REGISTERED COMPANY NUMBER: 02450753 (England and Wales)

REGISTERED CHARITY NUMBER: 1000903

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

FOR

CLARO ENTERPRISES

Page

Report of the Trustees

1

to

10

Independent Examiner's Report

11

Statement of Financial Activities

12

Balance Sheet

13

to

14

Notes to the Financial Statements

15

to

22

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2026. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Purposes and Aims

The charity's purposes, as set out in the objects contained in the company's Memorandum of Association, are to:

-

relieve poverty and distress among sufferers from schizophrenia and mental illness generally; and

-

advance the education of persons suffering from schizophrenia or other mental illness and in particular to promote, provide and support schemes where such persons may receive training in a supportive and supervised environment

Claro's aims are to improve the quality of life, confidence and self-esteem of people experiencing severe and enduring mental health problems - we see that the work and training activity provides routine, social connection and stability. We seek to provide meaningful opportunities for people to develop skills, take part in real work and build confidence and independence in a supportive environment.

We listen to our service users and respond to their changing requirements, aiming to provide a working environment which is as realistic as possible while recognising the individual needs and abilities of those attending Claro. We also seek to work with other organisations to ensure that people receive appropriate support and opportunities beyond Claro where this is appropriate.

Ensuring our work delivers our aims

The Trustees regularly review the charity's aims, objectives and activities to consider what has been achieved, what has not gone as well and what changes may be needed to ensure that Claro remains focused on its charitable purposes.

In assessing the effectiveness of our work, we consider both the number of people we support and the difference our services make to them. This includes feedback from service users, wellbeing information, participation in training and work-related activity, development of skills and confidence, and progression towards volunteering or employment where appropriate.

A principal concern for the Trustees is to maintain support for our existing service users while developing the charity in ways which enhance the sustainability of the service and enable us to respond to changing needs.

The Trustees have complied with their duty to have due regard to the Charity Commission's guidance on public benefit. In particular, the Trustees consider how planned activities will contribute to the aims and objectives of the charity and enable it to meet its charitable purposes for the public benefit.

The focus of our work

Claro Enterprises provides a supportive community-based working environment for people experiencing long-term severe and enduring mental health problems, including schizophrenia and bipolar disorder.

Our focus is on providing:

-

meaningful, structured work-related activity;

-

opportunities to learn and develop practical and employment-related skills;

-

support to improve confidence, self-esteem, independence and wellbeing;

-

information and support for service users and their carers; and

-

opportunities to progress towards volunteering or employment where appropriate.

An important part of Claro's approach is that people are able to undertake genuine work within a commercial environment. Our woodworking and Business Services activities give beneficiaries the opportunity to contribute to work which has a real purpose while receiving appropriate support and supervision. This model also enables the charity's trading activities to contribute towards the cost of providing its charitable services.

Another important aspect of our work is the Route One to Wellness Partnership. This partnership with 3 other complementary mental health charities makes a significant contribution to meeting the needs of people across the Harrogate District.

How our activities deliver public benefit

All of Claro's charitable activities are focused on helping and supporting our beneficiaries. During the year Claro provided:

-

a variety of practical activities and opportunities to learn new skills, including woodworking, packaging and light assembly;

-

training and supervision in the safe use of equipment and machinery, together with first aid training;

-

an externally accredited in-house training programme in Employment Skills and Personal Development Skills

-

a supportive and structured environment in which beneficiaries could gain genuine work experience, socialise and develop confidence;

-

supported work experience to help beneficiaries move towards volunteering and employment in external organisations;

-

opportunities for beneficiaries to discuss and share their ideas, concerns and future requirements via regular client meetings and client representation at management meetings;

-

accommodation, equipment, personnel, volunteers and training to support the Men's Shed in Starbeck;

-

partnership working with other local charities providing complementary activities and support;

-

development of the Route One Partnership, providing a single point of referral for Social Prescribers and Community Mental Health services; and

-

dedicated mental health support focused on building confidence and self-esteem and encouraging people to take part in activities, education or work which match their interests, skills and experience

-

1:1 and group wood turning instruction

Through these activities, Claro provides people who may struggle to participate in a conventional workplace with an opportunity to take part in meaningful activity, develop skills and relationships, improve their confidence and wellbeing, and where appropriate move towards further education, volunteering or employment.

