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2020-12-31-accounts

REGISTERED CHARITY NUMBER: 1002966

REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 FOR THE ERIC WRIGHT CHARITABLE TRUST

Fairhurst Statutory Auditor Chartered Accountants Douglas Bank House Wigan Lane Wigan Lancashire WN1 2TB

THE ERIC WRIGHT CHARITABLE TRUST

CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 31 December 2020

Page
Trustees report 2 to 7
Trustees responsibilities statement 8
Independent auditors report 9 to 11
Introduction to the financial statements 12
Group statement of financial activities 13
Group balance sheet 14
Trust balance sheet 15
Group cash flow statement 16
Notes to the cash flow statement 17
Notes to the financial statements 18 to 49

Page 1

THE ERIC WRIGHT CHARITABLE TRUST

TRUSTEES REPORT

for the Year Ended 31 December 2020

The Trustees present their report with the financial statements of the Charity for the year ended 31 December 2020. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Charity was established by deed on the 23 April 1990. The Trust was granted charitable status on 17 May 1991 as a general charitable trust with registered charity number 1002966.

Organisational structure

The Trustees meet at least four times a year to agree strategic direction, receive reports from staff, approve budgets and finance reports and endorse new policies as well as changes to existing policies. The day to day responsibility for the Eric Wright Charitable Trust rests with a board of trustees who use professional advice and support where required.

Recruitment and appointment of new trustees

The power to appoint new trustees is vested in the settlor, Eric Wright, during his lifetime. New trustees are appointed as and when required and determined by the current trustee body and the needs of the Charity in consultation with the settlor.

Two new trustees were appointed during the year. In appointing new trustees, the trustees would seek to address the issue of any skill and knowledge gap within their body.

Induction and training of new trustees

New trustees will be subject to training as required by their previous experience. Ongoing training is provided to the existing trustees as required.

Related parties

The Charity is related to its subsidiaries, Water Park Limited and Henmead Limited, and in turn all of Henmead's subsidiaries, and also to the Eric Wright Learning Foundation, a charitable company limited by guarantee of which the Trust is a member and provides the majority of its funding.

Conflicts of interest

The Trust operates in accordance with its Conflict of Interest policy. From time to time the Charity may make grants to organisations with whom one or more of its Trustees is connected, typically as a Trustee or member of staff. The Trustees make every effort to ensure that decisions on these grants are made at arms-length, and in accordance with its policy for dealing with potential conflicts of interest.

Risk management

The Trustees have examined the major strategic, business and operational risks which the Charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks. The principal risks identified by the Trustees relate to financial controls, risk management within the operating subsidiaries, and investment. The policies in relation to financial controls and risk management are reviewed on an annual basis. In relation to investments, the Trustees review these in conjunction with investment advisors on a six-monthly basis.

Financial Controls : the Trustees operate on a day to day basis in accordance with their financial controls policy, which is formally reviewed and updated on an annual basis.

Operating Subsidiaries : there are detailed procedures in place in relation to risk management within the operating subsidiaries. In the case of Water Park Limited, the directors meet on a six-monthly basis as a Board and provide operational and financial reports to the Trustees on a six-monthly basis. In the case of Henmead Limited and its subsidiaries, the directors of these operational boards meet on a monthly basis and provide operational and financial reports to the Trustees on a quarterly basis. There are also a number of reserved matters that require the consent of the Trustees before they can be implemented by the operational boards of Henmead Limited and its subsidiaries. The Trustees meet with the auditors of Henmead Limited and of its operating subsidiaries at their June meeting to receive their annual audit report and discuss any recommendations arising, which informs the Trustees’ approach to ongoing risk management within that operating subsidiary.

Page 2

THE ERIC WRIGHT CHARITABLE TRUST

TRUSTEES REPORT for the Year Ended 31 December 2020

Investments : the Trustees receive quarterly reports from their Investment advisors, who also present their reports in person at the Trustees’ meetings in June and December each year to give their advice and address any matters.

In addition to the above, the Trustees formally review risk management on an annual basis.

Charity Commission Governance Code

The Trustees have taken note of and followed the Charity Commission Governance Code where appropriate.

Remuneration

No Trustees are remunerated by the Charity. The Charity does not have any employees.

OBJECTIVES AND ACTIVITIES

Grant Making Policy

The Eric Wright Charitable Trust is a general charitable trust with unrestricted objects. However, the Trustees have prioritised donations to charitable activities based in the North West of England within the following sectors:

Procedures and policy for grant making

The Coronavirus pandemic has had an exceptional impact on the charitable sector and, as a direct result, in March 2020 the Trustees suspended the Grants Programme. The Trustees used this time to bring forward the review of the Charitable Giving Strategy that was planned for 2021. The review of the Charitable Giving Strategy was completed in 2020 and the refined Grants Programmes are outlined below.

The Trustees deal with approvals under each Grant Programme in the manner they believe is appropriate to that Grant Programme.

Public Benefit

The Trustees confirm that they have had due regard to the Charity Commission's general guidance on public benefit in planning future strategy, developing grant-making policy and in making grants. The Trustees believe that the Charity achieves significant social benefit through the following activities:

Page 3

THE ERIC WRIGHT CHARITABLE TRUST

TRUSTEES REPORT for the Year Ended 31 December 2020

Public Benefit (cont.)

However, given that the Trust has unrestricted objects, the Trustees retain full discretion to make grants for any charitable purpose as they see fit, depending upon the circumstances.

Significant activities

The activities of the Charity are set out below.

ACHIEVEMENT AND PERFORMANCE

Charitable activities for the public benefit

During the year, the Trust continued to operate in furtherance of the objectives stated above. Its principal activities were as follows:

Water Park Outdoor Pursuits Centre

Water Park is an outdoor pursuit centre owned by the Trust on Coniston Water in the Lake District aimed at helping young people, many from disadvantaged backgrounds, to spend time in a wholly different learning environment and assist their self-development. The teachers from the respective schools stay with the children and frequently comment on the positive impact that the stay at Water Park has had. Comments include:

The educational benefit of such courses can be seen from the fact that many bookings are return visits from schools who now see a visit to Water Park as an integral part of the broader curriculum.

The operation of Water Park is undertaken through a wholly owned subsidiary, Water Park Limited, the company responsible for running the centre. Day to day management and operation of the centre is delegated to a management team who, in turn, report to Water Park Limited.

During the financial year under review, the centre provided courses until March 2020 when, as advised by the government, it had to temporarily close due to the pandemic. The centre remained closed for the remainder of the year, reopening in a limited capacity in April 2021. The management team are working closely with attendees to provide safe course offerings during 2021.

Subsidies from the Trust are available for individuals or groups who cannot afford to attend. Applications for a subsidy are considered in accordance with guidelines established and periodically reviewed by the Trustees in order to ensure objectivity. This approach enables support to be focused towards groups or individuals where the need is greatest.

In the year to 31 December 2020, the total operating cost for Water Park was £919,000 (2019: £981,000). The Trustees' projections do not envisage Water Park Limited generating an operating surplus in the foreseeable future and as a consequence have factored an ongoing financial commitment in support of the subsidiary into the reserves policy.

The Trustees are satisfied that the Water Park facility meets the Charity Commission's guidance on public benefit.

Page 4

THE ERIC WRIGHT CHARITABLE TRUST

TRUSTEES REPORT for the Year Ended 31 December 2020

The Eric Wright Learning Foundation

The Trust is a member of the Eric Wright Learning Foundation, a charitable company limited by guarantee, and provides the funding to support its activities. The Learning Foundation works in partnership with Preston's College to provide vocational training for both the 14-16 and 16-18 learner cohorts across the following trades:

Support is provided by the Learning Foundation to 14-16 learners through mentoring, PPE, bursaries, and the opportunity to access apprenticeships or further training. During the financial year under review the Trust provided funding of £81,000 to The Eric Wright Learning Foundation.

Charitable Grant Making Strategy

During 2020, the Trustees continued to develop their charitable giving strategy, working with a wide number of organisations across the North West of England. Donations of £334,000 (2019: £904,000) were made to 48 registered charities working within the sectors listed below. Donations made in 2020 were substantially lower than 2019 due to the temporary postponement of the grants programme in order to undertake a full strategy review.

Of this total, 77% (of sums donated) were made under the Major Grants programme.

Examples of some of the projects within these sectors that the Trustees have supported with Major Grants include:

Youth Development: a number of Youth Zones in the North West, which provide young people with local facilities that they can be proud of and activities which help them grow as responsible individuals and which make a significant difference to their lives on a daily basis.

Elderly: various Age UK and Age Concern organisations in providing much needed support for the community including information and advice services to help with a range of issues.

Education and Training: in addition to funding the Eric Wright Learning Foundation referred to above, the Trustees have also provided support to a local charity which aims to maximise the engagement of children and parents in schools and expand the opportunities for them to improve their lives in the local community.

Carers Support Services: projects run by Carers' organisations for which the Trustees have provided financial support include: providing support specifically targeted at Young Adult Carers; employing a full time Young Carers' Support Worker to provide 1 to 1 support; specialist Dementia Carers' Support; a 1 to 1 Carers' Buddy service; and integration of the carers' service into new models of working.

Health: projects run by charities focussed on health care and well-being for which the Trustees have provided financial support includes funding the role of a Community Outreach Support Worker to provide advice, guidance and support to vulnerable people with low vision or sight loss who are living independently; and improving the literacy and numeracy skills of young deaf people to enable them to access training courses leading to nationally recognised skills qualifications.

