The Board of Trustees, who are also the Directors of the Company for the purposes of Company law, submit their annual report and financial statements of The Clock Tower Sanctuary for the period 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 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)" (effective 1 January 2019).
Charitable Objects
The objectives for which the Charity is established are: the relief of poverty and homelessness of young people aged between 16-25 years in East Sussex through the provision of shelter and support.
Public Benefit
In continuing to deliver our Strategic Plan and activities, the Board of Trustees has considered the duties set out in Section 4 of the Charities Act 2011 to have due regard for public benefit. In particular, the Board of Trustees has considered how the planned activities will contribute to the overall aims and objectives they have set.
Vision
We want Brighton and Hove to be a city where young people’s experience of homelessness is rare, brief and non- recurring.
Mission
Our mission is to provide a safe space and support young people experiencing homelessness in Brighton and Hove. We will work with them to increase their voice, transform their lives and reach their potential.
Values
We Care
We Collaborate
We Challenge Injustice
When we use the phrase young people experiencing homelessness, we mean young people without a safe, secure and private place to call their own; this includes rough sleeping, in a hostel or supported and emergency accommodation, ‘sofa surfing’ or those living in a car/van.
How we work
We work with young people aged 16-25 years old who are homeless or insecurely housed
We provide practical facilities, a trauma informed environment, access to activities and professional support
We are based in Brighton, rooted in the city and an integral part of the community
We take a tailored, structured, holistic approach to move young people from crisis to independence
We work with local partners, combine resources and expertise to provide multi-disciplinary support that reduces young people’s long-term dependence on services
We are a team of passionate and committed staff and volunteers; we pride ourselves on changing young people’s lives for the better
We have a high quality, well-regarded volunteering programme; many of our volunteers go on to skilled, paid work in the local homeless and related sectors
We are an independent organisation, entirely dependent on voluntary funding
We have three main strands to our work:
Crisis Support – to meet the immediate needs of a young homeless person in crisis – access to food, showers, laundry, computers, telephone, postal service etc.
Building Trust, Confidence and Self-Esteem – to enable young people to develop trusted relationships, skills and a sense of belonging, through workshops, activities and case working. Young people can develop their voice within the organisation through our Youth Voice engagement.
Towards Stability – to enable a young person to prepare for, gain and sustain accommodation through the provision of Financial and Independent Living Skills support and CTS’ tenancy deposit scheme.
Strategic objectives
We launched our new strategy in 2025, with the following Vision, Mission and Strategic Objectives:
Vision: Brighton and Hove is a city where all young people have somewhere they call home
Mission: To provide young people who are homeless in Brighton & Hove with a safe and supportive space to shape their own future.
Strategic Goal 1: Young people have the individual support they need to thrive
Strategic Goal 2: Our services are well known, trusted, and easy to access
Strategic Goal 3: Young people are at the heart of our decisions and drive meaningful change
Crisis services
169 young people experiencing homelessness accessed our services in 2025-26. We hosted 3687 visits to our centre while also continuing to meet young people offsite where appropriate. An alarming 51% of the 114 new young people we saw were rough sleeping or sofa surfing and we continued to see young people with complex needs and poor mental health. We also saw a significant increase in neurodivergent clients, at 46%. We offered over 274 one to one crisis support sessions for 48 young people. 169 clients in total for the 15 month period, 78 of them (46%) have said they are neurodivergent.
This has all happened within the context of decreasing availability of vital services and funding cuts across the city. We believe that partnership working and planning are crucial to address the causes and symptoms of homelessness and we remain committed to being active participants in strategic and operational citywide meetings including the Homeless Operations Forum, Homeless Rough Sleepers Network, the Frontline Network and the Youth Homeless Working Group.
Building Trust, Confidence & Self Esteem
Young people experiencing homelessness benefit hugely from designing & developing activities with other young people. We see a tangible increase in trust and confidence when young people spend time together doing things that they enjoy. Our young people accessed activities such as yoga, an LGBTQ+ group, men’s and women’s groups, and music sessions. During the year 72 clients accessed these activities in 272 separate sessions.
