Foreword from the CEO

We have seen another year of real progress against a challenging backdrop. Over the past twelve months, we – along with our members – have contended with a combination of compounding factors, including heightened geopolitical unrest, a more fragmented nation, and an increasingly polarised society. The pressures on customers and organisations alike have been real and sustained, and the wider outlook remains as volatile and unpredictable as I can remember.

All of which makes The Institute's role as a unifying force for good all the more vital. In a climate that too often pulls people apart, service remains something that brings us together: a shared standard, a common language, and a practical means of building trust between our organisations and the customers we serve.

As I spoke about at our Annual Conference, and at the inaugural meeting of CEOs at our President's Dinner, we are here to support you, and the wider economy, in driving forward the Service Nation. That means helping our members become more efficient, more effective and more profitable, and proving, time and again, that service is not a cost to be managed but a business asset to invest in.

Our UK Customer Satisfaction Index remains the authoritative, independent barometer of how the nation feels about the service it receives. It continues to inform decisions in the boardroom, shape regulatory thinking, and provide our members with a verifiable, independent benchmark to better understand perceptions of their service proposition.

Alongside the UKCSI, our programme of member meetings, community events, member showcase days and regulator roundtables has given members the opportunity to peek behind the curtain, share what works, and make a difference.

And we need your help too. Every one of our members has clients, supplier partners and peers who would benefit from the work we do. I would ask each of you to help us grow The Institute, to extend our reach and enhance our influence, and to bring more organisations into a movement that is making a tangible difference to the country.

Behind the scenes, we have been working hard to ensure we have the right personnel, systems and infrastructure in place to deliver our promise to members. These investments mean we are better equipped than ever to serve you well, both now and in the years ahead.

Our role is to be a standard-bearer for the industry, acting as your critical friend when you need it most. Thank you for your ongoing support.

The Institute of Customer Service was formed in 1996 and incorporated as a company limited by guarantee in February 1997. The Institute is a not-for-profit professional body for customer service.

Our vision is to see a world where customer experience makes a positive and sustained impact on individuals, organisations, society, and the economic wellbeing of the UK.

Our mission is for The Institute of Customer Service to deliver tangible benefits to individuals, organisations and stakeholders. We are the leading independent expert, setting and upholding the standards to enable our customers to improve their business performance through service, so that the UK is seen as the place to experience great service and a valued expert on the global stage.

The Institute is also recognised as an expert in all aspects of customer service, and this is demonstrated through the provision of tangible benefits of membership including:

• knowledge, delivered through insight, research, advice and networking

• collateral to demonstrate that customer service is a harder-edge business driver

• training and assessments

• case studies

• bespoke research

• organisational and individual professional development

• benchmarking and insight

• customer service skills development

• qualifications and accreditation

• standard setting

• public policy development

Notable Achievements

We are committed to supporting the Government’s vision for Corporate Social Responsibility, specifically:

• Promoting business activity that brings simultaneous economic, social, and environmental benefits

• Encouraging innovative approaches and continuing development and application of best practices

• Ensuring the best minimum levels of performance in areas such as health and safety, the environment, and equal opportunities

• Creating a framework that facilitates business practices that balance financial success with achievement of social and sustainability goals

• Taking an active part in supporting the local community and social causes

GDPR Compliance

We continue to work to ensure our compliance with the UK GDPR. The Institute ensures personal data is handled and dealt with properly, however it is collected, recorded, and used.

Our data protection policy sets out how we seek to protect personal data and ensure that staff understand the rules governing their use of personal data to which they have access in the course of their work. We have been working to improve our systems, processes, and contracts to help achieve this. We have also worked with members and suppliers to maintain compliance across our supply chain.

Our privacy policy covers how organisations’ and individuals’ data are secured, covering both their right to data being kept private and their right to privacy from tele and online marketing, unless they have opted in to receive it. It also helps ensure The Institute complies with the Privacy and Electronic Communications Regulations (PECR) and that applies in conjunction with data protection legislation, such as GDPR.

