The directors present their annual report and financial statements for the year ended 31 July 2025.

Established in 1994 as a Specialist Supported Housing Provider PFL became a Registered Housing Provider in 2013.

The principal activity of the company continued to be that of a housing provider.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Partners Foundation's Philosophy Is "Working Together"

Managing Directors Report August 2024 - July 2025

Partners Foundation Limited’s philosophy is “Working Together” “Making a Difference” and being “Tenant Centred” by putting our current and future tenants at the centre of everything we do.

Partners Foundation Limited (PFL) are a Registered Specialist Supported Housing Landlord, managing accommodation which provides tailored tenancy support services for people with varying physical disabilities, learning disabilities, mental health issues and other complex needs.

Our approach is to provide each of our tenants a home for life with suitable accommodation opportunities within a local community for their future, enabling them to live as independently as possible. It is our firm belief, regardless of an individual's circumstances and needs, that they have a right to a meaningful and fulfilling life, in a home they love and that meets their needs. We do all we can to make this an ongoing reality for our current and future tenants.

Our values, PFL HEROES (Passionate about independent choice, Flexible, Listening, Honesty, Equality and Rights, Openness, Engagement and Support) and understanding our tenants needs enough to ensure that the care provided is always to a high standard, so that our tenants will be empowered to achieve their own goals in life. PFL’s values system is based on our desire to create a living environment our tenants are happy to call their home. We reinforce this by striving to provide welcoming and accepting environments for all our tenants, tailored specifically to their wants and needs.

We believe very much in the sanctity of human life, human dignity and human rights and ensure that the whole company operates with these beliefs and our values, guiding our working day. Making tenants lives thrive is something which is the motivating factor for every decision we make as a company. We are not afraid to be different; that's how we make a difference. We pride ourselves on providing housing which meets our tenants needs and allows longevity and sustainability.

We operate a national base of housing stock, working with key partners and stakeholders in 44 Local Authorities with 37 support providers, to create a smooth process for new tenants making the transition into their new home. Most importantly working with our tenants, their families, and local communities to ensure their needs and requirements are met whilst maintaining good neighbour and community connections.

Growth and Future Plans

We continue to grow by providing housing where there is support from the local commissioners, care providers and a recognised need for a specific scheme or service, and which aligns with the Local Authorities housing requirements. We remain committed to the right property in the right location for the right reasons.

We aimed to provide 3 new schemes in this financial year and successfully delivered 19 new build apartments in Liverpool.

Due to unexpected delays out of our control the 14 new build apartments in Wigan and 20 new build apartments in Rochdale have been delayed and will now complete in our next financial year.

We continue to develop 18 new build apartments in Mansfield and at the latter end of the year we began discussions with a new Local Authority to become landlord of 41 existing tenants within Tameside.

More information on our financial viability and value for money is contained later in this report, this area is monitored closely, and we continue to move in a positive direction with appropriate capital reserves in place.

Governance and Compliance

We confirm we work within the Nat Fed Code of Governance 2020 and are compliant with the code.

Health & Safety

We continue to put the safety of our tenants at the forefront of what we do, ensuring our properties are compliant with the Health and Safety Regulations covering properties, tenants and staff.

We have robust monitoring systems for compliance with fire, gas, electrical, legionella, asbestos and lift safety and report to our tenants via our newsletter and website on how we are performing against our targets.

We continue to invest in an improved IT infrastructure to strengthen our monitoring and reporting to ensure compliance with current and future regulatory changes.

In addition to property related issues, we take very seriously the individual personal health and safety of our tenants, and we monitor and review their needs and wellbeing, reporting to our Board on any incidents of concern /​ risk.

Our health and safety framework extends into the working environment for PFL's employees, with the offices having a trained Mental Health Officer, ensuring we are fully compliant with the government working guidelines. We continue to have in place working from home, keeping all employees equipped with the facilities to do so.

We have responded quickly to reports of condensation, damp, mould, and mildew working closely with our tenants to provide advice, action and assistance as necessary. We continue to take all reports seriously and are developing our systems to ensure that we will be fully compliant with Awaab’s Law which we understand will be enforced next year

We continued to engage with TIAA carrying out 4 independent Audits including Day to Day Maintenance, Risk Management, Key Financial Controls and Tenant Performance Measures, the reports and findings have been presented to our Board. We continue to evolve our procedures implementing the good practices and recommendations from the reports. We will continue to engage with TIAA for the next 3 years auditing different aspects of the business.