Page 5

THE ERIC WRIGHT CHARITABLE TRUST

TRUSTEES REPORT for the Year Ended 31 December 2020

Community and Voluntary Services: the Trustees have worked with a number of CVS organisations across the North West to provide Grant Funds managed by the local CVS organisation which can be accessed by small grass roots organisations, thereby building community cohesion and reducing social isolation.

To continue with the ongoing development of the Trust's Objectives and Activities, the Trustees completed a full review of the Charitable Giving Strategy. The new strategy was implemented in 2021.

FINANCIAL REVIEW

Principal funding sources

The Eric Wright Charitable Trust is funded by donations from Henmead Limited. Income generated by the managed investment portfolio is reinvested within the portfolio.

Investment policy and objectives

There are no restrictions on the Trustees' powers to invest. To the extent that future accumulated reserves exceed the Trust's short to medium-term objectives, the Trustees will be seeking to build reserves to strengthen the long-term sustainability of the Trust as well as to develop the flexibility to fund larger projects that also meet its criteria.

Investment performance

The Trust has three principal investments in addition to the cash balances retained to fulfil the operational reserves policy. These are the property at High Nibthwaite, Cumbria; the 100% shareholding in Henmead Limited; and a portfolio of investments managed by Brewin Dolphin Investment Managers.

High Nibthwaite

The property is rented out to Water Park Limited at an annual rent of £80,000 per annum, representing a return of 3.6% on the investment. The property is presently valued at £2,250,000 and is subject to three-yearly revaluations, with the last valuation undertaken in June 2018.

Henmead Limited

The Trust is sole shareholder of Henmead Limited, a subsidiary company with a net book value of £73,151,000. Financial results for Henmead Limited are published separately.

Managed Investment Portfolio

The managed investment portfolio was valued at £3,118,000 as at 31st December 2020. The Trustees have appointed professional investment advisors who advise on investment policy and strategy and asset allocation. The Trustees have aligned the investment risk profile with other charitable organisations and are confident that the investment strategy will serve the Trust well.

Reserves policy

It remains the policy of the Trust to maintain cash and liquid funds at a level that equates to a minimum of two years' committed expenditure at any one time. This would enable the Trust to honour its commitments and for the foreseeable future allow the Trust to make future pledges.

Under the terms of the Trust Deed, the General Fund is expendable at the Trustees' discretion. All unexpended funds are therefore held in the General Fund. The Trustees intend to continue monitoring the value of the General Fund in real terms to ensure that they are able to achieve both income and capital appreciation so as to maintain the existing level of charitable giving for the foreseeable future. At the year end the value of reserves held was £81,762,000.

Going concern

After making enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt a going concern basis in preparing the financial statements.

Page 6

THE ERIC WRIGHT CHARITABLE TRUST

TRUSTEES REPORT

for the Year Ended 31 December 2020

PLANS FOR FUTURE PERIODS

During 2020 the Trustees reviewed and refreshed the Charitable Giving Strategy as outlined earlier in the report. The updated strategy was implemented in 2021 and will provide the basis and guidance for future grant awards for the next five years. The Trustees will continue to evolve the strategy organically although a full review is not intended for some time.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

1002966

Principal address

Sceptre House Sceptre Way Bamber Bridge Preston Lancashire PR5 6AW

Trustees

M E Collier A D Sturrock H MacDonald A Wright J M Collier B J Whewell resigned 11/12/2020 M Newsholme appointed 11/12/2020 C J Wilson appointed 11/12/2020

REFERENCE AND ADMINISTRATIVE DETAILS

Auditors

Fairhurst Statutory Auditor Chartered Accountants Douglas Bank House Wigan Lane Wigan Lancashire WN1 2TB

Bankers

Royal Bank of Scotland PLC Corporate Service Centre PO Box 2027 Parklands De Havilland Way Bolton BL6 4YU

Page 7

THE ERIC WRIGHT CHARITABLE TRUST

TRUSTEES REPORT

for the Year Ended 31 December 2020

STATEMENT OF TRUSTEES RESPONSIBILITIES

The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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 Charity and of the incoming resources and application of resources, including the income and expenditure, of the Charity for that period. In preparing those financial statements, the Trustees are required to

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the Board of Trustees on 25[th] October 2021 and signed on its behalf by:

M E COLLIER

Trustee

Page 8

INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF THE ERIC WRIGHT CHARITABLE TRUST

Opinion

We have audited the financial statements of The Eric Wright Charitable Trust (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Trust Balance Sheet, the Consolidated Cash Flow Statement, notes to the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

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

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 9

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE ERIC WRIGHT CHARITABLE TRUST

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees Responsibilities, are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Our responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances on non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory framework within which the Charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Cat 2011 and the Charitie Statement of Recommended Practice (SORP).

We identified the greatest risk of material impact on the financial statement from irregularities, including fraud, to be the override of controls by management and the completeness of income. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing of journals and reviewing accounting estimates for biases, reading minutes of those charged with governance and designing audit procedures to test the timing of income.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with accounting standards. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with al laws and regulations.

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

Page 10

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE ERIC WRIGHT CHARITABLE TRUST

Use of our report

This report is made solely to the Charity's Trustees, as a body, in accordance with Section 144 of the Charities Act 2011 and regulations made under Section 154 of that Act. Our audit work has been undertaken so that we might state to the Charity's Trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Fairhurst Statutory Auditor Chartered Accountants (Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006) Douglas Bank House Wigan Lane Wigan Lancashire WN1 2TB

Date: 29[th] October 2021

Page 11

THE ERIC WRIGHT CHARITABLE TRUST

INTRODUCTION TO THE FINANCIAL STATEMENTS

for the Year Ended 31 December 2020

The Eric Wright Charitable Trust (the Charity) owns Water Park Limited and Henmead Limited, the latter being a group of non-charitable trading companies operating in the property and construction industry. Water Park Limited and Henmead Limited are wholly owned subsidiaries and, as required by charitable law, are consolidated into charitable accounts as presented in the Financial Statements on the subsequent pages.

The Statement of Financial Activities for the Charity has been reproduced below to present the activities of the Charity prior to the consolidation of the subsidiary companies (Henmead Limited and Water Park Limited).

2020 2019
£000 £000
INCOME AND ENDOWMENTS FROM:
Donations and legacies 1,790 2,432
Investment income 125 147
_____ _____
1,915 2,579
EXPENDITURE ON:
Raising funds 74 67
Charitable activities:
Financial assistance to Water Park Ltd 681 680
Grant to institutions other than Water Park Ltd 334 904
_____ _____
Total 1,089 1,651
Net gains on investments 2,907 1,079
_____ _____
NET INCOME 3,733 2,007

A proportion of the profits from Henmead Limited (which trades through the Eric Wright Group Companies) are donated annually to the Eric Wright Charitable Trust. The Charity uses the donation from Henmead Limited to support local charities as outlined in the Charitable Giving Strategy contained within the Trustees Report and listed in Note 10 of the accounts. Surpluses are invested in a managed share portfolio to provide future stability and fulfilment of the Charity’s objectives.

Page 12

THE ERIC WRIGHT CHARITABLE TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 31 December 2020

2020 2019
Total funds Total funds
Notes £'000 £'000
INCOME AND ENDOWMENTS FROM
Donations and legacies 2 - 2
Commercial trade operation 3 219,167 236,222
Charitable activities
Third party fee income paid to Water Park 4 145 381
Other income 5 174 7
Investment income 6 45 67
Total incoming resources 219,531 236,679
RESOURCES EXPENDED
Costs of generating funds
Raising funds 7 1 7
Commercial trade operation 8 212,103 231,759
Charitable activities 9
Grants to other Charitable bodies 334 904
Costs of operating Water Park 993 1,048
Total resources expended 213,431
 233,718
Gain on revaluation of investment property 347 1,523
Net gains on investments 235 296
NET INCOME 6,682 4,780
Other recognised (losses)/gains
Actuarial loss on defined benefit pension scheme (367) (319)
Share of comprehensive loss of joint ventures & associates (1,999) (2,208)
Effective portion of changes in fair value of cash flow hedge (1,049) (361)
Deferred tax on other comprehensive loss 466 115
(2,949) (2,773)
Total income for the year 3,733 2,007
RECONCILIATION OF FUNDS
Total funds brought forward 78,029 76,022
TOTAL FUNDS CARRIED FORWARD **81,762 ** 78,029

Page 13

THE ERIC WRIGHT CHARITABLE TRUST

CONSOLIDATED BALANCE SHEET

At 31 December 2020

2020 2019
Total funds Total funds
Notes £'000 £'000
FIXED ASSETS
Goodwill 15 1,181 -
Tangible assets 16 4,202 4,600
Investments
Investments 17 7,642 10,269
Investment property 18 **78,132 ** 74,272
91,157 89,141
CURRENT ASSETS
Stocks 19 24,447 25,516
Debtors 20 80,662 94,407
Cash at bank 27,628 20,255
132,737 140,178
CREDITORS
Amounts falling due within one year 21 (61,759) (66,448)
NET CURRENT ASSETS 70,978 73,730
TOTAL ASSETS LESS CURRENT
LIABILITIES 162,135 162,871
CREDITORS
Amounts falling due after more than one year 22 (72,393) (77,471)
PROVISIONS FOR LIABILITIES
Deferred tax liability 26 (3,786) (3,262)
Pensions and similar obligations 27 (4,104) (3,993)
Other provisions 28 (90) (116)
NET ASSETS **81,762 ** 78,029
FUNDS 29
Unrestricted funds **81,762 ** 78,029
TOTAL FUNDS **81,762 ** 78,029

