REGISTERED CHARITY NUMBER: 1002966 REPORT OF TIIE TRUSTEES AND AUDITED FINANCIAL STATEMENTS FOR TIIE YEAR ENDED 31 DECEMBER 2023 FOR THE ERIC IVRIGHT CllAIUTABLE TRUST Fairhurst Statutory Auditor Chartered Accountants Douglas Bank House Wigan Lane Wigan Lan￿Shir¢ IVNI 2TB THE ERIC WRIGHT CHARrrABLE TRUST CONTENTS OF THE Fll¥ANCIAL STATEMENTS for the Year Ended 31 December 2023 Page Trustees report 2to7 Trustees. responsibilities ststernent Independent auditors report 910 11 Introduction to the fmancial statements 12 Consolidated statement of financial activities 13 Consolidated balance sheet 14 Trust balance sheet 15 Consolidated cash flow ststement 16 Notes to the consolidated Cash flow statement 17 Notes to the financial statemenls 18to49 Page I THE ERIC WRIGHT CHARrrABLE TRUST TRUSTEES REPORT for the Year Ended 31 December 2023 The Trustees present their report with the financial statements of the Charity for the year ended 31 December 2023. The Trustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Reconllncnded Practice applicable to charities preparing their accounts in accordance ￿ryth the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) (effective l January 2015). STRUC'fuRL. GOVERNANCE AND IVIANAGEMENT Goverlling document The Charity was eslablished by deed on the 23 April 1990. The TTUSt was granted charitable status on 17 May 1991 ab a general charitable trust with registered charity number 1002966. Organisational strueture The I'ruslees meet at least four times a year to agree strategic direction, receive rewrts from staff, approve budgets and finance reports and endorse new policies as well as changes to existing policies. The Trustees are also members of key Sub-cojnmittees that meet periodically throughout the year to discuss Finance, tnvestment and Governance. ChaTitable Giving and Remuneration. 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. Reeruilment and appolDtment of neiv trnstees The power to appoint new trnstees is vested in the settlor, Eric WrigliL during his lifetime and, following his death, in Alison Wright, a Trustee of the Charity. New trustees are appointed as and when required and detern)ined by tbe current trustee body and the needs olthe Cbarity in consultation with the settlor. No new trustees were appointed during the year. When appointing new trustees, the trustees would seek to address the issue of any skill and knowledge gap within their body. Induellon and training of neiv trustees New trustees will be subject to training as required by their previous experience. Ongoing training is provided to the existing trnstees as required. Related parties The Charity is relafrd to its subsidiaries, Water Park Limited and Henmead Limited, and in tyrn all of Henmead's subsidiaries, and also to thc ETIL Wtight tKaTning Foundation, a charitable company limited by guarantee of which the TTUSt is a member alld providc% thL majority of its fL￿dIng. CvDflicts of interest Thc Trust operates in accordance with its Conflict of Interest policy. From time to time the Charity may make grants to organi8dtions with whom one or more of its Trnstees is connected, typically as a Trustee or member of staff. The TrustCe8 make every effort to ensure that decisions on ihese grants are made at arnis-length, and in accordance with their 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 ¢onfim that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to leA8en these risks. The principal risks identified by the Trnstees relate to Financial controls, risk management within th¢ operating subsidiaries, and investment. The policies in relation to financial controls and risk management are reviewed on an annual basis. In relation to investtt)ents, the Trustees review these in conjunction with investment advisors on a six-monthly basis. Finanelal Controls.. The Trustees operate on a day-towday basis in accordance with their financial controls policy, which is fornially revtewed and updated on an annual basis. Page 2 THE ERIC WRIGHT CHAIUTABLE TRUST TRUSTEES REPORT for the Year Ended 31 Deeember 2023 Operating Subsidiaries: there are detailed procedures in place in relation to risk management within the operdting subsidiaries. In the Case of Water Park Lirnited, the directors meet three times a year as a Board and provide operational and financial reports to the Trustees on a biannual basis. In the case of Henmead Limited and its subsidiaries, the directors of these operational Ix)ards meet on a monthly basis and provide operational and financial reports to the Trnstees on a quarterly basis. There are also a number of reserved matters thal require the consent of the Trustees before they can be implemented by ihe operational boards of Henmead Limited and its subsidiaries. The Trustees meet with thc auditors of Henmead Limited and of its operating subsidiaries at their June meeting to receive their annual audit report and discuss any reconmiendaiions arising. which infornis the Truslees. approach to ongoing risk management within that operaling subsidiary. The Finance Sub-committee consisting of three Trustees meet with the auditors of the Eric Wright Charithble Trust ai their Sepfrmber meeling to receive their annual audit report. Investments: The Tnstees receive quarterly reporL8 from their Investment advisors. who also present their reports in petson at the Truslees. meetings in June and December each year to give their advice and addres8 any matters. In addilion to the above. Ibe Trustees fonnally review risk management on an annual basis. Charity Commission Governance Code The Ttuste&4 have taken note nf and followed the Charitv Governance Code where appropriate. Remuneration No Tn)stees are remunerated by the Charity. The Charity does not have any employees. OBJECTIVES AND ACTIvrriES Grant Making Policy The Eric Wrlght Charltable T￿st is a general charitable trusl with unrestricted objects. However, the Trustees have prioritised donations to charilable a¢tivities based in the North West of England within the following sectors: Youth Development Elderly Care Education and Training Carers, Support Services Health Support Services Community and Voluntary Service Organisations Mental Hcalth Child and Farnily Support Procedures and policy for grant making The Trustees opernte the following Grants Progrnmmes referred to as the Charitable Giving Strat¢gy: a Major Grants progran]me for grants equal to alld exrttding £20,000, typiGally for [n￿lum-S1Zed charitics. ChatitablL organi8ations ale invifrd io apply for these following an inilial review and meeting. Application for a Major Grant is by invitalion only and by way of a fornial Grani Applicalion Forni staling. inler alia, bow the funds would bc used. what would be achteved. how results would be measured. and providing conslilutional and fmancial inforniation. In response ￿ donee requests. in 2023 the Trustees introduced a pilot initialive to provide multi-year funding to a small number of charities on the Grants Programme. The pilot will be monitored with feedback to b¢ obtained from the supported charities. a Community Grdnls programme for grants betwe¢n £5.000 and £20.000. typI￿lY for small to medium sized chariiie8. Charitable organisations are invited io apply for these following an initial review and meeting. Application for a Community Grant is by invilation only and by way of a forn￿1 Granl Application Forni slating how ihe funds would be used and providing constitutional and fmancial inforniation, a Minor Grants Programme for grants under £5,000, typically for charities with a turnover of less than £lOO,000. Applications are made in the first instsnce via the Trust's website and are subjecl to such requirements as the Trustees believe are appropriafr in relation to the nature of the applicant organisation and the size of the grant. The Tmstees deal with approvals under each Grant Programme in the manner they believe is appropriate to that Grant Programme. Page 3 THE ERIC WRIGHT CHARITABLE TRUST TRUSTEES REPORT for tbe Year Ended 31 December 2023 Publfie Benefit The Tmslees confirni that they have had due regard to the Charity Commission's general guidance on public benefit in planning fijture straiegy, developing grant-making policy attd in rt￿kIng grants. The Trnstees believe that the Charity achieves significant social benefit through the following activities: its operdtion of the Water Park facility, the public benefit of which AS considered below its membership of the Eric Wright Learning Foundation, the public benefit of which is considered below its grant-making strategy, which aims at providing fimding for charities, typically small and medium sized operating in the North West of England, whicb the Tn￿le¢S believe provAde a wide range of public benefit, with particular emphasis on the health, well-being and ¢du￿tIOn of local residents and the developJn¢nt of local communities. However, given that th¢ Trnst has unrestricted objects, the Trnstees retain full discretion to tllake grants for any charitable purpose as they see fit. depending upon the circumstances. Significant activities The aclivities of the Charity are set out below. ACHIEVEIVIENT AI¥4D PERFORMANCE Charitable aclivitie5 for the public benefit During the year, the Trust continued to op¢rate in ￿rthcrdnc¢ of the objectives stated above. Its principal activilies were as follows". Water Park Outdoor Pursuit5 Centre Water Park is an ouidoor pursuit centre owned by the Tn￿t on Coniston Water in the Lak¢ Distri¢t aimed at helping young people, many from disadvantaged backgrounds, to spend time in a wholly different learning environment and assist their self-developmenL The centre does this by providing tailored and progressive outdoor adventurous experiences which develop confidence, raise self-esteem and increase an awareness of self, others and the environment. This PTogres5ive adventure approach accompanied by visiting teachers, collaboration will ensure a Water Park visit delivers the maximum life enrichment available through outdoor adventurous activities. 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: Improvesyoungpeople's ability Éo work iogeiher tslerale oihérs Their resilience andperseverance is improved Youngpeople who may struggle academically are allowed ¢0 shine in this differenl environment The opportunity lo escopefrom a challenging hopne life and io be a childfor a week ￿ immeasurable 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 Wat¢r 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 numing 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. 