People who use our service have told us that the support provided has significantly reduced their use of primary and secondary health services (2025 Client Survey)

Who used and benefited from our services

During the year Claro provided long-term support to over 35 people each week and supported more than 50 people with severe and enduring mental health issues over the year. Claro received 50 referrals with the majority of these coming through the Route One mental health partnership, with some people requiring short-term intervention and others requiring longer-term support. Together with those attending Men's Shed activities and wood turning classes, there was regular weekly attendance was in excess of 50.

Route One continued to develop its referral pathways during the year. The four established pathways were:

1

Social Prescribers based in GP surgeries;

2

First Contact Mental Health Workers based in GP surgeries;

3

Community Mental Health Team (Adult); and

4

Community Mental Health Team (Older People)

Wellbeing data gathered by the Route One coordinator showed that 82% of people coming through the pathway experienced an improvement in their wellbeing score during their placements. There was a large year in year increase in people using Route One's services - with the number of support sessions up 56% on the previous period

The 2025/26 client survey focused on the benefits people identified from attending Claro - several commented on the practical skills, soft skills and confidence gained

"Claro helped me to start learning again … as a part-time student and gain qualifications."

"It's improved my mental health"

,whilst others focused on the social connections:

"I have made friends and developed a support network here - with unexpected people I wouldn't have met outside of Claro but are great friends now"

Others reported in the importance of consistent support with trusted staff:

"People need the safety of claro, they don't get it anywhere else - they trust places that they know, Claro keeps people alive"

Achievements during the year

The Trustees consider the following to be significant achievements during the year:

-

Over 50 people accessing the workshop on a weekly basis;

-

further development of the Route One Partnership and its referral pathways with the earlier intervention gained as a result of our partnership with GPs improving outcomes;

-

evidence of improved wellbeing for 82% of people coming through the Route One pathway;

-

evidence from the service user survey of improvements in confidence, skills and improved mental health;

-

development and delivery of an externally accredited Employment Skills and Personal Development programme;

-

expansion of the Men's Shed now meeting 2 times per week and actively involved in many community events;

-

continued development of Claro's commercial activities and wood-based products, building a new website to promote the new CNC cutting service;

-

Securing funding and delivering wood working evening classes so that we have an offer for people currently in work or have childcare or other commitments through the daytime;

-

fundraising for and installation of a fully accessible toilet;

The Trustees believe these achievements demonstrate the continued value of Claro's combination of meaningful work, practical training, personal development and community support.

The Trustees wish to record their appreciation for the commitment, professionalism and compassion shown by the staff team throughout the year. Their skill and dedication are fundamental to the positive outcomes achieved by beneficiaries.

FINANCIAL REVIEW

Financial position

The principal concern of the Trustees remains the continued wellbeing and development of service users and, where appropriate, helping them to progress towards regular employment.

Claro has extended its offer to include accredited qualifications for beneficiaries while on placement. The Masonic Charitable Foundation provided £15,000 (£3,000 per annum for five years) to run accredited learning programmes, with 4 people completing an Employability Qualification in July 2025 and 4 more people embarked on a Personal Development programme in September 2025

The Men's Shed continues to thrive with an extended team of volunteers now regularly meeting on a Tuesday to make a wonderful range of hand-crafted wood products for sale - the same volunteers then give up huge amounts of time to attend local fairs and sales raising significant funds just under £6000 during the year

Trading income whilst less than the previous year is still a significant source of income, increased sales through promotion woodwork products and services and increased business services customers will be a focus for 2026/7

The new CNC machine has provided the charity with additional capacity to develop its commercial activities; having built a bespoke website we are now ready to promote this service.

The installation of solar panels and other energy saving measures made a significant saving of £2350 in energy costs

The Trustees remain conscious of the need to diversify income, with the charity now also raising funds through renting out space to a local craft group and this year has started providing student placements to Occupational Therapy students from York St John University alongside established funding sources

Principal funding sources

Claro's principal sources of funding are North Yorkshire Council via Individual Service Contracts, Route One funding, grants and donations, and income generated through the charity's trading activities.