Embarking on our new three-year strategy, our key strategic priorities in 2026/27 are:

1. Membership growth: deliver on the numbers and improve retention: Drive deeper membership engagement and uptake of products and services to demonstrate the tangible impact of membership and clearly articulated ROI. Ensure our value propositions remain fit for purpose and develop new services to meet the changing needs of our members. Deliver internationally for     Group members.

2. Embed ServiceMark: as the national organisational standard and demonstrate its impact in terms of improved customer satisfaction. The deployment of SM is scalable and cost-effective for larger organisations.

3. We continue to build profile and influence: We drive the case for the four pillars of the service     nation with high-profile coverage through all forms of media and channels.

4. We are the go-to place for Customer service training and Professional development – The Academy grows and achieves appropriate performance and traction.

5. We achieve policy change and input into the Government agenda: The Institute is recognised as the go-to place for regulators and Government.

6. We continue to develop our research, knowledge and insight capability: to demonstrate our credibility, influence, reach and competitive advantage through our breakthrough research the UKCSI, bespoke and insight consultancy work.

7. We extend our standards and quality capability. We are strong on quality assurance, high standards and modern methods of delivery, activity will focus on setting and embedding standards that drive cultural change and organisational improvement.

8. We have the right Infrastructure, skills and capability: invest further in our people and systems development to ensure we are agile and easy to do business with.

9. We launch the ‘Service University’

The directors present their annual report and financial statements for the year ended 31 March 2026.

The principal activity of the company continued to be that of a not-for-profit professional body for customer service.

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

In accordance with the company's articles, a resolution proposing that Gilberts Chartered Accountants be reappointed as auditor of the company will be put at a General Meeting.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied with the fact that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

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

We have audited the financial statements of Institute Of Customer Service (the 'company') for the year ended 31 March 2026 which comprise the profit and loss account, the balance sheet 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:

• give a true and fair view of the state of the company's affairs as at 31 March 2026 and of its deficit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

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 company 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' 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 company'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 directors 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 directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the directors' report has been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report.

As explained more fully in the directors' responsibilities statement, the directors 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 directors 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 directors are responsible for assessing the company'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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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 company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

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

The company is a private company limited by guarantee incorporated in England and Wales. The registered office is Ground Floor, 4 Gainsford Street, London, SE1 2NE.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” 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.

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value through profit and loss.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

Turnover is the total amount receivable by the company for services provided, excluding value added tax and trade discounts.

Subscriptions of members are credited to the income and expenditure account over the period of the membership, after deducting 20% for selling costs. Subscriptions are not refundable.

Intangible assets are initially recorded at cost and are subsequently measured at cost less accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.

Intangible assets acquired on business combinations are recorded at the fair value at the acquisition date; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation, less any subsequent accumulated depreciation and 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:

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in surplus or deficit.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

The company has elected to apply the provisions of Section 11 and Section 12 of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price 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 fair 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

Basic financial liabilities, which include trade and other payables and bank loans, are initially measured at transaction price and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present fair value of the future receipts discounted at a market rate of interest.

The company is a mutual service organisation and all activities of the company are exempt from corporation tax except for interest received, income on investments and chargeable gains.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

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

Operating lease rentals are charged to the profit and loss account in the year in which they are payable.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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

Details of the company's subsidiaries at 31 March 2026 are as follows:

The current lease for the Institute offices includes a requirement to restore the property to its original condition. A provision is made each year to cover the estimated cost of the dilapidations being £5,000 per year over the 10 year rental agreement.

The total future minimum lease payments under non-cancellable operating leases are as follows:

The company is limited by guarantee and does not have share capital.

The liability of members is limited. Every member of the Institute undertakes to contribute such amounts as may be required (not exceeding £1) to the Institute's assets if it should be wound up while they are a member, or within one year after they cease to be a member, for payment of the Institute's debt and liabilities contracted before they cease to be member, and of the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories themselves.