Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D Company Registered Number., 02685083 Charity Registered Number (England & Wales): 1009671 NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) UNAUDITED TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee CONTENTS Page Reference and Administrative Details of the Charity. its Trustees and Advisers Trustees, Report 2-11 Statement of Trustees. Responsibilities 12 Independent Examine¢s Report 13 Consolidated Statement of Financial Activities 14 Consolidated Balance Sheet 15-16 Charity Balance Sheet 17-18 Consolidated Statement of Cash Flows 19 Notes to the Financial Statements 20-44
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAJLS OF THE CHARITY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023 Trustees Stephen Pugh. Chair Hannah KunIk Professor Celia Moss OBE Bharat Pandya (resiqned 31 December 2023) James Pitayanukul, Treasurer Hedwig Vollers Suzanne Watson Company registered number 02685083 Charity registered number 1009671 Registered office 11 Murray Street London NW19RE Chief executive officer & Andrew Proctor Company secretary Independent Examiner MHA Chartered Accountants MHA House Charter Court Swansea Enterprise Park Swansea SA7 9FS Principal Bankers CAF Bank Ltd National Westminster Bank plc BarclayB Bank plc Status and Governing Document National Eczema Society is a charitsble company, limited by guarantee. It was incorporated on 6 February 1992 and registered as a charity on 10 March 1992. It is governed by its Articles of Association. Subsldlary Companles Eczema Trading Limited Page 1
Docusign Envelope ID.. 9F2149Ft322F4E6D-BA66-906B3BDEcF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees present their annual report together with the financial statements of the Group and the Charity for the year 1 January 2023 to 31 December 2023. The trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements. the requirements of the company's goveming document and the provisions of the Statement of Recommended Practice ISORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). Since the Charity and Ihe Group qualifies as small under section 383, the stralegic report required of medium and large companies under The Companies Act 2006 (strategic Report and Director's Report) Regulations 2013 is not required. Purpose and aims National Eczema Society was established in 1975 to support people with eczema and their families and to work on their behalf. We remain dedicated to these founding principles and today we continue to help people across the UK by providing evidence-based information and advice about eczema and its management. We deliver this in various ways through our website. webinars. instructional videos, social media communications and publications. We also provide a collective voice for people with eczema. to inform research and influence health policy to improve eczema care, and raise greater awareness and understanding of the condition among people affected by eczema and the wider public. The prevalence of eczema has increased over recent decades, and around one in five children and one in ten adults are now impacted by this life-challenging condition in the UK. While the reasons for the increase are not fully understood, it does mean the charity's work is needed more than ever. There is as yet no cure for eczema and, unless you have the condition, it can be hard to understand the daily challenge of living with relentless itching and inflamed, painful skin. Many heallhcare professionals have limited dermatology training and timely access to specialist dennatology healthcare for people with eczema can often be difficult. National Eczema Society aims to provide the infomiation and support needed for people to self-manage their eczema effectively. to become experts in their own care, leam from the eXperIenS of others, and provide the reassurance of knowing they are not on their own. Ensuring our work delivers our charitable aims We review our activities each year and monitor the impact of our work to ensure we continue to fulfil our purpose of supporting people affected by eczema. Among other ways, we assess the Society's performance and achievements through the number of people we have helped with infonnation and advice. and the quality and consistency of the resources we provide. We consider how planned activities will contribute to the aims and objectives we have set, and in doing this we have referred to the Charity Commission's general guidance on public benefit. We have had regard to the legislative and regulatory requirements for disclosing how our charitable objectives have provided such benefit, and complied with the duty set out in section 4 of the Charities Act 2011. 2023 Activity and achievements- delivering public benefit All our charitable activities focus on supporting people affected by eczema and championing their needs, and further our charitsble purposes for the public benefit. Here we present a summary of the Society's work over the year. Page 2
Docusign Envelope ID.. 9F2149Ft322F4E6D-BA66-906B3BDEcF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Delivering information and advice for people living with eczema The Society continues to provide a wide range of high quality. evidence-based information and advice about eczema and its management for the UK eczema community. We produ a wide range of patient information booklets and faclsheets about eczema management and treatment. available online and in print. We distribute printed copies at events the charity organises and attends, and we provided over 17,500 copies of our printed publications to healthcare professionals during the year, for onward distribution to patients in hospital dermatology clinics and other healthcare settings. National Eczema Society factsheets and booklets are updated regularfy on a rolling review cycle and checked by healthcare professionals to ensure the infonnation is accurate and up-to-date. We updated and reprinted a number of publications over the year, including our Itching and Scratching booklet, Living with Eczema (Adults) booklet, and Paste Bandages and Wet Wraps booklet. All our eczema infomiation is made available on the Societys website. which received over two million visits during the year. It is difficull to compare year-on-year activity because Google changed the way website activity is recorded with Google Analytics Version 4 in July 2023. Webpages on facial eczema. emollients, eye and ear eczema, hand eczema, topical steroid treatments, topical steroid withdrawal, pompholyx eczema and scalp eczema remain especially popular. We also promote health advice messages through our social media channels, media engagement and other extemal communications. We continued our programme of webinars, working in partnership with St John's DermAcademy (part of Guy's and St Thomas, Hospital, London) to jointly deliver