VALLEYS KIDS

• ⚠

  Material uncertainty over going concern

  Our 'going concern' status remains precarious, depending heavily on the successful implementation of the Transformation Business Plan strategies and favourable external financing decisions. The Group has incurred significant operating losses during the period and is forecasting further losses for the remainder of the current financial year and the year ending 31 March 2027. Although the Group has secured a £150,000 WCVA loan facility on 28 January 2026 to support short-term liquidity, the Group remains dependent on the successful implementation of its revised operating structure and the realisation of assets to generate additional cash. These conditions, along with the other matters set out in Note 2, indicate the existence of a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern.

Values shown as filed in the company's annual accounts. — indicates the figure wasn't present under that line item in that period. About these numbers

Margins divide P&L lines by turnover. Gearing is liabilities over total assets. Current ratio is current assets over creditors falling due within one year. Interest cover is operating profit over absolute finance costs. Sector-distribution context coming next.

Accounting basis

FRS 102

Reporting scope

Consolidated group

Auditor

Bevan Buckland LLP (Statutory Auditors)

Audit opinion

Unqualified (clean)

Going concern

Material uncertainty disclosed

“Our 'going concern' status remains precarious, depending heavily on the successful implementation of the Transformation Business Plan strategies and favourable external financing decisions. The Group has incurred significant operating losses during the period and is forecasting further losses for the remainder of the current financial year and the year ending 31 March 2027. Although the Group has secured a £150,000 WCVA loan facility on 28 January 2026 to support short-term liquidity, the Group remains dependent on the successful implementation of its revised operating structure and the realisation of assets to generate additional cash. These conditions, along with the other matters set out in Note 2, indicate the existence of a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern.”

Group structure

1. VALLEYS KIDS · parent
   1. Valleys Creative Limited 100% · Wales · providing recreational, educational and wellbeing facilities for the public at large and in particular people in need

Significant events

• “The charity experienced cumulative deficits of £1 million across the 2022/23 and 2023/24 financial years.”
• “Cash reserves, which stood at £355k on March 31, 2023, have been fully utilised to cover deficits.”
• “Running costs in 2024 were supported by a monthly renewable overdraft facility of £140k from Unity Bank. We remain reliant on loans and/or an overdraft facility to maintain liquidity in the short term.”
• “The primary cause of the crisis was a lack of robustness in financial reporting and auditing processes that were insufficiently rigorous to alert us in a timely enough way to the changing funding environment.”
• “The three-year Budget Recovery Plan projects a continued large deficit for the current year (FY 24-25), with only a small projected surplus of £19,410 in the subsequent year (FY 25-26).”
• “The organisation's immediate future is contingent upon securing external financing. A submission has been made to WCVA for a £150k loan; approval is essential for stabilisation.”
• “The sale of Little Bryn Gwyn introduces a significant immediate liability: a VAT repayment of £178,000 to HMRC, which requires immediate attention and will impact remaining cash reserves.”
• “There is a big gap in expected grant funding compared to historical levels, with the current forecast expectation at £700k versus prior years of £900k+. Securing sufficient capacity for securing competitive, targeted grants remains a key goal.”
• “Implemented a small, targeted redundancy programme (compulsory and voluntary), reduced hours, and a policy of only backfilling critical or funded roles. Total annual savings of £72k were realised through a Q1/2025 redundancy programme.”
• “Divested three non-core properties (Bute St, Tylacelyn Rd, and the Library), resulting in a net cash injection of £282k in FY 24/25, with the sale of Cross Street completed. Lease termination on Rhydyfelin Community Centre saved £26k annually. Divestment of Little Bryn Gwyn (valued over £1m) completed August 2025.”
• “Secured £100,000 of unrestricted investment from the Waterloo Foundation toward core costs and income generation.”
• “Reduced physical footprint by focusing delivery within fewer hubs (two Community and Family Hubs now remain).”
• “VK has utilised £1.5million of reserves since 2022 in an attempt to maintain services VK has divested properties worth £1.3million and is currently debt free.”
• “Improvements to property, include amounts of £1,575,557 which represent funding received for the project from the Arts Council of Wales and Welsh Government. The funding is subject to a charge on property (Soar Centre) which will not be released until 18 August 2030.”
• “Funding of £250,000 was received from Welsh Government in 2019 for the purchase of and improvements to Little Bryn Gwyn. The funding is subject to a charge on the land known as Valleys Kids, Little Bryn Gwyn, Cilibion, Llanrhidian, Swansea, SA3 1 ED.”
• “In January 2025, trustees made the decision to sell 'Little Bryn Gwyn' under a pre-emption agreement with Down to Earth dated 28 November 2017. The sale completed in August 2025 for £1,000,000.”

Auditor, going-concern and subsidiary information is drawn from the narrative of the latest annual accounts. About these numbers

Filings

14

last 12 months

Capital events

0

last 24 months

Officers appointed

0

last 12 months

Officers resigned

1

last 12 months

Direct counts from the register. No score, no rating — see the Filing timeline for the underlying events.

• Turnover

  -1.6%

  £988,634 → £972,423

• Cash

  -68.1%

  £93,536 → £29,836

• Net assets

  -9.2%

  £3,047,393 → £2,767,574

• Employees

  -4.3%

  46 → 44

• Wages

  -20.5%

  £973,315 → £774,112

Each % is (latest − prior) ÷ |prior| for the line item as filed. The comparison is only shown when the latest and prior accounts cover broadly equal-length periods — short or long stubs (typical around incorporation or a year-end change) are suppressed rather than misrepresented. Lines a company doesn't report are omitted. About these numbers