REGISTERED COMPANY NUMBER: 03794640 (England and Wales)

REGISTERED CHARITY NUMBER: 1079454

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

FOR

PORTSMOUTH AREA REGENERATION TRUST

Page

Report of the Trustees

1

to

5

Statement of Trustees' Responsibilities

6

Independent Examiner's Report

7

Statement of Financial Activities

8

Balance Sheet

9

to

10

Notes to the Financial Statements

11

to

18

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

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 Articles and Memorandum 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)" (as amended for accounting periods commencing from 1 January 2016).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Charity's objects are the promotion, for the public benefit, of urban or rural regeneration in areas of social and economic deprivation in the United Kingdom by all or any of the following means:

-

The relief of poverty;

-

The relief of unemployment;

-

The advancement of education, training or retraining, particularly among unemployed people;

-

The provision of financial assistance, technical assistance or business advice or consultancy in order to provide training and employment opportunities for unemployed people in cases of financial or other charitable need through help in setting up their own business or to existing businesses;

-

The provision or assistance in the provision of recreational facilities for the public at large or those who by reason of their youth, age, infirmity or disablement, poverty or social and economic circumstances, have need of such facilities;

-

The provision of advice and services to those in receipt of benefits and those who are both low wages and un-waged;

-

The provision and improvement of housing and any associated amenities for persons in necessitous circumstances, upon terms appropriate to their means provided that such power shall not extend to relieving any local authorities or other bodies of a statutory duty to provide or improve housing.

Charity's aims and public benefit

The Charity is committed to providing affordable loans and management services to people and communities who are marginalised from accessing mainstream finance. Through adherence to the objectives and the activities undertaken in the year the Trustees have diligently and purposefully fulfilled their obligations under section 17 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit.

Charity's main objectives for the year

The Charity's strategic objectives may be summarised as follows:

-

Investing in community assets, buildings and development projects, working with other partners;

-

Provision of mortgage finance and secured home improvement loans to prospective homeowners, marginalised from mainstream providers; and

-

Lending to financially excluded homeowners through the provision of mortgage finance and secured home improvement loans.

ACHIEVEMENTS AND PERFORMANCE

Achievements and performance

The Charity has continued to have a major impact on the lives of hundreds of people in England and Wales, helping vulnerable people to improve their homes.

During the year the Charity and its connected entity, Parity Trust Limited, made 40 new advances (2025: 48) totalling £749,095 (2025: £581,039). As at 31 March 2026 there were 367 live loans (2025: 373). The entire loan book comprises asset backed loans.

FINANCIAL REVIEW

Financial review

Net expenditure / movement in funds for the year were £20,673 (2025: £37,869) being a decrease of £17,196 and there were total funds carried forward of £474,143 (2025: 494,816).

Parity Trust Limited, a connected entity, generated a loss for the year after tax of £2,323 (2025: surplus of £23,818). Capital and reserves at the year-end amounted to positive reserves of £532,830 (2025: £535,153).

Reserves policy

It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six months' 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.

A fund equal to three months running costs should be retained, together with the estimated entitlement of employees should the organisation cease its activities.

Risk Assessment

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.

FUTURE PLANS

The Charity has a broad product base, reflecting the current mortgage market needs. This range will be rolled out over a wider geographic area to help more consumers facing hardship with their current mortgage provision and life circumstances. By reaching a wider audience the Charity will ensure increased social impact, both direct and added value, to bring about savings across a range of public services.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Structure, governance and management

The Charity is a company limited by guarantee incorporated on 24 June 1999 and a registered charity, under the name Portsmouth Area Regeneration Trust.

The Charity is governed by its Articles and Memorandum of Association.

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:

J R Culverwell

S D Dalby-Hopkins

S A Frost

J E McQuiston

Trustees

A Board of Trustees governs the Charity. The number of trustees shall not exceed fifteen and shall not be less than two. At every annual general meeting one-third of the Trustees shall retire from office.

In practice the Boards of all three constituent organisations, including Parity IPS Limited, comprise the same individuals because we believe it is efficient to govern them in this manner. In practice, we seek to ensure that the boards comprise individuals with a range of skills and experience. This includes placing a strong emphasis on those with a knowledge of the community that we serve. At 31 March 2026 the Charity had 4 Trustees/Directors (2025: 4).

All new Trustees are provided with an introductory training session within the first three months of their appointment. This training session will include:

-

Background to the establishment of the Group;

-

Mission, aims and objectives;

-

Primary Business Plan objectives; and

-

Governance and Trustee responsibilities.

All Trustees receive a copy of the Business Plan, Annual Accounts and the Annual Report.

