OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-12-31-accounts

Company Registration No. 02103365 Charity No: 1000698

Southport Flower Show Charitable Company Limited by Guarantee

Report and Financial Statements

For The Year Ended 31 December 2020

SOUTHPORT FLOWER SHOW

CHARITABLE COMPANY LIMITED BY GUARANTEE

CONTENTS

Page
Members of the Board and Professional Advisers 2
Trustees' Annual Report 3 - 8
Independent Examiner’s Report to the Members 9
Group Statement of Financial Activities
(incorporating the Income and Expenditure Account)		 10
Group and Charity Balance Sheet 11
Consolidated Statement of Cash Flows 12
Notes to the Financial Statements 13 - 29

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

COMPANY INFORMATION

Registered Charity Name Southport Flower Show
Charity Number 1000698
Company Registration Number 02103365
Principal Office Southport Flower Show
Victoria Park
Rotten Row
Southport
Merseyside
PR8 2BZ
Trustees Mr M L Steinberg
Mr R Anderson
Mr A Edwards
Mr T J D Fleming
Mrs A P Pope
Mr R M Ratcliffe
Mrs M Tarpey
Mr R J P McKeever (Resigned 24 September 2020)
Mr A E Adams (Resigned 23 January 2020)
Mr T Heywood
Mrs D Howitt (Resigned 24 September 2020)
Mr A J Porter (Appointed 3 November 2020)
Mr E P Rylands (Appointed 3 November 2020)
Independent Examiner MHA Moore and Smalley
Chartered Accountants
Richard House
9 Winckley Square
Preston
Lancashire
PR1 3HP
Bankers Santander
25-29 Chapel Street
Southport
Merseyside
PR8 1AL
Legal advisers MSB Solicitors
4 St Pauls Square
Liverpool
L3 9SJ

Page 2

SOUTHPORT FLOWER SHOW

CHARITABLE COMPANY LIMITED BY GUARANTEE

TRUSTEES ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees, who are also directors for the purposes of company law, present their report and the consolidated financial statements of the charitable company and its subsidiary for the year ended 31 December 2020.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (October 2019)

Reference and Administrative Details

Reference and administrative details are shown in the schedule of members of the board and professional advisers on page 1 of the financial statements.

The Trustees

The trustees who served the charitable company during the year were as follows:

Mr M L Steinberg Mr R Anderson Mr A Edwards Mr T J D Fleming Mrs A Pope Mr R M Ratcliffe Mrs M Tarpey Mr R J P McKeever (Resigned 24 September 2020) Mr A E Adams (Resigned 23 January 2020) Mr T Heywood Mrs D Howitt (Resigned 24 September 2020) Mr A J Porter (Appointed 3 November 2020) Mr E P Rylands (Appointed 3 November 2020)

Key Management

Mr R Roukin (General Manager) resigned 31/1/2020 Mr A E Adams (General Manager) appointed 03/02/2020

Structure, Governance and Management

Southport Flower Show (hereafter referred to as "the Charity") is a charitable company, limited by guarantee, and was registered with the Charity Commission on 30 October 1990. The Charity is governed by its Memorandum and Articles of Association.

The directors of the Charity are also the trustees, for charity law purposes (hereafter referred to as "the trustees"). The trustees, together with certain former trustees, are members of the Charity. In the event of the Charity being wound up, the guarantee of each member is limited to £1.

Objectives and Activities

The objects of the Charity are:

Page 3

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

TRUSTEES ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The principal activities of the Charity during the year, which are carried out for the furtherance of those objects, were:

Public Benefit

The trustees have considered the Charity Commission guidance regarding public benefit and are satisfied that the activities of the charitable company, as outlined below, meet these requirements

Achievements and Performance

Southport Flower Show

The Southport Flower Show is the largest independent, annual flower show in Great Britain.

This year's show was due to be held from 20 August to 23 August but was sadly cancelled due to the Coronavirus pandemic.

The trustees made the decision to cancel the show based on advice from Public Health England, Sefton Local Authority and Government restrictions.

Ray Roukin stepped down as General Manager at the start of the year and the board appointed Alan Adams following a rigorous recruitment process involving both external and internal candidates.

Mr Adams has been involved in the show as a volunteer and trustee director for over 15 years.

As a result of the show’s cancellation significant savings have been achieved by reviewing the park/office infrastructure and reducing costs where necessary.