The financial statements were approved by the Board of Trustees on 25[th] October 2021 and were signed on its behalf by:

M E COLLIER

Trustee

Page 14

THE ERIC WRIGHT CHARITABLE TRUST

TRUST BALANCE SHEET 31 December 2020

31 December 2020
2020 2019
Total funds Total funds
Notes £'000 £'000
FIXED ASSETS
Tangible assets 16 24 27
Investments
Investments 17 76,269 73,338
Investment property 18 2,250 2,250
78,543 75,615
CURRENT ASSETS
Debtors 20 314 276
Cash at bank 3,142 2,349
3,456 2,625
CREDITORS
Amounts falling due within one year 21 (237) (211)
NET CURRENT ASSETS 3,219 2,414
TOTAL ASSETS LESS CURRENT
LIABILITIES 81,762 78,029
CREDITORS
Amounts falling due after more than one year 22 - -
NET ASSETS **81,762 ** 78,029
FUNDS 29
Unrestricted funds **81,762 ** 78,029
TOTAL FUNDS **81,762 ** 78,029

The financial statements were approved by the Board of Trustees and authorised for issue on 25[th] October 2021 and were signed on its behalf by:

M E COLLIER

Trustee

Page 15

THE ERIC WRIGHT CHARITABLE TRUST

CONSOLIDATED CASH FLOW STATEMENT for the Year Ended 31 December 2020

Notes
Cash flows from operating activities:
Cash generated from operations
1
Other comprehensive income (non-cash)
Movement in provisions
Tax paid
Net cash received/(paid) by operating activities
Cash flows from investing activities:
Purchase of intangible fixed assets
Purchase of tangible fixed assets
Purchase of fixed asset investments
Purchase of investment property
Acquisition of joint venture
Sale of tangible fixed assets
Sale of investment property
Sale of investment in associate
Repayment of loans
New loans
Interest received
Dividends received
Net cash used in investing activities
Cash flows from financing activities:
New loans in year
Loan repayments in year
(Decrease)/increase in directors loan
Net cash (used in)/provided by financing
activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
2
Cash and cash equivalents at the end of the
reporting period
2		 2020
£'000
11,956
2,949
(528)
68
14,445
(1,066)
(183)
(24)
(3,983)
-
-
470
1,439
4,265
(1,161)
3
192
(48)
2,500
(9,144)
(380)
(7,024)
7,373
20,255
27,628		 2019
£'000
(3,584)
2,773
(478)
238
(1,051)
-
(376)
(545)
(8,391)
(38)
5
2,098
-
1,783
(3,058)
7
618
(7,897)
7,500
(1,763)
574
6,311
(2,637)
22,892
20,255

Page 16

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT for the Year Ended 31 December 2020

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

Net income for the reporting period (as per the statement of financial
activities)
Adjustments for:
Depreciation charges
Gain on investments
Loss on disposal of fixed assets
Interest received
Dividends received
Revaluation of investment properties
Operating profit of joint ventures & associates
Taxation
Decrease/(increase) in stocks
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash provided by/(used in) operating activities		 2020
£'000
3,733
379
(1,666)
96
(3)
(42)
(340)
(2,142)
556
1,069
14,255
(3,939)
11,956		 2019
£'000
2,007
373
(284)
14
(7)
(60)
(1,535)
(2,922)
429
(116)
(9,032)
7,549
(3,584)

2. ANALYSIS OF CASH AND CASH EQUIVALENTS

Cash & cash equivalents
Total cash and cash equivalents		 2020
£'000
27,628
27,628		 2019
£'000
20,255
20,255

Page 17

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 December 2020

1. ACCOUNTING POLICIES

1.1 Basis of preparing the financial statements

The financial statements of the Charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

All amounts in the financial statements have been rounded to the nearest £1,000.

The Eric Wright Charitable Trust ("the Trust") is a Charitable Trust registered and domiciled in the UK.

The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements.

Judgements made by the Trustees, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed later in accounting policies under the title 'Accounting estimates and judgements.'

1.2 Going concern

The Trust’s activities are set out on the Trustees’ report set out on pages 2 to 7 . The financial position of the Trust is set out in the Consolidated balance sheet on page 14. The financial risk and management of financial risk is explained in the Trustees’ report.

The Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Consideration of going concern for subsidiary entities is made at Henmead level and the Trustees agree with the conclusion formed.

1.3 Basis of consolidation

The consolidated financial statements include the financial statements of the Charity and its subsidiary undertakings made up to 31 December 2020. A subsidiary is an entity that is controlled by the Charity. The results of subsidiary undertakings are included in the consolidated statement of financial activities from the date that control commences until the date that control ceases. Control is established when the Charity has the power to govern the operating and financial policies of an entity so as to obtain benefits from its activities. In assessing control, the Henmead Limited group of companies referred to as Group, takes into consideration potential voting rights that are currently exercisable. The Henmead Limited group of companies is controlled by the Charity, consequently the gross income and expenditure from its operations are presented on the Statement of Financial Activities for both the current and the comparative period.

An associate is an entity in which the Group has significant influence, but not control, over the operating and financial policies of the entity. Significance influence is presumed to exist when the investor holds between 20% and 50% of the equity voting rights.

A joint venture is a contractual arrangement undertaking in which the Group exercises joint control over the operating and financial policies of the entity. Where the joint venture is carried out through an entity, it is treated as a jointly controlled entity. The Group's share of the profits less losses of associates and of jointly controlled entities is included in the consolidated profit and loss account and its interest in their net assets is recorded on the balance sheet using the equity method. Where there is no obligation, commitment or guarantee by the group to fund the joint venture operations or make payments on behalf of the investees and there is no intention to in the future, then the share of net liabilities recognised in the group consolidated balance sheet is restricted to the value of the investment made by the group.

Where a group company is party to a joint venture which is not an entity, that company accounts directly for its share of the income and expenditure, assets, liabilities and cash flows. Such arrangements are reported in the consolidated financial statements on the same basis.

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1. ACCOUNTING POLICIES - continued

1.4 Basis of preparing the financial statements

In the consolidated financial statements, investments in subsidiaries, jointly controlled entities and associates are carried at cost less impairment. In the accounts of the Trust, the investments in subsidiaries are carried at Net Asset Value.

1.5 Classification of financial instruments issued by the group In accordance with FRS 102.22, financial instruments issued by the group are treated as equity only to the extent that they meet the following two conditions:

(a) they include no contractual obligations upon the group to deliver cash or other financial assets or to exchange financial assets or financial liabilities with another party under conditions that are potentially unfavourable to the group; and

(b) where the instrument will or may be settled in the entity's own equity instruments, it is either a non-derivative that includes no obligation to deliver a variable number of the entity's own equity instruments or is a derivative that will be settled by the entity exchanging a fixed amount of cash or other financial assets for a fixed number of its own equity instruments.

1.6 Basic financial instruments

Trade and other debtors / creditors

Trade and other debtors are recognised initially at transaction price plus attributable transaction costs. Trade and other creditors are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

Interest-bearing borrowings classified as basic financial instruments

Interest-bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses.

Investments in preference and ordinary shares

Investments in equity instruments are measured initially at fair value, which is normally the transaction price. Transaction costs are excluded if the investments are subsequently measured at fair value. Subsequent to initial recognition investments that can be measured reliably are measured at fair value with changes recognised in the Statement of Financial Activities. Other investments are measured at cost less impairment in the Statement of Financial Activities.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the Charity's cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement.

Finance lease debtors

At the commencement of the lease term, a finance lease is recorded in the balance sheet as a receivable, at an amount equal to the net investment in the lease.

The net investment in a lease is the gross investment in the lease discounted at the interest rate implicit in the lease.

The gross investment in the lease is the aggregate of:

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Finance lease debtors

Initial direct costs (costs that are incremental and directly attributable to negotiating and arranging a lease) are included in the initial measurement of the finance lease receivable and reduce the income recognised over the lease term.

Finance income is recognised based on a pattern reflecting a constant periodic rate of return on the net investment outstanding in respect of the finance lease.

1.7 Other financial instruments

Financial instruments not considered to be Basic financial instruments (Other financial instruments) Other financial instruments not meeting the definition of Basic Financial Instruments are recognised initially at fair value. Subsequent to initial recognition other financial instruments are measured at fair value with changes recognised in the Statement of Financial Activities except as follows:

Derivative financial instruments and hedging

Within the Trust no derivative financial instruments exist however, the below represents those derivative financial instruments that occur in the Henmead group accounts and are included in the Trust accounts on consolidation.

Derivative financial instruments are recognised at fair value. The gain or loss on remeasurement to fair value is recognised immediately in profit or loss. However, where derivatives qualify for hedge accounting, recognition of any resultant gain or loss depends on the nature of the item being hedged (see below).

Fair value hedges

Within the Trust no fair value hedges exist however, the below represents those fair value hedges that occur in the Henmead group accounts and are included in the Trust accounts on consolidation.