Funding from North Yorkshire Council has not kept pace with increases in costs and its real value has reduced over recent years. Trustees and management have continued to engage with North Yorkshire Council regarding the future funding of Claro's services. The Framework Contract, through which most contracts are managed, is due for renewal in 2027. During 2026, we will work with the Council to establish a longer-term plan for funding places at Claro.

Claro also continued to receive funding through Route One, supporting places allocated through this pathway. The funding was received through the Transforming Mental Health Care programme and is intended to integrate third-sector organisations into local mental health provision. A long-term funding agreement has not yet been established, but discussions are continuing and it is hoped that these will be finalised during 2026.

The charity received grant funding from a number of organisations during the year, including the Liz & Terry Bramall Trust, Masonic Charitable Foundation, Two Ridings Foundation, R B Gray Trust and Starbeck Community Fund, together with funding from Cllr Chris Aldred's locality fund.

The Trustees are grateful to all funders, donors and customers for their support. Trading income is particularly important because it not only generates income for the charity but also provides meaningful work opportunities for beneficiaries.

Reserves policy

The Management Committee has determined that reserves not invested in fixed tangible assets should be sufficient to provide a prudent level of protection against the loss of core funding.

In 2023 the Committee reviewed its previous policy of retaining reserves equivalent to at least two years of financial support received from North Yorkshire County Council. In view of the falling value in real terms of this support, the Committee determined that a more sustainable policy would be to retain approximately two years of staff salaries together with an allowance for staff redundancy costs.

The Trustees consider this to be a prudent policy given the vulnerable nature of the beneficiaries, as it provides a degree of protection for the continuation of the charity's work in the event that existing funding sources are lost. The policy is reviewed at least annually.

FUTURE PLANS

In the present economic climate, including cost of living increases and financial pressures on all public services we believe that continuing to deliver our core service is important as our service users are among the most vulnerable in society and their well being is very dependent on the Charity's existence.

The Trustees believe that continuing to provide Claro's core service is particularly important at a time of financial pressure on public services and increasing demands on mental health services. The people supported by Claro can be particularly vulnerable and their wellbeing can be significantly affected by the availability of appropriate community-based support.

During the coming year the Trustees will focus on maintaining and developing Claro's core service while strengthening the charity's long-term financial resilience.

Our priorities will include:

-

Work with Local Authority and NHS commissioners to establish longer term funding plans for individual funded places at Claro and for the Route One to Wellness partnership;

-

continuing to provide high-quality, meaningful work and training opportunities for existing service users;

-

developing individually tailored short-term programmes for people who could use Claro as a stepping stone towards volunteering or regular employment;

-

continuing to develop the Route One Partnership and its referral pathways, including opportunities to extend the service into rural communities within Harrogate District;

-

developing commercial activity and new products and services so that trading income can make an increasing contribution to the sustainability of the charity;

-

continuing to seek grant and external funding to support both existing services and development; and

-

developing staff flexibility, skills and organisational capability through training and development.

The Trustees will continue to monitor local and national developments in mental health and wellbeing and will consider how Claro can adapt its services to meet changing needs.

The Trustees recognise that reduced public funding, rising staffing, energy and insurance costs and uncertainty around commercial activity present significant challenges to the charity's medium-term sustainability. These risks are kept under regular review, and the Trustees and management will continue to explore opportunities to strengthen the charity's resilience while protecting the quality and continuity of support provided to beneficiaries.

The Trustees remain committed to ensuring that Claro continues to provide a distinctive combination of meaningful work, practical skills, personal development and community support for people experiencing long-term mental health difficulties.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The organisation is a charitable company limited by guarantee, incorporated on 11th December 1989 and registered as a charity on 13th November 1990. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.

In the event of the company being wound up members are required to contribute an amount not exceeding £1 each.

Recruitment and appointment of management committee

The Directors of the company are also charity trustees for the purposes of charity law and under the company's Articles are known as members of the Management Committee.

