Company Regielratton ttombar 02441StsCbarlty nurnben 702314

THE FIVE LAMPS ORGANISATION

FINANCIAL STATEMENTS

31 MARCH 2018

(A company limited by guarantee)

ArmstrongWatsorfAtxauntants, Business 6 Finandal Advisers

THE FIVE LAMPS ORtyANISATION

(A company limited by guarantee)

CONTENTS

Reference and administrative details of the charily, lls lrostsas sod advisers

Trastees' report

leds pendant sod Nore' report

Consotkbdsd ststsmsot of fbrsnoial sctivnhrs

Consolidalsd balance sheet

Company bslsnoa Sheet

Consolidated ststanmnt of caab ftowa

Notes to the fhranolal statsmsoto

THE FIVE LAMPS ORGANISATION

(A company limited by guarantee)

REFERENCE ANO AONIINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERSFOR THE YEAR ENDED N MARCH 2018

Petr@la Chambers. ChairVlvkrnne Holmes, Vice Chairlen WrightTrevor WatsonIlicheel Pools

Company regietemd number

D24413t 9

Charity regletenm number

702314

Registered oIBce

Eklcn Street, Thcrnsby, Saekton-cn-Tees, TS17 TOJ

Chiel execuuve a%acr

Graeme Oram

Independent auditors

Armstrong Watson AudiN Limited, York House, Thcmftekl Business Park. Norlhallertcn, North Ycrkshke, OLS2XO

Bankers

Unily Trust Bank, Nihe Brlnrgeyphce, 4 Ocseys Bquree. Birmingham, Bt 2WB

Page 1

ME FIVE LAIIPS ORGAHISATIOI4

(A eorapany limited by gamantss)

TRUSTEES' REPORTFOR THE YEAR ENDED 31 MARCH 2818

The DtreOara&rusbres (the Board) present their report end the finsnctsl slslemsnts of Ihe chsrfiable company(the Charity) far the year ended 31 March 2018 and contlrm Ihat Ihey comply wih cumsnt ~requfrwmsnts, the company's ~ documents end Ihs praviskxw af the kdsst Stalsmsrl afRecammsnrhst Pracfice (SORP) 'Accounilng and Reporting by Chsritkrs' issued in March 2005.

The legal and admlnhtrstkte hfermsfien on page 1 farms part af Ihkr report.

ACHIEVEMENTS AND PERFORMANCE

a. FINANCIAL REVIEW

The total income for Ihe year ta 31 Ilarch 2018 was 82,&23.813 (2017:K2,978,482) s decrease af 7'.Ths Stslement of Financial Activifies for the year, Ihe Balance Sheet es et 31 March 2018 and associated notesare sat out en pages 20 to 44.

8 remains Ihs Beard's htenfian ta hold nol less hsn three manhs eatery cast in tee reserve. This policy Is

monitored quarterly by the Trustees end seeks ta ensure that the Chsrfiy is abh lo manage ls~ in Ihsevent of a sign Scant drop in funding,

The current Iree reserves are broadly inlins wilh the polk Y.

STRUCTURE, GOVERNANCE AND MANAGEMENT

a. Organlestlonsl structure snd decision making

The DkeckxslTrustees (the Beard) present their repart and the finsnckrl statements of the charitable company(Ihe Char1ly) far Ihs year ended $1 March 2018 end canfirm thst hey comply wfih current stetukxyrequirements, the campany's governing docureenls and Ihe pravbbns of lhe ktlest Stalement efRecommended Pracfice (SDRP) 'Accounting snd Rsporthg by CharEes' Issued In Mach 2005.

The legal snd administrative inl'ennsden an page 1 fonna part of his reparL

Structure, Governance mrd Management

The Five Lamps Orgsniselion b a rsghtered charily snd company Ifmited by guarantee The cmnpsny wssregistered under s Memorandum of Asseckrtkm wtfich esiablshed the abkrcts end powsm af the charfisbls

cern pany and its Articles of Associadan. In he event of the company behg wound up members am required tocostribtfie an amount rot exceeding 81.

The Deeemm Of the CerntnnVy ere alSO Cherky truSteeS far the purpaSSS Of Cherty lew Sad under the COmpeny'S

arfickts are knawn as members of Ihe Management CammEee.

Ths Trustees continuously mview governing docurnerds, The most recent formal amendment ~ by theCharfiy Commkudan was in December 2013 which pmvklsd fer the exkrntdon of~ lo the whale afErgktnd.

In reeegnakXn Of the whollyawnsd s rfinrklbny tradhg company expandhg ite lendhg ~hta Scotland, theTrustees elysed to Iske the proactive slap of regkrbrtng as a Charfiy in Scotktnd. Foficwing dislague with the

Office of the Scottish Charfiy Rsguktter, we agreed a revised wardhg firr the Oh)acts Gauss and a mineramendment tc Defined Terms. This received the required Charily Commission approval snd following Iheappraval of a writlen reSOlulian en 30 Auguet 2017 whch was krdged with Companies Heuee, we rSCSIvedcarfrmafian from the Olfice of he Scetdsh Charfiy Rsgulskr that we were iegkttered wfih effect from 18October 2017 under reference SC047839.

THE FlVE LAMPS ORGANISATION

(A company limited by gvasntse)

TRUSTEES' REPORT (con5nusd)FOR THE YEAR ENSE G 3'I MARCH 20'I 8

Our charitable oh(saki now provide for operation 'within England and Saaffand' to reflect lhe continuedgeographic growth al ths orgsnisatian and its seiv(ces They now read as folkwvs:

The pramaffon for the benefit of ihs public of urban ar rural regeneration In areas af saciel snd scorwmlcdeprivalion, within England and Scofiand. by aff or any of Ihs following means:

e) The relief of finsncisl hsnlship among people living or working within England and Soallard by pnn(dingsuch persons wffh goads andlor servkss which they cinffd not otherwise alford through brck of means;bl The prevention snd relief of poverty by providing educaffon, goods snd ~ lo ffidividuals in read;c) The relief of unemploymenl far the bsnefit of Ihe public in such ways ss msy be Ihovght fit, includingassistance to find employment;

Ths advancement of eiucsbon, training ar retraining particvlarly among sociaffy, economically eralfinancially sxchdad people and the pmvlston af work expsdsnce for unemployed people:e) The provision of financial sssislsnoe, technical assistance, bvskiess advhs or consulbmcy in micr toprovide training and ampkryability for vnmnpkryad people ln cases af linancial ar other charitable need throughhelp in setting up their awn business or to sidsting businesses;f) The cresban af training snd employment opportunities by Ihe prov(slam af workspace, buildings ar lard foruss on favourable terms;g) The prevision of housing for those who srs in conditions of need andior the refurbishment of suchhousing;h) The provkdon of pvbffc health facililies end chikicers;i) The provision of recreational facil@es for ths public or Ihose who by reason of thek. yavth, ags, infirmity ordisability, finaixffid hardship or sadal and eCOnamiC Clravmatanaea, have need af such fadlittss;j) The devskipmant of skss and cspacffy in those living In sodslly and economically disadvantagedcomrnunitias lo enable them to bolter idenfff'y snd help meet their needs and to parlhlpsta mare fully in sodety;aridk) Any other pvrposm currently recognised as charitabhr and any new charitabls purpasss which ere similarto analhsr charitable purpose.

Ths Powem of the charity now stale:

We charity has Ihs power to do anylhing wiuch ils cahuurled to I'uriher ils Object(s) or is conducive ar incidentalto doing so. In psrffcular, the chariiy has the power,a) la raise funds, In doing sa, the charity must not undertake any taxable permanent tradkig activity endmust comply with any relevant statuhry regulallans;b) to buy, take On krsse or in exchange, hke or athsrwiss acquire any property and to maintain and equip itfor uss;c) la ssff, lease ar athervdse dispose of all or any pert of the property belonging lo the chsrfiy. In exercisingthis power, the charity must comply as appropriate wffh secbans 36 snd 37 of the CharSss Act 1993, asamended by Ihs CharSss Acl 2006;d) la borrow money and ta charge the whats or any part af the property btdanging ta Ihe charity as sscurilyfor repayment of the money ~ar as sscunty for o grant ar the discharge of an obligation. The charilymust comply Ss Spprapnsis with sscllans 38 end 39 af the Charifies Act 1993, as amended by tha Chwiliss Aat2005, if it wishes to mortgag land;e) lo ~persia with other chertfies, voluntary bodies and statutory avihortfies snd ta exchange infannaiiansnd advice with tham;f) Io establish ar support any charitable trusts, associabons or inslilvffons formed lar sny of the charffablepurposes Indvdsd in Ihe Ob(eats:g) io acquire, merge with or enter into any partnership or joint venture arrangement with any other charffy;h) lo ssl aside income as a reserve against future expenditure but only in accordance with wriffsn policyabout reserves:I) Io employ and remunerate such staff as are necessary for carrying out the wark of the charity. The charitymsy employ or remunerate a director only to ihe extant it is Permitted to do so by srtide 7 and provided it

compiles wffh the candilians in that aitkfa;j) la deposit or invest funds: employ a professional fund manager snd arrange for the inveslmenls or otherproperly of the charity to be held ki the name of a nominee In Ihs same manner and subject lo Ihs samecondiffons ev the trvstses of a trusl are permitted to do by ihs Trusles Act 20M; and

Peffe 3

THE RVK LASIPS ORGANISATION

(A company limited by guermrtss)

TRUSTEES' REPORT (conllnued)FOR THE YEAR ENDED 31 MARCk 2OI 8

k) ta pnwfde indamnily instxance far the directors in accordance with, and subject to the condigons in,

sectian 73F of lhe ChsiIUes Act 1993.

Future ~nce Model

In October 3014, as s cantkivsdari of the Tnistea's review af~govesusice mtd legal sbvcture. IhsTrustees asked the Senior Management Teem to seek appropriate legal advice an alemetlve structures. The~sce review hsd idanliTied three key issues where there wma concerns that charitaÃe aNus was alrrNng factor for the arganlsagan. These three issues ware Fkrs Lamps' abgly la rakre espial through equly-type ktvestmenL Iha chslengs in continuing ta deliver services wlh a Mgh social Sa pact whee pushing at thevery boundaries of charitable aNus, and the need lo increasingly engage Irustees wlh a spechllst kn~,and ta remunerate them.

The review hsd canduded Ihat Five Lamps wavld tska slaps Ia ~e kr io cease being a rsybtsrsdcherly from Aprl 2010.~,as that deckdan was about lo be irrip~ the Senior Management Teanand the Trustees recagnued Ihst tha existenes af aur Irading company, a whol~ subskilsry, cmakvd alass complicated change procmm and was an ahagsther belier fit far the argankiatlan, Isavtig al of aur avartlychmitable Walk kt Ihe cherkeble body wilh e strong thirty year heritage end nallarml reputalian, while Iraneferrlngour lendmg sclvity alongside our empty homes wort krto the trading company.

At 1 Aprl 2010 a number of aur sNf transferred to the Irederg company and Ihe Senior Management Teem endcare support funclons were designated as youp pasilkrns. Three new narvexacuave directors were appafntedto the lading company board. The trading company is naw wall-established and has ambitkrus plans for growth,sscurlnl a svbsisn5al canlract ta deliver unsecured personal loans ki three kxaal aulhadty areas in Scodsad,and Issuing an Investment Memorandum lo raise vp lo KSmgian of capibl for an4eadlng.

Ta provide kurdership, strategic dire@km, challenge and enlrspreneursffp, driving yui business forward,

keeping l under prudent control ead sating rssponsbly ~s employees. slskeholdsrs snd safety es swhale.

Key Responsibggss

1. Managing arganlssttarisl perfonnance snd riskTo continuously develop and review the organisation's strategy, objectives, performance, stetulory complkmceand nsk, eraurtng the measurement of impact on avr customers and commvnlles.2. Leadership arid strategyTo lead Ihe development of the Five Lamps' V'aiao, Vakres and Rralegic Dkecgan.3. Skategia planning and implemerasaaaTa cauda coherent, ~plans mid I nelaMm, monitor parfannance and review ovkxrmes and impacL4, Laadmg and delvsfslg chaflgeTo proectlmly and positively plan far Sbelegia, Imasfarmagarud change and conlrxxxxr service Inpnwement in

The Five Lamps Organkmban's servkm delivery.5. Business Finance Oppartu&iyTo assess and evaluate the kay strategic, financial and commercial appartunlSss and irwestmenl issues facingThe Five Lamps Organisalfon, In the context af the complex poiticsl, ecarmmic, sactologicst, technical sad legalcontext in which it operates,0. Cammunkm donTo pramOle the wark Of The Five Lamps Organkregan to s vararty of external partnere, Stakehakiere andaudiences. Ta pmactivsly prorsate lhe seatsgy snd work af the Board iaemegy7. Building Team and External RelatkmshipsTo develop, maintakt and svpport pmductlve external. Board end Internal netwcAs, parinerships endrelationships Ihat produce posEve outcomes far the arganmelan.8. Equality snd OiversityTo proactlvsly champion equality and diversly in everyttwg thai It and the organ'asiian does, ~rlf in Ihecontext of making people matter and warkstg wlh some of lhe most disadvenlsged peaple kt sccklly. This isinclusive af every aspect of equality - race. mhnic origiln, ralgion or belief. ssx, gender idsnbly and gender

THE FIVE LAMPS ORGANISATION

(A company limited by gumenbm)

TRUSTEES' REPORT (continued)FOR THE YEAR ENDED St MARCH 2018

reessignmsnL sex oncntatian, disability. sgs. marriage ar civil partnership, pregnancy ar maternity.