Customer Satisfaction and Engagement

With over 30 years' experience of providing specialist supported accommodation, we know it is vital, to listen and learn and continually seek to adapt and improve our services for the benefit our tenants.

PFL focuses on Tenant Satisfaction Measures (TSM's) and embraced these, seeking feedback from our tenants on how we may best serve their needs now and in the future.

We engage on a regular basis with Acuity benchmarking to receive data on how well we are performing against our peers. We review of our practices to continually improve our services.

We continue to publish interesting and useful information via our website and social media channels and back this up with our tri- annual tenant newsletter which every tenant will receive.

We have continued our TPAS, Tenants Participation Advisory Service membership, and our team continue to attend courses, seminars, and online training, disseminating best practice to the rest of the PFL team.

Risk Management

The Board and Senior Management are aware of the need to continually assess and understand any potential risks to the long-term viability of the business.

A comprehensive Risk Management Framework is in place to ensure robust controls and safeguards exist to protect the business operations and its reputation.

Financial compliance and Audits

We have reviewed our loan facility and have restructured our payments to discharge this debt by September 2027.

We have strong financial reporting compliance and communicate with Board Members and our Accountants to review the financial information produced. Additional notes within the financial statements have been added to explain new aspects of the accounts and why certain provisions have been put in place.

We are compliant with the RSH in terms of Nrosh reporting and quarterly returns. There have been no requirements for audit from the regulator this year.

Having robust systems to monitor income and expenditure with multiple processes in place provide us with early warnings of any possible rent arrears. This year's unrecoverable arrears were under £4k

Following last year’s property purchases from our reserved funds, we continued to replenish our reserves and met our annual target.

We successfully completed within budget, our planned maintenance programme with £1.03m spent on property improvements and repairs, health and safety and fire safety works. Over the next 5 years we have planned to increase these budgets to enable us to deliver our programme of repairs, planned maintenance works, fire protection and EPC improvement.

Key Performance Indicators

Each department within PFL is required to report on their KPI's at specific intervals providing data to all levels of the PFL team. The information is reviewed by Senior Management and actions implemented as appropriate. KPI's are reported to our Board at each meeting with any issues being highlighted together with a clear action plan.

Financial Forecast and Planning

Throughout the year we focused on 5 key areas:

Property compliance/​maintenance - We have delivered 100% of the work planned on our stock condition programme, maintaining properties to regulatory standard or higher, and within budget.

Voids – we have had a challenging year controlling rising voids and carried out an extensive review of all voids to implement a structured plan of action to reduce our void levels from 10% to our target of 5%. We continue to address all voids utilising individual strategies for each property.

Managing Leases – in managing our lease renewals we have focused on less onerous terms, maintaining a balanced risk with our superior landlords, whilst we continuing to meet all our obligations.

Growth - We continue to seek opportunities to increase our housing stock – with an emphasis on owned stock, although we have focused on reducing our loan facility on the properties we own, with the plan to discharge the loan fully by September 2027.

Finance - Weekly reviews of the financial position of the business are undertaken by the Directors with the finance team. Individual assessments of each development project follow agreed guidelines which include a strict development approval policy and team development checklist. Monthly Management accounts are produced, and quarterly reports presented to the Board.

Our business and financial plans are continually reviewed and updated by both Senior Management and our Board.

Succession planning: looking at the company structure and future staff development, the Managing Directors have been working on PFLs succession plan and will continue into the next year focusing on replacement staff, staff progression, any skill gaps.

Disclosure of provisions

From the provision in last year’s accounts (£176k), we have now discharged these liabilities with a final settlement of £42k inclusive of VAT. There are no further provisions for this year.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006, with respect to accounting records and preparation of accounts.

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

Value For Money

The RSH for Social Housing (RSH) published the Value for Money (VfM) standard which came into effect from April 2021 and applies to all private Registered Providers (RPs) from that date irrespective of their size. Some exceptions are made to certain aspects of reporting depending on the total amount of units held by the provider and their core activities. With regards to PFL we have adhered to all standards and comparisons relating to Supported Housing Providers with less than 1000 units. We are defined as a Supported Housing Provider, as more than 70% of our stock is for Supported Housing.

However, the RSH stated:

"We expect providers to follow all the requirements of the new VFM Standard, including reporting on metrics. But while boards should assure themselves that their 2024/​25 accounts are based upon the requirements of the new rather than the old Standard, we recognise that this may not be possible for every reporting requirement."