Volunteers

Over 180 show volunteers were not required in 2020 but 6 did offer to help maintain the park and provide other assistance. More volunteers will be likely to be called upon throughout 2021 to assist.

The Trustee Directors wish to record their appreciation and thanks to all volunteers who willingly gave, and continue to give their time.

Page 4

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

TRUSTEES ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and Performance

Victoria Park

Over the years the flower show's resources have been used to noticeably enhance and improve Victoria Park as both an events site and as a high quality urban green space. Along with significant capital investment, a great deal of time and effort has transformed the park into a flexible and robust outdoor events site with a power and water grid, excellent drainage and a network of interconnected pathways.

Due to financial concerns all planned maintenance apart from essential works were suspended in 2020.

Throughout the lockdowns the park has remained open and was closed for only 5 full days throughout 2020.

Local running and cycling clubs use the park for small, organised events, a diverse range of ad-hoc groups use the park on a regular basis including fitness groups, netball, karate and numerous yoga groups and the public use the park extensively to walk their dogs or simply sit and relax and enjoy their surroundings. A number of these groups have made a small donation to SFS to use the park facilities.

Due to the pandemic, several third-party lettings of Victoria Park for other events were cancelled in 2020 including the British Musical Fireworks competition and the Food and Drink Exhibition.

However, a small amount of money was raised by some caravan lettings and drive in cinema events.

These are managed through the trading subsidiary Victoria Park Management Company (Southport) Ltd.

Fundraising practices

Most of the income is in the form of ticket sales and associated income from Southport Flower Show. Funds are not raised from any other sources; however, the General Manager intends to create a fundraising account in early 2021.

Financial Review

The consolidated results record net outgoing resources of £278,785 (2019: net incoming resources of £16,158). At the end of the year, the Charity general fund stood at £235,330 (2019: £421,195).

To the extent that funds are not called upon for the day-to-day activity, they are transferred to a medium-term charity investment account to maximise returns on these funds, although bank deposit rates remain at an alltime low rate of return.

The Memorandum and Articles of Association give the Charity unlimited investment powers with statutory boundaries.

Page 5

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

TRUSTEES ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Reserves Policy

Given that the main source of funds is an outdoor event which is heavily weather dependent, the trustees maintain the view that it is prudent to have reserves sufficient to safeguard the Charity's operational commitments and allow for a significant drop in revenue from the annual show as a result of inclement weather etc.

The reserves also need to reflect the seasonal nature of the business and that income spikes during the months of July and August. The Charity requires sufficient working capital to meet expenditure commitments in the earlier months, prior to the Show when expenditure tends to exceed income.

The level of reserves required is estimated at £250,000. Recent years’ results have illustrated the prudence of this policy.

The trustees apply the following criteria in determining the overall reserves policy:

Reserves are frequently reviewed by the trustees, together with the management accounts.

The actual level of free reserves for the Charity at the end of the year was £235,330, after segregating funds which represent permanent fixed assets.

Plans for Future Years

The 2021 show has been cancelled as a result of the uncertainty around Covid 19. The Trustees are considering how the Park can be used to generate alternative income and plans for alternative income sources are in place. Cashflow forecasts are updated and reviewed monthly.

The Charity continues to maintain Victoria Park for use by the public.

Once the Covid-19 situation is clearer and the position of the Charity more stable, the Trustees and management will be able to focus on planning for all aspects of the show and the park in 2021 and 2022.

Page 6

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

TRUSTEES ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Governance and Risk Review

Trustees' Appointment and Responsibilities

Any new trustees are nominated by the current trustees, taking account of their business skills and experience in line with the specific needs of the board. Induction of trustees is carried out verbally, ensuring that trustees are fully aware of their duties and responsibilities. Trustees are also provided with various up to date literature issued by the Charity Commission regarding their appointment, together with specific background information regarding the Charity.

Key Management Personnel

The pay and remuneration of key management personnel is agreed by the trustees with reference to external benchmarks.

Governance and Risk Review

Whilst the trustees appreciate that they are ultimately responsible for the management of the Charity, much of the day to day running of the Charity's operations is delegated to the Charity's employees. As well as appointing a General Manager to deal with management matters and supervision, the trustees are involved in many aspects of the Charity administration as part of the internal control procedures.

The trustees normally meet monthly to review the Charity accounts, progress reports, key performance indicators and deal with strategic matters.