At a joint msebng cf the Charily and Trading Company Boards in May 2018, it wss agreed thai moving f~the fug nmgs of Audit 8 Risk items wauid be coven' In respective Board meetings. It wss eisa agreed thatthere would be two joint meetings each year, ta receive the audit findingsimanagement letter and tvtnuslststamanls and review audit performance at one, and to review financial strength and plans snd set budgets atthe other.

In Sepbrmber 2010, the Charity and Trading Company Boards agreed to the establishment of s jointRemuneiason Ccmmitles

Trustee Induction STraining

Trustees ere ~ed ta be become famgar with the work cf the crganisalian in s number af different ways.Trustee induction mkrars aur stsR induction process which is pert af s range af Irwestars in PeopteeccredttadHuman Resource policies.

Trustees eisa benefit from:Regular presentebans from prajsd stalf an each of txx prajectsrprogrsmmes

~ Themsd Stalf/Board meetings when address issues such es marketing and brandilng, organisadcnstculture and working far Five Lamps

Twice-yearly away days lacussd an ~development end beard performance, dwing the year ansaway day focused on suacession planning and risk ssssssmant and another on our future governance model~ Bespoke training to address identttled need and attendance st relevant local, regional and nadcnsfcanfere ncaa.

A structured appraisal syslerx kr in place for Trustees~ The Charity and Trading Cam pany boards have jaint meetings twkxr per annum.

Orgsnlsatlanel Structure

As merdianed above. the Chtutty has a Board af Trustees who meet at least quarterly end ae responsdtte forthe sbategic direction and policy of the charity. Currengy there are 5 members fram a diverse range afprofessional backgrounds. A Char and ViaeChair me appointed annually and here full vallng righls. Thecrganhaltan employs the services af a mtrst te.taker.

Day to dsy responsibility for the pravlsian of services and aperelkrn of the business rests with the ChiefExecutive. The ogsntsatlon hss a strong executive teem which comprises the Chief Executive and two otherExecutive Director positions.

In recognition of ths increased complexity of the orgenlsaiion and Ihe need to matnlah our overdy charitableactivlllss, a trading company, Five Lamps Tradktg Ud which bodes as 'Conduif snd 'Conduit Scotland' wasestablished in 201 2. It kt a whclt~ subsildiary which wN gift aid relevant surpluses ta the Charky. The ralecf the trading company was substantially expanded frere 1 April 2010 in preparation far Ihe transfer ol ajtperaanal Iendatg aCtivlty arXI tl» iSSuing Of an Inveslmsnt Memorandum in April 201 T. Fram August 2018 all ofthe groups personal lending will be disbursed by Five Lamps Trading.

Financial Conduct Authority

Five Lamps wss delighted to be the Iirst UK personal lending CDFI to receive fug Financial Conduct Authoritypermissicas In August 2015, under FCA Reference 555112 snd wss pleased lo note s further landmark ktMarch 2010 when our TratNng Company also received Iul FCA permissions to enable the tending activity of thebusiness to bansfer to the Trading Company ance the new Inveslmsnl was approved

Page 5

THE FIVE LAMPS ORGANISATION

(A company limited by guarantee)

TRUSTEES' REPORT {continued)FOR THE YEAR ENDED bj MARCH 2gi g

b. Related party raitdfanshfps

There b are arganlsrdkrn - North East Enterprtse Agencies Umked, which had a tradkig r4afonabfp vAlh FiveLamps, and/or have Five Lamps ststf or Trusbms invdvad at Board level, during the 201 T-18 finwrdel year.There ma na related parbr transacdons in relation to aur Trustees, wha have sll Sed nll returns on request.

c.Risk Management

The Boards of the Chesty and Ihe Trading Company maintain a canlinvaus review of he majar risks ta wtdchthe chardtr is exposed. Where appropriate, systems ar procedraes have been ssbrblished ta mlggste idsnliTiedrisk. The arganbaaan seeks ta menage some of these risks vis transferring risk through s range of insurancecover. The managed risk revolves around the short-term snd nan-recvmng nature af some funding sources.Ota strategic planning is targeted at wbmktg ~ and building a broad project portfolio whkh has a rangeaf funders. rather than being grant-reliant, Internet ccnbab are in ptaaa end sre subject la arvtual audit usingcompliance and subsbrntfre kretlng.

There are currenby faunssn ksy risks areas kfantified snd monilored, These are:

Succession PlanningThe Impact of Welfare ReformThe Impact of BrexltFailure la Deliver Externally-Funded Co~~ntrsClsThe Im pact of Cvts in Pubtb SpendingFailtxa la Secure Future Finarxm inclvdrrg Social invsstrnsntLass af Prana CantrackrFalura lo Manage Asseis EffscyvsbF4ture la Deliver Customer SafisfecoonFaille ta Demonstrate Social ImpactFaikac ta MairNaln Rcpvtalian S Trusted BrandFailure ta Comply with Regubdory Requ tamentsFailure ta Plan FarfRespand Hfecfivelyto any Major InddentFalura to Maintain ~Gavsnmnce Includhg Board SkilbFature to~Update ~Plans Ik Grawlh StrategyFabvre ta Manage a Number of Smail Events Qccuntng Simultaneously

The outcome of Ihe June 2016 mferendum on EU rnembsrsh p snd the potential turbulenas st the economy andfuture funding for organisslions Ige Five Lamps added a new range af risk krsues krr the bushssa. TheTrustees have asked far mgvhr updates on lhe kn pact of 'Brexk'. nat laeat ea wa have recendy been ~Iin acaessing Ihe Yeuk Ernpkryment Inibabve which is European 4nded and have some krrther exposure taESF and ERDF an enterprise pragrsmrses, In the past twshte months we have seen extensions to thesecontracts but we stil rsmsm mindi'ul af our expostsa,

A Heallh ik Safety Committee which has both slalf and trustee membership meets ragvlarly to ensure statutorycompliance acmss all af aur buiklings. All cf our sutHxmbsclors must sagsfy a heallh and sabrty check, Thenatwa of aur aervfcss, wldch ollen work wilh the mast dbsdvankrgsd snd msrglnalbed groups, ar with youngpeaple, nacesskate either af the hva levekr af dbdasure, All af ou stall' appainkaenta are avb jr|at tc s4bkrctcryenhanced dbdasure.

Our twvrsncs cover spans pubac and arsplayers Iebiltty, praliasskrn4 Ixbrmnity, dinrctcra snd alficars liability,

bald yrga and contanta Snd SpeCiaibt cover SuCh aS lik ftstaietkms and a dimbing wall. These me sll subject Iareview end market brsdng on a regular basis.

During the year We undarkek Spaoifb audka On CamptkmCe wiyt edent lagialalian, making S number afsweslmenls and changes as required. We rdso carry aut a ccnknuaus audk of our HR pojckrs snd proceduresIhmughaut the orgenisatkm, wkh apscialbt support from Craner Assist

THE FIVE LAMPS ORGANISATION

(A company Smiled by guard«tee)

TRUSTEES' REPORT (continued)FOR THE YEAR ENOED 31 MARCH 2818

d, PRINCIPAL ACTIVITIES

2D17-18 wss s bsrxrfilonst yssr for the organisation as we geared up fcr Ihe final phase cf Ihs transfer of aurlending ac«vlty to the trading company. We found the Iimescsls from issuing the investment prospectus untfisuccessful completion and draw dawn af Ihe naw capital to bs frustrating. ~r, the outcome, a Efimfilioninjection of capital far an4snding rewarded «xs patience ss we brought in nine new aacial invar to«s snd it will betransfcrmsfional far our personal lending aclivity moving f~.We ssw changes to our service portfolio snd sane stgnifrcant chafienges, where nwised commissionerpriori«as and policies ware often vnhslpful and ssw targets shitt. often to the dsblment af our customer groups,This was wnply evidenced in the con«nusd refocusing of both New Enterprise Afiawsnce and Start Up Leans.where we believe that the original ethos and targets have been lost as the government has reduced the capitalsvailabls and mavsd ta a British Business bank-funded modeL

Our work cantinuss to have a real rdsvanca in Ihe angaing eoonamlc dlmata, irrespective of the funharcansbidion af public spending at na«ansi snd local krvels. We rsm«dn focused on a langar-term gael of buildinga stronger balance sheet and to generate s grsabw proper«on of revenue from our own assets. There areundoubtedly fewer tender snd grant apportvnitknr coming «dong far cur sector and this Is unlikely to change any«me soon.

Like many other organisations in our sedor we retain a keen interest in the ongoing Brsxlt aanvsrssthn. Theuncertainty aver the likely contlnuaiian of a range of in«halves previously funded from EBF and ERDF sources iarecognise«es s risk in aur risk register. Cur exposure lo s downturn in funding from European sources isIlmfied and we have dear plans in pbrcs

Last year we reported that we hoped to see stgnificant progress on iha government's Life Chances agenda.This body ol wark is founded on Ihs work of Ihs Centre for Boclat Justice's 'Five Pathways to Poverty' (familybreak«own, educational fail«ss, addidicn. serious personal debt and worklessnsss) snd we were aware ofaign6cant Cabinet office Irrterest in aur work, nol just in the finanoial inclusion spaoe. We also hosted a visitImm Ihe Inclusive Economy Unit during the year ln the event we have seen Iifits tangible progress.

That Said, there ia a hvgely pcaitlva enabling framework around the finsncial Induaicn agenda and bath FfvsLamps an«Five Lamps Tradinq are well placed to capital«re

In 2017-18 we schiaved or made significant progress loward the large majority of aur strategic objsc«vss.

An oparaling loss af 8388,430 after provisions snd bsd debt writaaff.

We naw emplay 102 peOple aarOSS the grOvp (87 laSt year) with 61 employed by the Charily and 41 by theTrading Cam puny.

Over 18000 people accessed cur services and support in 2«17-18.

The following is a list of schievsmenls across both the Chsrtly snd Trading Company over Iha year. These spanihe breadth of our business and many «ss refiectsd on in greater dstsfi later in this report.

The Trading Company findtse«a 85millicn irwestment rates and drew dawn the first tranche af thatcapital for on4anding on 30 July 2018.This irwestment, ihs largest ever single deal for a UK community financaorganbatlcn will ensbfa us Io make 100000 loans over Iha dx years of the irwestment.

We we working to create a nsw Enterprise tean fund and have submifisd sn application to Ihs BrNshBusiness Bank to be sccredked to the Enterprise Finance Ouarsnhm scheme.~ The Youth Employment Inifisttve contract (YEI) hss been extended. We await final confirmatian oftimsscales etc.

Five Lampa Trading Limited Sucoeaafufiy secured full Finsncktl Conduct Autharlty perrniaalons In M«sch2018~ The Charity has compbxed the first year as jafnl accountable body alangside aur frIends at theCcrnerhauss youth project, in Youth United Stockton (YUS).

We have launched 'Wvll Money', the Inert of our planned 30 'Finance Fcr Cifiss' Ini«atlves across thecaunby.

Page 7

THE FIVE LAMPS ORGANISATION

(A company gmitsd by guarantee)

TRUSTEES' REPORT (continued)FOR THE YEAR ENDED 81 MARCH 2818

The first Care Ouality Commission inspection visit to our Home Cere service resugsd h an ovendI ra5ngof Good',~ The ERDF Entsrprhe cantmct hss been srdsndsd unbl 2021, ensuring that an~oflar remainsvary much a core element af the vnxk of the Cherly.~ Canduit Soclland issued ls 1000lh ban h July 2018 and ih welHplacad for furlher growlh.~ The Charity hss began delivering a Breakfast Club at South Thomaby, which wll run every day of schoolhaadsys, rsacgnising Ihst holiday hunger is a signigcant hsue in rxx ocmmunides Support fram camparies like

Asda and Warbwtons has been irwelusble as has the work af vdunlesrs and aur own staff.~ Our Home Care service secured lhe contract tc pravids Ihe 'Haspkal Discharge' servhe for palentsreturning hams fram NarthTaes hosplal. Thh complements Ihe gresl work of otv Home Frws Hosplsl tssm.~ Five Lamps are now mernberS Of Miohael Sheen'S 'End Hk)h COSI Credit' Alkrnce. He~mentkmedus an The One Show; The Last Lsg and In a number af cher media appearances.~ Its been a faw yearn since ws refurbished 49 Empty Homes in Caunty Durham and Darlngton. TheCommunity Hcushg Fund hss ncw been launched and we are evsluslng haw we might develop a bid, elhsr anour own or In partnerstvp,~ WeVe signed a partnership egreernerrt with Iha CDFI 'Purple Shoots' lo start lending in South Wales andare in conversagcn wlh ~partners h Liverpool snd London Ico.~ We are wcrkhg wlh Stockton Council lo further expand the sodsl Indus(cn work within Home Carewllhh the scope of the ongoing pilot.

