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 trust deed, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)".
The objectives of the Netherton Feelgood Factory are to promote the health, education and quality of life of the public in the Metropolitan Borough of Sefton and surrounding areas. The organisation aims to enable people to improve their health and wellbeing by using a community development approach to ill health prevention and health improvement.
In setting our objectives and planning our activities, the trustees have given careful consideration to the Charity Commission's general guidance on public benefit.
Priorities identified through consultation with the local community are:
to improve access to health, social care and related information and services
to encourage healthier lifestyles
to provide services and activities to support isolated older people
to provide services and activities to support families
The Feelgood Factory's strategy to achieve these objectives has been by means of a variety of activities and services held both within the purpose-built healthy living centre and as outreach services in the wider community. The company has continued to lease office space to other organisations and hire rooms and facilities on a day or half day basis.
The Feelgood Factory provides services for the whole of the community from childhood to old age in order to promote health and wellbeing in the most holistic way possible. During the year, our range of services has included:
Advice and information services.
Healthy living activities for the whole community that concentrate on physical exercises and food and nutrition.
Breast feeding support and support for parents facing stress and depression.
Mental health activities including a drop-in to support people with more severe and enduring mental health issues and programmes to promote good mental health.
Community services project which provides a range of practical services to help older people stay safe and well both by providing support in their own home and through activities in the centre.
A community garden
Community Hub
The Feelgood Factory continued to provide the main information and advice service in the centre of Netherton. Our centre and its staff have provided key information about local and national services and health and wellbeing to local people. The advice centre and community hub are placed within a community lounge that is open to all local people giving access to somewhere to meet in the warmth in winter (which helped to reduce energy bills) as well as access to amenities such as Wi-Fi, printers and computers. The hub has also been active providing food parcels and frozen meals for people in need working in partnership with local stores and Liverpool Football Club Foundation. During this year we also setup a luncheon club and breakfast club for local people
Healthy Living Activities
We have provided a range of activities aimed at promoting health and wellbeing. These have included exercise classes such as Zumba, Pilates, Line Dancing and Aerobics as well as a general health programme and a variety of food and nutrition programmes.
Breast Feeding Support
This programme trains volunteers to act as peer mentors for local mothers who wish to breastfeed. It also runs support groups. Overall the programme helps to promote the health of mothers and babies and provides education about the wider benefits of breastfeeding. We have continued to develop programmes aimed at helping parents with their mental wellbeing.
Mental Health Projects
The Drop-In for people with more severe and enduring mental health problems, has continued to operate twice weekly in Netherton and Linacre. We have also continued to provide more general wellbeing support sessions, in particular Think Differently, Cope Differently and Bereavement Support, and some one-to-one support sessions. Our programme to support people experiencing loneliness has also continued to grow and now includes a range of groups and activities including the Tea and Talk Group, Man Cave, Crafting, Drawing, Creative Writing, Music and History.
Computer Facilities
Thanks to a grant from the UK Shared Prosperity Fund Resilience and Capacity Grants Programme we were able to purchase a Smart Board and digital screens to expand our services in the area.
There were 2,885 attendances at programmes aimed at improving physical health through exercise and nutrition.
There were 2,478 attendances at sessions to promote mental wellbeing and alleviate loneliness
Children and Families
As a result of the work of the Community Hub, we have continued to provide programmes for families, both as after school clubs and as holiday clubs. This work has evolved in particular into support for families with children who have diagnoses of autism or ADHD.
Netherton Community Garden
The Netherton Community Garden has developed very well and continued to produce food for the community as well as some social interaction for volunteers. Funding from the National Lottery Reaching Communities Fund has provided some security for the future.
We have also continued to provide practical help for people in the community.
In particular we:
Distributed 5,000 frozen meals to families in need
Donated Christmas Dinner hampers to 50 families
Provided Christmas gifts to 8 families while also supporting Sefton Council Christmas programme
Attendances at the weekly luncheon club continues to grow and also introducing a breakfast club
The Feelgood Factory continues to depend for the achievement of its objectives upon the support of a range of partner organisations and upon the hard work of its staff and volunteers.
We worked throughout the year to improve our financial position in line with our five-year plan. It was difficult due to staff changes which put pressure on fundraising activities but the situation was better at the end of the year although there is still some distance to go. The pressures to constantly raise more money is also led by the increased demands on our services.
In terms of earned income the charity shop and associated online sales (largely due to a dedicated volunteer workforce) have gone from strength to strength. Earned income from room hires and rentals have also increased through the year. The plan is underway to improve facilities to increase external hiring of rooms, particularly out of hours.
We have continued to put into action our Business Plan. This is overseen by three operational groups made up of trustees, staff and volunteers. The groups work to bring about targets associated with Business and Fundraising, Marketing and Communications and Volunteer Development and Management.
As at 31 March 2026, the Charity had reserves of £278,122 (2025: £351,496). Included within these reserves are £42,671 (2025 £68,098) of restricted funds (see note 19) and £130,912 (2025: £122,401) of designated funds (see note 20). Included within unrestricted reserves are fixed assets totalling £208,277 (2025: £280,258). These funds can only be realised upon sale of these assets. The Charity had free reserves of £nil (2025: £nil).
It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Investment Policy and Returns
Trustees make all decisions about investments and receive regular financial reports from the Finance Sub-Committee detailing the financial position of the organisation.