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 establi$hed, periodically reviewed by the directors in order to ensure objectivity. Thi8 approaLh cnable% 4upwrt to be focu%cd towaTds' gmups or individuals where the need is greatest. In the year to 31 De¢¢rn￿r 2023, th¢ total operating cost for Water Park was £1,262,000 (2022: £1,214,000). It AS not envisaged that Water Park Limited will generate an operating SUTplus in the foresccable future and as a consequence the Trustee8 have factored an ongoing fmancial commitment in 8UPPOrt of the Subsidiary into the Charity's reserves policy. During the fllwicial year under review the Trust provided hnding of £930,000 lo Water Park Linlited. The Twstees are satisfied ihat the Water Park facility meets the Charity Commission's guidance on public benefit. Page 4 THE ERIC WRIGEf CHARITABLE TRUST TRUSTEES REPORT for the Year Ended 31 December 2023 The Eric Wright Learning Foundation The Trust is a member of the Eric Wright Leaming Foundation, a charitable company limited by guaranfre, and provides the fimding to support its activities. The Learning Foundation aims to: inspire young people to be the best they can be support progress from early interactions th￿Ugh education and positive learning experiellces that reflcct a real world environtnent reate opportuniti¢s for meaningful ¢ar¢¢rs through relationships wilh industy ¢mployers The Learning Foundation achieves this by working in partnership with Preston's College to provide vocational training for both the 14-16 and 16-18 learner ¢ohorts in addition to scholarships for 16-18 students across ihe following trades: Brickwork Plastering & Joinery Painting & Decorating Plumbing Electrical Support is provided by the Learning Foundation to 14-16 learners through mentoritlg, PPE, bursaries, and the opportunity to access apprenticeships or further training. During the financial year under review the Trust provided funding of £59.000 to The Eric Wright t£arning Foundation. Charitable Grant Making Strategy During 2023, the Tru¥tc¢s d¢livered their charitsblc giving strategy by working with a wide number of orgxni%ations across the North West of EnLTland. Donationè4 of £1,728,000 (2022: £2.137,￿0} were made to 92 regi8teTed charitie prcdominantly working within the sectors listed below. Youth Development Elderly Care Education and Training Carers, Support Services Health Support Services Community and Voluntary Service Organisations Child and Family Support Mental Health 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 that provide state-of-the-art facilities for young people. Funding from the Trust has supported the Youth Zones to deliver a variety of initiaiiv¢s to give young people new skills and experiences to achieve their potential. Elderly: North West based Age UK charities funded to deliver initiatives including inforniation and advice services, activity centres and programmes for elderly people, and initiatives helping service users feel less isolated and more supported in laler life. Mental Health: projects range from supporting young people in school settings and older teenagers wilh their wellbeing and mentsl health, to family focused proj¢cts and adults with mental health conditions who need additional support with welfare rights and debts. Carers Support Services: a range of diverse services designed to support carers in various ciwumstances. Projects include assistance for carers looking after individuals with dementia, and Lqilored support for young carers resp)nsible for parent. These services may adopt a whole-family approach, particularly for families affected by parental mentsl health issues or substance rnisuse, as well as providing support to farnilies caring for a child with a life-limiting illness. Page 5 THE ERIC WIUGHT CHARITABLE TRUST TRUSTEES REPORT for the Year Ended 31 December 2023 Health: projects run by charities focused on health care and well-being such as the development of a digital hub and belriending service for visually impaired people. creative support for young people with complex mental health ¢ODditions and a programme to support critically unwell children to make positive memories with their familie¥ whilst in hospital. Community and Voluntary Servicu: the Truslees have worked with a number of CVS organi￿li0ns across the North West to provide grant funds managed by the local CVS organisation which can be accessed by small gra&•5 roots organi8ations. thereby building cornmunily cohesion and reducing social isolation. FINANCIAL REVtEW Princip21 funding sources I"h¢ Eric Wright Charitable TnL8t is funded by donations fron] Ilenmead Ltmited. Income generated by the managed invc8tment portfolio is reinvestcd within ihe portfolio. Investment policy and objectives There are no restrictions on the TTuste¢s' powers to invest. To the extent that ￿tUre accumulaied reserves exceed the Trust's short to medium-terni objectives. the Trustees may seek to build reserves to streDgthen the long-terni sustainability of ihe Trust as well as to develop the flexibility to fund larger projects that also meet its crileria. Investment performanee The TNst has three principal investments in addition to the cash balances relained to fulfil the operational reserves policy. These are the property at High Nibthwaite, Cumbria, the IOOO/o shareholding in Henmead Limited. and a portfolio of investments managed by Brewin Dolphin Investment Managers. High NibthTrvaite The property is reDted out to Water Park Limited at an annual rent of £80,000 per annum, representing a return of 3.2 /0 on the investment. The property is valued at £2,500,000 and is subject to three-yearly revaluations, last valued with an effectiv¢ date of 31S1 December 2023. Henme&d Limlted The Trnst is sole shareholder of Hen￿ead Limited. a subsidiary company with a net book value of £92,243,000. Financial results for Henrnead Limiled are published separately. Managed Investment Portfolio The manaLFed investment portfolio was valued at £3.499,000 as at 31 st December 2023. The Tru%tees have appointed profe&sional investment advisors who advise on investment policy and strategy and asset allocation. The Truste&s have aligned the inveslment risk profile with other charitable organisations and are confident that the inv¢stment strategy will serve the '[ nLgt well. Reserves policy It 1% the policy of the Tru**t to n]ainlAin cash funds at a level that will match committed cxpenditure. The ￿￿erVC.8 include minimum of iwo years, committed expendltl￿e at any one time and inco4)orate the n]ulti-y¢ar grani prograrnme, ¢nabling thc Trusl to honour its commitments and make future pledges. Under the terms of the Tru8t Deed, the General Fund is expendable at the Tru%tcc8' discretion. All unexpended funds are therefore held in the Generdl Fund. The Trustees intend to continue monitoring Ihe value of the General Fund in real tenns lo ensure that they are able to achieve both income and capital appreciation so as to maintain the existing level of ¢haritsble giving for th¢ foreseeable future. At the year end the value of reserves held was £103,464,000. 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 ￿ture. Accordingly, they continue to adopl a going ¢on¢ern b&8is in preparing the financial 8tatements. Page 6 THE ERIC ITrIUGHT CHARrrABLE TRUST TRUSTEES REPORT for the Year Ended 31 December 2023 PLANS FOR FUTURE PERIODS The Trustees are satisfied that the Current Charitable Giving Strategy will provide the basis and guidanc¢ for ￿tUre grant awards for the next Iwo years. Th¢ Trustees will continue ¢0 evolve the strategy organically. However, a full review is undenvay in preparation for implementing a new strategy, which is eX￿ted to be rolled out in 2026. REFERENCE AND ADMINISTRATIVE DETAILS Registered Charlty nun)ber 1002966 Prineipal 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 M Newshohne C J Wilson P Martin (retired 28" June 2023) (appointed 27 March 2024) REFERENCE AND ADMIIYISTIL4TIVE DETAILS Auditors Fairhurst ststutory Auditor Chartered Accountanis Douglas Bank House Wigan Lane Wigan tAn¢ashire WNI 2TB Bankers Royal Bank of S¢odand PLC Corporate Service Centre PO Box 2027 Parldallds De Havilland Way Bolton BL6 4YU Page 7 THE ERIC WIUGHT CHARITABLE TRUST TRUSTEES REPORT for the Year Ended 31 De¢¢mber 2023 STA TEMENT OF TRUSTEES RESPONSIBILITIES The Trustees ar¢ responsible for preparing the Report of th¢ Trustees and the financial statements in accordance with appli¢able law and United Kingdom Accounting Stsndards (United Kingdorn 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 prnvisions of the trust deed requires the Trustees to prepare financial statements for each financial year whi¢h giv¢ a trne and fair view of the 8tate 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 fman¢ial statements, the Tnlstees are r¢quired to select suitable accounting policies and then apply them ¢onsistently- observe the methods and prin¢ipl¢s in the Charity SORP; mk)ke judgements and estimates that are reasonable and prudent; state whether applicable accounting standards have been followed, subje¢l to any material departures disclosed and explained in the fmancial statements. prepare the fmancial statements on the going concern basis unless it is inappropriate to Presume that the Charity will continue in business. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the fmancial position of the Charity and to enable them to ensure that the fmancial statements Comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of th¢ trust deed. They ar¢ also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularilies. Approved by order of the Board of Trustees on and signed on its behalf by: LIER Trustee Page 8 INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF THE EIUC WRIGHT CHARITABLE TRUST Opinfion We have audited the financial statements of The Eri¢ Wright Charitable Trust (the 'parent charitable company,) and its subsidiaries (the 'group') for ihe year end¢d 31 December 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balk￿¢¢ Sheet, the Trnst Balance Sheel the Consolidated Cash Flow Statemenl, notes to the Consolidated Cash Flow Statement and notes to the fmanciai statements, including a summary of significant accounting policies. The financial reporting framework that ha8 been applied in their preparation is applicable law and United Kingdom Accounting Stsndard8, including Firvdncial Reporting Standard 102 'The Financial Reporting Stsndard applicable in th¢ UK and Republic of Ireland, (Unitcd Kingdom Generally Accepted Accounting Practice). In our opinion the financial 8taternents: give a true and fair view of the state of the Group'8 and of the parent charitable company's affairs as at 31 December 2023 and of the Group'g incorning re%ources and application of resources, including its income and expenditure for the year then ended. have been Properly prepared in accordance with United Kingdom Generally Accepted Awounting Pra¢ti¢e' and have been prepared in accordance with the requirements of the Charities Act 2011. Basi5 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 ￿rther described in the AuditOTS responsibilities for the audit of the financial slalements section of our report. We are independent of the Group in accordance with the ethical requirements tha¢ are relevant to our audit of the financial slatements in the UK, including the FRC'S Ethical Standard, and we have lfilled our other ethical responsibilities in accordance wxth these requirements. We believe that the audit evidence we have obtsined 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.. the Trustees, use of the going con¢¢m basis of ac¢ounting in the preparation of the financial ststements is not appropriate. or the Trustees have not disclosed in ihe financial statements any identified material uncertainties that may cast signiticant doubt about the Charity's ability to ¢ontinue to adopt the going concern basis of accounting for a period of at least tweli'e Months from the date when the fmancial statements are authorised for issue. Other information The Trnstees are responsible for the other inforn]ats"on. The other inforniation comprises the inforn)ation included in th annual report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial staternents does not cover the other inforn]ation and, except to the extent otherniise explicitly 81ated in our report, we do not express any forrn of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other inforn]ation and. in doing so, consider whcther thc othcr infomialion is materially inconsistent with the financial statements or our knowledge obthined in the audit or othcrwise appcars to be materially misslated. If we identify such Material inconsislencies or apparent material misstaternents, we are required to detern]ine whether there is a material misstatemenl in the fmancial statements or a material misstatement of the other inforniation. If, based on the work we have perfonned, we conclude that there is a material nLiSStatement of this other inforn]alion, we are required to rq)ort that fact. We have nothing to report in this regard. Page 9 REPORT OF THE 1Tr4DEPENDEIYT AUDITORS TO THE TRUSTEES OF THE ERIC WIUGHT CHARITABLE TRUST Matters on whieh we are requlred to report by exeeption In the light of our knowledge and understsnding of the charitable company and its enviromnent obtained in the course of the audit, we have not identified material misstalemenls in the Trustees Report. We have nothing to report in respect of the following matters in relation to which the Charities Act 201 I requires us to report to you if, in our opinion.. adequate and sufficienl accounting records. or returns adequate for our audit have not been received from branches not visited by us. or the financial siatements are not in agreement with the aLcuunting records. and returns. or Certain disclosures of Tru8tees' remuneration specificd by law are not made" or we have not received all the inforniation and explanaiions we requirc for our audit. Responsibilities of trustees As explained more fully in the Sthiemenl of Trustees Respon8ibilitie%, the Trustee% are Tesponsible for the preparation of the fmancial statements which give a true and fair view, and for 8uch internal control as the Trustees detennine is necessary lo enable ihe prepardlion 0£ fmancial statementq that are free from rnaterial misstatement. wh¢ther due to fraud or ermr. In preparing the fll]an¢ial statements. Ihe Truslees are responsible for &88es$ing the Charity's ability to continue as a going concern, disclosing> as applicable, matters rela*d to going concern and using the going concern basis of accounting unless ihe Trnstees either intend to liquidate the Charity or to cease operations, or have no realistic a]ternative but to do so. Our responsibilities for the Ydudit of the financial statements Our objectives are to obtain reasonable assurance about whether the flllancial 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 al￿'ay8 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 r¢asonably be eXp￿ted to influence the econon]ic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances on non-compliance with laws and regu]ations. We design procedures in line with our responsibilities, outlined above, to detect material misstatem¢nts in respecl of irregularities, including fraud. The extent to which our procedures are capable of detecting i￿egUlaritieS, including fraud is detailed below: We obtained an understanding of the legal and regulatory frdmework within which the Charity operates. focusing on those laws and regulations that have a direct effect on the detern]ination of material amounts and disclosures in the financial slatements. lThe laws and regulations we considered in this context were the Charities Aci 2011 and the Charitie8 StatLment uf Recomrncndcd Practice (SORP). Wc identificd the gre#t&8t riqk of matCTial impact on the financial statement from iTregularities, including fraud, to be the override of controLg by management and thc complcteness of income. Our audit procedures to respond to these risks included enquiries of management about thcir ovm idcntification and asse%srnent of the risks of irregularities, sample testing of journals and reviewing accounting egtim8te.8 for bi￿￿4, rcading Minutes of those charged with governance and designing audit proc¢dures to test the timing of income. Owing to the inherent limitations of an audit. there is an unavoidable risk that we may not have dctected some material misstatements in the financial statements, even though we have properly planned and perfornied our audit in accordance with a￿OuntIng standards. We are not responsible for preventing non-compliance and cannot be eXpeC￿d lo detect non- omplian¢e with al laws and regulations. A further description of our responsibilities for the audit of the fU￿]ciaL stafrments is located on the Financial Reporting Council's website at www.frc.org.uklauditorsresponsibilities. This description forn]s part of our Report of the Independent Auditors. Page 10 REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE ERIC WRIGHT CHAIUTABLE TRUST Use of our report This report is made solely to the Charity's Trnstees, as a body. in accordance with Section 144 of the Charities Act 2011 and regulations rnadc under Seclion 154 of thai Act. Our audit work ha5 been undertaken so that we might state to the Clllrity's Trustees those matters we are required to state to them in an auditor8, ￿port and for no other pU￿oSe. To the fullest extent pern]itted by law. we do nol accept or assume responsibility to anyone other than the Charity and the Clwity's Trnst¢¢s as a body, for our audil work. lor this r¢port, or for thc opini(ms we have fornied. Fairhurst Stathtory Auditor Chartered Accountants (Eligible to act as an audiior in ternis of Section 1212 of ihe Companies Act 2006) Douglas Bank House Wigan Lane Wigan Lancashire WNI 2TB Date: Pagell THE EIUC WRIGHT CHARrrABLE TRUST INTRODUCTION TO THE FINANCIAL ST ATEMENTS for the Year Ended 31 December 2023 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 industy. Water Park Limiled 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 tl)e subsequent pages. The Statement of Finan¢ial Activities for the Charity has been rq)roduced below to present ihe activities of the Charity prior to the consolidation of the subsidiary companies (Henmead Limited and Water Park Limited). 2023 £000 2022 £000 INCOME AND EIYDOWMENTS FROM: Donations and legacies Inveslment income 3,326 255 3,520 143 3,581 3,663 EXPENDITURE ON: Raising fimds Charitable activfities: Financial assistance to Water Park Ltd Grant to institutions other than Water Park Ltd 223 95 893 1,728 841 2,137 2.844 3,073 Operating suo)lus 737 590 Net (losses)Igains on investhients (2,358) 11,661 NET MOVEMENT IN FUNDS (1,621) 12,251 A proportion of the pmfits from Henmead Limited (which trades through the Eric Wright Group of Companies) are dondted annually to the Eric Wright CharitÉible Trust. The Charity uses the donation from Henmead Limited to support ILK'al charities as outlined in the CharitablL Giving Strategy contained within the Trustees Report and Itsted in Note 10 of the accounts. Surpluses are invested in a n￿naged share portfolio to provide future stsbility and fulfi]ment of the Charily's objectives. Page 12 THE ERIC IVIUGHT CHARTTABLE TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 31 December 2023 2023 Total funds 2022 Total funds Notes £'ooo £'ooo INCOME AND ENDOITrThIENTS FROM Donations and legacies Commercial trade operation Charitable activities Third paty fee tncome paid ￿ Water Park Investsnent income 246,272 186,599 371 174 371 63 Total incomlng resources 246,818 187,034 RESOURCES EXPENDED Costs of generating funds Raising fuTJds Commercial trade operation 45 240,281 42 176.363 Charitable actlvltles Grants to other Charitsble bodies Co¥ts of operating Water Park and governan¢¢ activities 1,728 2,137 Total resourees expended 243,415 179,727 (Loss) on revaluaiion ofinvestmeni property Net gaIn￿(lOSses) on investments (1,405) 197 {4,800) 500) NET INCOME 2,195 2,007 Other recognised (losses}/gaills Re-n]easurement of the net defmed benefit liability Share of ¢ompr¢hensive {loss)linwme of joint venlures & associates Effective portion of changes in faAr value of cash flow h¢dg¢ Deferr¢d tax on other comprehensive(loss)lincome (121) (3.239) 985 4,207 (6251 169 {3,816) 7.088 2,036 10,244 Total Ooss)lillco￿c for the year (1,621) 12,251 RECONCTLIATIOIWI OF FUND,S Total funds brought forward 105,085 92,834 TOTAL FUNDS CARRIED FORWARD 103,464 105,085 Page 13 THE ERIC WRIGHT CHARITABLE TRUST CONSOI,IDATED BALANCE SHEET At 31 December 2023 2023 Total funds 2022 Total funds Notes £•ooo £'ooo FJXED ASSETS Intangible assets Tangible assets Investments Investments Investment propety 15 16 1,605 5,183 1.499 4,191 17 18 14,020 17,247 92,656 110,218 115,593 CURRENT ASSETS Stocks Debtors Cash at bank 19 20 31,366 90,411 20,324 82,446 143,291 124.462 CREDtTORS Amounts falling due within one year 21 (J02092) {69,196) NET CURRENT ASSETS 40 TOTAL AS&¥F.TS LESS CURRFNT LIABILITIES 150,617 170,859 CREDITORS Amounts lalling due after more than one year 22 (39,481) (57,586) PROVISIONS FOR LIABILITIES Deferred lax liability Pensions and similar obligations Other provisions 26 27 28 (S.176) (2,467) (29) (5.610) (2.482) {96) NET ASSETS 103 464 105,085 FUNDS Unrestricted fimds 29 103 464 105.085 TOTAL FUNDS 103,464 105,085 The fjnancial statements were approved by ihe Board of Trustees on and were signed on its behalf by.. COLLIER Trusfr¢ Page 14 THE LRIC WIUGHT CHARITABLE TRUST TRUST BALANCE SHEET 31 Dec¢rnber 2023 2023 Total funds 2022 