The Charity is now~with Ihe Oflce of the Scolish Chert ty Regvtsim.~ We are sgl acdvsly looking far funding appartunides to deliver mare at The Youthy, The BuldingCommunities Fund has been launched by the Big Lcaary Fund and ii has a youth alrand which we are

hg.~ We ara now into Ihe ninlh year af delivering 'Hslphg Hand' for 10 heal aulhorlbss snd dosktg in onQ}m ilian of loans.

Our Vkgin Money funded employablly programme b exoea&g ils targets and is anchor excelhetexample of the need for iraansive suppart for those furthest from Iha Job market. .

We are s5l building the business case for an sltsrnalve use for aur Etdan %rest hesdquarters, warkhgwlh external plannhg Conaultarxa and Servloe cammarrxoners.

During 2017-fg we were not able io offer the Enterprise hans that we had proviausly. Since Ihe RsgionraGrowth Fund capilsl which ran fmm 20134018 we have been looking to secure an addilhnal tranche of capital,We had hoped ta access ERDF bgacy ftxtds and were indeed SignpOSted h thai fundhg raule. When wesubmitted Ihs business case la lhe Tees Valley Combined Authority we were advised Ihat they had natidsntlfhd any need for an addBansl pot af errtsrprtse cspihi. They painted cut that there hr access lo theNcrthem Pawamauae Investment Fund, but we remain s\nrngly of he view Ihat Our prapaaed Teee VeleyEnterprhe Fund dkt eddmss cangnued market falure and provkle support to nsw and early Ife businesseswhhh would nol be ellglrkt far NPIF.

It ls dlsapprinlhg that we ara rxxrently unable to olfer leans to support our startwps. h an5cl pagan of returning

to the marketplace sooner raker than briar we have made en epplica5on to the British Business Bank lo berey'stored under the Enlerprise Finance Guararaee scheme. The scheme had been cbsed to new applhsgcnsfor a number af yeas and its reopening wll enatic marly business lending cDFIs to receive first kes cover anIhek loans. Our coleagues ~in the sector who have had access lo EFG throughout, have reparlad lssignificant value over the yearn.

We canlinued to deliver New E~ Allowance menloring and access to fvwnoe during Ihe year, Thereentering service was retendered durhg 2018-17, behg retained by Galsshead Coundf. The operation of thecontract remshs prabhmabc with incansislent and feigng referrals fram Jabcvntrss aiangsids s sub-cpgmalpayment pratie. We no kmgsr make NEA loans directly, The nsiicnsl service kansfernxl to Newrdde from April

2017 and then lo BFS tater In Ihe year. It ts a continued frustrathn for us to note the dedine in ihe NewEnlerprtse Alcwsnce pragmmme since aur role as the lead for NEA loans in the North East and Yorkshireunder the original 2012-2014 ksmdan of Ihs service. Under aur welch, nearly one in gve such krans negonsllywarn made by ourselves.

We sara saw he end af aur Start Up Loans contract in Memh 2018. Lending achvity had reduced with acornbkurgcn Of the mininurn kmdlng standards Imposed by SULCo end fewer refsnsb frwn aur partners in theenterprise sector.

Page 8

THE FIVE LANlPS ORGANISATION

(A company Iimtbrd by guarmttee)

TRUSTEES' REPORT (continued)FOR THE YEAR ENDED 31 NNARCH 2018

Our emptoyebtlfiy affer reduced markedly at the erid af the Work Programme eub-contract with People First atIhe end of June 2017. Since Ihen we have delivered three spectfic InNstivee tsrgefing those furthest from thejob market, the Brst with funding support fram Wsrburtone, the second supported by Trans Pennins Expressarid the third by the Virgin Money Foundation. These have demonstrated the value of intensive, yst non-standard, support in accessible community ssNngs. We also crmfinus lo deliver the Youth Emptaymem initiative(YEIj vie a sub-contract to Ihe accountable body Hsrtlepoal Coundl,

The Youthy remains the focal point for open access youth work locally. We have ncw passed, and celebrated,the first anniversary of YUS (Youth United Stockton), where we are joint accountable body far open accessycvlh esrvkae across the Borough of Stockton, alongside The Ccrnertwuea Youth Project This partnemhip isworking pargculariy wefi snd the local authority ss service cammissilcnsrs are sxlrsmely ssfisfwd with lhepmgrese made erid the vistbfitty of the ncw brand. A number of spscNc service devetopmenL Including stafftraining, and quality assurance developments have already been introduced,

In efowxnbsr 2018 ws commenced delivery of e new Domiciliary Hams Care Bervke Pilot vie contract toStacktoncrt-Tees Borough Council. The new service is designed to uRise e social enterprise model whichprovides considerable added value. The service hse grown Ihraughout Ihs lest twelve rrtonthe bul is sfifi at thestage where It hss not reached suNcient scale to cover ths fixed rxwts of delivery snd we remain Inconversafion with the service commissioner, In May 2018 we took on the delivery of Ihe CrxmtNs HospitalDischarge service which is primarily targsM at lhe prevention of delayed die~ed blocking. Thisbcroughvrfde servfce hss obvious syriergiss wkh both aur Home Cere snd Home Fram Hospital services endcovers up to fourteen days past-discharge suppart.

At the conclusion of the Council's procurement process for Ns Care At Home Fm~, the current pilot wssextended, It remeirW Surly deye far Our SerViCS and We are mindful Of the Ikxited margina On dSNVery Of SuCh aservice. Thh Is very rsuch a national issue but ht one that our Board rsa heavily focused cn. We are in regulardialogue with the commissioner.

The Goad ovsraN rstirig fram the Care Quality Commission fallowing aur Inibal inspection in March 2018 was spcsithre endorsement of the work undertaken by our stuff snd pertnem in setting up Ihe service and thecammltmenl of aur carws and the wider leam. We have acted on the rscommendagons in tbs report.

The nsw Home Care service bas seen us create aver 30 new Jobs. Ths targe meJcrftyof these jobs have beenfifieri by lcoel peaple, with many being recruited thmugh e new sector-baaed wark aCedemy which we haveestablished with local partners, Including Bhckton Riverside Cogsgs.

The Home from Hospital service was estebtfshed in October 2017, supporting people on discharge fram thelocal general hcspket back into their own hams. This is funded vte Ihs Health Initiatives Fund end the iniTial

twelve month furtding has been extended for a further six months dus to the sucasss of the service

Both ourselves and the Counci are keen lo see further developments in saatst activities within the scope af thepftat. Io sdd further value far our service users snd the wider fainify,

We have been in discussion around the potenthl redevelopment of our heed office at Eldon Street into erespite, rehsbililtatlon snd assessment facility which has obvious synsrgles with aur Hams Cars arid HospitalDischarge services, We have worked up a proposal end have had informal dialogue with commissioners. Thereis a review in progress sl commtssioner4evet of tttefr future rtesde end at the canctusktn of that work we will

formally present our proposal. This potential investment wI exceed 82rrrillfan.

Our personal lending ttervics made just under 7000 loans In 2017-18 talafiing over K4,4mglion. This represerrisac38'Yr increase in loans made and ts approximately 2ty% of Ihe UK CDFI delivery.

We kxrusrt our 78000th unsecured personal loan In November 201 7 snd have txtassd over 230mfifian of totallending ektce making our first loan in 200&

The Investment Memorandum hsued in April 2017 ssw us raise gfimfilirm af rww capital fram nine of the UK'spremier social investors, This capital wR enable cEKlmfiltcn of lending over ils life and ses us make over

THE FIVE LAMPS ORGANISATlON

fA company limibxf by guar«t tssj

TRUSTEES' REPORT {continued)FOR THE YEAR EllOED 31 MARCH 2818

100000 bans, The initial draw dawn of 81.5mllbn Ioak place on 50 July 201 5, TNs invsstmsnt is the Isngsst-ever in a UK personal lending CDFI and iegscb the exceptional progr«w made by Ihe orgenkrsfion as a leadingaltarns8ve lender. The invsslmant vAII shia enable a slap change in the markebng of aur loans an a natbnalbasis. The raising af thai invastmcnt was iaada possible by s 'Big Potential' grant from Ihe Igg Lottery Fund,exaeganl Support fram Social Finance and high-Cueity prO banO legal SuppOrt from Simmons IL Simmons. Ourinvestors bensfified fnsm pra bono lsgaki from Afian & Ovary.

Our lendbg asfivity in Ihe early perl af 2018-18 wss resbicted by the wait ta drew down the new espial. Wewere rscyclbg repsynwnts received fram April b July. During lhe fstlsr part of 2017 we were pergculsrlygrskvfuf lo ths coniinued support af Unfiy Trusl Bank. When it bsc«ae dear that wa would not be reaching thedraw down af ttw new cspfisl io the tiraascale earlier arwiseged, we extended ow facility wilh Unity by a furtherQi80000, to give us Ihe ~capital requied ta meet Ihe demand for credit at Christmas, This enabled us tomake 21.8mgion of loans In the tsn weaks bsfixs Christmas 2017.

We have been sxbsmely pleased wfih the progress made in delivering Ihe COFI contract b Fife, Falkirk andWest Lagfian, under ths Conduit Scotland branding. We opened the four shops In Falklrk, Bathgeta,Dunfermgna and ~y. during July and August 2017. The success af Conduit Scogand hss not ganaunnoticed north of the border and a number of alhsr baal authcrfilas have expressed an interest.

As we have been expbrlng the rww mates b market that we need to substenfially scale up our lending with Ihenew I~L 2 hsd becorm apparent that best branding hav a rob to pkty yt Ihst growth. Ws have anaSPiralian ta bufd a nafiOnal Programme Called 'FinanCe FOr Citea' WhiCh We hape might hSVa 30 brandedportals by the end of 2020. These partab would bryrg other harding providars af affordable credit savbgv, bankeccaunls sic to tha labia. In July 2018 ws fitunchad the first of fiwse, 'Hull Money, wilh gw strapline 'A Cultureat Fairness', Convarsagons are ongoing with a number of ether bcal suthoNias. Tha delivery model utifivas thaFCA braker permktsbns af the Ch«ity end the suppll«s Inc@de Ihe Trading company (Candufij. ss wsfi ssleading hausshokl geode CDFI Fair For You, the successful and bnfFsstsbNshed Huf & East Yorkshire CredfiUnion and the challenger bank U Account. Wa hops to add further supplbrs in dua course. This madelis verymuch ki tune wfh the FCA High Cost Credit Review c«wufisfion.

The Atfordabkr Lendyig Portal project whbh came aut of s Cabinet OfficefCDFA rsvfirw and was launched as spfiot in September 2018, hsa stalled somewhat in the hist twelve montiw. Thir, 8 largely down to Ihe need forslgnificant systems-based invasbnent which ls currenfiy beyond the resources of the five partklpsfingcommurNY landers. Various funding applications have not yielded success, Wa continue to work ~valywith ixr parln«s et Expert«i and ws «s hopeful that there Is s bng-tarm future fior ths portal partbularly if it

can be intagralsd wshki ther range of products and services. The taksav«of Clearsaxe cauld enable tha

panel ta have acaass lo dose to 10 mifibn customers.

There has never been a more posBve enabfing cankud ln the fiakl af affordable credit as that we find st prasankFive Lamps is adtvely engaged in a number of the kay ~fions currsnfiy tsfdng pleas In Iha RnsncialIndusion space st present and wg strive to bring that benefit to sg of lhe geographies Ihat we cover. Thesecanvarsafions span at nafionsl ktvsi, The Treasury and others h government who «e genuinely interested ln

aur work, and tha Bank af England who continua ta express conc«n at tsvats ol' over-indebtedness. We havebeen active in the contxdtatbn and evidence prooeam around the FCA High Cost Credit Review. We warsdsfghlsd that their Cansufisfion Paper issued ln May 2018 made strong references to Ihe need for momellsmafiva bndars, like aursafvss, and highfighlad slrongar roles for bcal author%as and sodai landlords. Webefeve that aur Suggested deliVery madel b entirely Canaialent wilh gia FCAs ambition arel that heirConsultation Paper is a~l endarssment of the 'Fbence Far Cfiiss' concept.