PFLs financial year runs August to July, therefore PFL are able to publish the new metrics for the year 2024/​25 with comparisons against the previous year data set of returns submitted to the regulator for that period. These comparisons are shown below in the benchmarking and average weighting sections of the table. As required, we produce VFM's for the regulator and we have shown our VFM's for the previous period along with the industry comparisons. The metrics are listed in the table below along with the Sector Scorecard averages for supported housing providers from NROSH+ 2025 statistical return. This is to show we have a fair and reliable assessment of our own performance.

Value For Money Metrics.

Both the previous and new standard set the expectation that VfM should be a key strategic objective for Registered Providers. The requirements of the VfM Standard include reporting on a set of metrics defined by the RSH alongside any additional VfM performance targets identified by PFL as it develops its Performance Management Framework. There is an obligation to include reporting on those metrics with the 2024/​25 financial statements regardless of unit volume or business type, and all regulated social landlord will be doing the same.

PFL have complied with all their borrowing agreements. Our aim is always to create Value for Money through strategic planning whilst never compromising our beliefs and values, which focus on our end users and their quality of life. The main purpose is to continually use any surplus funds to improve the current quality of stock and provide new homes across the country, allowing individuals to enjoy independent or supported living.

As we forecast and review our cash flow weekly, we assess the financial situation and always look to reduce our outstanding liabilities wherever possible. Likewise, should we see an opportunity to further develop our stock or invest in a new scheme, which could provide further homes, this would take priority over any early repayment of debt.

This statement provides PFL's report for the period 1st August 2024 to 31st July 2025.

Table 1 - Value for Money Metrics

PFL's performance compares favourably against the supported housing benchmarking data for 2024/​25. As a small provider of 421 predominantly supported housing units, some of our metrics are significantly different to the sector averages which is detailed in the sector scorecard analysis report from 2025 return.

1. Required Matrix.

The RSH prohibits changes to the required metrics. However, where a provider’s reported data is affected by a factor particular to that organisation, they can clarify this in their commentary accompanying the publication of their data.

2. Value for Money Standard

2.1 - Required Outcomes

Registered Providers must:

- Clearly articulate strategic objectives

- Agree an approach by their Board to achieving value for money in meeting these objectives and demonstrate delivery of VFM to stakeholders,

- Through strategic objectives, articulate strategy for delivering homes that meet a range of needs,

- Ensure optimal benefit is derived from resources and assets and optimise economy, efficiency and effectiveness in the delivery of strategic objectives.

2.2 - Specific Expectations

Registered providers must demonstrate:

- A robust approach to achieving value for money - this must include a robust approach to decision making and a rigorous appraisal of potential options for improving performance.

- Regular and appropriate consideration by the board of potential value for money gains - this must include full consideration of costs and benefits of alternative commercial, organisational and delivery structures

- Consideration of value for money across their whole business and where they invest in non-social housing activity, they should consider whether this generates returns commensurate to the risk involved and justification where this is not the case

- The organisation has appropriate targets in place for measuring and monitoring performance against the value for money matrix whilst at the same time ensuring delivery of their strategic objectives.

Registered providers must annually publish evidence in the statutory accounts to enable stakeholders to understand the provider's:

a) Performance against its value for money targets and any metrics set out by the RSH, and how that performance compares to peers

b) measurable plans to address any areas of underperformance, including clearly stating any areas where improvements would not be appropriate and the rationale for this.

Metric 1 - Reinvestment %

This metric looks at the investment in properties (existing stock as well as New Supply) as a percentage of the value of total properties held.

PFL strive to keep this metric above the average through a commitment to growth by upgrading and refurbishing our existing property stock. acquiring additional properties and undertaking new schemes. This year our focus was on new developments and filling current voids, the new developments have progressed throughout the year but failed to fall within the financial year.

With new schemes and refurbishment plans in the pipeline, we are expecting significant improvement in this metric in the next financial year.

Metric 2 - New supply delivered %

The New supply metric sets out the number of new social housing units that have been acquired or developed in the year as a proportion of total social housing units and non-social housing units owned at period end. In this instance a "Unit" is a tenancy agreement not a property. E.g. - a 4-bedroom property can be 4 units. We missed our target due to new developments not completing in this year. We also exited our interest in a number of long-term void properties and stock which we assessed as not fitting with our future strategy, with the tenants moving to other properties we own or manage where possible. If we assess a long-term void as not meeting our future strategy needs we have activated hand back clauses for those properties.

Metric 3 - Gearing %

This metric assesses how much of the adjusted assets are made up of debt and the degree of dependence on debt finance. Our gearing for 2025 reduced compared to the previous year as we utilised our cash reserves pay down the variable loan quicker and on advantageous terms which helped reduce the interest charges significantly. Doing this will also see us clear the debt before the refinancing date.