In 2025/6 we made huge strides in our co-production and co-creation. We established a Youth Voice group of current and previous clients who meet regularly and provide insight into both our services and systemic issues that affect youth homelessness and this commitment to putting the voice of young people with lived experience is pivotal in our plans going forward.
Towards Stability
Supporting young people to develop skills to find and maintain a tenancy, and to live independently is key to them moving towards more stable and sustainable lives. It is one of the most important steps and yet one of the most challenging. Our case work and crisis support enables young people to have one-to-one support with a dedicated support worker. These focused sessions enable them to build on their existing skills and experience as well as to tackle barriers to independent living. During 2025/6 we supported 62 clients requesting this service.
In 2025/6 we had 8 young people accessing the Tenancy & Independent Living Skills courses and 3 people accessed our tenancy deposit scheme. Attendance at workshops was lower than anticipated. However, feedback from the client survey indicated that this was an area of support that young people valued and wanted more of. In response, CTS has created a dedicated post to lead, develop, and embed this work, ensuring it is delivered in a way that better meets the needs and preferences of clients.
Equality, Diversity & Inclusion
We are committed to improving our service so that is accessible for all young people. In 2025/6 we welcomed young people from increasingly diverse backgrounds.
28% of young people identified as LGBTQ+
40% of young people were black, Asian or from a minority ethnic origin
46% of young people identified as neurodivergent.
Attendance at our weekly LGBTQ+ group has increased significantly this year, supported by both staff and volunteers.
As a result of rapid growth in the numbers of Refugees and Asylum Seekers coming to us we have expanded our partnership work with organisations working with young people within this community.
We have conducted a neurodiversity audit of our building and continue to make improvements to increase accessibility.
Volunteers
Our volunteers are a vital part of our front-line services. In 2025/26 they volunteered 8662.5 hours of their time, which equates to £116,511 of support (using the Real Living Wage). Our volunteers bring valuable and diverse skills and energy to the service. Having the benefit of their rich life experience means we can support young people in a greater range of ways.
58 people volunteered in the Centre in between the 1st of January 2025 and 31st of March 2026. Most of these were/ are Volunteer Support Workers, however many of these people now facilitate or co-facilitate groups namely Women’s group, Art Group, Men’s group and the LGBTQ+ group.
In October 2025 we recruited 13 new volunteers. We have also had 22 leavers in this period. 5 went onto paid employment in the sector, with one getting a position as our Advice and Support worker at CTS. Given stable numbers and a high number of volunteers following this recruitment we have not needed another recruitment in this period.
43 Volunteers accessed a of training courses - some of the highlights being working with Asylum Seekers and Refugees, and Food hygiene.
We had a fabulous Christmas volunteer party and volunteers enjoyed a celebration of picnic and rounders for Volunteers Week. In preparation for the Investor In Volunteers assessment in April 26, we updated our Volunteer Handbook and starting work on improving our volunteering monitoring via the creation of a Theory of Change.
For 2025/6 the Board of Trustees agreed an operational expenditure budget of £1,053,241.
In 2025/6 we had an operational surplus for the year on unrestricted income of £32,055 (2024: deficit of £54,207) and at year end we held £456,619 (2024: £424,564) of total unrestricted funds (including designated funds) and a total of £171,116 (2024: £21,400) in restricted funds.
The charity changed its financial year end from 31 December to 31 March. These financial statements cover a 15-month period from 1 January 2025 to 31 March 2026. The comparative figures are for the 12-month period ended 31 December 2024. Therefore the comparatives are not entirely comparable.
Fundraising Review
During 2025/26 the team saw some change with a new team member and CRM. Which brought with it some challenges. However, CTS continued to build new relationships and expand their fundraising portfolio with new funders and partnerships.
Regular givers went from 215 to 303. Income stayed stable moving from £4,100 a month in Jan to £4,400 in December. The move to a new fundraising CRM in March impacted the way we classified donors and meant some moved to be regular donors increasing our regular donors dramatically. There was lots of learning from our CRM transfer including the way we create our online forms and monitor their usage.
The work on stewardship and communication with our supporters continued to improve particularly with high value individuals. We received a £40k and a £70k donation from two supporters during the year. We worked on demonstrating supporter impact through talks and visits to our day centre.