Where a derivative financial instrument is designated as a hedge of the variability in fair value of a recognised asset or liability or an unrecognised firm commitment, all changes in the fair value of the derivative are recognised immediately in the Statement of Financial Activities. The carrying value of the hedged item is adjusted by the change in fair value that is attributable to the risk being hedged (even if it is normally carried at cost or amortised cost) and any gains or losses on remeasurement are recognised immediately in the income statement (even if those gains would normally be recognised directly in reserves). If hedge accounting is discontinued and the hedged financial asset or liability has not been derecognised, any adjustments to the carrying amount of the hedged item are amortised into the Statement of Financial Activities using the effective interest method over the remaining life of the hedged item.

Cash flow hedges

Within the Trust no cash flow hedges exist however, the below represents those cash flow hedges that occur in the Henmead group accounts and are included in the Trust accounts on consolidation.

Where a derivative financial instrument is designated as a hedge of the variability in cash flows of a recognised asset or liability, or a highly probable forecast transaction, the effective part of any gain or loss on the derivative financial instrument is recognised directly in other comprehensive income. Any ineffective portion of the hedge is recognised immediately in the Statement of Financial Activities.

For cash flow hedges, where the forecast transactions resulted in the recognition of a non-financial asset or nonfinancial liability, the hedging gain or loss recognised in other recognised losses is included in the initial cost or other carrying amount of the asset or liability. Alternatively when the hedged item is recognised in profit or loss the hedging gain or loss is reclassified to the Statement of Financial Activities. When a hedging instrument expires or is sold, terminated or exercised, or the entity discontinues designation of the hedge relationship but the hedged forecast transaction is still expected to occur, the cumulative gain or loss at that point remains in equity and is recognised in accordance with the above policy when the transaction occurs. If the hedged transaction is no longer expected to take place, the cumulative unrealised gain or loss recognised in equity is recognised in the income statement immediately.

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1. ACCOUNTING POLICIES - continued

1.8 Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as separate items of tangible fixed assets, for example land is treated separately from buildings.

Leases in which the entity assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. All other leases are classified as operating leases. Leased assets acquired by way of finance lease are stated on initial recognition at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease, including any incremental costs directly attributable to negotiating and arranging the lease. At initial recognition a finance lease liability is recognised equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments. The present value of the minimum lease payments is calculated using the interest rate implicit in the lease. Lease payments are accounted for as described below.

The company assesses at each reporting date whether tangible fixed assets (including those leased under a finance lease) are impaired.

Depreciation is charged to the Statement of Financial Activities on a straight-line basis over the estimated useful lives of each part of an item of tangible fixed assets. Leased assets are depreciated over the shorter of the lease term and their useful lives. Land is not depreciated. The estimated useful lives are as follows:

- Freehold buildings 4% on cost
- Leasehold land and buildings 4% on cost
- Plant, machinery and scaffolding 15% on reducing balance
- Fixtures and fittings 15% on reducing balance
- Motor vehicles 25% on reducing balance
- Computer equipment 33% on cost

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since last annual reporting date in the pattern by which the company expects to consume an asset's future economic benefits.

1.9 Business combinations

Business combinations are accounted for using the purchase method as at the acquisition date, which is the date on which control is transferred to the entity.

At the acquisition date, the group recognises goodwill as:

Consideration which is contingent on future events is recognised based on the estimated amount if the contingent consideration is probable and can be measured reliably. Any subsequent changes to the amount are treated as an adjustment to the cost of the acquisition.

FRS 102.35 granted certain exemptions from the full requirements of FRS 102 in the transition period. The Group elected not to restate business combinations that took place prior to 1 January 2014. In respect of acquisitions prior to 1 January 2014, goodwill is included on the basis of its deemed cost, which represents the amount recorded under old UK GAAP. Intangible assets previously included in goodwill, are not recognised separately.

Goodwill in respect of the Joint Venture is amortised on a straight line basis over its useful life. Goodwill has no residual value. The finite useful life of goodwill is estimated to be 21 years, the remaining period of the concession period for the lease plus agreement.

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1. ACCOUNTING POLICIES - continued

1.10 Intangible assets and goodwill Within the Trust no goodwill exists however, the below represents goodwill that occurs in the Henmead group accounts.

Goodwill in respect of Joint Ventures is amortised on a straight line basis over its useful life. Goodwill has no residual value. The finite useful life of goodwill was estimated to be 21 years, the remaining period of the concession period for the lease plus agreement.

Intangible assets relate to computer software which is stated at cost less accumulated amortisation. Amortisation is charged to the profit and loss account on a straight line basis over the estimated useful life which is 10 years.

1.11 Stock and work in progress

Stock and work in progress is stated at the lower of cost and net realisable value. =Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

1.12 Investment property

Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment properties are recognised initially at cost.

Subsequent to initial recognition

If a reliable measure is not available without undue cost or effort for an item of investment property, this item is thereafter accounted for as tangible fixed assets in accordance with section 17 until a reliable measure of fair value becomes available.

1.13 Construction contract debtors

Within the Trust accounts no construction contract debtors exist however, the below represents those construction contract debtors that occur in the subsidiary accounts.

Amounts recoverable on long term contracts represents the gross unbilled amount for contract work performed to date. They are measured at cost plus profit recognised to date (see the revenue accounting policy) less a provision for foreseeable losses and less progress billings. Variations are included in contract revenue when they are reliably measurable and it is probable that the customer will approve the variation itself and the revenue arising from the variation. Claims are included in contract revenue only when they are reliably measurable and negotiations have reached an advanced stage such that it is probable that the customer will accept the claim. Cost includes all expenditure related directly to specific projects and an allocation of fixed and variable overheads incurred in the entity's contract activities based on normal operating capacity.

Amounts recoverable on long term contracts are presented as part of trade debtors in the balance sheet. If payments received from customers exceed the income recognised, then the difference is presented as payments on account in the balance sheet.

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1. ACCOUNTING POLICIES - continued

1.14 Impairment excluding stocks, investment properties and deferred tax assets

Financial assets (including trade and other debtors)

A financial asset not carried at fair value through the Statement of Financial Activities is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. For financial instruments measured at cost less impairment, an impairment is calculated as the difference between its carrying amount and the best estimate of the amount that the Company would receive for the asset if it were to be sold at the reporting date. Interest on the impaired asset continues to be recognised through the unwinding of the discount. Impairment losses are recognised in the Statement of Financial Activities. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through the Statement of Financial Activities.

Non-financial assets

Within the Trust accounts no non-financial assets exist however, the below represents those Non-financial assets that occur in the subsidiary accounts.

The carrying amounts of the entity's non-financial assets, other than investment property, stocks and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. The recoverable amount of an asset or cashgenerating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the "cash-generating unit"). The goodwill acquired in a business combination, for the purpose of impairment testing is allocated to cash-generating units, or ("CGU") that are expected to benefit from the synergies of the combination. For the purpose of goodwill impairment testing, if goodwill cannot be allocated to individual CGUs or groups of CGUs on a non-arbitrary basis, the impairment of goodwill is determined using the recoverable amount of the acquired entity in its entirety, or if it has been integrated then the entire group of entities into which it has been integrated.

An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in the Statement of Financial Activities. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis.

An impairment loss is reversed if and only if the reasons for the impairment have ceased to apply.

Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

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1. ACCOUNTING POLICIES - continued

1.15 Employee benefits

Defined contribution plans and other long term employee benefits

A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees.

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The amount charged to the Statement of Financial Activities represents the contributions payable to the scheme in respect of the accounting period. Differences between contributions payable in the year and contributions actually paid are shown as either other creditors or prepayments in the balance sheet.

Defined benefit plans

Within the Trust no defined benefit plans exist however, the below represents those defined benefit plans that occur in the Henmead group accounts and included in the Trust accounts on consolidation.

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The entity's net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. The entity determines the net interest expense (income) on the net defined benefit liability for the period by applying the discount rate as determined at the beginning of the annual period to the net defined benefit liability taking account of changes arising as a result of contributions and benefit payments.

The discount rate is the yield at the balance sheet date on AA credit rated bonds denominated in the currency of, and having maturity dates approximating, to the terms of the entity's obligations. A valuation is performed annually by a qualified actuary using the projected unit credit method.

Changes in the net defined benefit liability arising from employee service rendered during the period, net interest on net defined benefit liability, and the cost of plan introductions, benefit changes, curtailments and settlements during the period are recognised in the Statement of Financial Activities.

Remeasurement of the net defined benefit liability is recognised in other comprehensive income in the period in which it occurs.

1.16 Provisions

A provision is recognised in the balance sheet when the entity has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Where the Trust enters into financial guarantee contracts to guarantee the indebtedness of other companies within its group, the company treats the guarantee contract as a contingent liability in its individual financial statements until such time as it becomes probable that the company will be required to make a payment under the guarantee.

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NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

1. ACCOUNTING POLICIES - continued

1.17 Expenses

Operating lease

Within the Trust no operating leases exist however, the below represents operating leases that occur in the Henmead group accounts and are included in the Trust accounts on consolidation.

Payments (excluding costs for services and insurance) made under operating leases are recognised in the Statement of Financial Activities on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation; in which case the payments related to the structured increases are recognised as incurred. Lease incentives received are recognised in profit and loss over the term of the lease as an integral part of the total lease expense.

Finance lease

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability using the rate implicit in the lease. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are charged as expenses in the periods in which they are incurred.

Interest receivable and Interest payable

Interest payable and similar charges include interest payable, finance charges and finance leases recognised in the Statement of Financial Activities using the effective interest method and unwinding of the discount on provisions that are recognised in the Statement of Financial Activities.