Our strong cash balances are clearly a large contributing factor to our gearing ratio being well below the norm for the industry sector.

We remain committed to generating a cash surplus whilst assessing the need to take on additional debt as the Board deems appropriate but with a continuing emphasis on maintaining a low gearing ratio.

We expect our gearing ratio to remain at zero next year with no plans to enter into further financial debt facilities.

Metric 4 - Earnings Before Interest, Tax, Depreciation, Amortization, Major Repairs Included (EBITDA MRI) Interest Cover %

The EBITDA MRI interest cover measure is a key indicator for liquidity and investment capacity. It seeks to measure the level of surplus that a registered provider generates compared to interest payable. It seeks to demonstrate how comfortably PFL is covering its interest costs. As can been seen, our interest cover is well ahead of our industry sector peers.

We review our expenses on a regular basis to ensure we operate efficiently. Smaller repairs and development works needed to bring properties up to a rentable condition will continue to be expensed and this is where we have seen the main deviation from the budget. The result for this period shows the focus we have had on reducing unnecessary expenses, along with strengthening of our financial planning. Overall interest charge has also decreased due to our over payments and increased cash surplus.

Metric 5 - Headline social housing cost per unit

The unit cost metric assesses the headline social housing cost per unit as defined by the RSH.

The cost-of-living crisis continuing has seen a significant rise in fuel bills and ESG compliance has required increases in maintenance and certifications. We have continued our extensive planned maintenance on properties with some costs being higher than planned and we have had recruitment issues with internal handymen. This has resulted in higher costs with us paying external contractors to do some of the works. However, current staffing is working well now that we have employed new handymen.

Although these figures are high in comparison to some other regular housing providers, the RSH realises that due to the specific requirement for supported housing and the tenants, their average unit cost will be much higher. This is the case for PFL who have come in under the sector average for supported housing.

Our target for this year was £11,898 which we bettered, and we expect this to increase again next year due to expected further increases in expenses and overall volume of work that we will be adding to our portfolio. This will allow us to spread these costs over more units also.

Metric 6 - Operating Margin %

The Operating Margin demonstrates the profitability of operating assets before exceptional expenses are considered. Increasing margins are one way to improve the profitability of a business.

Disappointingly, we were above the sector norms as we expensed most of our repairs and suffered from increases in our lease costs which were higher than expected due to CPI rates and the refusal of some landlords to cap costs in line with the rent standard ceilings we must apply.

Our continued focus is on reducing void numbers as we seek to improve our performance against this metric.

Metric 7 - Return on capital employed (ROCE)

This metric compares the operating surplus to total assets less current liabilities and is a common measure in the commercial sector to assess the efficient investment of capital resources. The ROCE metric supports registered providers with a wide range of capital investment programmes.

We are focused on maximizing our trading surplus’s whilst adding new units to our portfolio from a mix of owned or leased properties.

We will continue to review our strategy utilising the VFM matrix as we seek to build a robust and sustainable business. As can be seen from our metrics we have succeeded in achieving everything barring two metric for this period, which were not surprises due to our diligent efforts to provide the correct developments regardless of timing against plans. We continue to work efficiently as we develop further new supply along with maintaining customer focus, decent homes standards and meeting all financial requirements. Our main belief and values are completely focused on the tenants and the people.

Strategy

The VFM strategy is to provide a strategic plan that delivers value for money based around 3 classic components -

Economy - minimising the costs of resources used while not compromising on quality.

Efficiency - the output of goods or services and the relationship between the resources used to produce them.

Effectiveness - The extent to which objectives are achieved and the relationship between intended and actual results.

PFL continually reviews its performance to ensure the VFM strategy is exceeded. As can be seen from our metrics we have succeeded in this goal. Our adherence to the economic strategy is driven by savings in maintenance and repairs costs whilst maintaining service and standards. We continue to work efficiently as we develop new supply along with maintaining customer focus, delivering strong financial performance and liquidity.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

For the financial year ended 31 July 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Partners Foundation Limited is a private company limited by shares incorporated in England and Wales. The registered office is Wigan Investment Centre, Waterside Drive, Wigan, Lancashire, England, WN3 5BA.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

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 credited or charged to profit or loss.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The average monthly number of persons (including directors) employed by the company during the year was:

Bank loans of £1,387,025 (2023 - £1,355,402) are secured against the properties to which they relate.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up.