None of the Trustees have any beneficial interest in the company. All members of the company guarantee to contribute up to £10 in the event of a winding up.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.

Management team

Sandeep Sesodia is the Chief Executive and is responsible to the Board for all aspects of performance management.

The group operates a flat management structure, for the purposes of efficiency and accountability. All employees have a range of differing skills and experience to bring to the needs of the organisation's customers.

Programme related investments

Investments have been made in organisations which further the Charity's aims in helping to provide advice and finance.

Relationships with other organisations

The Charity works alongside Parity Trust Limited. For efficiency, the Charity administers the organisational structure and Parity Trust Limited administers the loan book, not only on its own behalf but also on behalf of the Charity.

In line with best practice loans are largely regulated by the Financial Conduct Authority ("FCA"). The FCA registration is in the name of Parity Trust Limited, an entity under common control making it a connected entity of the Charity. For a fuller understanding of the work undertaken by the Charity it is also necessary to consider the financial statements of Parity Trust Limited.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

03794640 (England and Wales)

Registered Charity number

1079454

Registered office

Suite 73

Port View, One Port Way

Port Solent

Portsmouth

Hampshire

PO6 4TY

Trustees

J R Culverwell

S D Dalby-Hopkins

S A Frost

J E Mcquiston

Company Secretary

S Sesodia

Independent Examiner

Michaela Johns FCCA

Hopper Williams & Bell Limited

Chartered Accountants

Highland House

Mayflower Close

Chandler's Ford

Eastleigh

Hampshire

SO53 4AR

Bankers

Lloyds Bank Plc

Hedge End Southampton

St John's Centre

Hedge End

Southampton

Hampshire

SO30 4QU

Approved by order of the board of trustees on 31 July 2026 and signed on its behalf by:

J R Culverwell - Trustee

The trustees (who are also the directors of Portsmouth Area Regeneration Trust for the purposes of company law) are responsible for preparing the Report of the Trustees 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. Under that law, the trustees 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 trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those 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;

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

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Independent examiner's report to the trustees of Portsmouth Area Regeneration Trust ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2026.

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

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.

Michaela Johns FCCA

The Association of Chartered Certified Accountants

Hopper Williams & Bell Limited

Chartered Accountants

Highland House

Mayflower Close

Chandler's Ford

Eastleigh

Hampshire

SO53 4AR

Date: .............................................

2026

2025

Unrestricted

fund

Total funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

30,945

-

Investment income

2

11,130

11,657

Total

42,075

11,657

EXPENDITURE ON

Raising funds

Other trading activities

60,365

48,131

60,365

48,131

Charitable activities

Charitable activities

2,383

1,395

Total

62,748

49,526

NET INCOME/(EXPENDITURE)

(20,673

)

(37,869

)

RECONCILIATION OF FUNDS

Total funds brought forward

494,816

532,685

TOTAL FUNDS CARRIED FORWARD

474,143

494,816

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

2026

2025

Unrestricted

fund

Total funds

Notes

£

£

FIXED ASSETS

Investments

7

-

165,000

CURRENT ASSETS

Debtors: amounts falling due after more than one year

8

444,527

330,967

Cash at bank and in hand

33,373

2,004

477,900

332,971

CREDITORS

Amounts falling due within one year

9

(3,757

)

(3,155

)

NET CURRENT ASSETS

474,143

329,816

TOTAL ASSETS LESS CURRENT LIABILITIES

474,143

494,816

NET ASSETS

474,143

494,816

FUNDS

10

Unrestricted funds

474,143

494,816

TOTAL FUNDS

474,143

494,816

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2026.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2026 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 31 July 2026 and were signed on its behalf by:

J R Culverwell - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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)" (as amended for accounting periods commencing from 1 January 2016). 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 statement are rounded to the nearest pound.

The financial statements have been prepared under the historical cost convention, The principal accounting policies adopted are set out below.

The Charity has taken exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the Charity as an individual entity and not about the group.

Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Income

Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that the income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probably that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use.

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 costs 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.

Expenditure on charitable activities includes all costs incurred by the Charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the Charity apportioned to charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity's contractual obligations expire or are discharged or cancelled.

Employee benefits

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.

Concessionary loan

The Charity has made a concessionary loan to a connected entity, to further the objectives of the public benefit entity. The loan is recognised on initial measurement and interest has been charged.

Critical accounting estimates and judgements

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.

In the opinion of the Trustees there are no significant judgements or areas of estimation uncertainty other than the split of wages, this is based on the time spent by staff who work across all three Parity entities. This split is reviewed each year and adjusted accordingly.