With the help of the Charity auditors, the trustees have carried out a review of the Charity's activities and identified the major risks to which the Charity is exposed.

As part of this process, the trustees have implemented a risk management strategy, which comprises:

The key risks revolved around external factors. Where risks cannot be mitigated fully, the trustees have ensured that adequate insurance provisions are in place, where possible.

The main risk facing the Charity is the impact of the Government response to Covid 19. This has resulted in the cancellation of the 2020 Flower Show and a substantial reduction in the level of income for the year ended 31 December 2020 for the Charity. The Trustees are monitoring the situation carefully. All expenditure has been reviewed and savings made where possible. Other potential income streams are also being considered and the Charity is taking advantage of Government funding where possible.

Trustees' Responsibilities Statement

The trustees (who are also the directors of Southport Flower Show for the purposes of company law) are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period.

Page 7

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

TRUSTEES ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Trustees' Responsibilities Statement (continued)

In preparing these financial statements, the trustees are required to:

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

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

Independent Examiner

A resolution proposing that MHA Moore and Smalley be re-appointed will be put at a General Meeting.

Each of the persons who is a trustee at the date of approval of this report confirms that:

07/07/2021

Signed on behalf of the trustees on ..........................................

.............................................................. M L Steinberg Trustee

..............................................................

A P Pope

Trustee/Treasurer

Registered office: Southport Flower Show Victoria Park Rotten Row Southport Merseyside PR8 2BZ

Page 8

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

INDEPENDENT EXAMINER'S REPORT TO THE MEMBERS

FOR THE YEAR ENDED 31 DECEMBER 2020

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2020 which are set out on pages 1 to 29.

Responsibilities and basis of report

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

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

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

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

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

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

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

I wish to draw your attention to the going concern accounting policy on page 13. The flower shows for both 2020 and 2021 have been cancelled as a result of Covid 19 restrictions. As a result income for the year ended 31 December 2020 was significantly lower than in a normal year and this will also be the case for the year ending 31 December 2021. The Trustees and senior management are looking at alternative income sources and have reduced costs where possible. They are monitoring the position carefully and will take action to manage the situation as appropriate.

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

Signed:

....................................................

Nicola Mason FCA DChA

MHA Moore and Smalley Richard House Winckley Square Preston PR1 3HP

08/07/2021 .................................................... Date

Page 9

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2020

Income and endowments from:
Note
Donations and legacies
2
Charitable activities
3
Other trading activities
4
Investments
5
Other
6
Total income and endowments
Expenditure on:		 Total
Total
funds
funds
Unrestricted
Year ended
Year ended
funds 31 December
31 December
2020
2019
£
£
£
377
377
940
31,803
31,803
823,358
2,020
2,020
422,717
413
413
420
72,061
72,061
89,707
106,674
106,674
1,337,142
Raising funds
8		 108,329
108,329
379,728
Charitable activities
9
Flower show event
Park maintenance
Governance costs
Total expenditure
Net income/(expenditure)
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 231,319
231,319
879,658
39,112
39,112
49,347
6,700
6,700
12,251
385,459
385,459
1,320,984
(278,785)
(278,785)
16,158
(278,785)
(278,785)
16,158
1,182,103
1,182,103
1,165,945
903,318
903,318
1,182,103

The Statement of Financial Activities includes all gains and losses recognised in the year.

All of the above amounts relate to continuing activities.

The notes on pages 13 to 29 form part of these financial statements

Page 10

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

BALANCE SHEET

AS AT 31 DECEMBER 2020

Note
Fixed assets
Intangible assets
12
Tangible assets
13
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
17
Net assets
Unrestricted funds
General fund
19
Fixed assets fund
19
Revaluation fund
19
Restricted funds
20		 2020
£
4,000
713,988
-		 Group
2019
£
8,000
752,908
-		 Charity
2020
2019
£
£
4,000
8,000
692,083
723,538
52
52
696,135
731,590
105,681
31,471
301,700
377,589
407,381
409,060
(94,533)
(102,302)
312,848
306,758
1,008,983
1,038,348
(50,000)
-
958,983
1,038,348
262,900
306,810
238,651
286,778
457,432
444,760
-
-
958,983
1,038,348
717,988
79,615
322,421		 760,908
59,754
470,843
402,036
(166,706)		 530,597
(109,402)
235,330 421,195
953,318
(50,000)		 1,182,103
-
903,318 1,182,103
185,330
285,960
432,028
-		 421,195
316,148
444,760
-
903,318 1,182,103