Our ma~ is bskig reshaped by the near 2mBan people who were formerly cusiam«s of Wanga;BrightHouse; ProvidenL. Money Shap and others. Far many of those customers, impacted by the unintsndtbcanssquencs of ntguktgan and changed business models, we represent Ihe only affordable apfion.

In February 2018 txr governmenl anrxxincsd that 555millbn af Dannant Accounts money would be comingavafiable to address finandal exduslon. In early August 2018 Iha government announced that a newkxlapandant body would be sstsblfthad la dblrbuts the funding, vdthsi fitstr newly-published civil BadsiySlrategy. The government wg direct funda far the aalabliahment af a new Fbencial Induabn oiganbidbnresponsible far depbytng the funds. It wlfi prlmargy address tha prabism of ecctws ta sNardsble credfi and

Page 10

THE FIVE LAMPS ORGANISATION

(A company limited by grmrantea)

TRUSTEES' REPORT (continued)FOR THE YEAR ENDEB $1 MARCH 2016

aliematlves. They recognise that there are organieslions like ourselves who are sodal alternafives lo high costcredit and which pramote financial resilienaa in customers as well as helping to cover short-term expenses. Thisfunding wll help the affordable credit sector to grow and support alternates, lhrough bath irwestmenls ardgrrmts thol support existing end rww orgerisefirmsIt is hoped Ihat lhe nsw independent body will bring in cofunding fram a range of investors, including the privatesector. It will also build parlnershlps wffh the ether organisetlons working hard lo develop this space, indudingthe Finandal Conduct Authority. the Financial Induskm Coinmisstan, the End High Cast Credit Afilance, and thecharity sector more widely. The orgenlssilon wNI develop strelagic partnerships with housing associations, aspotenfial partners who deal with many customers al risk af financial exdusion. The direction for Ihis funding wasreached falhwlng en extensive evidence gathering and engagement exercise which indudsd focus groups withindividuals sutferktg fram financial exdueioc, workshops with lhe sectors responding lo these issues es well asmainatrearn fiinandel insUtulions, and input from the Indusive Economy Psrtnersrrtp. We look farward tacontinuing aur active engagement in the development of this excifing agenda.

We cantinue to deliver 'Helping Hand', the North East Regional Private Housing Financial Assistance Service onbehalf of Ien NE Local AutharNes. The current contract runs lo April 2016 wilh Nwr potential for a one-yearexlenslon before the reed to re-terder Now in its tenth year Ihe service has now made just under 900 loanslolefilng dcee to 28mflian. We wlfi be discussilng the future of the programme with the psrfidpsfing localauthorNes and looldng to develop some innavadve models for ils continuation as the loan funda recyde.

Quality Assurmtce

Since 2KI3 Five Lamps hss facused strongly on service quality and the associated hvestment in the persanaland prafssskmal development of our ~rce. Our inifisl Matrix accndfisfion has been followed by l~ In

People, Customer First, Ofsted, Flnsndal Conduct Authority and, since Odober 2016, Cree QualityCarxmission rsglslrafion for aur new Hams Care service, While changes in aur service portfolio have meantlhat we no longer require Matrix or Ofsted inspecUon, we conUnue to take pride in aur Irwestors in People Gold(sktce 2810) and Customer First accredllatlan. We were reaccrediled by Customer First in July 2016 and wereresccndited fcr a third time as meeting Ihe IIP Gold standard in September 2016.

We wart delighted to receive a Gaod ruling from the Cere Qusyty Commission in March 2018.To achieve Ihkr

rating st our fkst inspecfion rsfiscts cansklsrable credit on our management and stair.

Sadal Impact Reporfirrg

The orgsnisatlon remains committed to the regula pubthafion af impact reports. Indeed it is a condition of aurnew investment Ihai we do so and we wlfi be working with aur investors lo deliver Ihsse lo the format arxlfimescakr that has been agreed.

We wiN publish an orgenisafiorrwide impost report in December 2018. This will enable us to indude aur HamsCare service, Conduit Scafiand. Youth United Stockton and the automated lending model for the flrsl time.

PLANS FOR THE FVTURE

e. Strategic direction and future plans

Five Lamps has continued to position itself at the leading-edge of ils seder(s) erd ta plan strstegtcetly far lang-term growth. The Semor Management Team and both Boards keep themselves abreast of developments atnational. regions! snd local level across a broad range of themabc issues.

Thle year hae Seen reel progress in terms af same af our stretegN prlorffles and, indeed, same frualratlons as enumber of things have not moved ~as quickly as we hed haped. There we stiU some major chstlangssfacing aur sector as Brexb rsoves ckrser and the ongoing austerity in publh sectar spending cantinues to pktcepressure an commisxiloners, restrkfing tender opportunities and grant avsfisbttty. Even where there arecoruracls these are often hard to lleliver ss changes to rules. client eligibfity, changed comrnktsiacer riskappetite. Ihe need for us lo cashfiow the programme and restricted margins come into play. Qn other contradawe sre rrat in central of dient referrals ar programme marketing.

Page 11

THE FIVE LAMPS OROAINISATION

(A company limited by gumentee)

TRUSTEES' REPORT (cangnuedjFOR THE YEAR EROEO $1 MARCH ggt 8

We tee canginuelly reminded that we need Io buiM Ihe respecgve bsltmae sheets of the Irarfing company andthe Charity, cantinukrg the move sway fmm refisnce an contracts ta take central of aur own faire.

The success in raiserg Efimfilkrn of new capital far on lending snd the support of nine leading cecal Imrssexs ha powerful ~ent af our standing as s group end a recagnifion of aur palenfisl ta move on ta a nationalfooting, The advent of Canduit Scotland; 'Hull Money ' and aur 'Finance For Cges' ambfiions are hugelyknportant ta that dkscfion of travel, as is thc partnership wkh frxr alber commvnfiy landers snd Eysrisn in thsAffordable Lending Portal, The~of lhasa wR be determined, In no small part by our abiRy to market ourservbes befier in the htvre. hduding via TV end sockrt media.

Last year we sold «rst the Iyatssst challenge for us in the slrslegic window is ta secure the capital of up loE10mfillon which wfit take us to s position af longterm financia suslalnebfi fiy with a cspadty lo make upwards of250gfi hans per annum. We sre hafiway there and have already started making the case for the next Kgmgian.The mast obvious sources sra the RSSmfifian af Dormant Accounts rxonsy snd tha emerging force of the EndHigh Cast credit Agktnce. we also have the strong end Iorspcbrnding relationship wlfit Unfiy Trvst Bank, ThereIs huge raassursnae in our quest for tyawth In that ws fit the strategic prianTkrs of central ~nt; the snll-povsrly snd financia irrdusion strategies of laasl svtharitkrs snd the social houskrg sector, he asptrstkm af thsFinancial Conduct Autharky ta see more alurrnatlve credit beaming available; the concerns af the Bank ofEngland around Over-ktdebtedneSS and perhape mOSI Imparlenfiy, the tncnursmg needs of fiuxre people in aurcommunifies that are simply unebls lo access mainstream finenaal sarv has srxl alfantsbls credit.

In ths following we have highfifihtsd our strategic prtariTiss.

Securing growth end building our service portfolio by aspitsliskrg an cxu strengths in ctxrsnt pravkrIan, tendsrlngfor new work snd considering sbstsgkmfiy sppiapnsm mergers snd acquisifions.

Sscudng brrgs-scale Irwcstmcnt/ sactel irwsstmsnt from spsctstht sources. including banks, socbrl investors,crowdfunding and institulians.

Growktg a new COCreghiarsd 'Care' divkrion wifich Inckxkrs s domicifisry servias snd sxplcnnfi passfirtifiss in

Ihs Exlrs Carel rssidsnfird ssclar.

Measuring the sactsl, economic snd financht Impact of our business snd pubfshing annual Social Impact

Expending ovr Empty Homes wark by developing a porlfalb of new and mfu*krhed proparteN, raisingInvestment af up to Otmillkrn.Continuing ta Invest In our people and our Infrastructure —funcfionsfiy suitable premises; carrtsmpamry IT;soaisl media; bufiding new mOdele Of public Servkxre,

Seaming substantial scale asset transfer ta open up further apparlunfiisa far asset-backed inrsstmsnL

Page 12

THE FIVE LANNPS ORGANISATION

(A company limited by gumantee)

TRUSTEES' REPORT (continued)FOR THE YEAR ENDED 31 MARCH 2015

Strategic direction and Future pimm

Dur Mission - To Transform Uvss, Raise Aspirations and Remove Barriers to Social, Economic 4 FinancialIndusion

Dur Business - A ne5anslty-recognised charkabkr business ~with excluded individuals and families in themost disedvrmbrged communities.

Dsgvsrsd Through:-Trusted BrandQuality Assured ServicesMaking Psapls MshecSuportar Contract PerfonnanceMeasured Social ImpactSocial InvsstmsntSkNed tt Mathrsted WarkfarceBcpsnding Geographic ReachRevenue Generated via Stranger Brdance Sheet

Making Peapbr Matter~ Treating peopkr with rasped

Releasing potentialKeepkrg congdenUsgtyEnabling end empoweratg people to help themselvesChaNsnging self-psrosp5ons and sreoursglng self-worth

Perfonrwncs Matters~ Slrenglh af perfonnance wins contrada

Taking personal sccountab Sty wilhln delegated authorityMeintstnlng high standards, sklNr, oredibiity and ethicsDemonstrating personal, individual and team cornmdment to~goalsRespecting and promodng a positive ~ cugureEveryone contributes ta the 'bottom line'

We are a5 Five Lamps ambassadors

Quality MattersAssuring quality end achieving contemporary quality standardsPursuing end achieving con5nuous servtm improvementIrwssling in our people, our systems snd rxe buildegsMerksdng and promoting aur products and services effscthwly

Making Communities MutterUnderstandkrg cammun5es and their needsEnabling access lo services vis s range of routevrate embracing 21st century krchnolo9esInduding everyone and removing ~hic bordersDesigning new services lo mast identiTnrd needRegenerating communNes —rsstadng the sense of 'place'

Measuring Impact MattersProducing regular Sadsl impact ReportsMeasuring customer end sbrkehdder experiences end feedbackCogec5ng sadal, performance and environmental data across ths fus range of our busktessPublishing a range of goad news stories and cess studies

Page 13

THE FIVE LAMPS ORGANSATION

(A company limited by guarantee)

TRUSTEES' REPORT (continued)FOR THE YEAR ENDED 31 MARCH 2018

TRUSTEES' RESPONSIBILIT)ES STATEMENT

The Trusless (who are rdso directors af The Five Lamps Orgsnhaiion far lhe~ uf company Isw) areresponsible for prepsrng Ihe Trustee' report and the hnanckd statements iln acconfarce wilh appdcatde Iawand United Kingdom Accounting Standards (United IGngdam Generafiy Accepkrd Accauntlng Practkxr).

Company hw srqts'ms the Trustees lo prepare flnandat statamsrds for each financial year. Under company law

the Trustees must nat approve the finandsl stahments unless they are saksfied lhst they give a Irus snd fair

view of the suds of afi'airs of the chsritabkr company snd the group and of Ihs iroaming resources and

spplhatian of resources, hcluding the income snd expenditure, of 0» chsrNabls group for that perkrd. In

preparing these fiinencisl stabrments, Ihe Trustees sre requkod to.

sekkd suitabkr accounting pafialea and g»n apply them conststerNy:

~ absevs Ihs methods and princtpkrs In ee CharIOrs SORP;

make judgments snd accounting estimates that wo ressaruibls mid ~prspwe Ihs finsucist ststemeiNs an the going concern bash unless it ls Ina~ lo presume that ihsc~gnat wg cordhue in operation.

The Trusless are responsible far keeping adequate wxxrunting reaards that sre sutfoiant ta shaw and expkdnthe charitable company and lhe group's Irsnsactions and dhckrse wfih reasoi»bte ~st srry One thefinancial paiddan of lhe chsrksbls group snd enable them to ensure Ihat Ihe flnsnckd ststsments comply with

the Coinpaides Act 2D06. They are eisa responsible far safeguarding the ssssls of ths chsrSabh corn pony sndlhs group and I»ncs for iakkig nrssunsbls steps far the prevention snd dataclhn of fraud snd olhsrkregutsriTies.

DISCLOSURE OF INFORNtATIOiq TO AUDITORS

Each af the pemons who sre Trustees st Ihe lime when thh Trustees' report is approved hss confirmed that:

~ so fsr as that Trustee is aw»o, there is no raknisnt audit information of whhh the chsrlsrbts group's

sudbss are unaware, snd

~ If»t Tmatee hae taken all the Stepa that ought to have been taken as a Trucwe In Older la be awWe Of

any relevant au4t information and lo eslsbllsh that the chsrksble gruiqr's audikirs ers aware ol thatkrfarmsOrn.