Total funds Not¢s £'ooo £'ooo FIXED ASSETS Tangible assets Investments Investments Investmettt property 16 17 19 17 18 95,742 98,294 2,250 98.259 100,563 CURRENT ASSETS Debtors Cash at bank 20 262 272 5,476 4,653 CREDITORS Amounts falling due within one year 21 (271) (131) NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES 103,464 105,085 CREDITORS Amounts falling due after more than one year 22 NET ASSETS 105,085 FUNDS Unrestricted funds 29 103 464 105,085 TOTAL FUNDS 103 464 105,085 The financial statements were approved by the Board of Trustees and authoiised for issue on were signed on its behalf by., COLLIER Trustee Page 15 THE ERIC WIUGHT CHARITABLE TRUST CONSOLIDATED CASH FLOW STATEMENT for the Year Ended 31 December 2023 2023 £'ooo 2022 £'ooo Notes Cash flows from operating activiti¢$: Cash (used in)/generated from operations Other ¢onipreh¢nsive (loss)lincome {non-cash) Movement in provisions Tax paid (2,712) 3,816 (448) 12,843 (10,244) (349) 858) Net cash received by operating activities 621 1,392 Cash flows from investing activities: Purchase of intangible fixed assets Purchase of tangI￿le fixed assets Purchase of fixed asset investments Purchase of investmeni property Sale of tangible fLxed assets Repa)Thent of loans New loans Interest received Dividends received {290} (1,278) (3,133) (794) 5,929 3,822 (52) 98 345 (252) (447) (4,227) (ioi) 4.013 2,845 (3,406) 294 1¥4¢t ¢Ydsh provlded by/(used in) investlng a¢livitie$ Cash floivs from ftnancing a¢tiTrqties: Loan repayments in year Increase in directors, loan (6,507) (2,351) 653 Net cash used in fmaiieing activities (5,446) (1,698) Change in cash and cash equivalent5 in the reporting perlod Cash and cash equivalents at the beginnfing of the reporting period {178) (1,578) 23,270 Cash and cash equlvalents at the end of the reporting period 21,514 21.692 Page 16 THE EIUC WRIGHT CHARITABLE TRUST NOTES TO THE COIYSOLIDATED CASH FLOW STATEMLNT for the Year Ended 31 Deeember 2023 RECONCILIATIOIY OF IYET INCOME TO NET CASH FLOW FROM OPERATIIYG ACTJVITIES 2023 £'ooo 2022 £'ooo Net Ineome for the reporting period (as per the statement of fmancial aetivilfies) (1,621) 12,251 Adjustments lor: Depreciation charg&8 (Gain)Iloss on investmcnts tnterest received Dividends received Revaluation of investment properties Operating profit of joint ventures & associates Profit on disposal of investment property and fixed assets Taxation Increase in stocks (Increase)Idecrease in debtor8 Increase in creditors 477 (197) (98) (76) 1,405 (3,562) (215) (388) (11,042) (8,062) 433 495 (9) {54) 4.805 (3,225) (527) (6,297) 599 Net cash (used in)Igenerated by operaling y4¢ti￿tieS 2.712) 12,843 ANALYSIS OF CASH AND CASH EQUIVALENTS 2023 £'ooo 21.514 2022 £'ooo 21,692 Cash & ¢ash equivalents Total cash and eash equivalents Page 17 THE EIUC IVRIGHT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 Deeember 2023 ACCOUNTll¥G POLICIES The Eric Wright Charitable Tntst ('%he Trust) is a Charitable Trnst 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 fEnancial statements. Judgements made by ihe Trnstees. in the applicaiion of these accounting policies that have significant effect on the financial statements and estimates wilh a signÈfiLdTht risk of material adjustment in the next year are discussed later in accounting policies under the title 'Accounting estin￿leS and judgements,. Ba515 of preparing the f￿ancial slatements The financial statements of the Charity, which is a public benefit entity under FRS 102. have been prq)ared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporling by Charities-. Stat¢ment of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland {FRS 102) (effective l January 2015),, Financial Reporting Standard 102 The Financial Reporting Stsndard applicabl¢ in the UK and Republic of Ireland, and the Charities Act 2011. The financial statements have been prepared under Ihe historical cost convention with the exception of inv¢stments which are included at market value, as modified by the revaluation of certain assets. All amounts in the fmancial statements hav¢ be¢n rounded to the nearest £ 1,000. Going concern The Trust's activities are set out on the Trnstees, report set out on pages 2 to 7. The fll)ancial position of the Trnst is set out in the balance sheet on page 15. The tinancial risk and management of fmancial risk is explained in the Trustees, report. The Trnsiees 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 accounttng in preparing ihe annual fmancial statements. Consideration of going concern for subsidiary entities is made at Henmead level and the Trustees agree with the conclusion forn]ed. ij llleome Income from charitable aclivilies is recognised once the Trnst has entiilement to the income. it is probable that the income will be received and the amount of the income can be reliably measured. Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and thc amount of the obligation can be measured reliably. Expenditlwe on charitable activities is incurred on direclly underlaking the activities which further the groups objectives, as well as any support ¢osts. Grants payable are Charged in the year when payment is made or an uncondittonal offer is made. Grants offered subject to Conditions which have not been niet at the year end are noted wiihin the reserves note a as a commitment, but not accrned as expendithre. Expenditure is inclusive of i￿eCOverable VAT. where appropriate. Page 18 THE EIUC WRIGHT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 Deeember 2023 ACCOUNTING POLICIES- eontinued BAsis of eonsolidation The consolidated fmanGial statements include the fmancial statements of the Charity and its subsidiary undertakings mad¢ up to 31 December 2023. A subsidiary is an entity that is conlrolled by ihe Charity. The re%ults" of subsidiary undertakings are included in the consolidated slatement of fjnancial activities from the date that control comvnences until the date that control ceases. Control is established when the Charity has the power to govem tbe operating and fmancial policies of all entity so as to obtain benefits from its aclivities. In assessing control, the Henmcad Limited group of companies referred to as Group, takes into consideration potential voting rights that are currcntly exercisable. The Henmead Limited group of companies is controlled by the Charity. onscquently the gross income and expenditure from its operations are presented on the Statement of Financial Activitie5 for both the current and the comparative period. An a&8ociate is an entity in which the Group has significant influence, but not control, over the operating and financial polici&s of the entity. Significance influence is presumed to exist when the inveslor holds between 20Q/o 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 venthre is Ca￿led out through an entity, it is treated as a joinily 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. Ivhere 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 iniention to in the fU￿re, 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. Ivhere a group company is party to a joint venture which is not an entity, Ihal company accounts directly for its share of the income ￿ld expenditure, assets, liabilities and cash flows. Such arnngements are reported in the consolidated financial statements on the same basis. Basis of preparing thc financial statcmcnt5 In the consolidated financial stateinents, investments in subsidiaries, jointly controlled entities and associates are caiTied at cost less impainnent. In the accounts of the TrusL the inveslments in subsidiaries are carried at Net Asset Value. Turnover Turnover in Tespcct of tradinbT artivitic% 1% included in "other income" within income on the Statement of Financial Activitie8. Turnover iq stated net of VAT. In re.8pect of contracting activities, ￿rn0ver represents the value of work done in the year including estimates of amounts not invoices and adjustments rclating to prior years which have bcen agreed during the year. In respect of the commewial development activities, tumov¢r represenls the sale of property recognised on exchange. With regard to fonvard funded ¢ommer¢ial schemes, revenue is recordcd equivalent to the level of costs incurred. In respect of the residenlial development activity turnover is recognised on complelion of propety sales. In respect of the Public Private Partnership and management activities turnover represents the value of services supplied during the year. Rental income is recognised on a straight-line basis over ihe associated lease tern]. All amounts are derived within the United Kingdom. Page 19 THE ERIC WRIGHT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2023 ACCOUNTThG POLICIES - eonlinued Classifjcation of financial Anstrun)ents 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 followtng two conditions: (a) they include no ¢ontrdctual obligations upon the group to deliver cash or other fmancial assets or to exchange fmancial assets or financial liabilities with another party under conditions ihat are potentially unfavourable to the group; and (b) where the instrument will or may be settled in the entity's own equity instrumcnts, it is either a non-derivative tbat includes no obligation to deliver a variable number of the enlity's own equity instruments or is a derivative tbat will be settled by the entity exchanging a fixed amoullt of cash or other fmancial assets for a r￿ed number of its own equity instrumcnL8. Basic finanelal 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 8re measured at amortised c08t U8ing the effective interest method, less any impaimient losses in the case of trade debtors. If the arrangemcnt conslilutes a F￿ancing transaction, for example if payment is deferred beyond norn￿1 business ternis, then it is measured at the present value of ￿tUre payments discounted at a market rate of interest for a similar debt instrument. Interest-bearin , borrowin s classified as basi¢ financial instruments Interest-bearing bom)wings are recogni8ed initially at the present value of fijtyre payments discounted at a market rale of interest. Subsequent to initial recognition. interesi-bearing borrowings are stated at amortised Cost using the etyective interest method, less any impairnlent losses. Investments in refer¢n¢¢ and ordina shares Investments in equity instruments are m¢asured initially at fair value, which is nonnally the transaction price. Transaction costs are excluded if the inv¢stments are subsequently measured at fair value. Subsequent to initial recognition investments ihat can be measured reliably are measured at fair value with changes recognised in the Statement of Financial Activities. Other invesiments are measured at Cost less impainnent in