For the financial year ended 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

These financial statements were approved by the members of the committee and authorised for issue on .............................................. and are signed on their behalf by: 07/07/2021

.................................................................. ..................................................................
M Steinberg A Pope
Trustee Trustee/Treasurer
Companyregistration number: 02103365

Page 11

SOUTHPORT FLOWER SHOW

CHARITABLE COMPANY LIMITED BY GUARANTEE

CONSOLIDATED STATEMENT OF CASHFLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Cash (utilised)/generated by operating activities
25
Cash flows from investing activities
Investment income
Purchase of tangible fixed assets
Cash (used in)/provided by investing activities
(Decrease)/Increase in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the
year
Total cash and cash equivalents at the end of
the year
Cash at bank
Bank loan		 2020
2019
£
£
(190,643)
71,903
413
420
(8,192)
(6,480)
(7,779)
(6,060)
(198,422)
65,843
470,843
405,000
322,421
470,843
(50,000)
-
272,421
470,843
272,421
470,843

Page 12

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of Accounting

The financial statements have been prepared under the historical cost convention as modified by the revaluation of leasehold improvements and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, and UK Generally Accepted Accounting Practice.

The statement of financial activities (SOFA) and balance sheet consolidate the financial statements of the Charity and its subsidiary undertakings. The results of the subsidiary undertakings are consolidated on a line by line basis. No separate SOFA has been presented for the charity alone as permitted by Section 408 of the Companies Act 2006. The parent company’s deficit for the year was £79,365.

Southport Flower Show meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

Preparation of the accounts on a going concern basis

The trustees are required to assess whether the use of going concern is appropriate, ie whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern.

The trustees are required to assess whether the use of going concern is appropriate, i.e., whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern.

The Trustees make this assessment in respect of a period of at least one year from the date of authorisation of the accounts. The measures taken by the Government to combat the spread of the corona virus resulted in the cancellation of the 2020 Flower Show, which was planned for August 2020. The show planned for August 2021 has also now been cancelled due to the restrictions in place. The directors continue to review the financial impact and consequences of cancellation and have taken steps to mitigate the impact including reviewing costs and considering alternative income sources. Ticket refunds have been made where requested although ticket holders have been encouraged to keep their tickets for use at the 2022 show.

The charity has taken advantage of the furlough scheme and have reviewed all expenditure and contracts in place to identify savings and manage cash flow in the short term. Cash flow forecasts have been prepared for the next twelve months. However, as we cannot predict all future events or conditions, including effects arising from macro-economic uncertainties such as Covid-19, and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, there is no guarantee that the charity will continue in operation.

Page 13

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting Policies (continued)

Preparation of the accounts on a going concern basis (Continued)

The trustees will continue to monitor the position and changes in Government guidance to manage the situation. Whilst there are material uncertainties regarding the ongoing impact of the virus and the consequences of cancelling the show, at the date of approving these accounts the directors have a reasonable expectation that the charity will be able to manage the situation and that it is has sufficient cash resources to enable it to meet its liabilities as they fall due for at least 12 months from the date of approval. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Incoming Resources

Incoming resources represents net amounts, excluding value added tax.

Income is included gross of any expenditure and grants received and comprises admissions, site rentals, sponsorship and other related income in respect of activities for generating funds.

Grants received are credited to income as they are received except where conditions imposed require amounts to be deferred to future years.

Donations from the subsidiary company are accounted for when received.

Resources Expended

The resources expended have been analysed between the Charity's main activities and relate to the direct costs of achieving the Charity's objects. Within these costs is an element of support costs, which are allocated on a reasonable and consistent basis from year to year, as described in the notes to the financial statements.

The costs relating to the Show have been split between charitable activities and raising funds in proportion to the relative income in charitable activities and other trading.

Governance costs consist of necessary running costs for the Charity which do not have a direct impact on its objectives.

All costs are accounted for on an accruals basis as they become due.

Fixed Assets

Fixed asset investment

Shares held in the charitable company's subsidiaries are shown at nominal value which is not considered to be materially different from the market value.

Tangible Fixed Assets

Fixed assets consists of improvements to the Showground on which the Charity originally had a 60-year lease (from 1994) with Sefton Metropolitan Borough Council (SMBC). This lease has been extended by 60 years to 2114. At the end of the lease, the grounds will revert back to Sefton Council. The Charity acquired this lease and certain buildings on the site for nil consideration. These assets are depreciated over the life of the original lease on a straight line basis.