AUDITORS

The auditors, Annskoug Wstsoii Audit Limited have indicated thsk wllingnsss to cantkius in oflice. TheDesignated Trustees wg propose a molkm rs-appolndng ths audfiors at a meeting of the Trustees,

This report wss approved by the Trustees, an aad signed on their bshslfby:

P ChambersTrustee

T G WatsonTrustee

THE FIVE LAMPS ORGANISATION

(A company gmited by guarantee)

INOEI ENOENT AUOITORS' REPORT TO THE MEMBERS OP THE FIVE LAMPS ORGANISATION

OPINION

We have audited the finsnckd sratemsnbi of The Five Lamps Organisalion (Ihe 'parent charity') and ilssvbskfiaiias (the 'grovty) far Ihs year ended 31 Marrfii 2018 which comprise the group Consolidated statementof finandal acfivifies incorporating Income and expenditure account, the gmup Conscfidated balance sheet, lhegrovp Consafxtstsd statemenl of cash flows and Ihe rekrtsd notes, kictvdtng a summary of significantscocunfing policies. The financtal reporting framework that hss been spplfied in their prspsrafion is applicablelaw and United Kingdom Accauntlng Standards, inctudktg Finanrfiat Rsparfing Mandard 102 'The FinancialReporting Standard applicable M the UK and Republilc of Ireland' (United Kingdom Generafiy AcceptedAccounting Pracfice).

In our opinion Ihs financkd sbdaments:

~ give a true and fair view of ths state cf the group's and of the parent chsrtlabla company's affairs ss at 31March 2018 and of lhe group's incoming resources and spplicafion of resources, including its income andexpsndfivre for the year then ended;

~ hsva been prapsrly prepared in aooordancs wik United Kingdam Genersfiy Accepted AccountingPradice; and

~ have been prepared in accordance with Ihe requirements of the Com paniss Act 2ML

BASIS FOR OPINION

We conducted our audit in accordance with international Standards on Auditing (UK) (ISAs (UK)) and appficeblelaw. Our rssponslbfiges under Ihose standards are further described in the Auditors' respansibififias for Ihe audficf tha financial statements section of our report, We ws independent of Ihe group in accordance with the ethicalreqvrsments that rse relevant la aur audit af the financkd statements In the United Kingdam, induding theFinancial Reporting CounciTs Ethhal Suutderd, and we have fulBlsd our alber ethical responsibilities in

accrxdance with these requirements. We believe that the audit evidence we have obtained is suifident andappropriate to~a basis for rxa opinkin.

CONCLUSIONS RELATING TO GONG CONCERN

Ws have nothhg to report in respect of the~matters in rstatkin to whkh the ISAs (UK) require us loreport to you where=

~ Ihe Trvsbms' vse of Ihe going concern basis of accounting In the preparation of the financial statementsis nct appropriate; or

~ Ihe Trustees have not dkrdossd In the finsnckd siatsmerds any klsntifisd material vncsrhiinlies thai maycast signfiicant doubt about Ihs group's or the parent charitable compenys aMity to continue lo adopt thegoing concern basis of acrxxmting for a period of at least twelve months from the dale when the finandalstatements srs authorised far issue,

OTHER INFORMATION

The Trustees are responsible far Ihe other infarmaficn, The ether krlannatton oamprises lhe infarmalionindvdsd in the Annval report. other than Ihe finandel statements and our Auditors' report thsrsan. Our apinionon the financkd statements doss not cover the other information and, except ta the extent otherwise expficifiyslated in our report, we do not express any form of assurance cancfvsion thereon.

ln connection with our audit of the fsrancial slatemsnis, ovr respansibifiity is to read the other Information and, in

doing sa, consider whether the other information is malsriafiy incanshtent wfih the financia statements or aurkn~ abtainsd ih Ihe avdil or otherwise appears to be materiafiy misstated. If we identify such materialincansiamncies or apparent material misstatements. we we required to determine whether there is a malarialmisslalamsnt In Ihe ftnandal elslsments or a malarial inisststsment of ths other information, If, based on thework we have performed, we condude that there is a materkd misstalemsnt of this other information, we arerequired to report that fact

Page 15

THE FIVE lAMPB ORGANIBATION

(A company Vmited by guarantee f

MDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE FIVE tAMPS ORGANMATION

Ws have nothing ta report In this regard.

OPINION ON OTHER MATTERS PRESCRIBED BYTHE COMPANIEB ACT 2IVN

In our opinion, baaed on the work undertaken in Ihs crxxse of the sudIC

~ Ihe information given in the Truslaes' report far the gnanclal year lbr which Vm Ilnandal statements «aprepared is~wfih Vrs finsndsl shrlements.

~ the Trustees' report and the Group strategic report hsvs been prepared in accordance wfih applicablelegal requkaments.

MATTERS ON WHICH WE ARE EEQUVIED TO REPORT BY EXCEPTION

In ths Vght of ou' knawMgs snd und«standing of Ihs chsrltebhr company end hs environment obtained in Ihscourse af the au5t, we have nat ikhrayied material mhstatsments in Ihs Trusktes' report.

We have noihirlg lo report in respect af the fafiowlng metlars In rstsuan Io whhh the Companies Aat 2008requires us to rc part to you if, in aur opinloru

~ the parent charfiable company has nct kept adequate and sutlicient sccounung recrxvts, or rewmsadequate for our audit have nct been received from branches not vhitvd by us; or

~ the parent charitable company financctl stabmsnts are not h agreement wffh the accaunting records and' returns, ' cr

~ eeriest disclosures of Trustees' remureratbn specBed by law are not made; or

~ wo have not reaoived afi the information and explansfions we require far rxr audib

RESPONSIBILITIES OF TRUBTEES

As explained more fully in the Trustees' responsibilities statement, Ihe Trustees (who are also lhe directors afthe charaable campany far the purposes af company lew) ers responsible fer Ihe preyrereficn Of the finanCial

steternsnts snd for being sabsfisd that they give a true and fair view, snd for such internal control as theTrustees delarmlne is necessary io enable Iho ~n of financisl slalsments that are free fram materielmisstatement, whelher dus lo fraud ar «ror.

In preparing ths financial statements. Ihe Trustees are responsible for assessing Ihe group's and the parentchsrfiebie crxnpam/s abMy Io continue as a going concern. dlsdosing. as sppficebte, matters rstsNd ta goingconcern and using Ihe going concern basis of accaunfing unless Ihe Trusams effhsr Intend to liquidate thegroup or the parcel charfisble company or lo osase o~, ar have no reafisfic alternative but to do so.

AUDITORS' RESPONSIBIUTIES FOR THE AUDIT OF THE FNANGIAI. STATEMENTS

Our objectives are ta obtain reasonable astxaance about whclher the financfal statements ss s whole are freefrom material misstatement, whether due to fraud ar error, snd lo issue sn Audfiors' report Ihst Includes ourcplnkrn. Reasanabls asruxance is s high level of assurance, bul is nat a guarantee thai sn audit conducted in

accordance wtih ISAs (Uiq will always detect a matsrhrl mhstatement when It exists Mlsststsrnsnls cen arisefrom freud ar «ror and are considered material if, Individuafiy or in ths tqfiysgate, Ihsy could rsasanably beexpected to influence lhe economic dschrians af users taken on the basis of these finarxxal statements,

A further dsscripficn of our rssponsib8bes for Ihe audit of the financia statements is kcstsd on Ihe FhictNRspcrling Caundl's websfie at: www. frc.arg. uk/audfiorsrsspansibilEes. This dsscripfion fonna ptut of ourAu%lors' rapcrL

page la

THE FIVE LAMPS QRGANISATIQN

(Icompany Bmited by g~e)INDEPENDENT AUDITOItS' REPORT TO THE INEfdeERS OF THE FIVE LAMPS QRGANISATIQN

This report is made subtly to the cfaaitable compan)rs members, as a body, in accordance wilh Chapter 3 ofPart 16 of the Companies Aot 2006, Our audit work has been undertaken so that we might state to thecharitable comparrfre members those matters we ars mluired to slate to them in an Audilcre' repcrt and far noOther purpoea. TO the fuNeat ardent permitted by law, we dO nct aOCept Or acaume raepcnatblily tc anyane Olherthan the charitable company and Its members, as a body, for acr audit work, for this report, or for the opinionswe have formed.

Joanna Gray FCCA ACA DChA (Senior statutory auditor)for and on behalf ofArmstrong Watson Aadtt UmltedCharhrrad AccountantsNorlhsllerlonPate;

Page 17

TNE FIVE LAMPS ORGANISATION

(A company Emlted by Suarantee)

CONSOIJDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATEtG INCOME A353EXPENDITURE ACCOUNT

FOR TttE YEAR ENDED 31 MARCH 2015

INCOME FROM:

Oonebone end legalChas itsble act tvtieeOther trading scttrEcsIrteeelmentsOther Inaoms

Unrestricted Restrictedfunds funds

3818 2618Note f f

873(130,795) 1~81541412034,893

1,273,80B

Totalfunda2618

f

6731,105,719

415,12024,863

Totsfltmda2017

11718,342

1,102,30326,409

1,129.357

TOTAL INCOME 309,690 2,514,123 2JR33l13 2,978,452

EXPENDITURE ON:

Raiser g fordsCharitable activrlies

TOTAL EXPENDITURE

51,9Kt 51.593 39@25 1,195,927 1J32~ 3,12IL260 2.842.574

10 1~7)920 1PS2P23 3~180/482 882 406

NET BEFORE OTHER RECOGNISED GAINSAND LOSSES

NET MOVEMENT IN FUNDS

I938,236)I938436)

581JI06 (35IL4%I 94,056581BIBB ~) 94,056

RECONCILIATION OF FUNDS:

Total funds brought forward

TOTAL FUbXÃ CARRIED FORWARD

3P20i161 631~785 4' 51i530 4i057i674

2,381,931 1/13.569 3.795,500 4,151,930

The notes on pages 22 to 44 farm part nf these gruurciet statements.

Page le

THE FIVE LAMPS ORGANISATION

(A oornpany limited by guarantee)RESISTEREO NUSISER: 02441310

CONSOLIOATEO SALANCE SHEETAS AT 31 MARCH 2018

FIXED ASSETSTangible esselsProgramme related imrosbnents

Other Irnrsstments

CURRENT ASSETSOebtons

Irwestments

Cash at bank and In hand

CREOITORS: amounls falling duo within

one year

Note

141515

16 403,31117 80

30,422

442,013

18 (1~,803)

807,1594,851,144

14,000

5,702,M3

256,60080

516,250

772,939

(1,01 5,868)

85D,701

4,735,54414,000

5,00D.405

CREOITORS: amounts Ialling due aftermors than one year 19

NET ASSETS

NET CURRENT LIABILITIES

TOTAL ASSETS LESS CURRENT LIABILmES

(808,050)

4,798,253

(1,000,703)

(242,010)

5.367,486

(1,205,550)

4,151,030

CHARITY FUNOS

Restriotsd funds

Unreslrloted funds:

UnrestrkM funds

Revaluation reserve

Tobsl urvestdoted funds

TOTAL FUNOS

20 2,352,94528,888

1813,M0

2~1,831

3,795.500

3,291,17520.900

831,769

3.320,161

4,151,030

The financial statements ware approved and aulhorised for issue by the Trustees onsigned on their behalf, by;

The notes on pages 22 lo 44 form perl of these gnanrdal statements.

Page 19

THE FIVE LAMPS ORGANISATIDN

(A ootnpany limited by gumaatee)REGISTERED NUMBER: 62441319

COMPANY BALANCE SHEETAS AT 31 MARCH 2016

2(rt0 2017

FIXED ASSET8Shares in group undertakings

Tanglber enacts

Programme related snlestment

1415

7$7.1504,081,144

2

000.751

4,735,644

CURRENT ASSETS

Debtors

inveshntmts

Cash al bark and in hand

CREDITORS: amounls falling due withinone year

1$ 4$3,34317 00

3$,133

469455

18 (1.300~)

445,711

(901 P546)

CREDITORS: amounts hlBtg due aftermora thanone year te

NET CURRENT L)ABILmES

TOTAL ASSETS LESS CURRENT LIABLITIES

(011,680)

4AQ$. 617

(1,000,750)

(15,307)

5,$21,100

(1,390,1$6)

CHARITY FUNDS

Reslrlctsd furds

Lfnrastrited funds

724,300

3,191,$04931,709

3,291.175

TOTAL FUNDS 4,122,944

The fintmcfd statsmerss were approved and eudmdsed for issue by lhe Trustees onslgred on that bahey, by:

peas bats T G WafsonTna Be Taaasa

The noise on pages 22 lo 44 form pert of Ihese financial slalarnenls.

and

ME FlVE LAMPS ORGANISATION

(A company limited by guarantee)

COIISOUDATED STATEMENT OF CABH FLOWSFOR THE YEAR EIIOED 31 MARCH 2018

Cash flows from operating scdvltlesNet cash used in apersbng activities

2018B

(66,601)

2017f

(3,371,090)

Cash flows frmn investing acthritles:Net mcvemenl in laan bOOkPurchase af investments

Nst cash (used in)fprovldad by Investing ectlvltkrs

(145,500)

(145,500)

2,414,480(14,0M)

2,400.480

Cash Boers fram financing actfvldes:Repayments of borrovdngsCash krgoss from new borrovdng

Net ossh (used ln}fprovlded by financing activities

(266,736)

(266,736)

(209.41S)

Change in cash end assh ertuivefents In the yearCash end cash eqrrlvslents broughl ~Cash and cash equivslanls carried forwarrl

(47@D7)510,259

(660.022)1,196,281

516.269

The notes an pages 22 lo 44 form pert ol these finenctd sletsmenls.