Under the requirements of the Memorandum and Articles of Association one third of the Trustees, or the number closest to one third must resign at each AGM and may offer themselves for reelection if they wish.

All Trustees give their time voluntarily and receive no benefits from the charity. No expenses were reclaimed from the charity by Trustees during the year.

The Trustees are:

Mrs Maggie Archer reelected in October 2023 - due to resign 2026

Mr James Atkins reelected in October 2024 - due to resign 2027

Mr Chris Brown reelected in October 2024 - due to resign 2027

Mr Philip Brown appointed in May 2023 - due to resign 2026

Mrs Susan Brown reelected in October 2023 - due to resign 2026

Ms Victoria Oldham appointed in May 2023 - due to resign 2026

Ms Pippa Robson appointed February 2025 - due to resign 2028

Dr Bruce Willoughby appointed July 2026 - due to resign 2029

Office Bearers are:

Mr James Atkins was reelected as Chairman in October 2024

Mr Chris Brown was reelected as Deputy Chairman in October 2024

Mrs Susan Brown was reelected as Secretary in October 2023

Ms Victoria Oldham elected as Treasurer in October 2023

Organisational structure

The Management Committee met ten times during the year using Microsoft Teams, as required, to enable attendance. Charity activities and finances are reviewed at these meetings.

The meetings are attended by:

-

the trustees

-

a representative of the service users

-

Claro General Manager and other staff as required

Meetings between all Claro staff and at least three of the Trustees take place when requested by staff.

Minutes and the decisions made at these meetings are recorded.

Responsibilities of the Trustees

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 as at the balance sheet date and of its incoming resources, including income and expenditure for the financial year.

In preparing those financial statements the Trustees have:

- selected suitable accounting policies and then applied them consistently

- made judgments and estimates that are reasonable and prudent

- stated whether applicable accounting standards have been followed, subject to any material departures being disclosed and explained in the financial statements

- prepared the financial statements on the "going concern" basis

- considered the thresholds requiring independent auditing of the accounts and have satisfied themselves that Claro Enterprises is not required by law to have its accounts independently audited but that independent examination is required.

The Trustees have overall responsibility for ensuring that the charity has appropriate systems of control - financial and otherwise. They are also responsible for keeping proper accounting records which 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. They are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. They are required to provide reasonable assurance that the charity is operating efficiently and its assets are safeguarded against unauthorised use or disposition, that proper records are maintained and that financial information used within the charity and for publication is reliable and that the charity complies with all relevant laws and regulations.

Members of the Management Committee

Members of the Management Committee, who are Directors for the purpose of company law and Trustees for the purpose of charity law, who served during the year and up to the date of this report are set out on the first page of this report.

As the company's directors, we certify that :

- so far as we are aware there is no relevant information of which the company's independent examiners are unaware

- we have taken all the steps we ought to have taken in order to make ourselves aware of any relevant information and to establish that the charity's independent examiners are aware of that information.

Induction and training of new trustees

New trustees undergo orientation to brief them on their legal obligations under charity and company law, the content of the Articles of Association, the Management Committee and decision making processes, the business plan and recent financial performance of the charity. They are encouraged to attend suitable external training.

Risk management

The Trustees confirm that the major risks to which the charity is exposed have been reviewed and systems have been considered and, where appropriate, established to mitigate those risks to the extent that they can reasonably be mitigated.

The principal risks are:

Organisational capacity and flexibility

Of necessity the charity operates with staffing levels which ensure service user safety and maximize efficiency. As a consequence there is very little spare capacity. Most staff have been in position for a considerable number of years and have built deep levels of competence in their areas of responsibility. Prolonged periods of staff sickness or absence or staff resignations represent a significant risk to the charity as at present the flexibility of the staff is somewhat limited. There are some key roles which only one staff member can perform.

The Trustees are aware of this risk and during the year have provided training to supervisors - now business critical activities can be performed by at least two staff members. Ongoing consideration of required staff training and development to address this risk will continue through this coming year.

Financial

Any further reduction in core funding from North Yorkshire County Council would pose a significant risk to the charity. Continued liaison and cooperation with our funders help us to demonstrate to them the value our services provide and their positive feedback is an encouragement.

