinvestment planned following board review in 2026.

Financial Sustainability

This year, our income and expenditure - excluding the one-off sale of the Bexhill property - shows a deficit. Rising costs and unpredictable funding have tested resilience.

We have taken decisive steps: streamlining operations, diversifying income, investing in Eco living, and plan to expand fundraising, and strengthen commercial partnerships. Our focus is on growing earned income and reducing reliance on grants, with a clear commitment to long term sustainability.

Principal risks and uncertainties

- Volatility in grant funding and donations.

- Rising costs of transport and utilities.

- Dependence on donated stock quality and volume.

- Competition from commercial second hand retailers and social media platforms such as Facebook Marketplace.

- Future uncertainty around the single East Sussex unitary proposal, which may reshape governance, funding priorities, and commissioning.

Mitigation Strategies: diversifying income, strengthening retail offer, investing in volunteer and staff development, maintaining prudent reserves, and proactive engagement with local authority partners.

Our Future Plans

Building on our six strategic aims, HFS plans to:

- Expand Eco living and explore online sales to reach wider audiences.

- Invest in volunteer training and pathways into employment.

- Develop climate positive initiatives to further reduce CO2 emissions.

- Campaign regionally to raise awareness of furniture poverty.

- Strengthen and broaden partnerships with the commercial sector to generate additional income, secure in kind support, and build collaborative initiatives.

Conclusion

The 2024-25 financial year has been one of strategic renewal and forward momentum. Despite the financial pressures, HFS has continued to deliver vital services, strengthen governance, and invest in its future.

Through the dedication of staff, volunteers, trustees, and supporters, we have emerged stronger, more focused, and more determined than ever. With a renewed strategy, a clear commitment to financial sustainability, and our community at the heart of everything we do, we're ready to meet the challenges ahead.

Together, we will continue to tackle furniture poverty, champion environmental sustainability, and transform lives across Hastings and Rother - one household, one item, and one opportunity at a time.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, memorandum and articles of association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Organisational structure and governance

HFS is governed by a Board of Trustees who set strategic direction and oversee compliance. Day to day operations are delegated to the Chief Executive and senior management team. Decisions are made collectively at board meetings, informed by staff and volunteer input.

Induction and training of new trustees

New trustees receive structured induction covering charity law, governance responsibilities, and HFS operations. Ongoing training includes away days, external seminars, and peer learning.

Pay and Remuneration of Key Management Personnel

Remuneration is set by the Board of Trustees, benchmarked against NJC pay scales and local charity sector norms. Parameters include affordability, fairness, and alignment with HFS values.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

02304489 (England and Wales)

Registered Charity number

1003257

Registered office

6-10 Dorset Place

Hastings

East Sussex

TN34 1LG

Trustees

J Alexander

P C Courtel

(appointed 12/4/2024)

Ms C Davies

Ms J Everard

Ms E Hughes

(appointed 12/4/2024)

M P Johnson

(appointed 12/4/2024)

Lord B R Mclean

(resigned 10/12/2024)

N A Porter

(appointed 12/4/2024)

Dr S Gill

(appointed 10/12/2024)

Company Secretaries

A S Burnett

Ms K Davidson

Independent Examiner

Gibbons Mannington & Phipps LLP

Chartered Accountants

Landgate Chambers

24 Landgate

Rye

East Sussex

TN31 7LJ

Solicitors

Emin Read Solicitors

42 crown Road

St Margarets

Twickenham

TW1 3EH

Banks

Lloyds Bank plc

25 Gresham Street

London

EC2V 7HN

CCLA

One Angel Lane

London

EC4R 3AB

Chief Executive

Kate Davidson

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 23 December 2025 and signed on the board's behalf by:

Ms C Davies - Trustee

Independent examiner's report to the trustees of Hastings Furniture Service 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 Association of Chartered Certified Accountants, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

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.

Joseph Greenslade FCCA

Gibbons Mannington & Phipps LLP

Chartered Accountants

Landgate Chambers

24 Landgate

Rye

East Sussex

TN31 7LJ

23 December 2025

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

3

259

-

259

730

Charitable activities

5

Furniture projects

224,005

13,600

237,605

335,799

Contract

59,848

-

59,848

72,123

Workspace hub

8,751

-

8,751

35,577

Investment income

4

8,943

-

8,943

3,841

Other income

388,462

-

388,462

-

Total

690,268

13,600

703,868

448,070

EXPENDITURE ON

Raising funds

6

7,930

-

7,930

8,792

Charitable activities

7

Furniture projects

381,946

25,563

407,509

412,666

Contract

23,913

-

23,913

69,754

Workspace hub

-

-

-

23,251

Total

413,789

25,563

439,352

514,463

NET INCOME/(EXPENDITURE)

276,479

(11,963

)

264,516

(66,393

)

RECONCILIATION OF FUNDS

Total funds brought forward

295,947

416,705

712,652

779,045

TOTAL FUNDS CARRIED FORWARD

572,426

404,742

977,168

712,652

2025

2024

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

14

1,023

404,212

405,235

698,307

CURRENT ASSETS

Stocks

15

4,909

-

4,909

3,684

Debtors

16

17,014

-

17,014

8,814

Cash at bank and in hand

563,528

530

564,058

99,894

585,451

530

585,981

112,392

CREDITORS

Amounts falling due within one year

17

(14,048

)

-

(14,048

)

(36,683

)

NET CURRENT ASSETS

571,403

530

571,933

75,709

TOTAL ASSETS LESS CURRENT LIABILITIES

572,426

404,742

977,168

774,016

CREDITORS

Amounts falling due after more than one year

18

-

-

-

(61,364

)