Page 21

THE FIVE LAMPS ORGANISATION

(A company Nrnlted by guansttae)

NOTES TO THE FINANCIAL STATENIENTSFOR THE YEAR ENDED 31 MARCH 2018

ACCOUNTING POLICIES

The prinolpal aacaunlkrg paliclae adapted, judgenumla and key SaurCee Of eatknaffan unoertainty in thepreparat ion of the financhl ststementt are as follows:

Basis af Preparation of financial statements

The financtsf slstements have been prepared In accordance wffh Accaunling and Reporting byCharkfss: Stslsment of Recommended Pracffce applicable to charities prepming their acccurffs kt

accordamnt wilh the Rrutnckd ~Slandsrd appffcsbfe kt the VK and Rspubte of Irelend (FRS102) (effective 1 January 2015) - (Charlfies SORP (FRS 102)), Ihe Fffumcksl Reporting Slandsrdsppffcable kt the LNC and Repubffc of Irektnd (FRS 102) and the Com panfes Ard 2006

The Five Lamps Orgsnisafion meals lhe defstitton of a pubNc benegt enbty under FRS 102.Assetsand Nabffitles are inltlsly recognised at historfcal cost or tranaacdon value unkras ~staled in

Ihs relevant scccunttrg poffcy.

Ths Statement of Nnanrffal actlvtlkts (SOFA) and Bakmce sheet consofdabr Ihefirrsroial statementsof the company and Ns subskfkrry undertaking. Ths results of the subsidiary am cansoffdsted an abur by line basis.

No separate SOFA hss been presented for Ihs company a bne as perrnlffsd by sectkrn 408 cf theCompanies Act 2M6.

The company is s reglslsred charily snd company limiled by guarantee. The members of thecompany sm the Trustees named on page 1, tn the evenl of lhe company being wound up. theNobility in respect of the~h limited to f1 per member of Ihe company.

The company is a charitable company domlcffsd in England snd Wales, registration number02441319and charity number 702314.

The regntered alice is Eldan Skeet, Thamaby, Stocktonon-Tees, TS1T 7DJ,

Fund accounting

General funds are uressbicted funds which are avslsble for use st Ihe di~ of the Tmstsss in

furtherance of tha gsnand objectives of the company and which have not been designated far otherpurp08es

Designated funds camprbe unrestricted funds Ihat have been set aside by Ihe Trustees forparffcular purposes. The eim end use of each desigreled fund is set oui in ths notes to lhs financialslstsrnenls.

Rasktctsd Nrnds are funds which ere lo be used M accordance with speciTic rastr'cffans Impaeed bydanors or which hevs been raised by the company for parffcutar purposes. The costs of raising endsdmhistering such funds are charged against Ihe specilic fund. The aim and use of each restrlcbrdfund is set aut in Ihe notes to Ihe Itnanrfat slatsments.

THE FIVE tAMPS ORGANISATION

(A company ltrnllsd by guarantee)

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDEO 31 MARCH 2018

ACCOUNTSIG POLICIES (continued)

1A Incoming resources

C~ Performance Income:

Corrlract income ls Included in incoming resources when receivable, exchxflng trAT output tax whereapplicable.

Grants and Donallons:

Income from grants and donaticns, irxduding capital grants, br induded in incoming resources whenrecaivabhr. except as folbws:

(a) When donom spsciTy that donations and grants given to the Charity must be used in futureaccounting periods. Ihe Income Is deferred until dxxre periods.

(b) When donors impose condNons which have to be ltjtflllad before tha Charily becomes endtled tousa such income, the Incorae is deferred and not indudcd In incoming resources until the precondilions for use have been met.

When donors specify that grants and donabons, Including capital grants ma for parbcular reslricladpurposes, which do not amount to pre conditions regarding snNlement, Itds Income Is included inIncoming resources of restricted funds when receivable,

(i) Inveslment Income

lnvestmant income br Included when receivable by the Chatty.

(ii) Fees and Simhsr Income

pass receivable and charges fcr services provkled and for the use of premises ara accounted for inthe period in which the service ls provhfsd.

(il) Commerobd Trading Operations

Income Irom commarchl Iradeg operations is included in the period in which Iha group br enINed lorsca{pt, and comprises the turnover of the Inkling subsidiary Including rental income from externalsources

Page 23

THE FIVE LAMPS ORGANISATIObt

(A company limited by Su~)NOTES TO THE FINANCIIIL STATEbtENTSFOR THE YEAR ENDED $1 MARCH 2016

ACCOUNTING POLICMS (condnuad)

1,6 Rsaouross expanded

Costs of ttenarabng funds are costs incurred in atlractbrg voluntary income, hard those bxxxred in

trading ~that raise funds,

Charitable sclhnTiss and govsrrwnca costs are costs incurred on the comparv/s educationaloperallms, induding support costs and costs rehrtlng to the govenwnce of ths company appcrtinnsdlo charitable ac5vtlies.

Rasrxxcas expended are accounted for on an accruals basis, lndushe of any VAT which cannot berecovered,

Expenditure on grants is mcorded once there is an txrcondittonal comm Scent lo pay tha grant or thegrant hss been paid, whichever ls the earlier,

Certain expenditure is dlrectfy sttrttutabte to spscNc actlvtbes and hss been apportioned to Ihe costsof those acgvQles as follows.

Management and admtrsstrsgon costs —by referent to the tots I txmms generated by atchprojecL

Stsif costs —Iry reference le ths estimalsd dme spent by staif on each projecL

~ Pmmhes costs and oNce costs —by reference lo the estimate boor space (snd rafatad roomrental value) occupied by esoh prejecL

Page 24

THE FlfE LAMPS ORGANISATION

9L company lmlted by guarantee)

NOTES TO THE FINANCIAL STATEMENT8FOR THE YEAR ENDED $1 MARCH 2018

ACCOUHTL IG POLICIES (condnuedj

1.6 Going concern

The accounts have been prepared an a going concern basis notwithstanding the nat current lisbIEesof 2008,050 shown on the balance sheet. The programme related Investments relate ta sockd loansmade by Ihe charity in furtherance of its objeciives. A sityuficant prapartkm af these hans are due forrepaymenl within 12 manlhs and therefore the cash Ilaw generated from the repayments will farsurpass the amount of nel axrsnt lbrblibes.

The protysmme related irweslrnents are considered to be fixed asset investments due to the longterm natura af the customer baca which use the sodsl loans. These loans are alen made canbnuslyto the same, albeil growing, customer base —which Is in line with Ihe sub prime loan market whichths orgsnisadon is trying to sodslly address.

1.8 Tangible Itxad assets and depreatralon

All assets costing more than 5500 are caplalsed.

A review for impairment af e fixed asset Is carried out if events or changes in ckcumshmces Indicatethat the carrying value of any tlxed asset msy nat be recoverable. ShartfaNs between the carryingvalue af fixed ssssis and their ~hr amaunM srs recognised as impairments, Impairmentlosses are recagnkred in the Siabxnent of financial aclvldes,

Tangible ftxtxi assets are carried at costar ~, nst af depreciation and any provision forimpeirmsnk Depreciation is provided at rates calculated to write aff Ihe castor vskjallon of lxedasssls, less their estimated residual vtuue, over their expected usehil itves an the falkrwtng bases:

Freshokl ~IJTsrm Leasehold PropertyEquipment and machinerykfotor vehklesFixtures and flfingsOfhce equipment

2% straight lineStraight lne over term of lease ar 2% strstght line25% slratght line25% slraight line25% straight line25% straight tins

Page 25

THE FIVE LAMPS ORGANISATION

(A company Ibntted by guanuHm)

NOTES TO THE FINANCtAL STATEMENTSFOR THE YEAR ENDED $1 MARCH 2919

ACCOUNTING POLICIES (aondnued)

1AI Other Investnmnts

Fixed asset programme related invsstmsnts we sccaunhd for on lho bash of setsnatsd netresgssbls values (i.a. capital amaunh ~le) at each balance sheol dsts. Interest rsastVsbhon these invsstmsntx is rccatpSMd wittdn the Ratsment af Financht Acgv5es when earned.

Programme rotated kwestrnsrns are reviewed at least annually for bnpalrrnenl, an adjustment bmade to provide for amounts considered to be ~ble, but only once ncrmxl recoveryprocsdwws have been~and no further repaymenh have been made.

Oihsr ihsd asset invsstmenls are shted al cosL

Current asset kwestments are stated at market value al the balance sheet date. The Shtsment afFimmcbt ~ Incktdss the nst gains and losses on revsluslicns sad dhpaxsis dxxwghaut ths

Irwootmonia in untioted inveebnentS are stated st cost hss impxlrmers,

1.9 Investnmnt propertfes

Invesbmnt properties whose fsb ve4e can bs measured regably wilhcut undue cast or effort shallbe reassured at fair value recognised In pralll snd loss.

1.19Operating lassos

Rentals under aperstirg leases sre charged fp Oe Statement of gnancial acpvlgss on a straight I txrbasis over lhe lease term.

1.11 Intoned receivable

Interest on funds hald an dsposg is inclrdsd when receivable snd the amount can be measuredrebsbly by the crxnpsny, this is normally upon notfaet tan af Ihs internet paid ar payable by Ihe Bank.

1.12Debtors

Trade snd other debtors sre rsaxgnissd at Ihs ssblsrxent amount altar sny trade discount olfered,Pre psymenh are valued at frs amount prepaid net of any trade dbcaunls due.

1.18Cash st Bank and In hand

Cash at bank and in hand indudes cash and short Isrm highbi Squid irwestmenls wl9i e shortmaturity of three manfhs or less fram Ihs dots af Wxiulsitpn or opening af lhe depaxS or similaraccount.

1.1d Liabilities and provisionsLhbgilive are ~iced when there is an obkgsbcn at the Balance sheet date as s result af s psstavant, S is prabaMs that a transfer of economic benefit wg be rsqulad yt selfsmsnt, and ftxramount af Ihe setilemsnt can be esfmstsd reliably. UsbiRies are recagnbed at the amount Ihat Ihscampsny sntxipshx it will psy la sstlls the debt ar the mncunt it has received ss advancedpayments far ihs gauds ar serv Xxxr S must provide, Praviaians txe measured at Ihe best esomate ofIhe amaunh required ta setpe the atXSprgan. Where the efleCt Of the ltme veltsr Of matey IS

materiel, the provision b based on Ihs peasant vakte of those smaunfs, dlsccunlsd at Ihs pre-tsxdiscount rais that relhch ths rbks specific la Sw krbilSy. Ths unwinding af the discount breCOgniSed within inlareet payatus and similar charges.

Page 26

THE FIVE lAINPS ORGANISATION

(A oompxny grnhad by guarantee)

NOTES TO THE FgfANCIAL 8TATEINENT8FOR THE YEAR ENCE D $1 MARCH 2018

ACCOUNTtNG POUCIES (continued)

1.19 Financial instruments

The company only has financial aruxds and finandal lebllNes of a kind Ihst qualify as base finarxxalInalrumenla, Baxio financial irskuments wa initially recognised at trahsacfion value andsubsequently measured at thsh setllsrnent value with the sxceplion of bank loans whIch rxasubsequently measured at amorfised cost using Ihe egecfive interest method.

1.19 SigniScant Judgsmenta

Esfimalas and judgments are congnuafiy evaluated and ara based on historical experience and otherfactors, including expectations of future events that are believed to be reasonable under theoircumsta ress.

The loan book ls reviewed on an annual basis hr impairment based on an expeclafion ofrscoverabifity of the ouhrtarxfing txdance.