Major improvements to the Showground were completed in 1995. These assets are depreciated on a straight line basis over 27 years. During 1999 a separate office building was completed on the Showground, which is depreciated over the remainder of the life of the lease, which is 47 years on a straight line basis.

Page 14

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting Policies (continued)

During 2007 the assets included in the leasehold premises were revalued. A valuation was completed in 2014. The value obtained was not significantly different to the value already included in the accounts so the accounts have not been adjusted for this valuation. The current value will be carried forward as deemed cost in the accounts. Individual assets with a cost not exceeding £1,000 are not capitalised but expended in the year they are acquired.

Depreciation

Depreciation is calculated so as to write off the cost of an asset less its estimated residual value over the useful economic life of that asset as follows:

Pensions

The Charity operates a defined contribution pension scheme. Contributions payable for the year are charged in the Statement of Financial Activities.

Funds

Unrestricted funds are those funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the company for particular purposes. Designated funds are those earmarked by trustees for specific future purposes and related costs.

Critical accounting estimates and areas of judgement

Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are disclosed below.

Valuation of Land and Buildings

See fixed assets accounting policy

Critical areas of judgement

There are no other critical areas of judgement in these accounts.

2 Donations and legacies

Unrestricted Total Total
general funds funds
funds 2020 2019
£ £ £
Other donations 377 377 940

Income from donation and legacies was £377 (2019: £940) of which £377 was unrestricted (2019: £940).

Page 15

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

3 Charitable activities

Show admissions
Other income
Grant income		 Unrestricted
Total
Total
general
funds
funds
funds
2020
2019
£
£
£
3
3
819,852
-
-
3,506
31,800
31,800
-
31,803
31,803
823,358

Income from charitable activities was £31,803 (2019: £823,358) of which £31,803 was unrestricted (2019: £823,358).

4 Other trading activities

Trade stands
Concessions and catering stands
Catalogues
Car parking
Sundry income
Sponsorship		 Unrestricted
Total
Total
general
funds
funds
funds
2020
2019
£
£
£
-
-
259,111
-
-
80,223
-
-
18,969
-
-
42,974
2,020
2,020
5,940
-
-
15,500
2,020
2,020
422,717

Income from other trading activities was £2,020 (2019: £422,717) of which £2,020 was unrestricted (2019: £422,717).

Page 16

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

5 Income from investments

Income from investments
Bank interest receivable Unrestricted
Total
Total
general
funds
funds
funds
2020
2019
£
£
£
413
413
420
413
413
420

Income from investments was £413 (2019: £420). Income in both years was unrestricted.

6 Other Incoming Resources

Coronavirus Job Retention Scheme grants
Hire of facilities		 Unrestricted
Total
Total
general
funds
funds
funds
2020
2019
£
£
£
35,314
35,314
-
36,747
36,747
89,707
72,061
72,061
89,707

Other income was £72,061 (2019: £89,707) of which £72,061 (2019: £89,707) was unrestricted.

7 Costs – Basis of Allocation

Costs have been allocated to reflect the activities of the charity as follows:

Costs have been split between expenditure relating to charitable expenditure and raising funds based on the levels of income generated from charitable activities and other trading. 1% of employment costs, office expenses and depreciation has been allocated to governance costs within charitable activities.

Page 17

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

8 Raising funds

Show infrastructure
Health and safety
Car park costs
Event costs
Volunteer costs
Hire of equipment
Other show costs
Security
Marketing and promotion
Employee costs
Office expenses and consultancy
Bad debts written off
Depreciation		 Unrestricted
Total
Total
general
funds
funds
funds
2020
2019
£
£
£
216
216
102,039
-
-
4,588
-
-
6,161
1,126
1,126
18,285
-
-
2,195
934
934
3,307
1,259
1,259
71,506
64
64
9,448
19,770
19,770
55,093
60,258
60,258
75,305
7,916
7,916
15,688
505
505
-
16,281
16,281
16,113
108,329
108,329
379,728

The cost of raising funds was £108,329 (2019: £379,728) of which £108,329 was unrestricted (2019: £379,728).

