The Trustees present their annual report and financial statements for the year ended 31 March 2025.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
The charity’s objects are to advance the Christian faith by such means as the charity shall determine from time to time.
Kings Church is a Bible believing charismatic Christian church. We seek primarily to honour and worship God – Father Son and Holy Spirit, and to follow God’s leading and direction in mission. We are members of the Evangelical Alliance and are part of the Catalyst network of churches within the New Frontiers family.
The mission statement of the church is “We want to see lives and the Heathfield area transformed into all God has for us”. Over the year we have continued to see the church grow and as a result God’s transforming power in the lives of individuals and families.
Our main activities are to run a variety of meetings that:
Focus on worship and prayer
Teach the Bible
Advance knowledge of the gospel in the Heathfield area
Promote a strong sense of community
Provide activities for children and young people
We implement these activities to respond to the spiritual and material needs of the communities in the Heathfield area and amongst our friends in the wider international scene.
Public benefit
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
As a church we continually look for new ways to connect with the communities around us and actively sow into our mission statement. We have made some great new connections through our local monthly gatherings, seen growth in relationships through the community garden project in Horam, and via some of our local primary schools in particular. We have also connected with local care homes, with one of our groups now holding a monthly meeting for residents who can no longer attend external church services in person.
We use the hall to host numerous community events throughout the year, including mid-week fitness classes, youth groups, craft fairs, seasonal events such as Christmas markets and choral society concerts. We also serve as a venue for the Heathfield Chamber of Commerce to meet regularly, to assist local businesses with networking and advice. We are in close contact with leaders of local organisations to explore how we can further serve in these areas where possible.
Another key part of our outreach work is the Alpha courses that we host at State Hall, which typically run for 7-8 weeks at a time. These provide a forum for newcomers and guests to come and explore faith and what we can potentially offer as a church. We have increased the frequency and profile of these courses, now hosting three every year, and have seen significant growth in attendance, with some guests now attending the Church regularly as a result.
We continue to run various childrens and youth activities. With ever-increasing numbers of young people in the church, we have taken the step this year of employing a full-time youth worker, Jessie Vince. Many of the events that we run are not exclusive to church members, and we see this as an opportunity to invest in our local youth as a whole alongside the young Christians already in our church. We run a regular youth group on Thursday evenings for high-school ages, and a Friday afternoon meeting for primary school children immediately after school. Both have proved very popular with children both inside and outside of Church membership. We partner with another local church to send a large group of children (aged 12+ years) to Newday camp for a week in the summer, fully supported and supervised by our youth work leaders.
Charitable Work
We partner with the Christmas shoebox appeal run by the Samaritans, who send boxes of Christmas gifts to children all around the world who may be experiencing extreme poverty or war. We serve as a main collection point for local donations to the scheme.
We have made financial contributions to churches overseas that we continue to have contact with, including in some countries where practising Christianity is politically sensitive or subject to persecution.
Noakes Café
Noakes café continues to trade as an independent entity, albeit wholly owned by the church. Like all businesses in the hospitality sector, trading conditions have become increasingly challenging over the last 12 months, in spite of some relief from the previous energy cost pressures.
It is well-established with a good reputation in the town and has proved to be a great asset for hosting Alpha Course evenings, a youth workspace, and generally increasing the profile and use of the building during the week beyond Sunday morning meetings. We continue to see the café as a key vehicle for outreach and connection in the community, and are closely monitoring finances on a monthly basis to ensure it remains a viable business in its own right.
The broad aims of the café remain the same: to further the charitable work of the church by giving away any profits to local causes; to see the Christian faith advance by making the building more attractive and welcoming to visitors; and to be a place of employment and training within the town.
Volunteers
A great deal of the church’s work, both serving the church and the wider community, is undertaken by volunteers who are members of the church. The Trustees are deeply grateful to them for their commitment in time and energy.
The church recorded a surplus of £32,732 during the year (2024: surplus of £2,931). This surplus is expected in order to have funds to cover the anticipated increase in salary costs in the coming year. General unrestricted funds at 31 March 2025 amounted to £345,239 (2024: funds of £312,507).
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 three 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. Reserves at the balance sheet date amounted to £30,801 which is below planned levels. The Trustees are looking to increase reserve levels in the next accounting period.
The Trustees 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. A rolling review program is being put in place to ensure that our policies and procedures are kept up to date with help from external consultants.
The charity is a company limited by guarantee and governed by a Memorandum and Articles of Association. The charity registration number, principal address details plus names and addresses of our advisors are listed on the information page of these accounts.
The Trust acts as the legal umbrella for the work of Kings Church Heathfield. The church is affiliated to the group known as Catalyst Network of Churches.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Val Joy has resigned as a trustee this year after many years of committed service, and we thank her for all that she has contributed over that time.
New Trustees are elected by the majority vote of members at the Annual General Meeting. Suitable training is provided.
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £10 in the event of a winding up.
The Trustees meet regularly and deal with the management of the church.
The day to day activities of the church are delegated to the church leadership team supported by office staff. The leadership team report to the Trustees on a regular basis.
The Trustees' report was approved by the Board of Trustees.
The Trustees, who are also the directors of KC Heathfield 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.
I report to the Trustees on my examination of the financial statements of KC Heathfield (the charity) for the year ended 31 March 2025.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
Since the charity’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. I 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 that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the Companies Act 2006.
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
KC Heathfield is a private company limited by guarantee incorporated in England and Wales. The registered office is Chantry House, 22 Upperton Road, Eastbourne, East Sussex, BN21 1BF.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 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 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 unless the funds have been designated for other purposes.
All monies given to the Church were for the General fund. The Church does not have any restricted funds.
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 is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Income from trading activities includes sales from our coffee shop, Noakes. Income via Noakes is recognised when received.
Expenditure is recognised when there is an obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the appropriate heading and includes irrecoverable VAT.
Expenditure relating to events is recognised when the event occurs.
Grants and donations to third parties are recognised when paid.
Property, fixtures and equipment 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 basis:
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.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its 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 trade and other receivables 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 trade and other payables 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 payables 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 payables 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.
Where material, 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.
In the application of the charity’s accounting policies, the Trustees 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 total aggregate donations received by the charity from its trustees and related parties amounted to £23,195 (2024: £26,764).
The average monthly number of employees during the year was:
The remuneration (wages and employer pension contributions) of the two key management personnel is as follows.
£37,318 was also paid to the two key management personnel for the provision of manse accommodation (2024: two key management personnel received £34,963 for manse accommodation).
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The Charity has elected to use a previous GAAP revaluation (31 March 2008) of its freehold property as the deemed cost of that property on the transition date in accordance with the transitional provision contained in section 35.10 (d) of FRS102. The value used was provided by Stiles Harold Williams on an 'existing use basis with vacant possession' in accordance with the RICS valuation standards 6th edition.
The bank loan with Barclays Bank Plc is secured by legal charge over State Hall, Station Road, Heathfield, East Sussex. The interest rate on the loan is the Bank of England base rate plus 2.9% and it is due to be fully repaid in 2026-27.
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
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.
The church rents a manse for each of the two paid elders/pastors of the church on a rolling monthly basis.
There were no disclosable related party transactions during the year (2024 - none).
Details of the charity's subsidiaries at 31 March 2025 are as follows: