REGISTERED COMPANY NUMBER: 01418763 (England and Wales)

REGISTERED CHARITY NUMBER: 277927

SOUTHWARK LAW CENTRE

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Page

Reference and administrative details

1

Report of the trustees

2

to

10

Report of the independent auditors

11

to

13

Statement of financial activities

14

Balance sheet

15

Cash flow statement

16

Notes to the cash flow statement

17

Notes to the financial statements

18

to

30

TRUSTEES

V Fewkes

S D O Lancashire

L McGown

V Olisa (Vice Chair)

O J Persey

A Polley (Chair)

J Rhodes

K C Thomas

K N Mcintosh (appointed 13.11.24)

R S K Roberts (resigned 8.9.25)

A Chandler (Treasurer)

P Noakes

S A Catten (resigned 13.11.24)

COMPANY SECRETARY

S Edgar

REGISTERED OFFICE

53 Addington Square

Camberwell

London

SE5 7BL

REGISTERED COMPANY NUMBER

01418763 (England and Wales)

REGISTERED CHARITY NUMBER

277927

AUDITORS

Berringers LLP

Lygon House

50 London Road

Bromley

Kent

BR1 3RA

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 2025. 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 2015).

OBJECTIVES AND ACTIVITIES

Objectives and aims

Southwark Law Centre was founded in 1976. Our main office is in Camberwell. In 2017 a branch office was developed in Lewisham which was recognised as Lewisham Law Centre by the Law Centres Network (LCN) in July 2020.

The Law Centre is a vital community resource, providing free, high-quality specialist legal advice and representation for people who could not otherwise afford legal support. It plays a central role in protecting rights and improving lives across Southwark, Lewisham, and beyond.

Our expert team works in asylum and immigration law, discrimination, education, housing, planning, public law, welfare rights, and through the Windrush Compensation Scheme. The Law Centre ensures that those most at risk of injustice - including people facing homelessness, destitution, discrimination, or breaches of human rights - are not left without a voice.

We also strengthen the local advice sector by providing training and second-tier support, and we campaign to improve law and policy through strategic litigation and advocacy.

Significant activities

In 2024/25, the Law Centre took on 537 complex new cases, supported nearly 900 people through one-off advice and signposting, and delivered workshops to around 700 frontline workers and local residents.

Key Partnerships

The Law Centre's impact is amplified through collaboration. We are proud to play a leading role in local and London-wide networks that bring together charities, councils, community groups, and universities.

- Housing and Immigration Group: Coordinated by the Law Centre with Trust for London's support, this group strengthens practice across London and provides a lifeline for urgent referrals.

- Southwark Homelessness Forum: Chaired by our Executive Director, the Forum brings together the Council and voluntary sector to tackle homelessness and safeguard residents

- Southwark Exchequer Service Liaison Meetings: Facilitated by the Law Centre, these quarterly meetings help address the impact of the pandemic and cost-of-living crisis on tenants

- Equalities and Human Rights Panel (EHRP): Our Executive Director ensures local policy reflects equality, fairness, and community voices.

- Windrush Justice Clinic: As a founding partner, we work with community groups, universities, and law centres nationwide to deliver holistic support for victims of the Windrush scandal.

- Action on Education Rights: This community-led project challenges school exclusions and improves outcomes for Black and minority ethnic children.

- Southwark Borough of Sanctuary: Working with the Council and others, we ensure Southwark is a welcoming place for refugees and migrants.

Organisational Development

In November 2024 the Law Centre welcomed a new Executive Director, Stacey Edgar, following the retirement of Sally Causer. The trustees are confident that Stacey will sustain and build on the Law Centre's significant achievements during Sally's 10 years of leadership.

Just two months later, in January 2025, we began an exciting new chapter by moving from our long-standing home in Peckham to modern premises in Camberwell. The new office provides a brighter, more welcoming space for staff, volunteers, and the many local people who come to us for support.

In March 2025, we finalised a new five-year contract with Southwark Council. This long-term commitment strengthens our financial stability and ensures we can continue to deliver vital services for the community well into the future.

Public benefit

The trustees consider that the objectives and activities stated above of the Law Centre provide public benefit within the meaning and terms of the Charities Act 2011.

STRATEGIC REPORT

Achievements and performance

Charitable activities

The Law Centre's work is rooted in casework and representation, but its influence reaches far wider. We advocate in tribunals, courts, and panels, while also empowering other advice agencies to resolve cases themselves. By linking people to the right support and sharing expertise, we multiply our impact across the community.