Risk Identification and Management
The Board have identified the main areas of risk as the costs attached to running and maintaining the building. The risks have been minimised through monitoring the extent of dependence on particular donors.
The Board has a wide range of funding sources to minimise dependence on any one source.
A set of financial regulations exists which specify the cheque signatories and their delegated authority levels. Two signatories, one of whom must be a board member, must sign each cheque.
A computerised financial management system is fully operational and a system to maintain the highest standards of financial management is in place.
Disclosure of information for financial inspection
Each of the directors has confirmed that there is no information of which they are aware which is relevant to the inspection, but of which the independent examiner is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the examiners are aware of such information.
The Charity is a charitable company limited by guarantee and not having a share capital. The company is registered in England and Wales, No: 3614799. The principal governing document is the company Memorandum and Articles of Association. The Charity is registered with the Charity Commission, No: 1074508.
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:
The charity is governed by its Board of Directors who, as Trustees of the charity, are responsible for setting the strategic direction of the organisation and for establishing policy. The Board meets monthly and delegates day-to-day management to the Chief Executive, Sandra Duncan, who leads a staff team with specific areas of responsibility. Written financial and progress reports are provided in advance of Board Meetings. There is a Finance Sub Committee that has delegated authority and written terms of reference.
Trustees are nominated and elected by Feelgood Factory Members. New Trustees are inducted into their new role by way of formalised information about the role of a trustee and about the Feelgood Factory.
A membership register is held by the Company Secretary. One third of Trustees will normally retire each year and are eligible for re-election at the Annual General Meeting.
At the 31st March 2026 there were 15 members.
Trustees are appointed in accordance with the company's Memorandum and Articles of Association. The trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Employees
The organisation had 13 staff at the 31st March 2026.
The Trustees' report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of Netherton Feelgood Factory (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 Association of Chartered Certified Accountants, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the Charity as required by section 386 of the Companies Act 2006.
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Netherton Feelgood Factory is a private company limited by guarantee incorporated in England and Wales. The registered office is Glovers Lane, Netherton, Liverpool, Merseyside, L30 5QW.
The financial statements have been prepared in accordance with the Charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)". The Charity is a Public Benefit Entity as defined by FRS 102.
The Charity has taken advantage of the provisions in the SORP for charities 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, 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 unrestricted funds that have been set aside by the Trustees for a particular purpose. The aim and use of each of designated fund is set out in the notes to the financial statements.
Restricted funds are are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The purposes and uses of each restricted funds are set out in the notes to the financial statements.
Income from donations and grants, including capital grants, is included in incoming resources when these are receivable, except as follows:
When the donors specify that donations and grants given to the Charity must be used in future accounting periods, the income is deferred until those periods.
When donors impose conditions which have to be fulfilled before the charity becomes entitled to such income, the income is deferred and not included in incoming resources until the preconditions for use have been met.
When donors specify that donations and grants, including capital grants, are for restricted purposes, which do not amount to preconditions regarding entitlement, this income is included in incoming resources of the restricted funds when received.
Voluntary income included discretionary grants for projects, goods and services where no service agreement or contract exists.
Other grants, which have particular service requirements and which are provided in accordance with a contract or service level agreement are included in the Statement of Financial Activities under the heading Income Resources for Charitable Activities.
Expenditure reflects all amounts paid and accrued during the year. Expenditure includes VAT which cannot be recovered, and is reported as part of the expenditure to which it relates. All costs are allocated between the expenditure categories of the Statement of Financial Activities (SOFA) on a basis designed to reflect the use of the resource. Where costs cannot be directly attributed to particular headings they are allocated to activities on a basis consistent with the use of the resource.
Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Tangible fixed assets costing more than £1,000 are capitalised at cost.
The cost of tangible fixed assets includes only expenditure incurred in bringing the asset into working condition for their intended use. Depreciation is provided to write each asset off over its expected useful life using the following rates and methods:
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 Charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income and gains falling within those exemptions.
The Charity is not able to recover Value Added Tax. Expenditure is recorded in the financial statements inclusive of VAT
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.
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.
CEO's salary is allocated following an assessment of the time spent in monitoring and supervising front line staff and for running activities herself.
Depreciation is allocated to Public Benefit as all activities are funded from restricted funds.
The majority of governance costs are allocated to Public Benefit as all other activities are funded by restricted funds with the exception of subscriptions which are allocated based on which activity incurs the cost.
Governance costs include payments to the Independent Examiner of £3,960 (2025: £3,900)
The average monthly number of employees during the year was:
The remuneration of key management personnel was as follows:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Transfers relate to a proportion of the overhead costs charged to the individual projects (see note 19).
During the year, the redundancy reserve was increased to reflect staff changes during the year ( see note 20).
During the year part of the leasehold property was rented out by the Charity to other charitable organisations. The fair value of this component part of the property cannot be reliably measured without due cost to the Charity.
The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.
The 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.
The Healthy Living Centre project provides a wide range of activities to improve health and wellbeing.
The Breastfeeding Sefton project is for peer-led support for mothers and mothers-to-be to encourage and enable breastfeeding throughout Sefton.
These are unrestricted funds which are material to the Charity's activities.
The Redundancy Reserve has been designated to cover the costs of redundancy payments should the organisation cease to operate.
The Maintenance Fund has been designated to cover the ongoing regular but infrequent costs associated with the maintenance of the building.
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:
There were no disclosable related party transactions during the year (2025 - none).