We ran three corporate networking events. These events provide an engagement tool with potential corporate supporters, as well as inviting existing supporters to act as speakers and re-connect with the cause, the why and the team.
Our Impact Report and subsequent Impact Celebration event drew on all elements of our charity's work and included the stories and co-creation work of our clients. They drew attention to the work and real experiences at the day centre. The celebration event brought together many of our partners, supporters and community.
We held another successful Comedy for the Clock Tower event. Raising over £4,000. Our fundraising events brought press attention and raised over £37,000.
Our Winter Appeal brought further success by raising over £52,000.
We give our warmest thanks to The National Lottery Community Fund, No Fear Bridge, One Family Foundation, Sussex Community Foundation, Make Change Count, Chalk Cliff Trust, Earnest Kleinwort CT, Responsible Travel, The Crucible Foundation, Fine & Country Foundation, Homity Trust, Brighton and Hove District Nurses, Landaid, Comic Relief, Masonic Foundation, Benevity, Safer in Sussex, Maurice Fry Charitable Trust, Nancy Kenyon Charitable Trust, The Penchant Foundation, Blagrave Trust, Rank Foundation, Garfield Weston, Enjoolata & The Pebble Trust.
We also express our sincere appreciation to every single person who supported us with monthly giving or one-off donations; those who gave in memory of a loved one or pledged a legacy, and to all the community organisations and companies who generously raised vital funds to ensure that we could continue our life-changing work with young people who are experiencing homelessness.
1. Purpose
The purpose of this policy is to ensure the financial stability and sustainability of The Clock Tower Sanctuary by maintaining adequate reserves to meet unforeseen expenses, manage cash flow, and support the organization’s long-term goals.
As a charity that relies entirely on voluntary income, it would not be sustainable to fund ongoing service delivery from reserves alone. Our approach is to maintain an appropriate level of reserves while continuing to secure external funding for both core services and development work.
Where appropriate, we do use reserves to support strategic priorities and invest in new opportunities.
2. Definition of Reserves
Reserves are the portion of unrestricted funds that are freely available to spend on any of the charity’s purposes. They exclude restricted funds, endowments, and designated funds set aside for specific purposes.
3. Policy Statement
The Clock Tower Sanctuary will maintain reserves to:
Provide a buffer against unexpected financial challenges.
Ensure the charity can continue to operate and fulfil its mission during periods of reduced income.
Fund unforeseen opportunities that align with the charity’s objectives.
4. Target Level of Reserves
The target level of reserves will be reviewed annually by the Board of Trustees and will be set at a minimum of 3 months operating costs and a maximum of 6 months. These levels will be determined based on the charity’s risk assessment and financial projections.
5. Monitoring and Review
The reserves level will be monitored regularly by the Finance Committee and be reported to the Board of Trustees at the quarterly meeting. The policy will be reviewed annually to ensure it remains appropriate for the charity’s needs and circumstances. If the reserves are forecast to drop below the three-month target, an extraordinary trustees meeting will be called to review the cash flow forecast.
6. Reporting
The level of reserves and the policy will be disclosed in the charity’s annual report and financial statements, providing transparency to stakeholders.
7. Responsibilities
The Board of Trustees is responsible for ensuring that the reserves policy is implemented and adhered to. The Finance Committee is responsible for monitoring the reserves level and reporting to the Board.
The Board of Trustees has concluded that it would be appropriate to establish several Designated Funds, given the level of unrestricted funds at 31 March 2026 and the need to protect elements of the charity’s on-going operations and provide for non-operational expenditure.
The designated reserves comprise the following:
Closure costs – to provide the necessary funds should our operations have to cease immediately, including redundancy payments
Dilapidations – linked to operation cessation, including costs to return leasehold premises to their original configuration should the landlord require
Strategic plan projects – to provide funds to investigate, assess and trial (if appropriate) different projects outside the operational day to day budget
Equipment replacement fund
The amounts of funds designated and the free reserves are shown in note 18 to the Financial Statements.
As at the end of the 2025-2026 financial year, the Board of Trustees have included all the year-end designations and the general fund in its assessment of the adequacy of the overall reserves to maintain operations.
