The trustees present their annual report and financial statements for the year ended 31 December 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 governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)".
The objects of the charity are the provision of guest houses for the reception, accommodation, boarding and maintenance of foreign and home missionaries and Christian friends with the interest and object of maintaining such guest houses as Protestant Evangelical guest houses and for the promotion of other religious or charitable purposes as the trustees think fit. For a number of years this has been achieved by operating the Highbury Centre which exists to provide attractive accommodation for missionaries, Christian workers, overseas visitors, students and others in London. This includes bed and breakfast, and conference accommodation.
The Centre has 40 bedrooms and 16 of the rooms provide en-suite accommodation. To facilitate all of this it is important that the buildings are well maintained and remain welcoming to guests. When reviewing the provision of facilities and services to guests for the year, the trustees have considered the Charity Commission’s guidance on public benefit.
In addition to providing all guests with the chance to experience opportunities for spiritual development, pastoral care and the opportunities to meet and network with others, one of the many other benefits provided to guests is through discounted rates for Christian missionaries, workers, and students.
Overall occupancy in 2025 was 64% which is down from 68% in 2024. While the months of February, April, October, and November all had increased occupancy compared to 2024, overall occupancy is down compared to 2024. In total 49 Christian groups from all over the world stayed at The Highbury Centre in 2025. Houghton University from the USA continues to stay for 3 months as part of their degree programme. We also had the pleasure of welcoming groups from Norway, Hungary, Germany, and the UK.
The charity sold an investment property it owned (98 Aberdeen Park) at the end of 2025. The proceeds of the sale were used to pay off the mortgage on the property and all legal fees associated with the sale. Full transfer of the management company over to the new owners was completed in April 2026 from which date The Highbury Centre and Trustees have no ownership/ responsibility of 98 Aberdeen Park, N52BJ.
Various small projects were undertaken in 2025 to improve guest experience and help maintain the house, including the refurbishment of the guest laundry, installation of new boilers, upgrading of the dining room, new kitchen appliances and various improvements to the garden.
The total amount receivable from guest accommodation, meals, and conferences was £743,354 which is down 4% from £775,049 in 2024. Income from investments was £48,880 which is down 44% from £87,911 in 2024. Donations received in 2025 was £10,623 which increased from £483 in 2024. Total amounts receivable in 2025 was £802,857 which is down 7% from £863,283 in 2024. Total expenditure spent on direct charitable activities increased 19% from £789,136 in 2024 to £989,750 in 2025.
The part of these funds held in realisable investments had a value of £462,085 (2024: £439,247) at year-end 2025. The trustees have set aside £20,000 (2024: £20,000) to provide a bursary fund to enable guests with limited resources to enjoy the facilities. Further details of the financial results for the year are given in the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows, and the accompanying notes.
It is the trustees’ policy to operate with an ‘operational’ reserve of £500,000. The £500,000 operational reserve equates to approximately 6 months operational expenditure enabling the charity to continue operating in the event of financial difficulties. As at 31 December 2025, sufficient funds are held to meet this reserve.
The trustees have continued to use RBC Brewin Dolphin as investment managers. The policy adopted, is one of a medium risk strategy based on maximising income and the investment managers are working towards the target return discussed with the trustees. The trustees also continue to monitor the performance of the investments in light of current market conditions. The charity has made such investments to generate a return and has made no social investments.
The trustees review how risk management is undertaken on a regular basis. A risk register based upon the primary areas of risk within the organisation, including financial, governance, operational, and missional is reviewed on a quarterly basis. The risk register helps to assess major risks to which the charity is exposed and to ensure that systems remain in place to mitigate the exposure to major risk.
Following a detailed risk assessment carried out by PiB Risk Management we are undertaking various actions which were highlighted in the assessment to further mitigate risk, specifically regarding food hygiene, health & safety, fire risk. These risks are managed with the assistance of professional advisers, having robust policies in place, and regular training for all staff.