the Statement of Financial Activities. Cash and ￿$h e uivalenLs Cash and cash equivalentt4 comprise cash balances and call deposits. Bank overdrafts that are repayable on detnand and forni an integral part of the Charity's cash Tnanagcment are included as a component of cash and cash equivalents for the purFK)4e only of the cash flow statement. Finance lease debtor4 At the commencemcnt of the lease terni, a finance lease is recorded in the balance sh¢et as a receivable, at an amount equal to th¢ net investment in the lease. The net investment in a lease is the gross inve%tmcnt in the lease discount￿ at the interest rate implicit in the lease. The gross investm¢nl in the lease is thc aggregate of: The minimum lease paym¢nt8 receivable under a fU￿nCe lease. and Any unguaranteed residual value accruing to ihe company. Initial direct costs (Costs that are incremental and directly attributable to negotiating and arranging a lease) are included in the initial measurement of the fmance lease receivable and reduce the income recognised over the lease terni. Finance income IS Tecogni8ed based on a pattern reflecting a conslant periodic rate of re￿rn on the net investment outstanding in respect of the fmance lease. Page 20 THE ERIC WIUGHT CHAIUTABLE TRUST NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2023 ACCOUNTING POLICIES - Continued 1.10 Other financial instruments Financial instrnments not considered to be Basi¢ financial instrurnents Other financial instnllnents Other finan¢ial instruments not meeiing the defmition of Basic Financial Instruments are recognised initially at fair value. Subsequent to inilial recognilion other financial instnmients are measured at fair value with changes T¢¢ognised in the Ststement of Financial Activities except as follows: investments in equity instrLunents Ihat are not publicly traded and whose fair value cannot otherwise be measured reliably sI￿ll be measured at Cost less impainnent; and hedging instrnments in a designated hedging relationship shall be recognised as set out overleaf. Derivative financial instruments and hed in Within the Trust no derivative financial insttvments exist however, the below represents those derivative financial instrnments 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 d¢rivatives qualify for hedge accounting, recognition of any resultant gain or loss depends on the nature of the item being hedged (see below). 1.1 l Hedge a¢¢ounting Fair value hed Within the Ttusl 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 Tn￿t 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 fmn commitment, all Changes in the fair value of the d¢rivativ¢ are rLxognised immediaiely 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 tlje risk being hedged (even if it is nonnally carried at ost or amortised cost) and any gains OT losses on remeasurement are r¢cognised immediately in th¢ income statement {even if those gains would norn￿llY be recognised directly in reserves). If hedge accounting is discontinued and the hedged fjnancial asset or liability has not been derecognised, any adjustments to the carrying amount of the hedged item are amortised into th¢ Statement of Financial Activities using the eifective interest method over the remaining life of the hedged ifrm. Cash flow hed es Within the Trust no cash flow hedges exist however, tjie below represents those cash flow hedges ihat o¢¢ur in the Henmead group accounts and are included in the Trust accounts on consolidation. Where a derivative fllwicial instrument is designated as a hedge of the variabAIIty in cash flows of a recognised asset or liability> or a highly probable forecast Irdnsaction, the effeciive part of any gain or loss on the derivative financial instrnment is recognL8ed directly in other comprehensive income. Any ineffective portion of tl)e hedge is recognised immediately in the Statement of Financial Activities. For Cash flow hedge5, where the forecast transactions resulted in tl)e recognition of a non-financial asset or non- fllwicial liability, th¢ hedging gatn or loss recognised in other re¢ognised 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 Activilies. When a hedging instnunent expires or is sold, tern]inated or exercised, or the entity discontinues designation of the hedge relaiionship bui the hedged forecast transaction is still eA￿ted to occur, the cumulative gain or loss at thai 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 lo lake place, the cumulative unrealised gain OT loss recognised in equity is recognised in the income slalement immediately. Page 21 THE ERIC WRIGHT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 Deeember 2023 ACCOUNTING POLICIES - continued 1.12 Tangible r￿ed assets Tangible fixed assets are stated at C05t less accumulated depreciation and accumulated impairn)ent losses. Where parts of an item of tangible fjxed assets have diiferent useful lives, they are accounted for as separale 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 owncrship of the leased asset are classified as fmance leases. All other leases are c1&89ified as operating leases. Leas¢d as8ets acquired by way of finance lease aTe stated on initial recognition at all amount equal to the loweT of their fair value and the present value of the minimum l¢ase payment5 at incq)tion of the lease, including any increments]I costs directly attributable to negotiating and arranging the leasc. At initial recognition a finance lea8c liability is recognised equal io the fair value of the leased asset or, if lower, the present value of the minimuni lease payments. The present value of the minimum lease paymenL% is calculated using the interest ratc implicit in the lease. Lease payments are accounted for as descTibed below. The company assesses at each reporting date whether tangible f￿ed assets (including those leased under a rmance lease) are impaired. Depreciation is charged to the Ststement of Financial Activities on a strdight-line basis over the estimated useful lives of eacli part of an item of tangible f]xed assets. Leased assets are depre¢iafrd over the shorter of the lease tern] and their usefvl lives. Land is not depreciated. The estimated use￿1 lives are as follows.. Freehold buildings Leasehold land and buildings - Plant, machinery and scaffolding - Fixtures and fjttings Motor veliicles Computer equipment 40/0 on cost 40/0 on cost 15 /0 on reducing balance 15 /0 on r￿UcIng balance 250/0 on reducing balance 330/0 on ¢ost 1.13 Business combinatlons Business combinations are accounted for using the purch&8c method as at the acquisition date, which is the date on which control is transf¢￿ed to the entity. At the acquisition date, the group recognises goodwill as.. - the fair value of the consideration (excluding contingent Consideration) transfeTrd- plus - estimated amount of contingent ¢onsideration (see below}" plus - the fair value of the equity instruments issued- plus - directly aitributable transaction costs. less the nel recognised amount (generally fair value) of the identifiable assets acquired and liabilitiC8 and ¢ontingent liabilities assumed. Consideration wliich is contingent on future events is recognised based on the estimated amount if the conlingenl consideration is probable and can be measurcd reliably. Any subsequent changes to the amount are trealed as an adjustment to the Cost of the acquisition. FRS 102.35 granted certain exemption% from the full requirements of FRS 102 in the transition period. The Group elected not to restate bu%iness combinations that t(M)k placc prior to l January 2014. In respect of acquisitions prior to l January 2014, goodwill is included on th¢ basi8 of its deemed cos¢ which represents the amount recorded under old UK GL4P. Intangible assets previo￿lIY included in goodwill, are not recognised separately. Page 22 THE ERIC WIUGHT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2023 ACCOUNTIIYG POLICIES - conlfinued 1.14 Intangible assets Within the Trnsl no intangible asseis exists however, the below represents intangible assets ihat occurs in the Henmead group accounts. Intangible assets relate to computer software which is ststed 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. 1.15 Stock and Ivork in progress Stock and work in progress is slated at the lower of cost and net realisable value. Cost includes all direct expenditure and an appropriate proportion of f￿ed and variable overheads. 1.16 IDvestment property Investment properties are properties which are held either to earn rental income or for capital app[￿latIOn or for both. Inveslment properties are recognised initially at cost. Subsequellt to initial recognition investment properties whose fair value can be measured reliably without undue cost or effort are held at fair value. Any gains or losses arising from changes in the fair value are recognised in the Statement of Financial Activities in the period that they arise. and no depreciation is provided in respect of investment properties applying the fair value model. 1.17 Construction contract debtors Within tlie Trust accounts no construction contract debtors exist however, the below represents those Construction cotttract debtors that occur in the subsidiary accounts. Amounts recoverable on long tern] contracls represents the gross unbilled amount for contract work perforn]ed to date. They are measured at cost plus profit recognised to date (see the revenue accounting policy) less a provision for foreseeable lo%￿$ and less progress billings. Variations are included in contract revenue when they are reliably rneasurable and it is probable that the customer will approve the variation itself and the revenue arising from ihe variation. Claims are included in contract revenue only when they are reliably measurable and negotiationb have reached an advanced Stage such that it is probable that the customer will accepl the claim. Cost includes all expenditure reliltcd directly to specific projects and an allocation of fixed and variable overheads In¢u￿¢d in the entity'8 contracl a¢tivities based on nornlal operating capacity. Amounts recoverable on long terni contracts are presented as part of trade debtors in the balance sheet. If payments received from customers exceed the in¢ome re¢ognised. then the difference is presented as payments on account in the balan¢e sheet. Page 23 THE EIUC WRIGHT CHARITABLE TRUST 1¥40TES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2023 ACCOUNTING POLICIES - continued 1.18 Impairment excluding stocks, investment properties and deferred tax assets Financial assets includin Irade and other debtors A fmancial asset not carried at fair value through the Statement of Financial Activities is assessed at each reporting date lo deternjine whether there is