Page 18

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

9 Charitable activities

Flower show event
Competition costs and prizes
Show infrastructure
Health and safety
Car park costs
Event costs
Volunteer costs
Hire of equipment
Other show costs
Security
Marketing and promotion
Employee costs
Office expenses and consultancy
Depreciation
Park maintenance
Repairs and renewals
Vehicle costs
Rates
Utilities
Insurance
Governance costs
Employee costs
Audit fees
Accountancy fees
Depreciation
Office expenses and consultancy		 Unrestricted
Total
Total
general
funds
funds
funds
2020
2019
£
£
£
1,665
1,665
73,680
457
457
216,832
-
-
9,749
-
-
13,090
2,392
2,392
38,858
-
-
4,669
1,982
1,982
7,028
2,675
2,675
151,950
140
140
22,044
42,008
42,008
117,072
126,164
126,164
157,688
19,516
19,516
33,021
34,320
34,320
33,977
231,319
231,319
879,658
10,240
10,240
12,129
1,900
1,900
5,400
16,365
16,365
14,945
196
196
4,005
10,411
10,411
12,868
39,112
39,112
49,347
1,882
1,882
2,353
-
-
6,920
2,750
2,750
1,980
511
511
506
1,557
1,557
492
6,700
6,700
12,251
277,130
277,130
941,256

The cost of charitable activities was £277,130 (2019: £941,256) of which £277,130 was unrestricted (2019: £941,256).

Page 19

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

10 Net outgoing resources for the year

Net outgoing resources for the year
This is stated after charging:
Depreciation
Independent examiner
- Independent examination of the accounts
- Other fees
Auditors' remuneration:		 2020
2019
£
£
51,112
50,595
1,250
-
1,500
-
- audit of the financial statements (net of VAT) -
6,920
- other fees (see below)(net of VAT)
Auditor's/Independent examiner's
fees		 -
1,980

The other fees charged by the auditor can be further analysed under the following headings for services rendered:

services rendered:
2020 2019
£ £
Accountancy 1,500 1,980

11 Staff Costs and Emoluments

Staff Costs and Emoluments
Wages and salaries
Social security costs
Other pension costs		 2020
2019
£
£
172,280
221,527
12,514
10,514
3,511
2,726
188,305
234,767

Particulars of employees:

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

Number of full time staff
Number of part time staff		 2020
2019
No
No
2
2
6
9
8
11

For the majority of the year there are 9 part-time staff. Additional staff are employed for the duration of the Southport Flower Show event.

No employee received remuneration of more than £60,000 during the year (2019 : nil).

Page 20

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

12 Intangible Fixed Assets

GROUP
Cost or valuation
At 1 January 2020
Additions
At 31 December 2020
Depreciation
At 1 January 2020
Charge in the year
At 31 December 2020
Net book value
At 31 December 2020
At 1 January 2020
CHARITY
Cost or valuation
At 1 January 2020
Additions
At 31 December 2020
Depreciation
At 1 January 2020
Charge in the year
At 31 December 2020
Net book value
At 31 December 2020
At 1 January 2020		 Website
costs
Total
£
£
20,000
20,000
-
-
20,000
20,000
12,000
12,000
4,000
4,000
16,000
16,000
4,000
4,000
8,000
8,000
Website
costs
Total
£
£
20,000
20,000
-
-
20,000
20,000
12,000
12,000
4,000
4,000
16,000
16,000
4,000
4,000
8,000
8,000

Page 21

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

13 Tangible Fixed Assets

----- Start of picture text -----
Leasehold Plant &
GROUP premises Equipment Total
£ £ £
Cost or valuation
At 1 January 2020 993,345 303,407 1,296,752
Additions - 8,192 8,192
Disposals - - -
At 31 December 2020 993,345 311,599 1,304,944
Depreciation
At 1 January 2020 334,946 208,898 543,844
Charge in the year 27,366 19,746 47,112
Disposals - - -
At 31 December 2020 362,312 228,644 590,956
Net book value
At 31 December 2020 631,033 82,955 713,988
At 1 January 2020 658,399 94,509 752,908
Leasehold Plant &
CHARITY premises Equipment Total
£ £ £
Cost or valuation
At 1 January 2020 993,345 254,287 1,247,632
Additions - 8,192 8,192
Disposals - - -
At 31 December 2020 993,345 262,479 1,255,824
Depreciation
At 1 January 2020 334,946 189,148 524,094
Charge in the year 27,366 12,281 39,647
Disposals - - -
At 31 December 2020 362,312 201,429 563,741
Net book value
At 31 December 2020 631,033 61,050 692,083
At 1 January 2020 658,399 65,139 723,538
----- End of picture text -----

Page 22

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

13 Tangible Fixed Assets (continued)

The charitable company's leasehold premises were originally revalued on 1 February 2008 by an external valuer, The Anthony Hill Partnership, Chartered Surveyors. The basis of the valuation was existing use value in respect of the main administration office and stores, and depreciated replacement cost in respect of other ancillary buildings. The infrastructure to the park has been included at historic cost less depreciation.

