I am very pleased to be able to say that Chapter has had another very successful year. Our core team has been able to grow a little and we have remained financially very stable and secure. The commitment from our management, front line staff and our Trustees to the valuable work we undertake has remained as high as it could be, and I am often humbled by their capabilities, dedication and determination to make a difference for the people we support.
The range of programmes offered by Chapter remains relevant to those we support and effective in improving outcomes for them. Our team continues to strive to find new ways to make a difference to lives and to the experience of those we work to support. I could not thank the Chapter team enough for the way they represent the quality and values that are at the core of what Chapter is about.
We have seen some changes in our Board of Trustees with the welcome addition of Richard Smith and Joanna Robotham who each bring a wealth and depth of experience to the Board and have strengthened our governance. I am also sad to say that we will be losing Louise McWatt as a Trustee at our next AGM later this year. Louise has made a significant contribution to Chapter in so many ways during her time with us and she will be very much missed.
We continue to have an active and effective volunteer programme. Our volunteers benefit from the training and guidance we provide to them whilst they help us to reach the wider needs that we identify. I want to recognise their importance alongside our permanent team, and we are grateful for their support.
From a financial perspective Chapter produced a small surplus over the financial year to the end of March 2026. This is a sign we are managing our resources carefully and continuing to ensure that we are prudent in our spending to ensure the best outcomes for those who access our services.
The services provided by Chapter remain vital to our local communities and their support needs. I remain confident in Chapter’s ability to play a key role in meeting those needs and to continue to develop our services to align with those needs as they evolve over time.
Finally, I want to thank all those who have supported us over the last year in all kinds of ways from providing funding, raising funds in many innovative ways, delivering services and spreading the word of the work we do to help people with mental health needs. It’s been another excellent year, and we will continue to build for the future.
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 governing document, the Companies Act 2006 and ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)’ (effective 1 January 2019).
All of Chapter’s activities are developed to ensure it can achieve the following aims:
helping people to promote positive mental health
supporting people to better manage their mental health
build confidence, life skills and greater self-esteem
supporting people to work and be able to live an independent life
enabling people to overcome isolation and be part of a community.
Public Benefit
All charities are legally required to have aims that provide public benefit. The Charity Commission in its ‘Charities and Public Benefit’ guidance states that an organisation’s aims are for the public benefit. Firstly, there must be an identifiable benefit, and secondly, that the benefit must be to the public or a section of the public.
The trustees confirm their regard for the guidance and are confident that Chapter meets the criteria. For example:
the objects of the Charity in our Memorandum and Articles of Association are defined as Public Benefit
our progress, including the number of beneficiaries, is reported publicly in the Trustees' Annual Report
Chapter accepts referrals from statutory agencies, such as local authorities and NHS trusts, as well as local third sector organisations, who support people affected by mental ill-health but do not provide the same services as Chapter
The core of Chapter's services are free at the point of delivery to its service users, except in certain instances such as the provision of training courses to corporate/private clients.
Activities
The team at Chapter continue to meet the needs of people living with mental ill health across Cheshire West and Chester through a range of services designed to meet each individual’s needs, these include:
ASPIRE – our one-to-one mental health coaching to enable people living with mental ill-health to set meaningful goals to support their recovery. Motivational, emotional, and positive encouragement remain an integral part of this work
BELONG – our programme of peer group activities that bring people living with mental ill-health together to reduce social isolation, build confidence, meet new people and learn new skills
CONNECT – our volunteer-led one-to-one listening service providing a non-judgemental listening ear
RE:SET - our series of mental health and wellbeing workshops promoting positive mental health. RE:SET supports people to develop skills to support their mental health recovery.
In 2026 Chapter has been supporting people living with mental ill health to live well in their local area for 35 years. We continue to work closely with our community to ensure that our services continue to be relevant to the people who need to access support.
We have worked with a number of local businesses this year who have helped us to develop our allotment in Chester – their support has been invaluable in making the greenspaces more manageable for people who access our services.
Partnerships
Chapter continues to work closely with its partners in the local community to ensure that people accessing our services have a diverse range of support to meet their needs. Our relationship with Mind deepened during the year and we continue to deliver the local authority coaching contract in close partnership. We are still an active member of the local Mental Health Alliance and we are working with a number of men’s organisations to develop a comprehensive men’s mental health offer across the local area.
2025/26 was another successful year for the Chapter team. We worked with 400 unique individuals for a total of 4,072 attendances. Demand for services continues to be high and we receive referrals from a wide range of referral sources. We work closely with our colleagues in the public and voluntary sector to ensure that people can access a wide range of services to meet their needs. We have a particularly strong relationship with Mind who we work with to deliver the local authority coaching contract.