Areas of Law

Housing

Housing need in Southwark and Lewisham is acute. In 2024/25 the Law Centre opened 141 new cases, focusing on homelessness, eviction, disrepair, and temporary accommodation. The team also continues to work on a number of ongoing cases which can take several years to resolve.

Alongside legal aid, grant-funded projects allow us to meet unmet need, such as:

- An eviction hotline funded by Access to Justice Foundation.

- Holistic support for private tenants and families in temporary accommodation with Impact on Urban Health and Kineara.

- Tenant rights workshops with Citizens Advice Southwark.

We also share expertise across the sector through the Housing and Immigration Group.

Employment/Discrimination

With 75 cases supported in 2024/25, we provide a crucial safety net for workers facing discrimination, particularly through referrals from Citizens Advice Southwark. Despite gaps in legal aid funding, support from Southwark Council enables us to sustain this service.

Education

In response to identified need, the Law Centre works with local partners in Southwark to set up a model of education advice in areas such as school exclusion and access to Specialist Education and Disability Needs.

We continue to facilitate an advisory group, Action on Education Rights, for frontline agencies and local parents.

Our approach has been to build on the knowledge and expertise already present within the community. Over the last year we have provided training and advice in a number of areas to a range of local community groups. We have also been able to provide direct casework to two families and have brought public law challenges in relation to children out of school.

We are grateful to The Legal Education Fund who continue to fund Action on Education Rights.

Community Care

The Law Centre carries out community care work particularly in the areas of homelessness and 'Section 17' support for destitute families who have been given 'No Recourse to Public Funds' (NRPF) status because of problems with their immigration status. Section 17 of the Children Act 1989 (S.17) gives local authorities the power to provide accommodation and financial support to families with 'children in need', even if they have no recourse to public funds. The Law Centre is also seeing an increasing number of vulnerable adults with NRPF who need Care Act assessments. This is linked to our immigration advice for homeless patients and the London Council funded immigration advice for rough sleepers.

Asylum and Immigration

In the year 2024/25 Southwark and Lewisham Law Centres took on 264 new immigration and asylum cases. This figure does not include all the complex cases that have been active for several years, gathering evidence with pending Home Office appeals.

The Law Centre prioritises cases for vulnerable people such as children, young people, people at risk of gender violence and people with mental and physical health problems. Many of the clients are homeless and destitute.

In July 2022 we began a major new project funded by London Councils for 3 years to support street homeless individuals to rectify their status. The Law Centre is the South east London sub-regional lead and works in partnership with Lewisham Refugee and Migrant Network. We were pleased to receive additional funding to be able to continue this work for another year.

The Law Centre has received continued funding from Lewisham Council to take referrals for specialist immigration advice for families and individuals supported by Lewisham's NRPF team.

During 2024/5 the Law Centre has continued working with Action for Refugees in Lewisham, on a project funded by Trust for London. Additional partnership funding has been provided by Lewisham Council to support some of the most complex cases for people in initial asylum accommodation.

The Law Centre provides casework and representation for homeless patients in partnership with the homelessness teams at Guy's and St Thomas' hospitals. As a result of the successful outcomes this project has demonstrated in terms not only of benefits for very vulnerable patients but also savings to the NHS, the project is being funded on a rolling basis by the GSTT Hospital Trust. A similar project funded by the SE London Integrated Care Service, taking referrals from hospitals in Lewisham, Bromley and Greenwich began on a pilot basis in 2022 and has since been extended for three years

The Law Centre continues to work with the South London Refugee Association (SLRA), on the Justice Together funded programme taking referrals of complex immigration matters and providing targeted consultancy support for their staff.

In recognition of the increase in complex immigration matters in Southwark, the Law Centre is grateful to the United St Saviour's Charity for providing funding for an additional caseworker.

Windrush Compensation Scheme

The Law Centre has funding from AB Charitable Trust to provide casework to help victims of the Windrush scandal to access the compensation that they are entitled to and to deal with associated immigration advice. The Law Centre has funding from King's College London to provide support for law students volunteering with this project. We also have funding from the Paul Hamlyn Foundation to employ a part time coordinator to work more widely across the Windrush Justice Partnership. The Law Centre is also grateful to Gowling WLG, Withers Worldwide and Norton Rose Fulbright solicitors for their contribution to the project.