The valuation was reviewed by Eckersley Chartered surveyors during 2014 and it was agreed the values are fairly reflected.

The depreciated historic cost of total assets is £560,172. Depreciation charge for the year based on historical cost would have been £14,634.

The open market value of the main administration office and stores is considered to be £375,000 compared to the existing use value of £470,000. The reason for the difference is the restrictions placed upon the use of the buildings under the terms of the lease.

The trustees are not aware of any material change in value of the above assets. The valuations included above will be carried forward as deemed cost.

14 Investments

Group
Other investments
Shares held in subsidiaries

Charity
Other investments
Shares held in subsidiaries
 Total Funds
2020
£
-

Total Funds
2020
£
52
 Total Funds
2019
£
-
Total Funds
2019
£
52

The above investments are shown at the nominal value of shares held by the charitable company in its subsidiaries, Victoria Park Management Company (Southport) Ltd and Southport Events Ltd (which is dormant).

A summary of the results for the trading company, Victoria Park Management Company (Southport) Limited is shown below.

Page 23

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

14 Investments (Continued)

Investments (Continued)
Turnover
Cost of sales
Gross loss
Administrative expenses
Other operating income
Interest receivable
Operating profit
Tax on profit
Profit for the financial year
Retained earnings brought forward
Distributions to parent charity under gift aid
Retained earnings carried forward		 2020
2019
£
£
-
338,109
(42,312)
(351,130)
(42,312)
(13,021)
(67,213)
(71,289)
36,747
208,740
**67 **
(72,711)
124,430
-
-
(72,711)
124,430
143,753
115,497
(126,706)
(96,174)
(55,664)
143,753

The reserves and capital of Victoria Park Management Company (Southport) Limited as at 31 December 2020 were a deficit of £55,662.

15 Debtors

Debtors
Trade debtors
Other debtors
Prepayments		 2020
£
59,886
1,454
18,275		 Group
2019
£
2,038
6,528
51,188		 Charity
2020
2019
£
£
14,865
1,491
79,716
1,580
11,100
28,400
79,615 59,754 105,681
31,471

Page 24

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

16 Creditors: Amounts falling due within one year

Trade creditors
Amounts owed to group undertakings
Taxation and social security
Deferred income
Other creditors
Accruals
Deferred income
Deferred income as 1 January
Released from previous year
Income deferred in the year
Deferred income at 31 December		 2020
£
4,977
-
854
157,845
149
2,881		 Group
2019
£
13,327
-
-
78,465
1,343
16,267		 Charity
2020
2019
£
£
4,808
6,192
-
15,601
-
-
87,546
67,287
149
1,342
2,030
11,880
166,706 109,402 94,533
102,302
2020
£
78,465
(78,465)
157,845		 Group
2019
£
146,237
(146,237)
78,465		 Charity
2019
2019
£
£
67,287
65,923
(67,287)
(65,923)
87,546
67,287
157,845 78,465 87,546
67,287

17 Pensions

The Charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the Charity. The total charge for the year was £3,511 (2019: £2,726).

Page 25

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

18 Unrestricted Income Funds

Group
Movement for the period
Balance at start of period
(Deficit)/surplus for the period
Transfers
Balance at the end of the period
Analysis of assets and liabilities
Fixed assets and investments
Current assets
Current liabilities
Creditors due after more than one year
Balance at end of period
Charity
Movement for the peiod
(Deficit)/surplus for the period
Transfers
Balance at the end of the period
Analysis of assets and liabilities
Fixed assets and investments
Current assets
Current liabilities
Creditors due after more than one year
Balance at end of period
Balance at start of period		 Fixed asset/
General Total Funds Total Funds
Reval Fund
Fund
2020
2019
£
£
£
£
760,908
421,195
1,182,103
1,165,945
(42,920)
(235,865)
(278,785)
16,158
-
-
-
-
717,988
185,330
903,318
1,182,103
717,988
-
717,988
760,908
-
402,036
402,036
530,597
-
(166,706)
(166,706)
(109,402)