NET ASSETS

572,426

404,742

977,168

712,652

FUNDS

21

Unrestricted funds

572,426

295,947

Restricted funds

404,742

416,705

TOTAL FUNDS

977,168

712,652

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 23 December 2025 and were signed on its behalf by:

C Davies - Trustee

Cash flows from operating activities

Cash generated from operations

1

(132,732

)

(62,864

)

Interest paid

1,539

(6,300

)

Net cash used in operating activities

(131,193

)

(69,164

)

Cash flows from investing activities

Purchase of tangible fixed assets

(21,995

)

-

Sale of tangible fixed assets

690,000

-

Interest received

8,943

3,841

Net cash provided by investing activities

676,948

3,841

Cash flows from financing activities

Loan repayments in year

(81,591

)

(13,743

)

Net cash used in financing activities

(81,591

)

(13,743

)

Change in cash and cash equivalents in the reporting period

464,164

(79,066

)

Cash and cash equivalents at the beginning of the reporting period

99,894

178,960

Cash and cash equivalents at the end of the reporting period

564,058

99,894

1.	RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

2025

2024

£

£

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

264,516

(66,393

)

Adjustments for:

Depreciation charges

13,529

22,683

Profit on disposal of fixed assets

(388,462

)

-

Interest received

(8,943

)

(3,841

)

Interest paid

(1,539

)

6,300

(Increase)/decrease in stocks

(1,225

)

882

(Increase)/decrease in debtors

(8,200

)

1,694

Decrease in creditors

(2,408

)

(24,189

)

Net cash used in operations

(132,732

)

(62,864

)

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

99,894

464,164

564,058

99,894

464,164

564,058

Debt

Debts falling due within 1 year

(20,227

)

20,227

-

Debts falling due after 1 year

(61,364

)

61,364

-

(81,591

)

81,591

-

Total

18,303

545,755

564,058

1.	STATUTORY INFORMATION

Hastings Furniture Service is an incorporated charity, limited by guarantee, registered in England & Wales. The charity's registered number and registered office address can be found in the Report of the Trustees.

2.	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.

In preparing the financial statements, the trustees are required to make an assessment of the ability of the charity to continue as a going concern. On the basis of these forecasts and the fact that the charity has substantial net current assets and net assets, the trustees are confident that the charity has adequate resources to continue in operational existence and to meet its liabilities as they fall due for the foreseeable future. As a result of the above, the trustees have concluded that it remains appropriate to adopt a going concern basis of preparation in these financial statements.

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.

Freehold property

-

2% on cost

Fixtures and fittings

-

33% on cost

Motor vehicles

-

25% on reducing balance

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.

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

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.

3.	DONATIONS AND LEGACIES

2025

2024

£

£

Donations

259

730

4.	INVESTMENT INCOME

2025

2024

£

£

Deposit account interest

8,943

3,841

5.	INCOME FROM CHARITABLE ACTIVITIES

2025

2024

Activity

£

£

Furniture and removal income

Furniture projects

219,005

241,989

Grants

Furniture projects

18,600

93,810

Contract income

Contract

59,848

72,123

Rent received

Workspace hub

8,751

35,577

306,204

443,499

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

2025

2024

£

£

Grants

18,600

93,810

6.	RAISING FUNDS

RAISING DONATIONS AND LEGACIES

2025

2024

£

£

Staff costs

7,930

8,792

7.	CHARITABLE ACTIVITIES COSTS

Support

Direct

costs (see

Costs

note 8)

Totals

£

£

£

Furniture projects

314,533

92,976

407,509

Contract

23,913

-

23,913

338,446

92,976

431,422

8.	SUPPORT COSTS

Information

Governance

Management

Finance

technology

costs

Totals

£

£

£

£

£

Furniture projects

72,466

3,707

1,464

15,339

92,976

9.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2025

2024

£

£

Depreciation - owned assets

13,529

22,683

Surplus on disposal of fixed assets

(388,462

)

-

10.	INDEPENDENT EXAMINERS' REMUNERATION

31.3.25

31.3.24

£

£

Fees payable to the charity's independent examiners for the independent examination of the charity's financial statements

2,045

1,950

Fees payable to the charity's independent examiners for the independent examination of the charity's prior year financial statements

-

500

2,045

2,450

11.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2025 nor for the year ended 31 March 2024.

TRUSTEES' EXPENSES

There were no trustees' expenses paid for the year ended 31 March 2025 nor for the year ended 31 March 2024.

12.	STAFF COSTS

2025

2024

£

£

Wages and salaries

279,664

332,336

Social security costs

19,615

22,878

Other pension costs

6,084

6,032

305,363

361,246

The average monthly number of employees during the year was as follows:

2025

2024

Full time equivalents

10

12

No employees received emoluments in excess of £60,000.

The average number of employees during the year was 11 (2024 - 15).

The key management personnel of the charity received remuneration of £104,902 during the accounting period.

13.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

730

-

730

Charitable activities

Furniture projects

276,749

59,050

335,799

Contract

72,123

-

72,123

Workspace hub

35,577

-

35,577

Investment income

3,841

-

3,841

Total

389,020

59,050

448,070

EXPENDITURE ON

Raising funds

8,792

-

8,792

Charitable activities

Furniture projects

364,728

47,938

412,666

Contract

69,754

-

69,754

Workspace hub

23,251

-

23,251

Total

466,525

47,938

514,463

NET INCOME/(EXPENDITURE)

(77,505

)

11,112

(66,393

)

RECONCILIATION OF FUNDS

Total funds brought forward

373,452

405,593

779,045

TOTAL FUNDS CARRIED FORWARD

295,947

416,705

712,652