objective evidence that it is impaired. A fllwi¢ial 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 estimat¢d fiiture ¢asb flows of that asset that can be estimated reliably. An impaim)ent loss in respect of a fman¢ial asset measured at amortised cost is calculated as the difference between ils carying amount and the present value of the estimated fvture cash flows discounted al the asset's original effective inlerest rate. For fwancial insttvments measured at cost less impairnient, an impainnent is calculated as the difference between its carrying amount and the best estimate of the amount that the Company would r￿e1ve for th¢ asset if it wer¢ to be sold at the reporting date. Interest on the impaired asset Continues to be recognised through the unwinding of the discount. Impainnent losses are recognised in the Statement of Financial Activities. When a subsequent event causes the amount of impaimient loss to decrease, the decrease in impairnlent loss is reversed througb the Statement of Financial Activities. Non-financial assets Within the Trust accounls no non-fmancial assets exist however, the below represents those non-fllwicial assets that occur in the subsidiary accounts. The canying amounts of the entity's non-financial assets, other than investment propety, stocks and def¢￿ed tax assets, are reviewed at each reporting date to detennine whether there is any indication of impairnient. If any such indication exists, Éhen the asset's recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit 15 the gTeater of its value in use and its fair valu¢ less Costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax dis¢ount rate that reflects cu￿ent market assessments of the time value of money and the risks gpe¢ifi¢ to the asset. For the purpose of impairment testing, assets that canDot be tested individually are grouped together into the smallest group of assets that generates cash inflows from ¢ontinuing use that are largely independent of the Cash inflows of other &8sets or groups of assets (the "¢ash-generaling unit"). The goodwill acquired in a business combination, for the purFM)se of impairn]ent testing is allocated to cash-generdting units, or ("CGU") that are expected to benefit from the synergies of the Combination. For the puryose of g(K)dwill impainnent lesting, if goodwill cannot be allocated to individual CGUS or groups of CGUS on a non-arbitrary basis, the impairnient of goodwill is deterniined using the re¢overable amount of the acquired enlity 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 canying amount of an asset or its CGU exceeds its estimaled recoverable amount. Impainnent losses are recognised in the Statement of Financial Activities. Impairnient losses re¢ognised in respect of CGUS are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce ihe carrying amounts of the other assets in the unit (group of units} on a pro rata basis. An impairnient loss is reversed if and only if the reasons for the impairn]¢nt have ceased to apply. Impainnent losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decre&8ed or no longer exists. An impairnient loss is reversed only to the extent that the asset's carrying amount does not exceed the Carrying amount that would have been deterniined. net of depreciation or amortisation. if no impainnent loss had been reco￿]Sed. Page 24 THE ERIC WRIGHT CHARITABLE TRUST NOTES TO THE Fll¥ANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2023 ACCOUNTING POLICIES - continued 1.19 Employee benefits Defined contribution lans and other lon terni em lo ee benefits A defined contribution plan is a post-employtnent benefit plan under which the Company pays fixed contributions into a separate entity and will have no legal or constrnctive obligation to pay further amounts. Obligations for contribulions 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 s¢heme. The assets of the scheme are held separately from those of the Group in an independently administered fund. Th¢ amount charged to the Statement of Financial Activities represents the ¢ontributions payable to the scheme in respect of the a¢¢ounting period. Differences between contributions payable in the year and contributions actually paid are shoThTr as either other creditors or prepayments in the balance sheet. Defmed benefit lans Wiihin the Trust no defined benefit plans exist however, the below represents those def￿ed 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 ben¢fit that employees have earned in return for their service in the current and PTior periods. thai benefit is dis¢ounted to deiern]ine its present value. The entity delermin¢s the net interest expense (income) on the net defined benefit liability for the period by applying the discount rate as deterniined at the begim)ing of the annual period to the net defined benefit liability taking account of changes arising as a result of contributions and benefit payments. Tlie discount rate is the yield at the balance sheet date on AA credit rated bonds denominated in the currency of, and having Ma￿rilY dales apprOXin￿lIng￿ to the tern]s of the entity's obligations. A valuation is perfornled 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, curtailnients and settlements during the period are recognised in the Statement of Financial Activilies. Remeasurement of the net defmed benefit liability is re¢ognised in other comprehensive income in the period in which it occurs. 1.211 Provfisions A provision is recognised in the balance sheet when the entity has a present legal or constrnctive obligation as a result of a past event, that can be reliably m¢asured 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 seltle the obligation at the reporting date. Where the Trust enters into financial guarantee contracts to guarantee the indebtethiess of other companies within its group> the company treats the guarantee contract as a contingent liability ill its individual fmancial slatemenls until such time as it becomes probable that the company will be required to make a payment under the guarantee. Page 25 THE ERIC WRIGHT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 Deeember 2023 ACCOUNTING POLICIES - continued 1,21 Expenses ralin lease Within the I'rust no operating lea8e.q exist however, the below represents operating leases that occur in the Henmead gTOUP accounts and are included in the Trust accounts on consolidation. Payments (excluding costs for services and insurance) made under operating leases are recognised in ihe Statement of Financial Activities on a straight-line basis over the teTffi of the lease unless the paymenls lo the lessor are Structured to increase in linc with expected general inflation. in which case the paymenls related to the structured increases are recognised as incurred. Lease incentives received are recognised in profit and loss over the lerni of the lease a5 an integTal part of the total lease expense. Finance lease Minin]um lease payments are apportioned between the finance charge and the reduction of the oulstanding liability using thc rate implicit in the lease. The fll)ance charge is allocatcd to each period during the lease tenn so a5 to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are harged as expenses in the periods in which they are incurred. Interest Teceivable and Interest ble Interest payable and similar Charges include interest payable, fmance charges and fmance leases recognised in the Stalemenl of Financial Activities Using the effective interest Enethod and unwinding of the dI￿OUnt on provisions that are recognis¢d in the Statement of Financial Activities. Other interest receivable and similar income include interesi receivable on fimds invested and net foreign exchange gains. Interest income and interest payable are recognised in profit or loss as they accwe, using the effective inteTesl meihod, Dividend income is recognised in the Statement of Ftnancial Activities on the date the entily's right to receive payments is established. Foreign curren¢y gains and losses are reported on a net basis. 1.22 Taxation The Trust is exempt from taxation in respect of income or capital gains, to the extent that such in¢ome or gains are applied exclusiv¢ly to charitable pury)oses. Tax on the profit OT loss for the year for trading subsidiaries comprises current and deferred tax. T&x is recognised in the statement of financial activities except to the extent that it relates to items recognised direcily in equity or oth¢r gains and losses, in which ¢as¢ it is recognised directly in equity or other gains and losses. Current tax 18 the expected tsx 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 aajustment to tax payable in respect of previous years. Defe￿ed tax is provided on timing differences which arise from th¢ inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial slalemenls. The following timing differences arc not provided for: differenc¢.4 bctween accumulated deprecialion and t&x allowances for the cost of a fixed a%'8et if l￿d when all conditions for rctaining the tax allowances have been met- and differences relattng to investments in subsidiaries, a&sociate% and joint ventures to the extenl that il is not probable that they will Teverse in the foreseeable futLwe and th¢ rcporting entity is able to control the reversal of the timing difference. Defcrred lax is not recognised oll pern]anent differences arising because certain types of income 01 expense are non-t2Kable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than thc corresponding income or expcn8e. Deferred is PTovidcd in respect of th¢ additional tsx that will be paid or avoided on differences between the amount at which an a8%et (other than goodwill) or liability is recognised in a busin¢ss combination and the corresponding amount that can be deducted or assessed for tax. Goodwill is adJust¢d 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 t&¥ 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 defetted tax liabilities or other future taxable profits. Page 26 THE ERIC IVRIGHT CHARrrABLE TRUST NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2023 ACCOUNTING POLICIES - eontinued 1.23 Fund accounting All ￿ndS are held within unrestricfrd reserves, which are available for use at the discretion of the Truslees in furtherance of the charithble objectives of the Group. ACCOUNTINC ESI"IMATES AND JUDGEMENTS (a) Key sources of estimation uncertainty in applying the Group's accounting policies Preparation of the fmancial statements requires the Trustees to make eslimates. The iten]s across tbe group statemenLs where these estimates have been made include: Contract lumover Amounts recoverable on contrdcts and rovi8ions Thc amount of profit atlributable to the stage of completion of a long-terni