The Law Centre is currently working on over 22 complex cases and is progressing a challenge to the Legal Aid Agency's blanket refusal to award Legal Aid for help with compensation claims.

Welfare Rights

In 2024/5 the Law Centre dealt with 27 welfare rights cases. It specialises in appeals to the First Tier Tribunal (Social Security and Asylum Support), Upper Tribunal, and Judicial Review cases. Legal Aid is rarely available for welfare rights cases and the Law Centre's casework was largely funded thanks to the important Southwark Council contract.

The Law Centre received funding from the Integrated Care Board to provide welfare benefits advice and representation for people across SE London with Sickle Cell.

Planning Voice

The overall aim of this innovative project is to support and empower local people, particularly those from economically and socially disadvantaged communities, to be able to influence developments affecting the environment they live in.

The Law Centre has funding from the National Lottery Fund and the Oak Foundation to carry out this work, in particular exploring how planning intersects with homelessness and the need for affordable housing. The funding enables the Law Centre to employ a full-time planning solicitor supported by a paralegal.

Our planning work is informed by an advisory group consisting of local residents and representatives of community organisations.

Public Law

The Law Centre has a small, but growing, number of Legal Aid Matter Starts in this area. It is important that it maintains its ability to challenge unreasonable decisions made by public bodies.

In the year 2024/5 the Law Centre carried out 27 public law challenges, compared to 7 in the last financial year. These have been mainly in the area of Asylum Support. In 2024/25 the Law Centre is exploring public law cases in the area of education, and challenging conditions in initial asylum accommodation.

We have also been exploring strategic litigation, bringing strategic challenges in relation to the asylum hotels and e-visas.

Volunteers and pro bono support

The Law Centre nurtures the next generation of social welfare lawyers while extending its reach through volunteers and pro bono partnerships.

- In 2024/25, law students from King's College London supported our Windrush project

- We worked with a number of dedicated office volunteers, who supported our team with a range of administrative and legal tasks.

- Leading firms including Anthony Gold, Clifford Chance, Norton Rose Fulbright, Gowling WLG and Withers Worldwide provided pro bono assistance.

- We continue to train and mentor aspiring solicitors through apprenticeships, training contracts, and partnerships with organisations such as the Indo American Refugee and Migrant Organisation.

This investment not only supports individuals into legal careers but strengthens access to justice for the future

Financial review

Financial position

The Law Centre's gross income was higher this year at £2,713,099 against £2,235,637 last year, an increase of £477,462. Higher outlay on resources expended, up from £2,161,878 to £2,517,777 resulted in net incoming resources of £196,212 against net incoming resources of £73,759 for the previous year. At the year end restricted funds were £Nil (2024 - £nil)), whilst unrestricted income funds amounted to £876,987 against £680,775 in the previous year, of which £200,000 (2024- £200,000) has been designated.

Principal funding sources

Legal Aid funding accounts for around 25% of income. The contract with Southwark Council accounts for around 10%, and a further 10% from the London Council's grant for immigration advice for homeless people. The remainder comes from charitable grants, donations and a contract with Lewisham Council to provide immigration advice.

The Law Centre acknowledges with gratitude the generosity of those who give it grant funding and the support of Southwark and Lewisham Councils.

The total amount of funding received from Southwark Council in respect of the specialist advice contract was £167,388

The amount recorded in the financial statements is the net amount due to the Law Centre after payments made to Cambridge House Law Centre and Migrant Legal Action, which are partner organisations with the Law Centre in the specialist contract with the Borough.

The Law Centre holds Legal Aid contracts in housing, debt and welfare benefits, public law, discrimination, immigration and asylum law at Southwark Law Centre, with a separate housing contract at Lewisham Law Centre totalling £59,339 of income.

The Law Centre is also very grateful to all its other significant funders and supporters which are listed in note 4 of the financial statements. All of these, along with generous individual supporters, enable us to provide critical help to a wide range of disadvantaged and marginalised clients.

Reserves policy

The Law Centre's reserves have been set in accordance with the Law Centre's reserve policy, which is formulated pursuant to Charity Commission guidance. Best practice suggests that the Law Centre should have an appropriate proportion of its annual outgoings available by way of reserves, and the level of the Law Centre's reserves is regularly monitored by the Trustees.