The Board of Trustees, having regard to the liquidity requirements of the Charity and to the reserves policy, has agreed an investment policy which keeps available funds in current and interest-bearing accounts with total balances with each financial institution no greater than that covered by the Financial Services Compensation Scheme (FSCS) limit. The exception to this being the Charity’s main operational clearing bank where funds up to a total of £200,000 may be retained subject to tiered maturity profiles.
Risk Management
The Board of Trustees has a duty to identify and review the risks to which the Charity is exposed. To undertake this duty, the Charity maintains a risk register. The Charity’s risk register and risk management processes ensure that the Charity is able to identify root causes, robust mitigation measures and appropriate responses. The risk register is overseen by the Fundraising, Strategy and Risk Committee. At its quarterly meeting, the Committee reviews the risk register and adjusts it as needed, communicating any actions required to those involved. The Chair of the Committee highlights any new or changed risks in the next trustee board meeting.
Our principal risks, at the end of the year, are summarised below
Political and Economic: Cuts in funding and capacity in our partner organisations, both in the voluntary and statutory sectors, has led to a reduction in their services. This has caused a deterioration in mental health, substance use increase, risk of harm and/or suicide and long-term health outcomes for our clients. It has also led to greater demand on our services meaning that we are carrying an increased level of risk. In addition, we are seeing increased competition for funding, particularly from Trusts and Foundations, Individuals and Corporate Donors. To address these issues, we are building on and expanding our partnership work, and investing in additional support for our staff, while continuing to reinforce the priorities and boundaries of our own service.
Operational: The increased levels of complexity in our clients has increased the risk of vicarious trauma, reduced wellbeing and/or burnout for staff members, which could then lead to negative outcomes for clients. All of our staff and volunteers have access to either clinical supervision or reflective practice, we prioritise shared responsibility for wellbeing, open communication across teams, and a trauma-informed approach that supports both staff and young people. We also offer a generous range of benefits available to all staff including flexible working and access to counselling.
We are also aware of the escalation of social tensions and hostile public narratives, meaning that marginalised groups could feel less safe accessing services, reducing their engagement and trust, and that staff and volunteers from affected communities may experience increased stress, burnout, or harassment. There is also the potential for conflict within the centre between clients with differing identities and/or views. We are consistently clear with all staff, volunteers and clients on CTS values and ensure that these are lived in practice. This includes using our Respect Agreement and regular reviews of our safeguarding and trauma informed policies and guidance. We also regularly monitor media and social media for emerging narratives that may impact our work and provide regular EDI training for staff and volunteers.
Reflection and Future Plans
The scale and complexity of need reflected in this report underline the continuing importance of the Clock Tower Sanctuary. During a period of increasing complexity for young people facing homelessness, pressure on public services and a highly competitive funding context, CTS has remained responsive while protecting the quality, accessibility and warm person-centred character of our support.
We have also sought to ensure that learning informs our decisions. For example, the progress made by the Youth Voice group, and the steps taken to improve accessibility for neurodivergent young people demonstrate an organisation keen to listen and adapt.
The Board has maintained a clear strategic focus. It provided constructive support and challenge to the leadership team, and ensured robust oversight of finances, organisational risk and service quality. Safeguarding was elevated to a higher level in Board discourse. As CTS delivered on the first year of its new strategy, the Board has paid particular attention to the charity’s long-term resilience, the changing needs of young people, how their voices are included, and the development of partnerships across Brighton and Hove (and beyond). New trustees helped diversify the board in 2025/6 and we plan a board effectiveness review in 2026/7.
Looking ahead, our priorities are to deepen young people’s influence, strengthen pathways towards stable housing and independent living, and build the sustainable income and partnerships needed to meet demand that is more complex each year.
Commencement of Activities
The Clock Tower Sanctuary was established by constitution dated 1 June 1998 and registered on 28 July 1998 with the Charities Commission (previous Charity number 1070736). On 12 July 2011, a Company limited by guarantee was incorporated with the same name as the Charity.
Governing Document
The Clock Tower Sanctuary is a Company Limited by Guarantee (07311390) and a registered Charity (1146777). It is governed by its Memorandum and Articles of Association, revised in 2013, 2016 and 2019. The members of the Company are the Trustees named on the Legal and Administration Information page. In the event of the Company being wound up, the liability in respect of guarantee is £1 per member.