2. tNCOME FROM DONATIONS AND LEGACIES

Dooalions and olhar voluntary income

Unrastrfctsd Re~funds funds2018 2019

K f873

Total Totalfunds funds2018 2D17

9073 11

Torsi 2017

3, INVESTMENT INCOME

Garage rental inocmeCafe rental incomeBank interest

Unrastrkasdfunds2010

99~

19393

Totalfunds2018

E

5,40019,20$

Torsifunda2017

99,400

19,3021,707

Torsi 2017

Page 27

THE FIVE LAMPS ORGANISATION

(A company Sm0ad by gumantaa)

NOTE8 TO THE FINANCIAL 8TATSMENTSFOR THE YEAR ENDED 31 MARCH 2018

4. INCOME FROIS CHARITABLE ACTIVITIES

Unrestricted Rsstrhded Totalfunds funds funds

2018 2018 20100 e 0

Tohdfbnds2017

fManagement snd admfnlshalfonHealth and communi0asEm ployablky and learningFinance snd enterpriseYoung peophrOther income

1,000

(131,70tfi

Br494443,002

$3.060527@97234771

(6,tH0)

tL494444,00233.806

627~RLL771

(137,011)

136,12$123,273393,40705,537

(136,700) 1,240,S10 1,109,719 718.342

Torsi 20f 7 417 717,025 718,$42

In the year management iden07ied osrtein items of eccmad grant income that had ret been~orisa enakaty lO be~by the charily. As such management tssNe wrltlsn og E1$1.798 cf eCCruad

grant Income off within Ihs SOFA, As these tpanis ware odghally recognised as income from charitablesctlvSae the related cost of Iha wrha off has bean prasenlad Ihare in these financial statamanls.

5. OTHER INCOMING RESOURCES

Interest generated by Frcgrantma reWedirwestment

Unrestrictedfunds

2018E

Restricted

20180

1,~000

Totalfunda2018

0

1,274000

1,274000

TarsiArvrfs2017

1,129,397

t, tMI, 307

Terai 2017 1,129,$97 1,129,397

THE FIVE LAMPS ORGANISATION

P company Bmited by Buarantea)

NOTES TO THE FINANCIAL BTATEMENTBFOR THE YEAR ENDED 31 MARCH 201$

ANALYSIS OF EXPENDITURE ON CIIARITABLE ~ES

Management and adminialralionHealth and oommunidasEmployability and learningFinance and enterpriseYoung peopleDepreciabon re Properties

Unrestrictedfunds

20185

$0IL8$2661,171

265

R~funds2010

e

507,7774$.$65

1400,41818$,185

Totalfunda2018

E

508,$921,0I04040

50.2301,205,41IB

180,185F500

Teartfunds2017

721,487583,'338119.92I

1,299,737I 03,43044,60i

1,105,927 1,932323 3,128,250 2,842,574

Tolsf 20f 7 1,176,563 1,660,011 2,842,574

7. ANALYSIS OF EXPENDITURE BYACTIVlllES

ArdhrIBasundertaken

directly2018

5

SupportCOSts2010

2

Total201$

E

Toad2017

Management and administrationHealth and oornmuni0esEmployability and learningFinance and ankspriaaYoung peopleDepreciation re Properties

423,2481,0$$,$4$

50~51,205A18

180,18543,59$

177,040 000.$021,00$,040

50,2301,20S,418

109,18543.5$$

721,487563,338119,921

1,200,737I03,43044.661

Total 2016

Toiaf 2017

2,$00,504 177,040 3,125,260 2,842,576

2,768,745 73,829 2,842,874

THE FIVE LAMPS ORGANISAllON

fA company lfrnRed by Sverantee)

NOTES TO TIN FBIANCIAL STATEMENTSFOR THE YEAR EIWIEI3 31 MARCH 2916

8. 0IRECT COSTS

Trading company expensesRnancs income and rsrpsnsesStaff costsPremises coalsGeneral office costsGrants paya bte tc individuals to

assist wffh smptoyrnsntBad and dovbtfvl debtsDepreciation

Publicity and advsrkslngTvtar costsTraining and accredlta$on costsActivities costsCefslvsrxk ng costsBvbsorlpttonsfafgkationsApprsnffcssekonencssl~

tnerranceMob la phonesCrxrsvkenoyrfeckkstors feesMolar expensesOthersMolar expenses

Mtpnt mtdadrnfn

2278~110~1

16,78218,342

406,17616,18$76~

3thg238,8192,727

1P4S

$W84,989

21449

3,368

4@$4

162

673

EmphryaHealth biltty

6 6

58r4452~$62413

6$4ilN

36

265116

1,316

1,1$2

42$,$M 1,669/IS 66436 1366,416

Tolal 2017 660,808 553,338 119,920 1,299,738

THE FIVE IAMPB QRGANIBATIQN

(A company Brnitad by guoraabra)

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENQEO 31 IIARCH 2018

IL OfRECT COSTS toontfnued)

Trading Ccmpany expenleoFinance hcome and expensesStaff cashPremises costsGeneral o5as castsGrants payable to individuals to assist arith

employmentssd and doubtful debtsDspracietionPublicity and sdverBslngTraining and aoursdhatlon costs~costsCsfenrending costsSubscripBons/affBiatlonsAppreneom allowances/expansesinsuranceMabIs phanesConsulh~litatonr feesMolar experuuhOlhereMolar e~

Youngpeophf

69,37943,70742r487

603045

2,00021

180

Qep'nI

Total2618

2278,900110,211590,02380,575

535,048

200

~3,5094,9504,2286,007

421,9254,354

10,0933,003

16,342547,M4

Tohi2017

f511,535120.087517,207

93,033004,'530

9.23524D,013

45,1374,5836,DDD

5,3951,165

'Bge

are313

2.2ge3,060

0621,165

405,884

160,185 43,509 2,950,004 2,781,915

TcAt 2077 103,432 44,681 2,781,916

0. SUPPORT COSTS

Staff coshPremises costsGeneral ofhce castsPublicity end adveNstngProfarhianal faceBonk charges re kran fundsOthers

Mgmt andadndn

140,8572,4738,055

31015,0353,8422,844

Total2010

E

148,8572,4736,085

31015,8353,8424844

Total2017

Z

2,38143,782

10011,090

03,232

177,640 177i840 60,650

Tofu/20f 7 00,659 00,650

Page 31

THE FIVE LAMPS ORGANISATION

(A company 9mited by guarantee)

NOTES TO THE RNANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2018

9. SUPPORT COSTS {continued)

Dudng ihe year ended 31 March 2018, lhe company incurred ihe follawlng Gtn»manse costs:

NIL. Included wl0sn the table above in resprnd of management and edmin .

10. ANALYStB OF EXPENDITURE BY EXPENDITURE TYPE

StaN costs Other oasts2IH8 2810

f fTotal2910

fTotal2017

fCommercial trading opera0oa

Casts of raising funds 51,093

51,003

Management and admilnkrtrs9onHesllh snd communBesErnployabEIy and learnsFinance and enterpnseYoung peopleDepreds&n re properties

547,004000,095811,00450,280

1,205,416100,10643~

600~1,050,$48

504301+05y410

109,16543,599

721,487553,338119,821

1~,737103,430

44,681

Chsr9abls activities 547,084 2',156 3,12IL250 2,842,574

647,084 2,833,150 3,100,243 2,582,406

Total 2017 405,004 2,476,522 2,502,406

11 NET INCOMEI+XPENQITURE)

This is stated after charging:

20102

2017fDapmctegon of tengltde Ihed assets:

- owned by Ihe chiritabte group 45, 1 37

During 8» year, nO Trueteae leoekred Sny ram W»ratbn (2010- 5NIL).During the year, no Trustees reoekred any bsnef0s in kind (2017 - fN8.),During the year, no Trustees received any relmbursemenl of expense (2017-fNIL),

THE FIVE LAMPS ORGANISATION

tA company Ibnlted by guarantee)

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENQED 31 MARCH 2010

12, AUOITORS' REMUNERATION

Fees payable lo the comps+/s auditor and its associates for theaudit of Ihs

companies

annual accounts

2017f

14,180 13,780

13. STAFF COSTS

Wages and salariesSodal security costsOther pension costs

2IH88

610,080314008,407

2017f

372,84927,775

8.260

847,884 408,884

The~number of parsons emptoyed by the conrpany durmg Iha year wss as folbws:

Oirect &arhable workAdmlnlslrsgon

2018No.

7318

2017

15

87

The number of Hghsr paid employees wss:

In the band f70,001 —f80,000

2018No.

2017Hc.

I

ME FIVE LAMPS ORI&ANSATION

(A company Bmtted by guarantee)

HQTES TQ ME FINANCIAL STATEMENTSFOR THE YEAR ENDEO $1 MARCH 2018

14. TANGIBLE FIED ASSETS

GroupCost or valusdon

At 1 Aprd 2017Dtapoaals

883,804

LITermLeasehold

Property6

867,107

Equipmentand

mach tnary6

202,582

At 1 April 2017 I 31 March 2016 883384 887,157 202,582

Dapnud aden

At 1 April 2017Charge Ibr lhe yearQn diapoaslr

247~18,739

472258 202~28,863

At 31 Mtuch 2018

Net book value

At 31 March 2D18

26L883 499,118 202~

619,121 188,038

At 31 March 2D17 635,860 214,9D1

Group

Cost or valuation

Al 1 Apr5 2017Oiapcsala

Motor Fixtures andvshhles fttdngs

6 6

14428 128,09$

OfAoserpdprsent

6

106&751(115,023)

Total8

2,103,415(110,023)

At 1 April 2017I 31 March 2018 14&420 128&803 70,728 1,987~Oapraciation

At 1 April 2017Charge fcr the yearOn disposala

14r428 126,093 186,781 1/52, 65443&602

{110,023) (110,023)

At 31 March 2018

Nel book value

At 31 March 2018

14&428 120,tt03 70,726 1,100,233

807,159

At 31 March 2017 650,761

THE FIVE LAMPS ORGANISATION

(A company Bmlted by guarantee)

NOTES Ta THE FINANCMrL BTATEMENTBFOR THE YEAR ENDED 21 MARCH 2018

14. TANGISLE FIXED ABBETB (continued)

Company

CostAl1 April 2017Disposals

Al1 April 2017/31 March2018

OepreclaBon

At1 April 2017Charge for the yearOn disposats

At 31 March 2018

Net book value

Al31 March 2018

LIT¹rm EquipmentFreehold Leasehold and Motor Fbttures andproperty ~ machinery vehkles ttttln9e

E 8 8

833,$04 88'7,187 202,5$2 14,420 128,893

834%4 887,157 202,$82 14r428 128,803

247,944 472,288202,5$2 1~ 128,8la18,730 28,08$

284,$$3 490,110 202,502 14~ 128,(BNI

580,121

At 31 March 2017 885,880 214,001

Company

CostAt 1 April 2017Dlsposals

OfBcaequipment Tobd

8 8

1$$,751 2,053,415(11$,0R3) (118,022)

At1 April 2017 i 31 March 2018

Depreciation

At 1 April 2017Charge for the yearOn dtsposats

At 31 March 2018

Net book vslu»

At 31 March 2018

18,728 1,937,392

18$.781 1,252,88443,802

(118,8R3) (118,023)

78,720 1,180,233

781,180

At 31 Msrch 2017 800,781

THE FIVE LAMPS ORGANISATION

(A company Ikntted by guarantee)

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENQEO 31 MARCH 2018

14. TANGIBLE RXED ASSETS (continued)

Freehold Land and Buildings

This comprises the buikling known as The Youthy which was buRt primarily for the young people ofThornsby. Due to the unique design of The Youthy and the purpose for whkh il wss belt. there is ncretdily available method of arriving et a reslisle market value. Ths unique natura of lhe bugding meansthat it kr dlncult to value it on a nonnal commercial basis, The Youthy wss valued in November 2011 at6500,000 for the purposes of securing bank fadlilles but this figura kr nct oornidered to be appropriate touse as the ~ value in the finenCiet S~,An al~ method is to measure ks Value in

use' at an amount baaed upon expected future cash ficws. but Ihts sltemeUve methcd iS alSO Ccnekleiednct to be appropriate. Ons further alternative, which ts more relevant lo this ~, is to usereplacement cost which exceeds the carrying value at 31 IVlwch 2018 of 6589,121 (20t7: 8585,860). All

ln aI, W ls considered unlikely that The Youlhy will have sutfered material permerxmt impairment in valuesince k was origins6y built snd, kI Ihs opinion of lhs trustees, s carrying value based on original cost krssdepreciagon ccngnues to be appropriate for accoundng purposes.

Investment property

Included in Aeehold land end buildings Is an imrestmsnt property vakwd at ESD,DDD. In the opinion of thedkectcm this is a reascrwbte eskmate cf the market value at 31 March 2018.

6 irwestmsnt properties hed not been revalued lhey would have been mckrded st the hkdodcat cost off21,014 (2017:221,014).

Leasehold Lard snd Bwldings

These comprise three bukdings from which the Charity runs its management/ admintstratkrn snd variousprojects. The terms of the leases cn Ihese properties, over witch the expendkure is written olf, are asfof owe.'