As part of the Law Centre's Financial Management processes, the Board of Trustees has set a target of working towards accumulating and maintaining a reserve fund which represents 3 months' annual operating costs. This amount is reflective of general good practice in the charity sector. In the financial year 2024/5 this would amount to approximately £650,000. These reserves enable the Law Centre to deal with the following contingencies:

- Reductions in or withdrawal of grant funding;

- Reduction in Legal Aid earned income; and

- In the event of closure, 3 months' running costs to wind up the organisation and pay redundancies, leasehold and other liabilities.

In addition the Trustees wish to set aside the following amounts:

- £50,000 for unforeseen staffing issues; and

- £50,000 fund for replacing essential equipment such as telephones or IT.

The total amount of reserves the Trustees therefore wish to aim for, over the coming year, is £750,000.

This policy is reviewed at least annually when the Trustee Board considers the end of year projections and the audited accounts.

The Trustee Board reviews the overall financial position of the Law Centre at least every 3 months, with cashflow reports monthly, and records the outcome of its review in the minutes of its meetings.

Future plans

Key areas of work

The Law Centre will continue to build on its wide range of experience and deliver the highest quality legal advice to the population of South East London as far as resources allow.

The following priorities have been identified as part of our planning process which involves all members of staff, volunteers and trustees. The Trustee Board and staff met in March 2025 to discuss and review the Law Centre's business plan. The Law Centre also considers feedback from clients, partner organisations, funders and the wider community.

Key Objectives 2025/6

- Maintain and develop infrastructure to underpin all our work; and

- Ensure our service is responsive to the needs of our diverse community;

- Ensure we maintain a supportive atmosphere for all the team of staff and volunteers, encouraging development;

- Continue to develop the identity of Lewisham Law Centre;

- Maintain capacity to provide specialist casework and representation in all the areas of law the Law Centre currently covers.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Law Centre is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

All the trustees live or work within the Law Centre's area of benefit. The recruitment of trustees is through advertising with volunteer support agencies, adverts on our website, contact with local community organisations, advice agencies and legal providers in the area of benefit. The Law Centre also encourages former clients and volunteers to be members of the charity and to consider joining the Trustee Board. Prospective trustees are invited to attend and observe at trustees' meetings and are recruited on the basis of relevant skills, experience and knowledge. The Board carries out an annual skills and attendance audit.

The trustees retire from office on a rotational basis (one third each year at the Annual General Meeting, based on length of service), but may stand for re-election.

Organisational structure

The Trustee Board meets approximately every two months to oversee the strategic management of the organisation. The full Trustee Board met 7 times in 2024/5 including the AGM.

The Finance sub-committee meets at least quarterly with monthly cash flow projections provided to the Treasurer. The sub-committee reports to the Trustee Board.

The Human Resources sub-committee meets at least quarterly, and reports to the Trustee Board.

Day-to-day management of the Law Centre is delegated to the Executive Director, Stacey Edgar, who works full-time. The Law Centre has a Senior Management Team which includes the Senior Solicitors for Immigration, Housing, Planning and Employment. The Senior Solicitors are accountable to the Solicitors Regulation Authority for the conduct of legal cases, and provide day to day supervision of casework. Individual staff specialists provide legal supervision in their areas of specialisation: Housing, Employment, Immigration and Welfare Rights Law.

All members of the company, who include all the members of the Trustee Board, undertake to contribute an amount not exceeding £1 each in the event that the company is wound up while they are members, or within one year of cessation of membership.

Induction and training of new trustees

All new trustees have an induction meeting with the Executive Director to observe the work of the Law Centre. All trustees receive full details of the policies and procedures of the Law Centre.

Key management remuneration

2025

2024

£

£

Key management compensation in year

66,955

89,106

The remuneration is the total sum of the salaries and social security contributions paid to the Executive Director. No payments were made to any Trustee.

Risk management

The Trustees are keenly aware that their responsibilities include the duty to plan for the future, and to prepare the Law Centre for the risks and opportunities they have identified beyond the current financial year.

The Law Centre reviews an annual operational risk assessment and a business continuity plan.