Background
During 2025, continuing into 2026, the trustees undertook a number of surveys to identify the condition and needs of the building and grounds at Aberdeen Park. The Highbury Centre's premises are a relatively old building that has been well used since first opening its doors. Working in partnership with a firm of architects, the trustees developed a Master Plan to explore how the building could be brought up to a fit-for-purpose standard to continue welcoming Christian workers from around the world. Alongside this, and informed by the same review, the trustees also examined the charity's core purpose, to ensure that any future model would continue to meet the needs of its guests.
Why change was necessary
While the charity holds a substantial asset in its current freehold buildings, the investment required - even for minimum maintenance and compliance - without any upgrade of facilities, exceeds the liquid resources available to the charity.
Occupancy has shown some encouraging signs of occasional monthly increases, but the overall picture across both 2025 and 2026 has been a decrease compared with previous years. At the same time, maintenance and compliance costs, and other costs such as staffing - driven to a large extent by measures implemented by the government in recent budgets - have continued to push up the charity's cost base. Increasing income to offset this is very challenging, both because of the scale of investment the building itself requires, and because a number of low-cost accommodation options are available to our beneficiaries, including commercial providers with significant economies of scale.
The decision
Taking into account the full cost of achieving compliance with current building and fire safety standards, together with the expenditure needed to repair, maintain and refurbish the building - reflected in the increased expenditure levels seen this year - the trustees reluctantly concluded that the current facilities are no longer best suited to enabling the charity to achieve its charitable objects.
The trustees understand/are very aware of the unfortunate impact this may have on some current beneficiaries. However, having weighed the operational and economic evidence set out above, they are unanimously convinced that a change in approach is necessary. On this basis, the trustees determined in June 2026 that its guest house and meeting rooms at Aberdeen Park will close to guests from Friday 30th October, 2026.
Looking ahead
No firm decisions have yet been taken on the charity's future steps. The developments and decisions described took place after the year end but before approval of these accounts.
The charity is fortunate to hold substantial property assets, which create new options for its future, including exploring collaboration with other charities and realising the greatest possible value from these assets to support Christian missionaries and other Christian workers going forward. The trustees are also mindful that the charity's way of achieving its objects has not always been tied to its current home, which has been its base for 72 years of an existence spanning over 120 years.
Going concern
The charity continues to be a going concern, even though its operations may look very different in the future. The trustees therefore do not consider any significant changes to be necessary to the accounts as presented.
The charity is a company limited by guarantee, incorporated on 12th April 2005 with the name The Foreign Missions Club 2005 and it was registered with the Charity Commission on 15th February 2006. The company is now governed by its Articles of Association, as amended on 27th July 2023, which established the objects and powers of the charitable company and governs its activities. In the event of the company being wound up members are required to contribute an amount not exceeding £10.
On 1st September 2006 the company took over the assets, undertaking and employees of the Foreign Missions Club (Charity number: 227866). On 6th August 2008 the company changed its name to The Highbury Centre.
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:
Trustees are appointed by a majority vote of the board of trustees. The Articles of Association provides for a minimum of three trustees and a maximum of fifteen. (The trustees for the purposes of company law are directors of the company).
New trustees undergo an induction to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the Board and the decision-making processes and the recent performance of the charity. They meet key employees and the other trustees.
The operations of the charity are conducted through the General Manager (GM), or House Manager (HM) in GMs absence, in accordance with the policy and strategy approved by the trustees. The trustees assist the Management by being involved in practical support of the work, and in the area of the spiritual ministry of the Centre. The GM reports directly to the trustees. The GM meets formally with the full board of trustees to review the financial status and progress of the charity. The key management personnel of the charity include the above and are in charge of directing, controlling, running and operating the charity on a day-to-day basis. All trustees give their time freely and no trustee received any remuneration in the year. Details of trustees’ expenses and related party transactions are disclosed in Notes 11 and 26 to the financial statements.