Our previous reserves policy is designed to enable the charity to continue for a two to three year period should core funding be lost completely. The Trustees are of the view that the changes to funding in September 2019 coupled with the ongoing challenging commercial environment will result in more financial pressure on Claro. Claro has now entered a period where alternative funding is being sought to ensure the charity's long term sustainability.

Although our trading income is not dependent on only one or two predominant customers this is an area, we continue to have work hard on to develop additional customers. We will continue to spread the customer base and thus further reduce exposure. We set our prices at a very competitive level and concentrate on delivering high quality goods. Customer feedback indicates a high level of satisfaction with our responsiveness, quality levels and value for money.

Cash flow is not an immediate risk given our reserves position. Management review potential bad debts on an ongoing basis and bring any concerns to the attention of the Trustees.

Accounts are subject to annual independent examination. The Management Committee review management accounts and the bank statements at each of their meetings.

Compliance, Safety and Security

Policies and procedures are reviewed by the staff and Trustees on an ongoing basis and are updated as and when required.

Our Health and Safety Policy is up to date and has again been reviewed and updated along with our current safety practices in detail during the year. An external review was carried out by an experienced HSE consultant and all recommendations acted upon.

Necessary insurances, fire and intruder alarms are in place and supported where relevant by service contracts. A CCTV system has been installed to improve premises security.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

02450753 (England and Wales)

Registered Charity number

1000903

Registered office

Spa Road

Starbeck

Harrogate

North Yorkshire

HG2 7JG

Trustees

Christopher Bratton Brown

Frances Susan Brown

Margaret Jean Scott Archer

Colin William Reid (resigned 31/10/2025)

James Atkins

Pippa Jean Robson

Philip John Brown

Victoria Kathryn Oldham

David James Kettle (resigned 17/7/2026)

Bruce Jamieson Willoughby (appointed 22/7/2026)

Company Secretary

Frances Susan Brown

Independent Examiner

DSC

Chartered Accountants

Tattersall House

East Parade

Harrogate

North Yorkshire

HG1 5LT

Bankers

Virgin Money

James Street

Harrogate

HG1 1QU

Approved by order of the board of trustees on 19 October 2026 and signed on its behalf by:

James Atkins - Trustee

Independent examiner's report to the trustees of Claro Enterprises ('the Company')

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

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can 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:

1.	accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

John Garbutt BA FCA

DSC

Chartered Accountants

Tattersall House

East Parade

Harrogate

North Yorkshire

HG1 5LT

19 October 2026

2026

2025

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

168,776

1,560

170,336

158,014

Charitable activities

4

Manufacturing & services

85,604

-

85,604

93,275

Investment income

3

9,422

-

9,422

8,433

Total

263,802

1,560

265,362

259,722

EXPENDITURE ON

Charitable activities

Manufacturing & services

252,790

1,560

254,350

237,194

NET INCOME

11,012

-

11,012

22,528

RECONCILIATION OF FUNDS

Total funds brought forward

349,084

180,074

529,158

506,630

TOTAL FUNDS CARRIED FORWARD

360,096

180,074

540,170

529,158

2026

2025

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

10

112,560

180,074

292,634

295,957

CURRENT ASSETS

Stocks

11

6,096

-

6,096

6,395

Debtors

12

12,815

-

12,815

40,755

Prepayments and accrued income

6,601

-

6,601

5,131

Cash at bank and in hand

297,306

23,490

320,796

267,620

322,818

23,490

346,308

319,901

CREDITORS

Amounts falling due within one year

13

(16,334

)

-

(16,334

)

(9,160

)

NET CURRENT ASSETS

306,484

23,490

329,974

310,741

TOTAL ASSETS LESS CURRENT LIABILITIES

419,044

203,564

622,608

606,698

ACCRUALS AND DEFERRED INCOME

14

(58,948

)

(23,490

)

(82,438

)

(77,540

)

NET ASSETS

360,096

180,074

540,170

529,158

FUNDS

15

Unrestricted funds

360,096

349,084

Restricted funds

180,074

180,074

TOTAL FUNDS

540,170

529,158

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2026 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

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

The financial statements were approved by the Board of Trustees and authorised for issue on 19 October 2026 and were signed on its behalf by:

James Atkins - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The accounts have been prepared on the going concern basis.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Government Grant Income

Government grant income is recognised when there is reasonable assurance that the grant will be received, and that Claro Enterprises will comply with any conditions attached to the grant.