The Law Centre has developed a separate risk assessment for the Lewisham Law Centre.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Southwark Law Centre for the purposes of company law) are responsible for preparing the Report of the trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year. Under that law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

-	select suitable accounting policies and then apply them consistently;

-	observe the methods and principles in the Charities SORP;

-	make judgements and estimates that are reasonable and prudent;

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

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

-	there is no relevant audit information of which the charitable company's auditors are unaware; and

-	the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Report of the trustees, incorporating a Strategic report, approved by order of the board of trustees, as the company directors, on 21 October 2025 and signed on the board's behalf by:

A Polley - Trustee

Opinion

We have audited the financial statements of Southwark Law Centre (the 'charitable company') for the year ended 31 March 2025 which comprise the Statement of financial activities, the Balance sheet, the Cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Report of the independent auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the trustees has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of trustees' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Statement of trustees' responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the independent auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and error, we considered the following:

· the nature of the industry, control environment and business performance;

· results of our enquiries to management about their own assessment of the risks of fraud and error;

· the matters discussed among the audit engagement team regarding how and where fraud may occur in the financial statements and any potential indicators of fraud.

Our procedures to respond to risk include the following:

· reviewing the financial statement disclosures and testing to supporting documentation;

· performing analytical procedures to identify any unusual or unexpected areas that may indicate risks of material misstatement due to fraud or error;

addressing the risk of fraud and error through management override of controls, testing the appropriateness of journals, assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Allan BSocSc FCA (Senior Statutory Auditor)

for and on behalf of Berringers LLP

Lygon House

50 London Road

Bromley

Kent

BR1 3RA

21 October 2025

2025

2024

Unrestricted

Designated

Restricted

Total

Total

funds

funds

funds

funds

funds

Notes

£

£

£

£

£

INCOME AND

ENDOWMENTS FROM

Donations and legacies

2

30,082

-

-

30,082

32,797

Charitable activities

4

Legal representation

968,553

-

1,714,446

2,682,999

2,202,046

Investment income

3

907

-

-

907

794

Total

999,542

-

1,714,446

2,713,988

2,235,637

EXPENDITURE ON

Charitable activities

5

Legal representation

803,331

-

1,714,446

2,517,777

2,161,878

NET INCOME

196,211

-

-

196,211

73,759

RECONCILIATION OF

FUNDS

Total funds brought forward

480,775

200,000

-

680,775

607,016

TOTAL FUNDS CARRIED FORWARD

676,986

200,000

-

876,986

680,775

2025

2024

Unrestricted

Designated

Restricted

Total

Total

funds

funds

funds

funds

funds

Notes

£

£

£

£

£

FIXED ASSETS

Tangible assets

12

4,831

-

-

4,831

1,679

CURRENT ASSETS

Debtors

13

880,094

-

58,191

938,285

857,118

Cash at bank and in hand

129,694

200,000

419,010

748,704

682,801

1,009,788

200,000

477,201

1,686,989

1,539,919

CREDITORS

Amounts falling due within one year

14

(337,633

)

-

(477,201

)

(814,834

)

(860,823

)

NET CURRENT ASSETS

672,155

200,000

-

872,155

679,096

TOTAL ASSETS LESS CURRENT LIABILITIES

676,986

200,000

-

876,986

680,775

NET ASSETS/(LIABILITIES)

676,986

200,000

-

876,986

680,775

FUNDS

16

Unrestricted funds

876,986

680,775

TOTAL FUNDS

876,986

680,775

The financial statements were approved by the Board of Trustees and authorised for issue on 21 October 2025 and were signed on its behalf by:

A Polley - Trustee

Cash flows from operating activities

Cash generated from operations

1

108,304

240,788

Net cash provided by operating activities

108,304

240,788

Cash flows from investing activities

Purchase of tangible fixed assets

(4,762

)

(1,972

)

Interest received

907

794

Net cash used in investing activities

(3,855

)

(1,178

)

Change in cash and cash equivalents in the reporting period

104,449

239,610

Cash and cash equivalents at the beginning of the reporting period

2

586,064

346,454

Cash and cash equivalents at the end of the reporting period

2

690,513

586,064

1.	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2025

2024

£

£

Net income for the reporting period (as per the Statement of financial activities)

196,211

73,759

Adjustments for:

Depreciation charges

1,610

2,532

Interest received

(907

)

(794

)

Increase in debtors

(81,167

)

(195,490

)

(Decrease)/increase in creditors

(7,443

)

360,781

Net cash provided by operations

108,304

240,788

2.	ANALYSIS OF CASH AND CASH EQUIVALENTS

2025

2024

£

£

Cash in hand

(262

)

(355

)

Notice deposits (less than 3 months)

748,966

683,156

Overdrafts included in bank loans and overdrafts falling due within one year

(58,191

)

(96,737

)

Total cash and cash equivalents

690,513

586,064

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

682,801

65,903

748,704

Bank overdrafts

(96,737

)

38,546

(58,191

)

586,064

104,449

690,513

Total

586,064

104,449

690,513

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.