The fixed asset depreciation charge is derived from the estimated useful life and residual value of the assets, which were fully depreciated in the previous year.

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.

Cash and cash equivalents

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 of less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Going concern

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. In coming to this conclusion the Trustees have considered the recoverability of loans due from Parity Trust Limited, who has considered the current economic climate, which includes the variability of interest rates and inflation. Parity Trust Limited holds charges against all property loans and would be reliant on these to ensure the going concern basis can be adopted and therefore loans repaid to this Charity. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

2.	INVESTMENT INCOME

2026

2025

£

£

Interest received from subsidiary undertakings

11,130

11,657

3.	NET INCOME/(EXPENDITURE)

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

2026

2025

£

£

Independent examiner's remuneration

2,058

-

4.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2026 nor for the year ended 31 March 2025.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2026 nor for the year ended 31 March 2025.

5.	STAFF COSTS

There were no employees in the current or prior year.

Management fees based on the apportionment of payroll costs have been recharged from Parity Trust Limited in the year totalling £60,365 (2025: £48,131).

6.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

fund

£

INCOME AND ENDOWMENTS FROM

Investment income

11,657

EXPENDITURE ON

Raising funds

Other trading activities

48,131

48,131

Charitable activities

Charitable activities

1,395

Total

49,526

NET INCOME/(EXPENDITURE)

(37,869

)

RECONCILIATION OF FUNDS

Total funds brought forward

532,685

TOTAL FUNDS CARRIED FORWARD

494,816

7.	FIXED ASSET INVESTMENTS

2026

2025

£

£

Loans

-

165,000

Loans to

group

undertakings

£

At 1 April 2025

165,000

Other movements

(165,000

)

At 31 March 2026

-

There were no investment assets outside the UK.

8.	DEBTORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2026

2025

£

£

Amounts owed by group undertakings

444,527

330,967

The loan due over one year is a concessionary loan due from the subsidiary, Parity Trust Limited. Interest is charged on at the Bank of England's base rate, subject to a minimum of 2.5%.

9.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

£

£

Trade creditors

103

299

Other creditors

1,669

1,669

Accruals and deferred income

1,985

1,187

3,757

3,155

10.	MOVEMENT IN FUNDS

Net

movement

At 1.4.25

in funds

At 31.3.26

£

£

£

Unrestricted funds

General fund

494,816

(20,673

)

474,143

TOTAL FUNDS

494,816

(20,673

)

474,143

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

42,075

(62,748

)

(20,673

)

TOTAL FUNDS

42,075

(62,748

)

(20,673

)

Comparatives for movement in funds

Net

movement

At 1.4.24

in funds

At 31.3.25

£

£

£

Unrestricted funds

General fund

532,685

(37,869

)

494,816

TOTAL FUNDS

532,685

(37,869

)

494,816

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

11,657

(49,526

)

(37,869

)

TOTAL FUNDS

11,657

(49,526

)

(37,869

)

A current year 12 months and prior year 12 months combined position is as follows:

Net

movement

At 1.4.24

in funds

At 31.3.26

£

£

£

Unrestricted funds

General fund

532,685

(58,542

)

474,143

TOTAL FUNDS

532,685

(58,542

)

474,143

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

53,732

(112,274

)

(58,542

)

TOTAL FUNDS

53,732

(112,274

)

(58,542

)

11.	RELATED PARTY DISCLOSURES

During the year a donation of profits was received from Parity Trust Limited of £30,945 (2025:£nil). Interest was received from Parity Trust Limited of £11,130 (2025: £11,657) and management fees were paid to Parity Trust Limited of £60,365 (2025: £48,131).

At the year end £444,527 (2025: £495,968) was due by Parity Trust Limited. For amounts due over one year there is no repayment of capital until at least five years after the date of the agreement and only on either party providing to the other not less than 90 days notice.

The Charity is acting as guarantor on a funding facility available to Parity Trust Limited from Esmee Fairbairn Foundation of £68,750 (2025: £93,750).

12.	CONNECTED ENTITIES

These financial statements are separate charity financial statements for Portsmouth Area Regeneration Trust.

Separate company financial statements are required to be prepared by law. Consolidated financial statements are not prepared as the group is small.

Details of the Charity's connected entities at 31 March 2026 are as follows:

Name of undertaking

Registered office

Nature of business

Class of shares held

% Held

Direct

Indirect

Parity Trust Limited

England

Loan management

Limited by guarantee

100 -

The aggregate capital and reserves and the result for the year of connected entities excluded from consolidation was as follows:

Name of undertaking

Loss

Capital and Reserves

£

£

Parity Trust Limited

2,323

532,830