We continue to provide our support based on the presenting needs of the individual, adapting our delivery to ensure the best outcomes for everyone who accesses Chapter.
We have a strong team at Chapter; this year our staff accessed a range of training opportunities including specialist Level 5 Coaching Awards and Outdoor Coaching qualifications.
We are fortunate to be supported by a dedicated volunteer team. In 2025/26, 40 unique individuals gave their time to support our work. They undertook a diverse range of roles from digging their way through our allotment to providing a listening ear to someone in need.
We have an established, effective policy framework which ensures Chapter not only meets its statutory obligations and requirements but also supports the team to deliver a range of high-quality services meeting the needs of people living with mental ill-health in the local area.
Chapter continues to maintain adequate controls over the assets of the charity which are regularly reviewed by the CEO, Treasurer and board of trustees. The financial performance and position of the organisation is captured in monthly management accounts that are annotated by the CEO and shared with the trustees. The charity has restricted and unrestricted accounts as described in the accounts.
At the headline level, Chapter has continued to manage its operations in a prudent manner, recording a small surplus of c.£17k. Underneath it all, however, we are observing a changing environment that represents the next part of our business cycle. Our income has dropped by 13.5%, nearly £50k, from £370.5k in 2024/25 to £320.6k. We have received the last instalment of our National Lottery funding and observed lower levels of funding available for our cause than in previous years. At the same time, our costs have continued to grow from last year’s £280.7k level by over 8%, or £23k, to £303.5k. We had to continue to operate in an inflationary economic environment and also absorb the increasing changes in National Insurance (NI) rates that came into effect on 6 April 2025. Aiming to continue to reward our staff in a responsible way, our overall staff costs increased by 13.6% to £246.2k, which now represent 81% of our total costs, a small increase from last year’s 78%.
What this means for Chapter is the need to continually focus on being very efficient, minimising costs to the extent professionally possible without encroaching on service delivery and constantly looking to find willing funders who appreciate the significant community and mental health improvement impact we generate.
Looking into 2026/27, we have made a conscious decision to manage down our reserves in this part of the cycle, particularly as this is going to be the first year without the significant National Lottery funds we have benefited from in the previous three years.
Financial Reserve Strategy
The company's reserve strategy has been formulated under the guidance of the Charity Commission (Charity reserves: building resilience (CC19)) that sets out that there is no single level or even a range of reserves that is right for all charities. Any target set by trustees for the level of reserves to be held, or decision that there is no need for reserves, should reflect the particular circumstances of the individual charity. For Chapter, its Reserves Policy is reviewed annually, and its reserves position is calculated monthly in the management accounts. The purpose of reserves is to support the ongoing objectives of the charity so that negative fluctuations in funding would not have an immediate adverse impact on clients or staff. In addition, reserves are provided to make good any deficits from authorised projects.
Our objective is to maintain protected reserves representing at least two months’ running costs plus closure costs. As a secondary indicator, we are also tracking and monitoring six months’ running costs as a lead-indicator and review this quarterly. The Treasurer and CEO, supported by the finance officer work closely and meet regularly to review the financial performance and position of the organisation.
Financial risk
As a small charity Chapter still relies heavily on short term grant funding, however securing a three-year grant from the National Lottery (2023-2026) and the contract from the local authority has increased our stability and ability to plan. We also continue to work to develop our corporate services offer to increase earned income and we are working to build relationships in the community to maximise donations from members of the public who have an interest in our work.
Risk management
The Board of Trustees regularly reviews the major risk to which Chapter is exposed through regular reports from the CEO. Whenever possible, processes and procedures are in place to mitigate these risks and a clear policy framework helps to ensure risks are monitored, managed, and mitigated as far as reasonably practicable. The risks to external funding are kept under frequent examination so that, when required, new and diversified funding sources can be explored and if necessary, the activities of the charity can be modified. Internal financial risks are minimised by the adoption of a suite of clear policies and procedures.
Projects are monitored and assessed regularly to ensure consistent quality across all operational aspects of the charity. Training is provided to staff and volunteers to ensure that safeguarding and safe working practices are central to all our activities.
Chapter (West Cheshire) Limited is a registered charity (No. 1072395) and as a company limited by guarantee (No. 3294547). It is governed by its Memorandum and Articles of Association dated 19th December 1996.