Other interest receivable and similar income include interest receivable on funds invested and net foreign exchange gains. Interest income and interest payable are recognised in profit or loss as they accrue, using the effective interest method. Dividend income is recognised in the Statement of Financial Activities on the date the entity's right to receive payments is established. Foreign currency gains and losses are reported on a net basis.

1.18 Taxation

No taxation has been charged in respect of the Charity but the below relates to subsidiary entities which are subject to taxation.

Tax on the profit or loss for the year for trading subsidiaries comprises current and deferred tax. Tax is recognised in the statement of financial activities except to the extent that it relates to items recognised directly in equity or other gains and losses, in which case it is recognised directly in equity or other gains and losses.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. The following timing differences are not provided for: differences between accumulated depreciation and tax allowances for the cost of a fixed asset if and when all conditions for retaining the tax allowances have been met; and differences relating to investments in subsidiaries, associates and joint ventures to the extent that it is not probable that they will reverse in the foreseeable future and the reporting entity is able to control the reversal of the timing difference. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense.

Deferred tax is provided in respect of the additional tax that will be paid or avoided on differences between the amount at which an asset (other than goodwill) or liability is recognised in a business combination and the corresponding amount that can be deducted or assessed for tax. Goodwill is adjusted by the amount of such deferred tax.

Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax balances are not discounted. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

1. ACCOUNTING POLICIES - continued

1.19 Government grants

Grants are accounted for under the accruals model. Grants of a revenue nature are recognised in the profit and loss account in the same period as the related expenditure.

1.20 Accounting estimates and judgements

(a) Key sources of estimation uncertainty in applying the Group’s accounting policies Preparation of the financial statements requires the Trustees to make estimates. The items across the group statements where these estimates have been made include:

Contract provisions

The amount of profit attributable to the stage of completion of a long term contract is recognised when the outcome of the contract can be foreseen with reasonable certainty however there is inherent judgement in this assessment. Turnover for such contracts is stated by reference to the costs incurred as a proportion of the total anticipated contract costs, less amounts recognised in previous years. Where the outcome cannot be reasonably foreseen, revenue is recognised to the extent of costs expensed as incurred. Amounts recoverable on contracts represent the gross unbilled amount for contract work performed to date. Provision is made for any losses as soon as they are foreseen. The provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

(b) Critical accounting judgements in applying the Group's accounting policies

Certain critical accounting judgements (apart from those involving estimations included above) in applying the Group's accounting policies are described below.

Investment property

Investment properties are initially recognised at cost. Subsequent to initial recognition investment properties whose fair value can be measured reliably are held at fair value. Whilst the investment properties are valued by external experts, there are a number of judgements adopted in respect of items such as yield and lease renewals which affect the overall valuation.

Loans to joint ventures

Loans to joint ventures are initially recognised at cost. The loans are reviewed annually for impairment via a review of the joint ventures cash flow forecast. No impairment is recognised as future trading and cash flow forecasts demonstrate the joint ventures have sufficient funds to meet repay the loans as they fall due.

Investments in joint ventures

To the extent that the Henmead group have no legal or constructive obligation to fund the share of historic losses recognised in the joint ventures the value of the investment is restricted to the value of the investments made.

Life cycle provision

The Eric Wright Group has contractual obligations to maintain properties owned by LIFT entities and other third parties over the lives of those assets. The receipts are under contract however the timing and quantum of costs differs resulting in a provision on the balance sheet. Due to the duration of the life cycle contracts, there is uncertainty regarding the timing and extent of the costs required to maintain the assets and judgement is therefore required in order to assess sufficiency.

Trade debtors

Held within trade debtors are contract trade debtors that represent billed amounts for contract work performed to date. Contract trade debtors are regularly reported and monitored to ensure the full amount is recovered. Provision is made for doubtful debts.

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NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

1. ACCOUNTING POLICIES - continued

Accounting estimates and judgements – continued

Classification of financial instruments

Financial instruments are recognised initially at fair value. Subsequent to initial recognition financial instruments are measured at fair value with changes recognised in the Statement of Financial Activities. Where the financial instrument falls under the classification of hedging instruments and is in a designated hedging relationship the effective part of any gain or loss on the derivative financial instrument is recognised directly in other gains and losses. Any ineffective portion of the hedge is recognised immediately in the Statement of Financial Activities.

Defined benefit plan

The Group's net obligation in respect of defined benefit plans is calculated each year by a qualified Actuary and using the estimates set out in note 27. Full provision for the liability is recognised in the Group accounts.

2. DONATIONS AND LEGACIES

The grant income can be represented as:

2020 2019
£'000 £'000
Other - 2

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THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

3. COMMERCIAL TRADE OPERATION INCOME

Group turnover
Other operating income – rental income
Other operating income – CJRS income
Share of profit in Joint Ventures
Share of loss in Associates
Profit on disposal of investment in associate
Interest receivable and similar income		 2020
£'000
204,611
5,668
755
2,160
(18)
1,424
4,567

**219,167 **		 2019
£'000
223,208
5,042
-
2,945
(23)
-
5,050
236,222

Commercial trade operational income relates to the Henmead Limited group of companies.

4. INCOME FROM CHARITABLE ACTIVITIES

Activity
Water Park fees received
Third party fee income paid to Water Park
5.
OTHER INCOME
Local authority grants
CJRS grant income received
Course income
6.
INVESTMENT INCOME
Other fixed asset investment
Deposit account interest		 2020
£'000
145
2020
£'000
27
147
-
174
2020
£'000
42
3
45		 2019
£'000
381
2019
£'000
-
-
7
7
2019
£'000
60
7
67

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THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

7. RAISING FUNDS

Other trading activities

Purchases
8.
COMMERCIAL TRADE OPERATION EXPENDITURE
Cost of sales
Administrative expenses
Interest payable and similar expenses
Tax on profit on ordinary activities
Dividend to minority interest		 2020
£'000
1
2020
£'000
187,297
21,070
3,171
556
9
212,103		 2019
£'000
7
2019
£'000
208,428
19,643
3,249
429
10
231,759

Commercial trade operational expenditure relates to the Henmead Limited group of companies.

9. CHARITABLE ACTIVITIES COSTS

Direct costs
Grant funding
of activities
Support costs
(See note 10)
(See note 11)
£'000
£'000
£'000
Costs of operating Water Park
919
-
74
Grants to other Charitable bodies
-
334
-
919
334
74		 Totals
£'000
993
334
1,327

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THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

10. GRANTS PAYABLE

Grants to other Charitable bodies
Grants paid to institutions other than Water Park Limited
These grants are categorised into the following sectors:
Charity of the Year
Community Voluntary Services
Education & Training
Carers
Health
Youth
Elderly
Child and Family Support
Other
Mental Health

 2020
£'000
334
2020
£'000
334
-
90
86
43
30
33

25
10
12

5
______


334
=====

 2019
£'000
904
2019
£'000
904
100
120
58
185
110
87
120
20
49
55
______
904
=====

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THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

11. CHARITABLE SUPPORT COSTS

Support costs, included in the above, are as follows: Governance costs

Recharge of administrative resources
Auditors' remuneration
Accountancy and legal fees
Trustees & sundry expenses
Audit fees across the group are disclosed as:
Trust auditor (Fairhurst):
Audit of Trust and Water Park subsidiary
Henmead Limited auditor:
Audit of Henmead Limited financial statements
Audit of financial statements of subsidiaries of Henmead Limited
Taxation advisory services		 2020
£'000
31
14
28
1
74
2020
£'000
14
6
121
15
156		 2019
£'000
29
13
24
1
67
2019
£'000
13
6
117
7
143

Page 31

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

12. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits payable by the Trust for the year ended 31 December 2020 nor for the year ended 31 December 2019.

However, during the year two Trustees received remuneration and benefits for their roles as directors of two of the non-charitable trading subsidiaries (2019: one). One Trustee also received remuneration for supplying ad hoc professional advisory services to subsidiaries within the Henmead Limited group (2019: Nil).

Trustees' expenses

During the year Trustees were reimbursed a total of £201 (2019: £903) to cover out of pocket expenses.

Directors' remuneration and key management personnel

During the year Directors' and key management personnel of the Henmead group were compensated for their services as follows:

Directors' remuneration
Benefits in kind
Company contributions to money purchase pension plans
Information regarding the highest paid director is as follows:
Remuneration
Benefits in kind		 2020
£'000
1,701
3
28
1,732
2020
£'000
863
23
886		 2019
£'000
1,476
24
17
1,517
2019
£'000
673
22
695

Information regarding the highest paid director is as follows:

Retirement benefits are accruing to one (2019: one) director under a defined contribution scheme.

The remuneration of Directors is disclosed above and the remuneration of key management personnel is set out below.

Key management & personnel remuneration 2020
£'000
1,022		 2019
£'000
892

Page 32

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

13. STAFF NUMBERS AND COSTS

The average number of persons employed by the Group (including Trustees) during the year, analysed by category, was as follows:

Direct labour
Administration
The aggregate payroll costs of these persons were as follows:
Wages and salaries
Social security costs
Contributions to defined contribution plans		 2020
No.
310
406
716
2020
£'000
30,762
2,562
2,870
36,194		 2019
No.
311
394
705
2019
£'000
29,766
2,462
2,499
34,727

14. TAXATION

During the year no tax was directly payable by the Trust. Taxation was paid by subsidiary entities and is disclosed in note 8.