contract is recognised when the outcome of the contract can be forese¢n with reasonable certainly how¢v¢r ther¢ is inherent judg¢m¢nt in this ass¢$sment. Turnover for such contracts is stated by reference to the costs incurred as a proportion of the total anli¢ipated contract costs, less amounts recognised in previous years. Where the outcome cannot be reasonably foreseen. revenue is recognised lo the extent of costs expensed as incurred. Amounts recoverable on contracts represent the gros5 unbilled amount for contract work perfornied to date. Provision is made for any losses as soon as they are foreseen. The provisions are recognised ai the best estimat¢ of the amount required to settle the obligation at the reporting date. Life c cle rovision The Eric Wright Group has contractual obligations to maintain properties owned by LIFf entities and other ihird partles over the lives of those assets. The receipts are under Contract however the timing and quanturn of costs differs resulting iii a provision on the balance sheet. Due to the duration of the life cycle wntracts, 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 perfonned to dale. Contract trade debtors are regularly reported and monitored to ensure the full amount is recovered. Provision is made for doubtful debts. Defect eriod vision During the prior year, new legi%ldtion was introduced which re&*ulted in an exlension to the limitation period within the Building Safety Act. This crealed the potential for tuturc liabililies on a small number of buildings which wer¢ constructed in the paqt 30 years. A provision for fvtute costs has been calculated based on the inforniation currently available. consequently £l.Om has bccn included within accruals. (b) Critical accounting judgements in applying the CJroup's aeeounting policies Certain critical accounting judgements {apart from thos¢ involving estimations included abov¢) in applying the Group's accounting policies are described below. Investment erl Inv¢stment Propenies are initially recognised at cost. Subsequent to initial recognition investment properties whose fair value can be m¢asured 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 ihe overdll valuation. Loans to oint ventures Loans to join¢ ventures are initially re¢ognised at cost. The loans are reviewed annually for impainnent via a review of the joint ventures cash flow forecast. No impairn]ent is recognised as future trading and cash flow forecasts demonstrate the jOiDt ventur¢s have sufficient funds to meet repay the loans as they fall due. Page 27 THE ERIC WIUGHT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 Deeember 2023 ACCOUNTING ESTIMATES AND JUDGEMENTS - continued Investments in oint ventures To the extent that the Henmead group have no legal or constrnctive obligation to fimd the share of historic losses recognised in the joint ventures the value of the investment is restricted to the value of the investmenL% made. Classification of financial instruinents Financial instrnments are recognised initially at fair value. Subsequent to initial recognition financial insttuments are measured at fair value with changes recognised in the Statement of Financial Activitles. Where the financial instrnment falls under the classification of hedging instNments and is in a designated hedging relationship the effectiv¢ part of any gain or loss on the derivative fthancial illstruttjent Is recognised directly in othei gain% and lotises. Any ineffective FK)rtion of the hedge is recognised immediately in ihe Ststement of FillanLial Activitie*+. The at*4es5ment of hedge effectiveness requires judgement. Defined benefit lan The Group'8 Det obligation in respect of defined benefit plans 15 calculated each year by a qualified Actuary and using the e8timate$ set out in note 27. Full provision for the liability is recognised in the Group accounts. DONATIONS AND LEGACIES The grant income Can b¢ r¢pr¢$¢nted as: 2023 £'ooo 2022 £'ooo Other Page 28 THE ERIC WRIGHT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2023 COIUERCIAL TIL4DE OPLRATIONAL INCOML 2023 £'ooo 2022 £'ooo Group turnover Other operating income- rental income Profit on disposal of investmenl pmpety Share of profit in Joint Venthres Share of profit in Associates Incomc from investment Interest receivable and similar income 232,278 5,461 215 3,562 168,027 5,405 3,224 5,787 246,272 186599 Commercial trade operational income relates to tbe Henmead Limited group of companies. INCOME &ROM CIL4RITABLE ACTIVITIES 2023 £'ooo 371 2022 £'ooo 371 Activity Third party fee income paid to Water Park Water Park fees received INVESTMENT INCOME 2023 £'ooo 76 98 2022 £'ooo 54 Oth¢r fix¢d asset investm¢nt Deposit account interest 174 63 Page 29 THE ERIC WRIGHT CHARrfABLE TRUST NOTES TO THE FINAF4CIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2023 RAISING FUNDS Other trading aclivities 2023 £'ooo 45 2022 £'ooo 42 Purchases COMMERCIAL TRADE OPERATIONAL EXPENDITURE 2023 £'ooo 2022 £'ooo Cost of sales Administrative expenses Interest payable alld similar expenses Cost related to investment Tax on profit on ordinary activities Dividend to minority interest 212,408 24,430 3,831 148,315 23,502 3,109 1,958 (527} {388) 240 281 176 363 Commercial trade operational expenditure relaies to the Henmead Limited group of companies. CHARITABLE ACTIVITIES COSTS Grant funding of activities Support costs (See note 10) (S¢¢ nole I l) £'ooo £'ooo Direct costs Totals £'ooo 1,139 £'ooo 1,139 223 Costs of operating Water Park Governance costs Granls to other Charitable bodies 223 1,728 1,728 1,139 223 Page 30 THE ERIC WRJGHT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2023 io. GIL4NTS PAYABLE 2023 £'ooo 2022 £'ooo Grants to oth¢r Charitable bodies 2023 £'ooo 2022 £'ooo Grants paid to institutions other than Water Park Limited are categorised into the following sectors., Health 295 Youth 280 310 Child and Family Support 270 289 Community Voluntary Services 270 125 Mental Health 222 377 Carers 159 295 Elderly 145 270 Education & Training 75 50 Other 13 io 1,728 2,137 Page 31 THE ERIC WRIGHT CHARITABLE TRUST NOTES TO TIIE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2023 ii. CHAIUTABLE SUPPORT COSTS Support costs, included in the above, are as follows: Governance costs 2023 £'ooo 2022 £'ooo Recharge of administrative resources Auditors, remuneration Accountancy and legal fees Trnstees and sundry expenses 103 15 103 49 15 30 223 95 Audit fees across the group are disclosed as.. 2023 £*ooo 2022 £'ooo Trnst auditor (Fairhurst): Audit of Trust and Waier Park subsidiary 15 15 Henmcad Limited audilor.. Audit of Henmead Limited financial statements Audit of financial 8tatemenls of subsidiaries of Henmead Limited Taxalion advisory %ervices 184 45 160 29 251 211 Page 32 THE EIUC WRIGHT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 Deeember 2023 12. TRUSTEES, REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits payabl¢ by the Tn￿t for the year ended 31 December 2023 nor for the year ended 31 December 2022. However, during the year two Trustees received benefits for their fornier rolc &8 a director of two of the non- charitable trading subsidiaries {2022: two). One Trustee also received Temun¢Tation for supplying ad hoG professional advisory services to subsidiaries within the Henmead Limited group {2022: one). Trustees, expenses During the year Trustees were reimbur8ed a total of £772 (2022: £51) to cover out of pocket cxpenses. Directors, remuneration and key management personnel During the year Directors, and key management persorlnel of tbe Henmead group were compensated for their services as follows: 2023 £'ooo 2022 £'ooo Directors, remuneration Benefjts in kind Company contribution8 to money purchase pension plans 1.823 2.244 io 35 38 1,865 2,289 Infonnation regarding the highest paid director is as follows: 2023 £'ooo 2022 £'ooo Remuneration 903 1,276 Retireinent benefits are accruing to one (2022: one) director under a defined contributiott scheme. Th¢ remunerdtion of the Directors of Henmead Limited is disclosGd above. The additional remuneralion of the Directors of Eric Wright Group Limited (key managernent personnel) is set out below. 2023 £'oou 2022 £'ooo Key management persom)el remuneration 1,175 1.211 Page 33 THE ERIC WRIGHT CHARITABLE TRUST NOTES TO THE FJNANCJAL STATF.MFNTS - CONTINUED for the Year Ended 31 December 2023 13. STAFF NUMBERS AND COSTS The average number of persons employed by the Group (including Twstees) during the year, analysed by Cafrgory, was as follows: 2023 2022 Direci labour Administration 394 473 371 432 867 803 The aggregate payroll costs of these persons were as follows: 2023 £'ooo 2022 £'ooo Wages and salaries Social securAty costs Contributions to defmed contribution plans 36,632 3,735 36,389 3,654 3,343 09 14. TAXATION During the year no tax was directly payable by the Twst. Taxation was paid by subsidiary entities and is disclosed in note 8. 15. INTANGIBLE ASSETS Group Software £'ooo COST At l January 2023 Additions 1,821 290 At 31 December 2023 2.111 AMORTISATIO At l January 2023 Amortisation charge for year 322 184 At 31 December 2023 506 NET BOOK VALUE At 31 Deeember 2023 1.605 At 31 December 2022 Trust The trust does not hold any goodwill or intangible assets. Page 34 THE ERIC WRIGHT CHARITABLE TRUST 1¥4OTES TO THE FINANCTAT, STATEIWENTS - CONTINUED for the Year Ended 31 December 2023 16. TAI¥4GIBLE FIXED ASSETS Freehold property £'ooo Long leasehold £'ooo Plant and maehinery £'ooo Group COST At l January 2023 Additions Disposals 3,586 453 515 546 2,611 244 4) At 31 D￿ernber 2023 2,851 DEPRECIA TION At l January 2023 Charge for year Eliminated on disposal 370 33 341 19 2,136 132 At 31 DvAmber 2023 403 360 2.264 ET BOOK VALUE At 31 December 2023 701 587 Ai 31 December 2022 3,249 196 356 Fixthrcs and fittings £'ooo Motor vehicles £'ooo Total$ £'ooo COST Al J January 2023 Additions Disposals 2,268 35 397 9,377 1,277 4) At 31 December 2023 397 DEPRECIATIOP4 At l January 2023 Charge for year Eliininated on disposal 2,061 71 278 30 5,186 285 4) At 31 December 2023 2.133 308 5,467 NET BOOK VALUE At 31 December 2023 170 89 Ai 31 December 2022 207 120 Page 35 THE ERIC WRIGHT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2023 16. TANGIBLE FtXED ASSETS - eontlnued Land and buildings The net book value of land and buildings in tangible fixed assets and investment properties comprises.