Grants are measured using the accruals model.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Governance costs

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include accountancy fees and costs linked to the strategic management of the charity.

Governance costs are included within support costs, and are wholly allocated to charitable expenditure.

Allocation and apportionment of costs

Support costs are wholly allocated to the charitable activity of Claro Enterprises, which is the running of the workshop.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

5% - 33.3%

Fixtures and fittings

10% - 33.3%

Computer equipment

20% - 25%

An assessment on the appropriateness of calculating depreciation with reference to cost or with reference to net book value is made on an asset-by-asset basis.

Freehold buildings are not depreciated; they are carried at cost less impairment. It is the company's policy to maintain the property in an continued state of sound repair. Accordingly the trustees consider that the life of the property is so long and the residual value, based on prices prevailing at the time of acquisition, is so high that any depreciation would be immaterial.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Prepayments and accrued income

Prepayments are recognised when the associated payment has been made, until the associated goods or services have been received.

Accrued income is recognised as the charity becomes entitled to it and is measured at fair value.

Cash at bank and in hand

Cash at bank and in hand represents cash held and accessible immediately.

Creditors and provisions

Creditors and provisions are recognised where there is a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount after allowing for any trade discounts due.

2.	DONATIONS AND LEGACIES

2026

2025

£

£

Donations

19,209

15,567

Gift aid

2,872

-

Grants

148,255

142,447

170,336

158,014

Grants received, included in the above, are as follows:

2026

2025

£

£

North Yorkshire County Council

97,572

110,223

Other grants

30,892

32,224

Other grants

19,791

-

148,255

142,447

3.	INVESTMENT INCOME

2026

2025

£

£

Deposit account interest

9,422

8,433

4.	INCOME FROM CHARITABLE ACTIVITIES

2026

2025

Activity

£

£

Woodworking income

Manufacturing & services

31,266

37,139

Outwork income

Manufacturing & services

27,084

26,611

Service charges

Manufacturing & services

21,227

23,838

Men/Women in sheds

Manufacturing & services

6,027

5,687

85,604

93,275

5.	SUPPORT COSTS

Governance

costs

£

Manufacturing & services

5,024

Support costs, included in the above, are as follows:

2026

2025

Manufacturing

Total

& services

activities

£

£

Independent Examiner's remuneration

2,155

2,035

Independent Examiner's remuneration for other work

2,869

2,687

5,024

4,722

6.	NET INCOME/(EXPENDITURE)

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

2026

2025

£

£

Independent Examiner's remuneration

2,155

2,035

Independent Examiner's remuneration for other work

2,869

2,687

Depreciation - owned assets

12,126

7,551

7.	TRUSTEES' REMUNERATION AND BENEFITS

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

Trustees' expenses

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

8.	STAFF COSTS

2026

2025

£

£

Wages and salaries

148,200

135,431

Social security costs

5,831

5,426

Other pension costs

6,786

6,898

160,817

147,755

The average monthly number of employees during the year was as follows:

2026

2025

Employees

9

8

No employees received emoluments in excess of £60,000.

In addition to the full time staff disclosed above, as part of Claro Enterprises' charitable activities, people with long term, severe and enduring mental health problems volunteer in our woodworking and outworking activities. These people are the beneficiaries of the charity and are referred to as our service users.

Service users are not employees and are excluded from the results above. In the year the charity provided support for an average of 100 service users (2025: 100) and service user expenses totalled £7,953 (2025: £7,809)

9.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

fund

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

158,014

-

158,014

Charitable activities

Manufacturing & services

93,275

-

93,275

Investment income

8,433

-

8,433

Total

259,722

-

259,722

EXPENDITURE ON

Charitable activities

Manufacturing & services

237,194

-

237,194

NET INCOME

22,528

-

22,528