15. INTANGIBLE ASSETS

Group Software
£'000
COST
At 1 January 2020 -
Additions 1,066
Transfers from tangible assets 132
At 31 December 2020 1,198
AMORTISATION
At 1 January 2020 -
Charge for year 17
At 31 December 2020 17
NET BOOK VALUE
At 31 December 2020 **1,181 **
At 31 December 2019 -

Trust

The trust does not hold any goodwill or intangible assets.

Page 33

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

16. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
Freehold Long Plant and
Group property leasehold machinery
£'000 £'000 £'000
COST
At 1 January 2020 3,586 598 4,723
Additions - - 101
Disposals - (83) (2,345)
At 31 December 2020 3,586 515 2,479
DEPRECIATION
At 1 January 2020 270 353 4,161
Charge for year 33 25 150
Eliminated on disposal - (83) (2,244)
At 31 December 2020 303 295 2,067
NET BOOK VALUE
At 31 December 2020 3,283 220 412
At 31 December 2019 3,316 245 562
Fixtures and Motor
fittings vehicles Totals
£'000 £'000 £'000
COST
At 1 January 2020 2,859 324 12,090
Additions 64 1 166
Transfers to intangible assets (132) - (132)
Disposals (612) (25) (3,065)
At 31 December 2020 2,179 300 9,059
DEPRECIATION
At 1 January 2020 2,445 261 7,490
Charge for year 122 24 354
Eliminated on disposal (634) (26) (2,987)
At 31 December 2020 1,933 259 4,857
NET BOOK VALUE
At 31 December 2020 246 41 **4,202 **
At 31 December 2019 414 63 4,600

Page 34

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

for the Year Ended 31 December 2020

16. TANGIBLE FIXED ASSETS - continued Land and buildings

The net book value of land and buildings in tangible fixed assets and investment properties comprises:

Freehold
Long leasehold
Short leasehold
Trust
COST
At 1 January 2020 and 31 December 2020
DEPRECIATION
At 1 January 2020
Charge for year
At 31 December 2020
NET BOOK VALUE
At 31 December 2020
At 31 December 2019		 2020
2019
£'000
£'000
49,033
47,019
32,382
30,569
220
245
81,635
77,833
Fixtures and
fittings
£'000
204
177
3
180
24
27		 2019
£'000
47,019
30,569
245		 2019
£'000
47,019
30,569
245
77,833
177
3
180
24
27

17. FIXED ASSET INVESTMENTS

Group
Loans to
Joint
Ventures
£'000
Cost or market value
At 1 January 2020
14,239
Additions
-
Disposals
-
New loans provided
1,161
Repayment of loans
(400)
Revaluation
-
Share of profit/(loss)
-
At 31 December 2020
15,000
Provisions
At 1 January 2020
(10,715)
Movement in provision
375
At 31 December 2020
(10,340)
Net book value
At 31 December 2020
4,660
At 31 December 2019
3,524		 Interests
in Joint
Ventures
Investment in
associates
£'000
£'000
(32)
3,894
-
-
-
-
-
-
-
(3,865)
-
-
(126)
(31)
(158)
(2)
-
-
-
-
-
-
(158)
(2)
(32)
3,894		 Share
portfolio
Cash and
settlements
pending
£'000
£'000
2,799
84
9
42
-
(27)
-
-
-
-
235
-
-
-
3,043
99
-
-
-
-
-
-
3,043
99
2,799
84		 Total
£'000
20,984
51
(27)
1,161
(4,265)
235
(157)
17,982
(10,715)
375
(10,340)
7,642
10,269

Page 35

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

17. FIXED ASSET INVESTMENTS

Trust


MARKET VALUE
At 1 January 2020
Additions
Disposals
Revaluations
At 31 December 2020
NET BOOK VALUE
At 31 December 2020
At 31 December 2019		 Share
portfolio
£’000
2,768
9
-
242
3,019
3,019
2,768		 Unlisted

investments
£’000
70,486
-
-
2,665
73,151
73,151
70,486		 Cash and

settlements

pending
£’000
84
42
(27)
-
99
99
84		 Totals
£’000
73,338
51
(27)
2,907
76,269
76,269
73,338

There were no investment assets outside the UK.

The Trust's investments in unlisted companies at the balance sheet date were:

Percentage Country of Nominal value
Company holding incorporation £
Henmead Limited 100 England 100
Water Park Limited 100 England 1

Page 36

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

18. INVESTMENT PROPERTY



FAIR VALUE
At 1 January 2020

Additions

Disposals

Net gain from fair value adjustments

At 31 December 2020

NET BOOK VALUE
At 31 December 2020

At 31 December 2019
 2020

£'000
Group

74,272
3,983
(470)
347
78,132
78,132
74,272		 2020
£’000
Trust
2,250
-
-
-
2,250
2,250
2,250

All investment properties are held at fair value. The Group assets were valued at 31 December 2020 at market value on the basis of existing use by Avison Young, Chartered Surveyors, an external independent valuer, having an appropriate recognised professional qualification and recent experience in the location and class of property being valued.

19. STOCKS

Work in progress
DEBTORS
Amounts falling due within one year
Finance lease debtor receivable
Trade debtors
Amounts recoverable on long term contracts
Amounts due from subsidiaries
Corporation tax
Prepayments
Deferred tax
Other debtors
Due after more than one year
Finance lease debtor receivable		 Group
2020
£000
24,447

24,447

Group
2020
£000
2,015
19,676
13,377
-
-
4,263
2,577
1,549

43,457
37,205

80,662
 Group
2019
£000
25,516
25,516
Group
2019
£000
1,647
28,787
16,040
-
4
5,041
2,064
1,490
55,073
39,334
94,407		 Trust
2020
£000
-

-

Trust
2020
£000
-
-
-
308
-
6
-
-

314
-

314
 Trust
2019
£000
-

-

Trust
2019
£000
-
-
-
162
-
114
-
-

276
-

276

20. DEBTORS

Amounts owed by group undertakings are non-interest bearing and repayable on demand.

Page 37

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

21. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans and overdraft
Payments on account
Trade creditors
Amounts due to subsidiaries
Taxation and social security
Other creditors
Accruals and deferred income
Director’s loan accounts		 Group
2020
£000
2,093
4,082
26,691
-
4,308
11,180
8,181
5,224

61,759
 Group
2019
£000
2,173
6,829
30,869
-
3,306
11,373
6,294
5,604
66,448		 Trust
2020
£000
-
-
-
90
-
-
147
-

237
 Trust
2019
£000
-
-
-
116
4
25
66
-
211

Included within directors loan accounts due within one year are loans due to RE Wright (Director). Amounts due to RE Wright are £5,224,000 (2019: £5,604,000). The maximum amount outstanding in the year to RE Wright was £5,604,000 (2019: £5,604,000).

Amounts owed are non-interest bearing and repayable on demand.

22. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans
Deferred Income
Financial instruments		 Group
2020
£000
56,909
4,574
10,910
72,393		 Group
2019
£000
63,473
4,137
9,861
77,471		 Trust
Trust
2020
2019
£000
£000
-
-
-
-
-
-


-
-

Details on financial instruments are included in note 25.

23. INTEREST-BEARING LOANS AND BORROWING

This note provides information about the contractual terms of Henmead’s interest-bearing loans and borrowings, which are measured at amortised cost.

Loans and overdrafts can be analysed as falling due:
In one year or less
Between one and two years
Between two and five years
In five years or more
Secured creditors can be analysed as follows:
Creditors falling due in less than one year
Secured bank loans and overdraft		 2020
£'000
2,093
17,351
18,608
20,950
59,002
2020
£'000
**2,093 **		 2019
£'000
2,173
23,092
17,927
22,454
65,646
2019
£'000
2,173

Page 38

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

23. INTEREST-BEARING LOANS AND BORROWINGS – continued

Creditors falling due in more than one year
Secured bank loans		 2020
£'000
**56,909 **		 2019
£'000
63,473

Bank loans are secured on certain investment properties of Eric Wright Group Limited, a subsidiary of Henmead Limited, and other group companies.

All financial liabilities are denominated in UK pounds sterling. The financial liabilities carry floating rates of interest, based upon market rates prevailing at the time. Some of these financial liabilities have been swapped to a fixed interest rate.

Interest rate swaps, denominated in pounds sterling have been entered into to protect the maximum interest expense to which the Group is exposed. These swaps with an underlying debt value of £43,935,000 (2019: £32,079,000) enable the Group to swap floating rate liabilities on loans linked to LIBOR to a fixed rate liability. The period of these swap arrangements ranges from 4 to 17 years as at 31 December 2020. This capped the maximum interest payable by the Group to December 2020 at 5.87%.

The interest paid by the Group on its bank floating rate liabilities is at a rate of LIBOR plus a margin of 2% to 2.7% (2019: LIBOR plus 2% to 2.7%).

Terms and debt repayment schedule

Group
Currency
Nominal interest
rate
Year of
maturity
Repayment
schedule
Term loan 1
£ GBP
Libor + 2.7%
2024
Amortising
Revolving
Credit Facility
£ GBP
Libor + 2%
2022
Revolving Credit
Facility
Debenture loans£ GBP
Libor + 2%
-
Subordinated debt
Term loan 2
£ GBP
Libor + 1%
2024
Amortising
Term loan 3
£ GBP
Libor + 0.97%
2030
Amortising
Term loan 4
£ GBP
Libor + 2.1%
2037
Amortising		 2020
2019
£000
£000
13,600
12,500
15,000
21,000
67
67
2,585
3,164
5,350
5,752
22,400
23,163

59,002
65,646

Following a refinance completed in December 2019, Term loan 1 is an amortising 5 year term loan with annual capital repayments of £400,000 and falling due for final repayment in December 2024.