Critical accounting judgements and key sources of estimation uncertainty

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 revision and future periods where the revision affects both current and future periods.

Work in progress is valued using a prudent estimation of the recoverability of on-going cases at the year end. Reference is made to the potential recoverability of the chargeable time recorded on the work in progress system, with consideration of fixed fees, irrecoverable time and unresolved cases This is referred to in more detail in the work in progress and unbilled disbursements accounting policy.

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.

Such income is only deferred where the donor specifies that the grant or donation can be used in a future accounting period, or the donor has imposed conditions which must be met before the charity has unconditional entitlement.

Investment income is recognised on a receivable basis.

Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to performance conditions is recognised as earned. Grant income included in this category provides funding to support advice/performance activities and is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Contract and performance related grant income is deferred when received in advance of the performance of event to which they relate.

Turnover is measured at fair value of the consideration received or receivable and represents amounts receivable for services provided in the normal course of business, net of VAT.

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.

Costs of generating funds are those costs incurred in attracting voluntary income and those incurred in trading activities that raise funds.

Charitable activities include both the direct and support costs relating to these activities. All support costs relate to unrestricted charitable activities.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

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

Fixtures and fittings

-25% on reducing balance

Law library

-25% on reducing balance

Computer equipment

-100% on cost

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 Note 14 on the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The Centre participates in a Local Authority pension scheme. The assets of the scheme are held separately from those of the charity. It is therefore not possible to identify the assets and liabilities for participating employees. The Centre expenses the value of pensions contributions to this pension scheme in the statement of financial activities.

Work in progress and unbilled disbursements

The recognition and valuation of the work in progress (WIP) for legal services and unbilled disbursements provided by the charity involves significant judgment under the Charities SORP (FRS 102). WIP represents the cost of services performed but not yet billed at the reporting date. Management must determine whether these amounts meet the criteria for income recognition, considering whether entitlement to the income exists, it can be measured reliably, and receipt is probable. For legal engagements, this assessment requires evaluating whether there is an enforceable right to payment for work completed to date and whether any restrictions or conditions affect recognition. Estimation uncertainty arises in determining recoverability, as some matters may depend on client approval, negotiated fees, or contingent outcomes. Additionally, the valuation of WIP may vary significantly by case type-for example, fixed-fee arrangements, hourly billing, or contingent cases-each requiring different assumptions about completion status and recoverability. Management applies judgment based on historical recovery rates, client-specific circumstances, and the likelihood of successful completion to ensure WIP is stated at its net realisable value. Changes in these assumptions could materially affect reported income and assets.

Going concern

At the time of approving the accounts, the trustees have a reasonable expectation that the charity will remain a going concern and the accounts have been prepared on that basis. Currently, the Centre has stabilised the income from legal cases, additional grants have been secured to cover increasing costs. The trustees continue to monitor the situation.

2.	DONATIONS AND LEGACIES

2025

2024

£

£

Donations

30,082

32,797

3.	INVESTMENT INCOME

2025

2024

£

£

Deposit account interest

907

794

4.	INCOME FROM CHARITABLE ACTIVITIES

2025

2024

Activity

£

£

Grants

Legal representation

1,865,672

1,402,445

Legal Aid Contract & Representation

Legal representation

582,077

527,758

Specialist contracts

Legal representation

226,727

269,420

Miscellaneous income

Legal representation

8,523

2,423

2,682,999

2,202,046

Southwark Law Centre is in partnership with Lewisham Refugee and Migrant Network in respect of the funds received from London Councils.The below details the specialist contracts Southwark Law Centre has entered into.

Southwark Law Centre is in partnership with two other charities. As the lead applicant they receive funds on behalf of the other charities and pass them on.

Specialist contract with Southwark Council

2025

2024

£

£

Contract monies received from Southwark Council

356,160

384,048

Grant partners paid

(188,772

)

(192,649

)

Income relevant to Southwark Law Centre acknowledged

167,388

191,399

2024

2024

£

£

Lewisham Immigration Specialist Contract

59,339

78,021