The trustees, who are also the directors for the purpose of company law, and who served during the period and up to the date of signature of the financial statements were:
Method and Appointment of Trustees
The management of the Board of Trustees is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum and Articles of Association. All Trustees are provided with training and the Charity complies with the Code of Good Governance.
Vacancies for Trustees are publicly advertised on the website, our social media and newsletter and via local online channels. We are committed to increasing the diversity of our board of trustees and the number of members with lived experience similar to that of our clients and we actively encourage applications from people with lived experience and from groups that are underrepresented in governance, recognising that a broad range of perspectives strengthens our decision-making and impact. We work to make our recruitment process as inclusive and accessible as possible by reducing barriers to participation, offering support throughout the process, and focusing on the skills, insights and perspectives that candidates can bring.
The advertisement contains information about the role and skills and qualities required. The application pack includes a welcome letter from the Chair, information about the organisation, including our current strategy and a role description and a person specification.
Applications to join the Board of Trustees are reviewed by a panel, which includes at least two existing trustees. Interviews for prospective Trustees are conducted by the Chair and/or Vice-Chair, and at least one other trustee. All new Trustees are required to sign a code of conduct and a declaration that they are not disqualified from acting as a Director/Trustee and that they will devote the necessary time and effort in their position. Disclosure and Barring Service checks are carried out on all new Trustees before appointment.
Induction and Training of Trustees
All newly appointed Trustees receive a comprehensive information pack containing a copy of the governing document, previous Board of Trustees and Committee minutes, the latest management accounts and staff structure.
The CEO, along with the Chair or an experienced Trustee, meets to induct the Trustee so that they can meaningfully contribute to discussions in an informed way from the outset of their appointment. New Trustees are also encouraged to spend time at the Centre, observing front-line services and providing an opportunity to meet with staff, volunteers and beneficiaries.
All Trustees are offered a buddy from the existing board of trustees and are provided with ongoing training and information to keep their knowledge and skills up-to-date and relevant.
The Board of Trustees meets quarterly with three Committees meeting separately:
Finance Committee
Personnel and Equality Committee
Fundraising, Strategy and Risk Committee
Each Committee has Terms of Reference and there is a clear Scheme of Delegation regarding the decision-making powers of each Committee, which has been agreed by the Board of Trustees. The CEO is appointed by Trustees to manage the day-to-day operations of the Charity and to implement the Charity’s strategic plan.
The Charity has also established Task Teams, comprising trustees and staff members, to oversee identified, short term projects and priorities.
The day-to-day running of the Charity and leadership of the staff team is delegated to the CEO. The CEO meets regularly with the Chair and is accountable to the Board of Trustees for the performance of agreed strategic implementation plans.
The remuneration of the CEO is set by the Board of Trustees, with the remuneration of other staff being advised by the CEO. The Personnel and Equalities Committee annually reviews staff salaries for cost-of-living increases in collaboration with the finance committee. An independent HR advisor conducts a salary benchmarking exercise with comparable organisations locally when significant changes to staff roles take place.
The Charity is committed to attracting, recruiting and training experienced, professional staff and volunteers from diverse backgrounds, who will deliver the best outcomes for young people experiencing homelessness.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of The Clock Tower Sanctuary (the charity) for the period 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.
The income of the charity in the period ended 31 March 2026 is £1,201,893. These financial statements represent a 15-month period. Accordingly the annual income for the charity over a 12-month period is below the statutory audit threshold of £1 million. The Charity Commission has confirmed the charity's exemption from audit in correspondence dated 16 June 2026.
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 period. All income and expenditure derive from continuing activities.
The Clock Tower Sanctuary is a private company limited by guarantee incorporated in England and Wales. The registered office is Wenlock House, 41-43 North Street, Brighton, BN1 1RH. In the event of the company being wound up, the liability in respect of guarantee is £1 per member.