The Revolving Credit Facility is drawn for a fixed period, agreed in advance with the bank. The RCF is either repaid at the end of the fixed period or the period extended. The RCF facility was refinanced in December 2017 for a 42 month period to June 2021 and further extended by 7 months to January 2022. Discussions regarding the refinance are currently progressing.

The debenture loan is unsecured and no redemption date has been set.

The term loans 2-4 are repaid bi-annually and full repayment will be made by the expiry date and relate to the Group’s PFI arrangement.

Page 39

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

24. OTHER FINANCIAL LIABILITIES

Amounts falling due after more than one year
Other financial liabilities designated as fair value through
other comprehensive income		 Group
2020
£000
10,910

10,910
 Group
Trust
2019
2020
£000
£000
9,861
-


9,861
-

 Trust
2019
£000
-
-

25. FINANCIAL INSTRUMENTS

(a) Carrying amount of financial instruments

The carrying amounts of the financial assets and liabilities include:

Notional
amount
Maturity
Fixed rate
£’000
year
%
Liabilities measured at amortised cost
Interest rate swap 1
2,593
2024
5.865
Interest rate swap 2
5,309
2030
5.400
Interest rate swap 3
22,399
2037
4.400
Interest rate swap 4
9,000
2024
0.545		 Fair value
2020
£’000
(343)
(1,498)
(8,890)
(179)
(10,910)		 Fair value
2019
£’000

(446)

(1,506)

(7,909)

-
(9,861)

(b) Financial instruments measured at fair value

Derivative financial instruments

The fair value of interest rate swap and interest rate caps is based on broker quotes. Those quotes are tested for reasonableness by comparing against prior year valuations, market interest rates and valuations for similar instruments at the measurement date.

(c) Hedge accounting

To hedge the potential volatility in future interest cash flows arising from movements in LIBOR, the Group has entered into swap agreements with RBS, the Bank of Tokyo Mitsubishi, Aviva and Co-operative Bank. These result in the Group paying the LIBOR floating interest rate and receiving and/or paying a fixed interest rate on the swaps. This effectively fixes the interest cost on the loans.

The derivatives are accounted for as a hedge of variable interest rate risks, in accordance with FRS 102. The cash flows arising from the interest rate swaps will continue until their maturity, coinciding with the repayment of the loans.

Page 40

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

25. FINANCIAL INSTRUMENTS

The following table indicates the periods in which the cash flows associated with cash flow hedging instruments are expected to occur as required by FRS 102.29(a) for the cash flow hedge accounting models:

Interest rate swaps: Liabilities

2020 2019 2019
Expected 5 years Expected 5years
Carrying cash 1 year
1 to		 2 to and Carrying cash 1 year 1 to 2 to and
amount flows or less
<2years		 <5years over amount flows or less <2years <5years over
£000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000
39,301 17,739 2,025 1,907 4,875 8,932 32,075 19,605 2,075 1,975 5,173 10,382
_ _ ______
______		 ______ _ _ _ ______ ______ ______ ______
39,301 17,739 2,025 1,907 4,875 8,932 32,075 19,605 2,075 1,975 5,173 10,382
═════ ═════ ════
═════		 ═════ ═════ ═════ ═════ ════ ════ ════ ════

The change in fair value in the period is recognised in other comprehensive income as the swaps were 100% effective hedges.

(d) Fair values

The amounts for all financial assets and financial liabilities carried at fair value are as follows:

Interest rate swaps Fair value
2020
£'000
**(10,910) **		 Fair value
2019
£'000
(9,861)

26. DEFERRED TAX ASSETS AND LIABILITIES

Deferred tax assets and liabilities are attributable to the following:

Held in provisions for liabilities and charges
At 1 January
Profit and loss account charge
Amount recognised in other comprehensive income
At 31 December
Held in debtors
At 1 January
Profit and loss accounts (credit)/charge
Amount recognised in other losses
At 31 December		 Group
2020
£000
3,262
576
(52)
3,786
2020
£000
(2,064)
(99)
(414)
(2,577)		 Group
2019
£000
2,915
313
34
3,262
2019
£000
(1,994)
79
(149)
(2,064)		 Trust
2020
£000
-
-
-
-
2020
£000
-
-
-
-		 Trust
2019
£000
-
-
-
-
2019
£000
-
-
-
-

Page 41

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

26. DEFERRED TAX ASSTES AND LIABILITIES - continued

Deferred tax liability
Accelerated capital allowances
Other timing differences
Short term timing differences financial instruments
Other short term timing differences
Deferred tax asset
Accelerated capital allowances
Other timing differences
Short term timing differences relating to pension
provision
Short term timing differences - financial
instruments		 Group
2020
£000
2,576
(52)
(350)
1,612
3,786
2020
£000
30
59
799
1,689
2,577		 Group
2019
£000
2,241
(29)
(332)
1,382
3,262
2019
£000
-
41
679
1,344
2,064		 Trust
2020
£000
-
-
-
-
-
2020
£000
-
-
-
-
-		 Trust
2019
£000
-
-
-
-
-
2019
£000
-
-
-
-
-

27. EMPLOYEE BENEFITS

Employee benefits

Henmead Limited operates a pension scheme providing benefits to a finite number of long serving retired employees based on an ex-gratia pension determined by the Chairman. The pension scheme has no assets and the pension scheme liability is recognised in full in the balance sheet and detailed below.

The information disclosed below is in respect of the whole of the plan and for which Henmead Limited is legally responsible.

Net pension liability
Defined benefit obligation
Plan assets
Net pension liability
Movements in present value of defined benefit obligation
At 1 January
Interest expense
Remeasurement: actuarial losses
Benefits paid
Net pension liability		 2020
£'000
4,104
-
4,104
2020
£'000
3,993
40
367
(296)
**4,104 **		 2019
£'000
3,993
-
3,993
2019
£'000
3,902
68
319
(296)
3,993

Page 42

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

27. EMPLOYEE BENEFITS - continued

Expense recognised in the SOFA
Net interest on net defined benefit liability
Total expense recognised in the SOFA		 2020
£'000
40
**40 **		 2019
£'000
68
68

Principal actuarial assumptions (expressed as weighted averages) at the year-end were as follows:

2020 2019
% %
Discount rate 1.00 1.75
======== ========

The last full actuarial valuation was performed on 31 December 2020. The amount for the current and four previous periods are as follows:

Present value of scheme liabilities
Experience adjustments on scheme
liabilities		 2020
2019
2018
2017
2016
£000's
£000's
£000's
£000's
£000's
(4,104)
(3,993)
(3,902)
(3,999)
(4,162)
(367)
(319)
(97)
(34)
(409)

In valuing the liabilities of the pension fund at 31 December 2020, mortality assumptions have been made as indicated below.

The assumptions relating to longevity underlying the pension liabilities at the balance sheet date are based on standard actuarial mortality table and include an allowance for future improvements in longevity.

The assumptions are equivalent to expending a 75 year old to live for a number of years as follows:

Female
Male
Defined contribution plans
Group		 2020
Years
14
12		 2019
Years
14
12

The Group operates a number of defined contribution pension plans.

The total expense relating to these plans in the current year was £2,823,000 (2019: £2,446,000) and the amount due to the scheme at the year-end is £199,000 (2019: £222,000).

Page 43

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

28. OTHER PROVSIONS

Other provisions represents a dilapidation provision for a property operated by the Trust.

Included within the Water Park accounts are provisions for lease dilapidation of £90,000 (2019: £116,000).

29. MOVEMENT IN FUNDS

At
Unrestricted funds
General fund
Designated fund
Designated (Stoves)
Wright Lodge fit out costs
TOTAL FUNDS		 1/1/20
Net movement
in funds
At 31/12/20
£'000
£'000
£'000
75,746
3,734
79,480
2,268
-
2,268
2
-
2
13
(1)
12
78,029
3,733
81,762
78,029
3,733
81,762

Net movement in funds, included in the above are as follows:

Incoming Resources Resources Gains and Movement in
resources expended losses funds
£'000 £'000 £'000 £'000
Unrestricted funds
General fund 219,531 (213,430)
(2,367)		 3,734
Wright Lodge fit out costs - (1)
-		 (1)
219,531 (213,431)
(2,367)		 3,733
TOTAL FUNDS 219,531 (213,431)
(2,367)		 3,733
Comparatives for movement in funds
Net movement
At 1/1/19 in funds At 31/12/19
£'000 £'000 £'000
Unrestricted Funds
General fund 73,737 2,099 75,746
Designated fund 2,268 - 2,268
Designated (Stoves) 2 - 2
Wright Lodge fit out costs 15 (2) 13
76,022 2,007 78,029
TOTAL FUNDS 76,022 2,007 78,029

Page 44

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

29. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Incoming Resources Gains and Movement in
resources expended losses funds
£'000 £'000 £'000 £'000
Unrestricted funds
General fund 236,678 (233,716) 954 2,009
Wright Lodge fit out costs - (2) - (2)
236,678 (233,718) 954 2,007
TOTAL FUNDS 236,678 (233,718) 954 2,007

The designated fund reflects the value of the property, which has been designated for the use of the Water Park, and the grant received for the purchase of certain fixed assets, which is being released in line with the depreciation of the fixed assets purchased.