-
(50,000)
(50,000)
717,988
185,330
903,318
1,182,103
Fixed asset/
General Total Funds Total Funds
Reval Fund
Fund
2020
2019
£
£
£
£
731,538
306,810
1,038,348
1,050,448
(35,455)
(43,910)
(79,365)
(12,100)
-
-
-
-
696,083
262,900
958,983
1,038,348
696,083
52
696,135
731,590
-
407,381
407,381
409,060
-
(94,533)
(94,533)
(102,302)

0
(50,000)
(50,000)
696,083
262,900
958,983
1,038,348

The fixed asset fund represents the depreciated fixed asset costs incurred to date, equivalent to the net book value of existing fixed assets. This fund is shown separately to designated funds and 'free reserves' since the total does not consist of liquid funds for the general use of the Charity.

The revaluation reserve fund is required by the Companies Act 2006 and represents the amount by which investments exceed the historical cost. This is included within the fixed asset fund.

Page 26

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

18 Unrestricted Funds (Continued)

Group
Movement for the period
Balance at start of period
(Deficit)/surplus for the period
Transfers
Balance at the end of the period
Analysis of assets and liabilities
Fixed assets and investments
Current assets
Current liabilities
Balance at end of period
Charity
Movement for the peiod
(Deficit)/surplus for the period
Transfers
Balance at the end of the period
Analysis of assets and liabilities
Fixed assets and investments
Current assets
Current liabilities
Balance at end of period
Balance at start of period		 Fixed asset/
General Total Funds Total Funds
Reval Fund
Fund
2019
2018
£
£
£
£
805,024
360,921
1,165,945
1,177,602
(44,116)
(175,591)
(219,707)
(11,796)
-
-
-
139
760,908
185,330
946,238
1,165,945
760,908
-
760,908
805,024
-
530,597
530,597
544,218
-
(109,402)
(109,402)
(183,297)
760,908
421,195
1,182,103
1,165,945
Fixed asset/
General Total Funds Total Funds
Reval Fund
Fund
2019
2018
£
£
£
£
774,325
276,123
1,050,448
1,090,873
(42,787)
30,687
(12,100)
(40,564)
-
-
-
139
731,538
306,810
1,038,348
1,050,448
731,538
52
731,590
774,377
-
409,060
409,060
372,986
-
(102,302)
(102,302)
(96,915)
731,538
306,810
1,038,348
1,050,448

Page 27

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

19 Transactions with Trustees

Expenses

Trustees are only reimbursed for expenses incurred during the year on Flower Show business. The total amount refunded in the year amounted to £nil (2019: £nil).

Remuneration

No (2019: three) trustees had an interest in businesses whose services have been used by the Charity during the year. The services have been provided at no greater cost than would have been incurred by using a third party. This arrangement is in line with the Charity's Constitution.

No trustees have been remunerated during the year (2019: none).

20 Related party transactions

During the year a total of £Nil (2019: £35,031) was paid to companies in which Trustees and parties related to senior management had an interest for services provided to the Charity.

The remuneration payable to Key Management Personnel was £46,890 (2019: £36,000).

21 Company Limited by Guarantee

Southport Flower Show is a charitable company limited by guarantee. Every member of the charitable company undertakes to contribute to the assets of the charitable company in the event of the same being wound up while he is a member of within one year after he ceases to be a member.

This covers payment of debts and liabilities of the charitable company contracted before he ceases to be a member and of the costs, charges and expense of winding up and for the adjustment of the rights of the contributories among themselves, such amount as may be required not exceeding one pound

22 Revaluation Reserve

Within the fixed assets fund is a balance relating to the revaluation reserve. The movement on this reserve may be summarised as follows:

Group and Charity
Balance at the start of the year
Transfer to fixed assets

Balance at end of the year
 2020
£
444,760
(12,732)

432,028
 2019
£
457,432
(12,672)
444,760

Page 28

SOUTHPORT FLOWER SHOW CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

23 Reconciliation of net movement in funds to cash flow from operating activities

Net movement in funds
Depreciation
Interest income shown in investing activities
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Net cash generated by operating activities		 Total
Total
funds
funds
2020
2019
£
£
(278,785)
16,158
51,112
50,595
(413)
(420)
(19,861)
79,464
57,304
(73,894)
(190,643)
71,903

Page 29