The remuneration of the General Manager and House Manager is reviewed annually. In view of the nature of the charity’s activities, the trustees try to benchmark pay levels with other similar Christian charities. The salaries of the House Team are based upon the London Living Wage.
The trustees, who are also the directors of The Highbury Centre 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.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of The Highbury Centre (the charity) for the year ended 31 December 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.
The Highbury Centre is a private company limited by guarantee incorporated in England and Wales. The registered office is 20-26 Aberdeen Park, Highbury, London, N5 2BJ.
The financial statements have been prepared in accordance with the charity's Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 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, modified to include the revaluation of investments. 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, and no material uncertainties exist regarding this assumption. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are expendable at the discretion of the trustees in furtherance of their charitable objectives. Designated funds are unrestricted funds set aside by the trustees for specific purposes. The charity does not have any restricted funds.
Accommodation charges and meals income are accounted for on a receivable basis, net of VAT.
Investment income and bank interest are the amounts received for the year.
Voluntary income and donations (including legacies) are accounted for once the charity has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. The income from fundraising is shown gross, with the associated costs included in fundraising costs. Where material assets are donated to the charity for its use, these are capitalised at the estimated market value at the date of the gift and included in other income. Assets given for distribution by the charity are received as income when distributed and stated in the accounts at the trustees' estimated market value at the time of receipt.
Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities. The majority of costs are directly attributable to specific activities. Staff costs are allocated on the basis of time spent by staff on each activity. Office costs, including governance costs are charged directly to the activity when incurred.
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. Plant, fixtures and fittings costing less than £2,500 are written off as an expenses as incurred.
The Charity's policy is to maintain its freehold property to a high standard through a continual programme of maintenance. The trustees consider that the residual value of the property is such that it renders any depreciation immaterial and consequently no annual depreciation charge is shown in the accounts. Freehold land is not depreciated.
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.
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
Investments are stated at fair value. Realised and unrealised gains are reflected through the Statement of Financial 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).
Stocks comprises provisions and house sundries which are included at a net realisable valuation made by the manager.
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening the deposit.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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 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, 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.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
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.
The charity operates a defined contribution scheme. Contributions payable are charged to the Statement of Financial Activities in the year they are payable.
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 average monthly number of employees during the year was:
Redundancy and termination payments totalling £11,623 were made in the reporting period.
The remuneration of key management personnel was as follows:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Investment property comprises four flats at 98 Aberdeen Park, London N5. The flats were sold in the year.
The company had two Suffolk Building Society loans each of £750,000 and both repayable by February 2032. They were secured by way of a fixed charge on the company’s premises, 20-26 Aberdeen Park and 98 Aberdeen Park, London N5 and bear interest, one at a fixed rate of 3.99% from 1st December 2021. The other was at a variable rate of 0.75% below the Society’s commercial standard variable rate (currently 6.99%) until 31st January 2032, but during the year 98 Aberdeen Park was sold and the loan in respect of this property was repaid. The trustees consider the remaining loan is significantly less than the fair value of the secured property.
There are no plans in place for the charity to make any further capital repayments in the coming year.
Deferred income is included in the financial statements as follows:
Deferred income relates to amounts invoiced for accommodation, meals and conferences for the 2026 financial year and beyond.
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 designated funds were set aside by the trustees as follows:
Bursary fund - money set aside to provide bursaries for less well-off guests.
Improvement of premises fund - money set aside which funded improvements to the facilities. Expenditure represents the depreciation of major improvements.
Refurbishment reserve - money set aside to maintain the premises in a first class condition.
At the reporting end date the charity had contracted with tenants for the following minimum lease payments:
After year-end, the trustees decided to close the building from which the Centre operates, and are exploring new opportunities to achieve the charity's objects. The charity continues to be a going concern and the trustees therefore do not consider these decisions to have any material impact on the accounts as presented. These events are more fully considered in the Trustees' Report.
During the year the charity entered into the following transactions with related parties:
The charity paid for trustee indemnity insurance of £1,843 (2024 £1,843) on behalf of the trustees as part of its combined insurance policy.