- 2023 £'ooo 63,359 29,437 701 2022 £'ooo 65,674 30,198 174 Freehold Long leasehold Short leasehold 93,497 Trust Flxtures and fittings £'ooo COST At l January 2023 and 31 De¢ember 2023 204 DEPRECIATION At l January 2023 Charge for year 185 At 31 December 2023 187 NET BOOK VALUE At 31 December 2023 17 At 31 December 2022 19 17. FIXED ASSET INVESTMENTS Group Loans to Joint Ventures £'ooo Interests In Joint Investment in Share Ventures associates portfollo £'ooo £'ooo £'ooo Cash and settlements pending £'ooo Total £'ooo COST OR MARKET VALUE At l January 2023 Addilions Disposals New loans provided Repayment of loans Revaluation Share of loss 13.198 2,122 3,437 3,088 1,620 (1.437) 184 22,029 1.513 3,133 (1,641) (3.078) 52 (3,822) 197 623 52 (386) (3,436) 197 At 31 De¢ember 2023 1,499 3,468 56 17,888 PROVISIONS At l January 2023 Movement in provision (4,783) 915 (4,783) 915 At 31 December 2023 3,868 IYFT BOOK VALUE AT 31 DECEMBER 2023 1.499 56 14 020 At 31 Decejnber 2022 8.415 184 17 247 Page 36 THE ERIC WRIGHT CHAIUTABLE TRUST NOTES TO THE FINANCIAL STATEMENTS - COIYTINUED for the YeAr Ended 31 December 2023 17. FIXED ASSET INVESTMENTS - continued Trust Cash and settlements pendillg £'ooo Share portfolio £'ooo Unlis*d investments £?000 Totals £'ooo FAIR V ALUE At l January 2023 Additions Disposals Revaluations 3,062 1,620 (1,437) 197 95,048 184 1,513 {1,641) 98,294 3,133 (3,078) 2,607) {2,804) At 31 December 2023 3,442 56 NET BOOK VALUE At 31 December 2023 3,442 92244 56 At 31 December 2022 3,062 184 There were no investment assets outside th¢ UK. The Trust's investmenis in unlisted compankes at the balance sheet date were: Percentage County of Nominal value holding incorporation Company Henmead Limited Water Park Limited loo loo England England loo 18. 11¥4VESTMENT PROPERTY 2023 £'lbOO Group 2023 £'ooo Trust FAIR VALUE At l January 2023 Additions Disposals Nel (defi¢it)Isurplus from fair value adjustsnenls 92,656 794 (2,635) {1,405 2,250 250 At 31 December 2023 89,410 NET BOOK VALUE Ai 31 December 2023 89.410 At 31 December 2022 92.656 2.250 All investment propcrties are held at fair value. With the exception of the asset held by the trusL all group assets were valued at l November 2023 at llwket value on the basis of existing by Avison Young or Cushman and Wakefield. Chartered Surveyors, external independent valuers, having an appropriate recognised professional qualification (]￿e Royal Jnstltute of Chartered Surveyopi) and recent experience in Ihc location and class of property being valued. The inveslment asset held by the Trust was valued on the same b&4i8. but a8 at 3151 Dc¢ember 2023. Although the trust asset is used by Water Park Limiled {a subsidiary company) for the furtherance of the trnst's charitable activities, th¢ Tn￿teeS have deemed that it is correci for it to be classified as an investment property in the consolidaled ac¢ounts as it is their policy lo revalue the asset on a regular basis. Page 37 THE ERIC WRIGHT CHARITABLE TRUST NOTES TO THE FINANCIAT, STATEMENTS- CONTINUED for the Year Ended 31 December 2023 19. STOCKS Group 2023 £000 Group 2022 £000 Trust 2023 £000 Trust 2022 £000 Work in progress 31J66 20,324 31,366 20,324 The write-down of stocks to net realisable value through cost of sales amounted to £65,000 (2022.. £548,000}. Offsetting this is a write-back of a previous impainnent of £NIL (2022.. £170,000). 20. DEBTORS Group 2023 £000 Group 2022 £000 Trust 2023 £000 T￿$1 2022 £000 Amountsfalling due wiihin one yeay Finance lease debtor receivable Trade debtors Amounts recoverable on long tern] Contracts Amounts due from subsidiaries Corporaiion t VAT Prepayments Deferred tax Financial Instruments Other debtors 2J53 20,545 23,805 2,001 18,899 16,833 208 235 216 176 13 24 4,867 I,oii 471 4,436 5,289 894 719 2,503 55 57,705 47.314 262 272 Due after more ihan one year Finance lease debtor receivable Trade debtors 30,590 2,116 33,037 2,095 90,411 82,446 272 Amounts owed by group undertakings are non-interes¢ bearing and repayable on demand. Within debtors due fter one year are trade debtors in relalion to retentions receivable on contracts after more than one year. Page 38 THE ERIC WRICHT CHARITABLE TRUST IYOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the Year Ended 31 December 2023 21. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2023 £000 Group 2022 £000 Trust 2023 £000 Trust 2022 £000 Bank loans and overdraft Payments on a¢¢ounl Trade creditors Amounts due to subsidiaries Taxation and social ￿VrItY Other creditors Accruals and deferred income Director's loan accounts 14,610 12J50 34,171 2,507 7,599 23,979 29 96 7,669 19,928 7,417 6,747 5,606 16,315 7,505 5,685 182 35 102,892 69,196 270 131 Included within directors, loan accounts due within one y¢ar are loans due to R E Wright (DIr￿tor). Amounts due to R E Wright are £6,747,000 (2022: £5,685,000). The M￿lmU￿ amount outstanding in the year lo R E Wright was £6,747,000 (2022: £5,685.000}. Within other creditors is a provision of £3,036,000 in relation to an onerous development contract. This provision will be utilised in full by April 2025. Within a¢cwals there is a reserve of £1,000,000 in relation to potential defects as a result of the Changes to the liabiltty period imposed by the Building Act 2022. Amounts owed to subsidiaries by the Trust are non-interest bearing and rq)ayable on demand. 22. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Group GTOUP 2023 2022 £000 £000 Trust 2023 £000 Trusl 2022 £000 Bank loans Def¢￿ed Income Financial instruments 33,441 4,835 1,205 52,050 4,708 828 39,481 57,586 Details on fmancial instrwnents are included in note 25. 23. INTEREST.BEARINC LOANS AND BORROWINC This note provides inforn)ation about th¢ Contractual t¢rn]s of Henmead's int¢rest-bearing loans and borrowings, which are measured at amortised ¢osL 2023 £'ooo 2022 £'ooo Loans and overdrnfts can be analysed as falling due: In one year or less Between onc two years Bctwcen Iwo and five years In fiv¢ y¢ars or more 14,610 12,493 4,888 16,060 2,507 14,610 19,611 17.829 54,557 Page 39 THE ERIC WIUGHT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for Ihe Year Ended 31 December 2023 INTEREST-BEARING LOANS AND BORROWIIYGS - continued 2023 2022 £'ooo £'ooo Creditors falling due in more than one year Secured bank loans 33,441 52,050 Bank loans are secured on certain inveslment properties of Eric Wright Group Limited, a subsidiary of Henmead Limited, and other gTOUP companies. All financial liabilities are denominafrd in UK pounds sterling. The financial liabilities carry floating rates of interest, based upon market rates prevailing at the time. Some of these financial liabililies have been swapped to rixed interest rate. Interest rate swaps, denominated in poun(Ls sterling have been entered into to protect the maxirnum interest expense to which the Group is exposed. These swaps with an underlying debt value of £33,584,000 (2022.. £39.490,000) enable the Group to swap floating rate liabilities on loans to a fixed rate liability. The period of these swap arrangements ranges from I to 14 years as at 31 December 2023. This capped the maxirnum interest payable by the Group to December 2023 at 5.87 /. The interest paid by the Group on its bank floating rate liabilities was at a rate of SONIA plus a margin of 20/0 to 2.7 / (2022: SONIA plus 20/9 to 2.7 /). Tenns and debt repayment schedule Group Currency Nominal interest Year of maturlty Repayment sehedule 2023 £01 2022 £000 rnte Tern] loan I Revolving Credit Facility £GBP Debenture loans £ GBP Tern] loan 2 £GBP Terni loan 3 £GBP Tenn loan 4 £GBP £GBP SONIA + 2.7/ts 2024 Atnortising Revolving Credit F￿lIlty SuiK>rdinated debt ATnortising Amortising Amortising 12,400 12,800 SONIA + SONIA + SONIA + 1/0 SONIA + 0.97•/• SONIA + 2.10/0 2025 11,000 67 664 3,965 19,955 15,000 67 ,323 4,450 20,917 2024 2030 2037 41051 54,557 Following a refinance completed in December 2019, Tern) loan l is an amortising 5-year tenn loan with annual capital repayments of £400,000. The residual £12m loan will fall due for final repayment in December 2024 and discussions have commenced in relation to the refinancing of the facility The Revolving Cr¢dit Facility ("RCF") is drawn for a fixed period, agre￿ in advance with the bank. The RCF is either repaid ai the end of the fixed period or the period extended. The RCF facility was refmanced in December 2021 for a 42 month period to June 2025. The available facility is £30m subject to the value of charged assets. The dcbenture loan is unsecured and no redemption date has been set. The terni loans 24 are repaid bi-annually and full repayment will be made by the expiry date and relate to the Group's PFI atrangement. Page 40 THE ERIC WRIGHT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS - COIYTINUED for the Year Ended 31 December 2023 24. OTHER FINANCIAL LIABILTTIES Group 2023 £000 Group 2022 £000 Trust 2023 £000 2022 £000 Liabilities Amounts falling due after more than one year Other fmancial liabilities designated as fair value through other comprehensive income 1,205 828 1,205 828 Group 2023 £000 Group 2022 £000 Trust 2023 £000 Trnst 2022 £000 Assets Amounts recoverable after more than one yegr Other financial assets designated as fair value through other comprehensive inconie 471 719 471 719 25. FINANCIAL IIYSTRUMENTS (a) Carrying amount of financial instruments The Carrying amounts of the financial assets and liabilities include.. Iyotional amount Fair value 2023 £'ooo Fair value 2022 £'ooo Maturity Fixed rate year £'ooo Liabilities measured at amortised cost lntcre.st raie swap I Intere.8t ral¢ swap 2 1ntere.st rate swap 3 671 3,920 19.954 2024 2030 2037 5.865 5.400 4.400 (2) (206) (997) (26) (204) (598) (1,205) 1828 Fair value asset Notional amount Iwlaturity £000 Year Fixed Rate 2023 £000 2022 £000 Assets measured at amortised eost Interest rdte swap 4 9,000 2024 0.545 471 719 (b) Finaneial instruments measured at fatr value Derivative fmancial instrnments The fair value of interest rate swap and interest rdle caps is based on bn)ker quotes. Those quote8 are tested for reasonableness by comparing against prior year valuations, market interest rates and valuations for similar i￿￿trumentS at the measurement date. Page41 THE EIUC WiUGHT CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for Ihe Year Ended 31 December 2023 25. FINANCIAL IINSTRUMENTS - Continued (c) Hedge accounting To hedge the potential volalility in future interest cash flows arising from movements in SONIA, the Group has entered into swap agreements with RBS, the Bank of Tokyo Mitsubishi, Santander and Co-operative Bank. These result in the Group paying the floating interest rate and receiving an(Vor 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 raie risks, in accordance with FRS 102. The cash flows arising from the interest rale swaps will continue until their maturity, ¢oin¢iding with the repayment of the loans. The following table indicales 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: 21123 2022 Expected cash flow$ £000 S years and over Ex￿le cash flows £000 5years and over CsrryiThg Amount lyur or less 2to