(a) The Rue Lamps Centre

There kr no current lease in place fcr this property. Expsndibxe relates to exuvwion work that. wss carriedout in the years to 31 March 20DD and 31 March 2001 and hed been fuly vrr)turn olf for accountspurposes.

(b) SoudI Thomsby Community Resource Centre

The current lease wkh sbrckbm Borough Ccuncd h Ibr a penod cf 25 years from February 2000 and anyexpendkwe is being written off over the remainder of lhst period.

(c) Dovecot Slrset Premises

Tha current kuwe with Stockton Bcmugh Counck h fcr a period of 99 years fmm January 2010 cori snyexpendgure will be wrilten ctf over 50 years,

THE FIVE LAMPS QRGANRtATION

tA company Smltsd by 9~)NOTES TO TNE FINANCIAL STATEMENTB

POR THE YEAR ENOED 31 MARCH 2018

16. PROGRAMlilE RELATEO INVESTMENTS

Group

Gmss CastAl 1 April 2017Nsw loans I oddiTicas~enter dispcsab

8.370,0994,576i805

t45ÃL131)

14,000

Ua SatedLasn book invsstmests

f fTotal

f

5,304,0994,875,805

(4,835,131)

Al 31 March 2018

Pravtstmm

At 1 Aprt 2017Movemerrt in year

Al 31 March 2018

M11,774

$34,455(1032%6)

530,030

14,000 5,425.774

034,455(103,825)

630,830

Net book value

Al 31 March 2018

Ai 31 March 2017 4,735,644

14,000 4,80S,144

14,000 4,749.844

Company

Grass CostAt 1 April 2017AddSonsDispasals

At 31 Mrsch 20'18

Provisions

At 1 April 201 7Charge far Ihs yssr

At 31 Mmch 2018

Nst book value

Al 31 Mmch 2018

At 31 March 2017

5,370.0094,670,808

(4,535,131)

Si411,774

634,4S6(103,825)

S30,830

4,881,144

4,735.544

Page 37

ME RVE LAMPS ORGANISATION

Q COmpany Nmhed by guarantee)

NOTES TO THE FINANCIAL STATE35ENTSFOR ME YEAR ENDED 31 MARCH 2trl6

18. DEBTORS

Trade debtorsOther dstrtorsPrepsyments and accrued incomeAreorsss due irom subsidiary

undertakingsGrants Rsceivabbr

2916f

6,05534,112

167,934

2017

3,18025,992

4,64234,112

180AI50

2017

214,167222,566

403811 256490 4%4343 445,711

17. CURRENT ASSET INVESTMENTS

Listed irwestmants

2618f

80

2017 2018 2017f f f

80 60 80

Group Ssted investmente

The market vakre of the 5stsd investments et 31 March 2018 was f80 (201 7%80),

Company Sated iavsetmenta

The market vakje of the listed investments el 31 March 2018 wes f60 (2017860).

Page 36

THE FIVE LAMPS ORGANISATION

IA company ilmlted by guarantee)

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2018

18. CREDITORS: Amounts felling dua vvtthin one year

Com n

Bank bans snd~Payments rvrcetved an actNuntTrade creditorsOther btxetion and social securityOther creditorsAccnads and deferred income

2tH 8f

700,127

08,03129,265

413~040,856

2017

871,2968,124

53,30938,069

8,63336,427

2010f

700,127

62,05219,986

401&00237,017

2017

871,208

47,36531,267

9411,514

1,348,863 1,D15,555 1,300444

The faNawlng liabg ties disclaeed under credit due vvilhin one year sre secured by gie

corn

pony:

Bank bans f790.127 (2017:f871,296)

The bank loans are secured by varhus fixed and floating charges including a lysi hgal charge over 'TheYouth)r, Thomaby Road, Thameby and the dient loan partfolh,

18. CREDITORS: Amounts falling dua alter mora than ana year

Qrou Com n

Bank loansOther hansFunds under management

2018K

1,000,003

06

201 7f

1,185,259

20,297

2018

1,000.693

60

2017f

1,185,259192,60020.297

1,000,783 1,205,556 1,000,753 1,308,156

The failmvlng liabilities discased under creditors dus aller mare than one year are secured by thecalli pony,

Bank loans f1,D00,693 (2017; f1,185,259)

The bank hans are secured by vaitous fixed and floating charges including e first legal charge over 'TheYaulhy'. Thameby Rued. Thamaby and the client han partfatb.

THE FIVE LAIIPS ORGANI8ATION

(A cmnpany gmlted hy guarantee)

NOTEB TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDEO $1 MARCH 2016

20. STATEMENT OF FUNOS

STATEMENT OF FUNOS - CURRENT YEAR

Oesignsted funda

Youth empowerment schemeGrowth fund

Balance st1 Aprg 2IH7

f

873,0321,100,635

Balance et31 March

Income Expenditure 20185 8 e

(10,739) 560+931,180,5$0

1 F81,688 (18,730) 1~520

General funds

Gerwrel Funds - a6 funds

Total Unrestricted funds

1~030,693 $00,590 (M%1,101) 717,102

$,320,161 300,690 (1g47P?e) 2,381PSt

Healb and ccmmun0ieaEmpioyab667 and teamingFinance and snlsrprissYoung people

76,927(340,175)

1,148,6$3(03,516)

443,0$2 (507,777)33,985 (40,065)

1JÃ1,304 (140M10)235,771 (169,105)

12,182(36I4174)

1,744,86113,090

Total of funda

8$1,709 2,814,t23 (1832,$23) 1413,509

4,101$I$0 2,823,813 (3,1$0g43) 3,795,500

STATEMENT OF FUNBS- PRIOR YEAR

Balsa el1 Apnf 20te

Transfers 31 ldsrchIncome Errpenddure Wool 2017

fDesignated fundsYouth empowerment acheraeGrowk fund

609,770t,t M,536

(16,7$5) 573,0$2t,108,5$8

(16,73$) 1,661,588

General funds

General funds

Total Urrreatrlctad funda

1.606,932 1,$20,789 (1,303,460) 114,331 1,635/&2

3/65, 235 1,320,789 (1,320,195) t 14Wt 3,320,100

THE FIVE LAMPS ORGANISATION

(A company limited by guarantee)

NOTEB TO THE FEIANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCII 2019

20. STATEMENT OF FUNDB (continued)

Restricted funds

Health and oommunitlasEmployabgly and harningF&nar&ne end enterpriseYoung people

8,001(243,473)

1.094,497(6,390)

113.427 (42,137) (2,354) 76.927123.273 (119.968) (100.009) (340,175)

1,380,069 (1,314,095) (11,968) 1,146,53338,864 (66,010) - (63,516)

852,835 1,656,673 (1,562,205) (114,331) 631 769

Total of funds 4,057,873 2,976,462 (2,882,406) 4,161,929

SUMMARY OF FUNDS - Ct)RRENT YEAR

Dasignaled fun&fe

General funda

Balance st1 April 2017

C

1,681JRI1&638&653

Income Expendituref(16,739)

(1&231,181)

Salmsoe at31 March

2818f

1,~717,102

3,320&181

931,789309,690

2,614,123(1~7,920)

(1,932@23)2~1,9311+13&569

4&161&960 2&623&813 (3&150&243) 3 795 860

SUMMARY OF FUNDB - PRIOR YEAR

Eelevws et1 April 2018

fTransfers

income Exp ernf8unr infectf f

Sabnse ai31 ldech

2017f

Designated fundsGeneral funda

1,tl95,3061,506,932 1,32D,789

(15.738)(1,303,480) 114,331

1.681.5881,838,592

3,205338852,635

1,320,789

1,655,873(1,32D, 198)(1 .552.208)

114,331

(114.331)

3,320,160831.769

4,057,873 2.975.462 (2.882.408) 4,181.929

Pegs 41

THE FIVE LAEIPS ORGANISAllON

(A oampany Ifmfted by guarantee)

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2918

21. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Un~turtle2010

Restrfatsdfends

2019K

Totalfunds2018

k

Tangible Sard asssfr,Other invsstmenlsPragrs sane related inveslmentsCurrent assetsCredIars dae etghin ans year~due M mors than ona year

007,10014.000

4160r940442414(1~)

(1,900,753)

724400

007,15914000

4,001,146442414

(1,34IL006)(1+00,763)

2,391,931 1+13,580 3,799,M0

ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR

Ijrsesfrfcfadltmds201 7

Resfnicfedfbnds2017

TofsfItrrxfs2017

Tangitda farad assetsFixed asset investmenlsProgramma relautd inveshnentsCmrant assetsCreditors dos vr9hfn one yssrCreditors doe h mare than one year

850,76014,000

3,843,700772,937

(1,015,857)(1,205.$55)

031,769

850.75014,MO

4,775,477772.937

(1,01S,M7)(1,205,555)

3,359.993 031,799 4,101,792

22. RECONCILIATION OF NET IIOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERAllNGACTIVIllES

Net (expend9ure)lincome far the year (as per Statement of FlnandalActivi9es)

Adjustment for.Depreciadon(Increase)idecrease in debtors(~)fincmasa in oredfmrs

43,002(146,711)393,036

Gros2017

f

04,055

45, 1 37$.121

(3,515,404)

Nst cash used In operating aatlvttfsa (06,001) (3,371 090)

THE FIVE LAMPS ORGAN fSATlON

(A company limited by guarantee)

NOTES TO THE F64ANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2018

23, ANALYSIS OF CASH AND CASH ECIUIVALENTS

Cash in hand

Tobd

2618 20176 f

39~ 516,259

516,259

24. RELATED PARTY TRANSACTIONS

Mr G Orsm (Chief Execudve Of the Charity) Snd Mr W Emkine (Director of Finance snd EocncmioDevaki pment) tae the Chair and Company ~respectively of Regen School Norlh East.

Transactions between Five Lamps and Repen School North East during the year were es follows:

Payments made to Regen School North East fNIL (2017: NIL).

Mr G Orsm Is also a Dkector of North East~Agency Limited (NEEAL) end a tmslee of CatalystSockton onsite Building Trusl. Transactions between Five Lamps and NEEAL dudng lhe year were asfalknvs:

income from NEEAL f63.539 (2017:f50,609).

Included in Debtors st 31 March 2018 ls f1 2,500 (2017 f667) due from NEEAL Io Five Lamps,

Income from Csialyst Roctdan af f20,130 (2017:NIL) for health initiative project datms and casts f300(2017:NIL) for achl~ awards.

Mr G Qrsm snd Mi' W Erskine we both Directors of Five Lamps Tracing Ltd, a whcay earned subsidusryof The Five Lamps Organlsa8on.

The charity owns 100% of the share capital of Five tampa Trading Limited, company number 06029251.As at 31 March 2016 lhe net liabildss of Five Lamps Trading Umlled equalled f30,363, its turnoverK1,147,254 end its net loss f58,350. Five Lamps Trading Limited hes the same reghtered oNce as thecharity.

Trensacdons bewkmn Five Lamps and Five Lamps Trading Ltd during the year were as fc6aws:

Dunng the year Five Lamps Tredilng 9'fted fNIL (2017: K16692) as a donecon to The Five LampsOrgsnisadon.

A guarantee limited tc f250,000 is in place in favour of Unity Trust bank given by The Five LampsQrgenleadcn far F~ Lmnps Trading Mml\ed.

26. CONTROIJJNG PARTY

Throughout the year Ihe Charily was under the cantml of the board.

THE FIVE LAMPS ORGANISATION

(A company gmlted by guwantee)

NOTES TO THE FINANCIAL STATEIKNTSFOR THE YEAR ENDED 31 MARCH 2018

25, ASSETS AND LIABILillES HELD AS AN INTERRKDIARV AGENT - GROUP AND CHARITY

The prtvele Houvyrg Fywnckd Assistance Programme was crested to hebr deal authonUes vr the northeast af England la provide losne tO needy hameaWnWS far the purpaee af helping them Ia improve theyhousing cond tions.

Five Lamps was appointed to menage the abOve Fnrtpamme an behalf Of 12 local auhorrues, usstgSunderland Gty Counctl as the contracgng augwrlty,

Five Lamps hakls lhe relevant funds an bshed of the heel autharitiss in e desilpwted cthnt bank account.This asset and the assodated Ibtbilly to Ihe lccal authorities ws excluded fram Five Lamps' fhrlanceSheet. There is a debenture etpaemant dated 12 October 2010 in favour of Sunderland Gty Councilsakrg br respect of these funds. Ther debenture does nat apply to any ether Five Lamps assets,

AI 31 March 2015, the funda hekl on the above disrrt bank accaunt latelled fh512,437 (2017:21,331,525) in additbn to whkh a further f3431,108 (2017: 24,540,153) had been advanced Iobenefwieries under the Proyamme. There was an equal ss~ Isbgily of 25,043.548 (2017;25))71,IN2I) represergng the lolai caplat fundmg held wfhb the Programme an bshag of the tacatauthorEes at31 March 2017.

Page 44