During 2010 a donation was received towards the costs of Stoves. This was transferred to a separate designated fund. Depreciation of the Stoves in Water Park Limited accounts are covered by a grant paid out of the Stoves Designated Fund.

During 2012 a donation was received towards the fit out costs of the Wright Lodge Building. This was transferred to a separate designated fund. Depreciation of the fit out costs in Water Park Limited accounts are covered by a grant paid out of the Fit out Designated Fund.

30. LEASING AGREEMENTS

Operating leases

Non-cancellable operating lease rentals are payable as follows:

Less than one year
Between one and five years
More than five years		 Group
Group
Trust
2020
2019
2020
£000
£000
£000
1,107
1,033
-
2,465
2,397
-
22,526
23,038
-



26,098
26,468
-


 Trust
2019
£000
-
-
-
-

During the year £1,017,000 was recognised as an expense in the profit and loss account of the Henmead Limited group in respect of operating leases (2019: £1,068,000).

Page 45

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

30. LEASING AGREEMENTS -continued

Leases as lessor

The investment properties held by Henmead Limited are let under operating leases. The future minimum lease payments receivable under non-cancellable leases are as follows:

Less than one year
Between one and five years
More than five years		 Group
Group
Trust
2020
2019
2020
£000
£000
£000
5,442
5,247
-
16,645
14,042
-
45,159
51,645
-



67,246
70,934
-


 Trust
2019
£000
-
-
-
-

There are no material leasing arrangements requiring disclosure.

Finance leases

Leases as lessor

The Group has finance leases in connection with its PFI arrangements. The minimum lease receivable payment receivable at the end of the reporting period are as follows:

Minimum
lease
receivable
2020
£000
Within one year
5,016
Greater than one year
and less than two years
4,656
Greater than two years
and less than five years
14,768
Greater than five years
41,280

65,720
 Interest
2020
£000
3,001
2,857
7,585
13,057

26,500
 Principal
Minimum
lease
receivable
2020
2019
£000
£000
2,015
4,789
1,799
5,041
7,183
14,374
28,223
46,336


39,220
70,540

 Interest
2019
£000
3,142
2,994
8,085
15,339

29,560
 Principal
2019
£000
1,647
2,047
6,289
30,997

40,980

31. COMMITMENTS

The Group and the Trust have no contractual commitments to purchase tangible fixed assets at either the current or prior year-end.

In respect of interests in Jointly Controlled Entities, the Group and the Trust have no commitment to incur capital expenditure at either the current or prior year end.

32. CONTINGENT LIABILITIES

There is a cross guarantee in place in relation to the Group’s Revolving Credit Facility between a number of Group companies. This is supported by a first legal charge over certain Group investment properties.

Page 46

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

33. RELATED PARTY DISCLOSURES

Related parties

The following is the identity of related parties with which the company has transacted.

Company/entity Portion of ordinary shares held
Subsidiary undertakings
Eric Wright Group Limited* 100%
Eric Wright Construction Limited 100%
Eric Wright Partnerships 100%
Eric Wright Civil Engineering Limited 100%
Maple Grove Developments Limited 100%
Eric Wright Investments Limited 100% Dormant
Maple Grove Investments Limited 100%
Stonecross Enterprises Limited 100%
Elltech Limited 95%
Sceptre Nursery Limited 100%
Eric Wright Commercial Limited 100% Dormant
Skemtech Limited 95%
Fleetwood PPP Limited 100%
Cobco 494 Limited 100%
Cobco 450 Limited 100%
Eric Wright FM Limited 100%
Eric Wright Homes Limited 100%
Maple Grove Residential Limited 100%
Applethwaite Limited 100%
Eric Wright Developments 100% Dormant
Eric Wright Water Limited 100%
EWGN Blackpool PSP Limited 80% Dormant
Blackpool LEP Limited 64%
Highfield PFI Holdco Limited 72% Dormant
Highfield PFI SPV Limited 72%
Samlesbury Developments Limited 100% Dormant
Joint ventures
Foundation for Life Limited 60%
Leigh Holdco Limited 60% Dormant
Leigh Fundco Limited 60%
Pacific Shelf 888 Limited 60%
Pemberton Care Limited 60%
Pinco 2033 Limited 60%
Pinco 2206 Limited 60%
Pimco 2401 Limited 60%
FFL Capital Projects Limited 60% Dormant
East Lancashire Building Partnership Limited 60%
Blackburn Holdco Limited 60% Dormant
Blackburn Fundco Limited 60%
Rossendale LIFT Limited 60%
Pinco 2223 Limited 60%
Pimco 2297 Limited 60%
Inhoco 2952 Limited 60%
Pimco 2451 Limited 60%
East Lancashire Capital Projects Limited 60%
Brahm LIFT Limited 60%

Page 47

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

33. RELATED PARTY DISCLOSURES – continued

Company/entity Portion of ordinary shares held
Subsidiary undertakings
Brahm Intermediate Holdco 1 Limited 60% Dormant
Brahm Fundco 1 Limited 60%
Brahm Intermediate Holdco 2 Limited 60% Dormant
Brahm Fundco 2 Limited 60%
Bolton Holdco 1 Limited 60% Dormant
Bolton Fundco 1 Limited 60%
Brahm Capital Projects Limited 60% Dormant
Booths Partnership Limited 50%
Regional and Local Education Partnership Limited 26% Dormant
Tri link 140 Holdings 1 LLP 50%
Tri Link 140 Holdings 2 LLP 50%
Winsford Holdings 1 LLP 50%
Winsford Holdings 2 LLP 50%
Holbeck Homes (Cartmel) Limited 50%
Glenholme Wrightcare Limited 50%
Glenholme Healthcare (Bispham Gardens) Limited 50%

Associates

Deeside Regeneration Limited 24.9%

All companies are registered and operate in England and Wales and principal activities are either building, contracting, civil engineering or property development. The registered addresses of the related parties are available in the accounts of each of the entities, which are available from Companies House.

Related party transactions

Related party transactions
Henmead
 Goods and services Balance outstanding
shareholding supplied at the end of the year
2020 2019 2020 2019
£000's £000's £000's £000's
During the year the Group supplied construction services to the following companies in which the Group has an
interest. These services were provided by Eric Wright Construction Limited.
Blackpool Local Education Partnership Limited
64%		 2,994 2,395
-		 384
East Lancashire Capital Projects Limited 60% - 278
-		 -
During the year the Group supplied hard FM services to the following companies in which Eric Wright Group
Limited has an interest. These services were provided by Eric Wright FM Limited.
Blackpool Local Education Partnership Limited
64%		 94 126 - 1
Blackburn Fundco Limited 60% 276 298 - -
Bolton Fundco 1 Limited 60% 321 307 - -
Brahm Fundco 1 Limited 60% 654 639 - -
Brahm Fundco 2 Limited 60% 483 453 - -
Highfield PFI SPV Limited 72% 403 393 - -
Inhoco 2952 Limited 60% 911 1,215 - -
Leigh Fundco Limited 60% 269 262 - -
Pacific Shelf 888 Limited 60% 35 34 - -
Pemberton Care Limited 60% 110 107 - 37
Pimco 2297 Limited 60% 98 70 - -
Pimco 2401 Limited 60% 145 142 - -

Page 48

THE ERIC WRIGHT CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2020

33. RELATED PARTY DISCLOSURES – continued

Related party transactions

Related party transactions
Henmead
 Goods and services Balance outstanding
shareholding supplied at the end of the year
2020 2019 2020 2019
£000's £000's £000's £000's
Pimco 2451 Limited 60% 404 482 - -
Pinco 2033 Limited 60% 474 464 - -
Pinco 2206 Limited 60% 286 278 - -
Pinco 2223 Limited 60% 555 747 - -
Rossendale Lift Limited 60% 404 395 - -

During the year the Group provided management services to the following companies in which Eric Wright Group Limited has an interest. These services were provided by Eric Wright Partnerships Limited.

Blackburn Fundco Limited 60% 20 19 - -
Blackpool Local Education Partnership 64% 26 59 - -
Limited
Bolton Fundco 1 Limited 60% 72 71 - -
Brahm Fundco 1 Limited 60% 125 122 - -
Brahm Fundco 2 Limited 60% 97 95 - -
Brahm Lift Limited 60% 94 244 - -
Inhoco 2952 Limited 60% 132 129 - -
Leigh Fundco Limited 60% 49 48 - -
Pacific Shelf Limited 60% 9 9 - -
Pemberton Care Limited 60% 30 30 - -
Pimco 2297 Limited 60% 9 9 - -
Pimco 2401 Limited 60% 46 45 - -
Pimco 2451 Limited 60% 78 76 - -
Pinco 2033 Limited 60% 108 105 - -
Pinco 2206 Limited 60% 88 86 - -
Pinco 2223 Limited 60% 81 79 - -
Rossendale Lift Limited 60% 25 25 - -
East Lancashire Building Partnership Limited 60% 15 228 - -
Foundation for Life Limited 60% 28 167 - -
Glenhome Wrightcare Ltd 50% 79 39 - -

34. ULTIMATE CONTROLLING PARTY

The Trust is under the control of the board of Trustees.

Page 49