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:
Appointment of trustees
Trustees are expected to:
support the organisation and its aims
act as ambassadors for the organisation
demonstrate sound common sense and a breadth of experience
declare any potential conflicts of interest
attend board of trustee meetings
help with specific projects as required
be legally able to carry out their duties as trustees
Trustees are appointed by the board of trustees. New trustees are recruited as required to complement the skills of existing trustees. New trustees undergo an induction into the organisation which includes, as a minimum, training around safeguarding and confidentiality. All board members sign the Trustee Handbook on induction.
Management
Chapter’s activities are overseen by a board of trustees; at the start of the financial year 2025/26 the board consisted of six trustees. The board of trustees meets, on average, every eight weeks to receive reports from the Chief Executive Officer (CEO) and to effect strategic and administrative decisions. Chapter does not operate a sub-committee structure. To ensure that the board is informed about Chapter’s performance between board meetings, the Treasurer approves monthly management accounts. The CEO also prepares regular briefings which provide updates about the team, finance and fundraising, service provision, and marketing and engagement. The board also regularly reviews the Risk Register.
At each board meeting the CEO provides a more detailed report including information about new opportunities, any risks, any serious incidents and any safeguarding or health and safety issues. The CEO also presents performance against key performance indicators which the board agrees at the beginning of each financial year – these may be adjusted if new projects are secured. Presentations by members of staff on different aspects of the work with Chapter may also be periodically brought to the board of trustees meeting.
Structure
Trustees are also directors of the charitable company for the purposes of the Companies Act. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the charity's governing document, 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 the Republic of Ireland (FRS 102) (effective 1 January 2019).
CEO comments
It has been another successful year for Chapter and I am as ever proud to lead the team. Since its humble beginnings in 1991, Chapter has grown to support more people year on year ensuring that people living with mental ill health can access support in their local area, rather than having to travel to unfamiliar settings.
We know that there is still more to do, demand for support remains high and people accessing our services have increasingly complex needs. The team at Chapter are committed to using their skills, knowledge and experience to enable people to achieve their potential and achieve positive mental health.
Mitchell Charlesworth was appointed as Independent Examiner for 2025/26 and a resolution will be put before the Annual General Meeting regarding future Independent Examiner.
The Trustee's report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of Chapter (West Cheshire) Limited (the Charity) for the year ended 31 March 2026.
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 Institute of Chartered Accountants in England and Wales, 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.
Chapter (West Cheshire) Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Stanlaw Abbey Business Centre, Dover Drive, Ellesmere Port, Cheshire, CH65 9BF.
The financial statements have been prepared in accordance with the Charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Charity is a Public Benefit Entity as defined by FRS 102.
The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
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 is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 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.
Expenditure is recognised when it is incurred and is recorded gross of related income on the following bases:
Charitable expenditure comprises direct expenditure including direct staff costs attributable to its activities.
Governance costs comprise those incurred as a result of constitutional and statutory requirements.
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 recognised in 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).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include 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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
For details of restricted funds grants breakdown, see restricted funds note.
The average monthly number of employees during the year was:
The remuneration of key management personnel, who is the Chief Executive Officer, is as follows.
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
Deferred income is included in the financial statements as follows:
At the balance sheet date the charity had a total of £49,956 (2025 - £17,736) in deferred income. The largest contribution to 2026/27 income relates to CWAC money received early £29,875 and the Garfield Weston Foundation Core grant, with £10,415 recognised in 2026/27 compared with £25,000 recognised in 2025/26.
Other significant amounts recognised in 2026/27 include NHS PSW salary support (£2,799), CWAC Reset (£2,628) and CWAC Men's Group (£1,503).
A total of £49,957 of income received during 2025/26 has been deferred and will be recognised in 2026/27, reflecting the proportion of funding attributable to periods after the year end in accordance with the funding agreements.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Bennett Family - Belong sessions
Cheshire Community Foundation (Green Shoots programme) - Belong green spaces
Cheshire West & Chester Council - Mental health coaching service (Aspire), RESET sessions, Warm Welcome Spaces and Asylum Seeker & Refugee support
Entep Ellesmere Port Community Fund - Belong arts & crafts sessions
John Moores Foundation - Belong green spaces
Lord Leverhulme CT - Belong activity sessions
The National Lottery - Supporting all core services
NHS Cheshire CCG - Wellbeing coach peer support training
The Percy Bilton Charity - Office furniture
Sanctuary Group - Belong activity sessions
Swettenham Foundation - Belong green spaces
University of Chester - Graduate intern salary contribution
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.
There were no disclosable related party transactions during the year (2025 - none).