The charity changed its financial year end from 31 December to 31 March to enable better budgeting as a significant portion of income is generated October - December. The charity is permitted to change its financial year end in accordance with Charity and Company law. These financial statements cover a 15-month period from 1 January 2025 to 31 March 2026. The comparative figures are for the 12-month period ended 31 December 2024. Therefore the comparatives are not entirely comparable.
The financial statements have been prepared in accordance with the charity's Memorandum and 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. 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.
Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
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.
Donated goods and services are recognised when the charity is legally entitled to those goods or services, it is probable that the items will be received and the value to the charity of the donated item can be measured reliably.
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 of charitable activities includes the maintenance of The Clock Tower Sanctuary facility, the costs of undertaking the organisation's charitable activities and the management and administrative staffing of the Charity. These are split between the activities of client support and towards stability in the following manner: Salaries, National Insurance and Pension costs by an individual's time; All other costs incurred on a 65:35 basis.
Tangible fixed assets over £1,000 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.
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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.
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.
Income from donations and grants
Included within governance costs are payments to the independent examiners of £1,000 plus VAT (2024: £1,000 plus VAT) and £1,500 plus VAT for other professional fees (2024: £1,500 plus VAT).
The average monthly number of employees during the period was:
During the year the number of full-time equivalent employees, including part-time staff, was 12 (2024: 12). The paid staff team are supported by a team of volunteers who donate their time and skills to the Charity . In 2026 the number of hours provided by volunteers was approximately 8,662.5 (2024: 6,250). Based on the Real Living Wage (£13.45 per hour in 2025/26 and £12.50 per hour in 2024), this equates to £116,511 (2024: £78,125). In accordance with the Charities Statement of Recommended Practice this amount has not been recognised in the accounts as donated income and cost.
The key management personnel of the Charity comprise the Trustees and the CEO. No trustees were paid any remuneration during the year in their role as a trustee. The total 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.
Deferred income is included in the financial statements as follows:
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. At the balance sheet date the amount due to the pension scheme was £3,163 (2024: £2,519).
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.
Our Crisis Support project meets the needs of young people who are experiencing homelessness through the provision of food, laundry, showers, clothing and other essentials, as well as case-working and referrals into other services in the city. In 2026, contributions were generously made by Ernest Kleinwort Charitable Trust, Blagrave Trust, Garfield Weston, Rank Foundation, The Pebble Trust, Chalk Cliff Trust, National Lottery, Brighton District Nursing Association Trust, Sussex Community Foundation, Homity, Arts Society, Comic Relief, Watkins Jones, Fine and Country, and Co-op.
Our Towards Stability/Move-on project provides support to young people who are ready to seek and retain housing, work, training, volunteering, and other opportunities. This work has been kindly supported by Garfield Weston, Blagrave Trust, Rank Foundation, National Lottery, No Fear Bridge, Comic Relief, Crucible Foundation and Co-op.
The activities, workshops and classes provided through the Building Trust, Self Esteem and Confidence project enable our clients to improve their emotional and physical wellbeing and further engage with case-working, which addressed each individuals' circumstances. In 2026, this was generously funded by Enjoolata, Blagrave Trust, National Lottery, Garfield Weston, Rank Foundation, Brighton Distribution Nursing Association Trust, Comic Relief, Watkins Jones, Crucible Foundation, Focus Foundation and Co-op.
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 general fund includes 'free reserves' after allowing for all designated funds. The free reserves (general funds excluding tangible fixed assets) are £173,093 at 31 March 2026 (2024: £201,820).
Transfers are made between general and designated funds to increase the level of designated funds.
Dilapidations - relates to operation cessation, costs to return leasehold premises to their original configuration should the landlord require.
Closure and redundancy provision relates to the necessary funds required should CTS' operations have to cease immediately including redundancy payments.
Strategic plan projects – to provide funds to investigate, assess and trial (if appropriate) different projects outside the operational day to day budget.
Equipment replacement fund.
Amounts recognised in profit or loss as an expense during the period in respect of operating lease arrangements were £153,921 (2024: £129,469).
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year donations without restrictions were received from trustees totalling £160 (2024: £1,444). No trustee was reimbursed expenses (2024: one trustee reimbursed travel and subsistence costs of £55). There are no other related party transactions requiring disclosure during the year.
The charity had no material debt during the year.