events, one focusing on new treatments for more severe eczema and the other exploring eczema and the mind-skin connection. Recordings of several past webinars are available to view on the Society's social media pages. During this period 12023. our eczema helpline provided personalised independent advice for people struggling to cope with eczema wherever they live in the UK. We reiVed around 1,300 telephone, email and message enquiries a year from parents of children with eczema and adults living with the condition. We offered a dermatology nurse call-back service for people who had more complex enquiries, and around 40 % of callers were helped by one of our experienced dermatology nurse advisers. Our Helpline was available free of charge to anyone affected by eczema in the UK who needs our support. Please note that the Society took the decision to stop offering a helpline service in March 2024. as part of a wider strategic change prograrnme to increase our work supporting eczema research and campaigning for improved eczema care for the eight million adults and children affected by the condition in the UK. We continue to raise awareness of local volunteer-led patient support groups, by providing infonnation and a presence for these groups on the Society's website. The West Surrey and North-East Hampshire Support Group held a number of fundraising events over the year and organised an infomiation day in Guildford in February on the 'Combineé Approach, to managing eczema. Dr Alpa Kanji talked about how habit reversal therapy combined with topical treatments can help people with eczema break the habitual itch-scratch cycle. Dr Kanji is a dermatologist working at St John's Institute of Dermalology in London and she teaches habit reversal therapy. The event was livestreamed and recorded on FaboOk. so many more people with eczema could access the talk. Our planned work to develop an online forum to provide peer support for people affected by eczema was not taken forward again this year because of competing pressure on charity resources. Page 3
Docusign Envelope ID.. 9F2149Ft322F4E6D-BA66-906B3BDEcF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 NES membership scheme National Eczema Society is a membership organisation and we are very grateful to our 2,000 members who support the Society through their annual membership fee and additional donations. Members receive our membership magazine Exchange. which features expert information and news about eczema. Members are also encouraged to attend the Society's Annual General Meeting and conlribute their ideas on the running of the charity. As in previous years. support for our charity extends far beyond our membership and we remain grateful to all our donors, and to those members who continue to support us financially even though they no longer have any personal need of our help. Income from the membership scheme has fallen as the number of members has gradually declined over the years. We took the difficult decision to move to producing issues of Exchange magazine starting in 2024, replacing the previous quartedy publishing schedule. so that costs are better aligned with membership income. Supporting eczema research We continue to support patient involvement in shaping research. NES is approached regularly by researchers seeking patient views and to learn from patient experiences. It is so encouraging to see such a range of research underway and new treatments in the pipeline, following a long period when eczema was largely overlooked. The Society is actively supporting eczema research by participating in study steering groups, providing patient perspectives for research projects. promoting surveys, supporting patient recruitment for trials, and working with universities and companies that are assessing and developing new drug treatments. We do this to help ensure eczema research has the greatest chance of success in finding new treatments and ultimately a cure. Projects supported during the year include: A-STAR - UK-Irish Atopic Eczema Systemic Therapy Register BEACON trial Best systemic treatments for adults with atopic eczema over the long term BEACONomics- study embedded within the BEACON trial investigating how eczema treatments worf( BIOMAP Innovative Medicines Initiative - Biomarkers in Atopic Dermatitis and Psoriasis ECO trial - Eczema Care Online END-ITCH study - Eczema and Dermatitis, Implementing the Combined Approach Global Patient Initiative for Optimal Eczema Care Kids in Control study Navigating Primary Care with Topical Steroid Withdrawal RAPID Eczema Trials Programme SLEEP study- Supporting children's sleep in those with Eczema Programme TECH study- Teleconsultations for Eczema in Children TRANS-FOODS study - preventing peanut allergy National Eczema Society staff and trustees contributed to several arlides in academic journals over the year, including the following published in 2024= Do people with eczema and their carers understand topical steroid potency? Results of two surveys., Celia Moss et al, Clinical and Experimental Dennatology. Volume 49. Issue 3. March 2024. Pages 267-270, htt s.Ildoi.or 110.10931cedlllad372 Linked to the above paper, Professor Celia Moss presented an abstract on this topic at the British Society for Paediatric Adolescent Dem)atology session at the 103rd Annual Meeting of the British Associalion of Dermatologists in Liverpool in June. Page 4
Docusign Envelope ID.. 9F2149Ft322F4E6D-BA66-906B3BDEcF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 NES provides a patient perspective for clinical guideline development, the assessment of new eczema treatments. and policy consultations. During the year, we contributed to the assessment by the National Institute of Health and Care Excellence (NICE} of a new monoclonal antibody drug called Lebrikizumab. This in new treatment for moderate to severe eczema. As eczema affects people in different ways, it is important that we have a range of NHS treatment options to help ensure people can access a treatment that works effectively for them. Improving eczema care The charity undertakes a range of activities to raise awareness and understanding of eczema among the general public, and to promote the information and advice the Society provides for people living with eczema and their families. The Society launched a major campaign in May 2023, calling on the UK medicines regulator, the MHRA, to introduce clearer strength labelling of steroid creams and ointments. We are asking the MHRA to mandate clear potency labelling on topical steroid (TCS) tubes, packaging and patient information leaflets. Topical steroids are used by millions of adults and children in the UK to Ireat or prevent eczema flare-ups. It is important patients and their carers have the right information to use these medicines safely and effectively to manage eczema well. Topical steroids are effective treatments for eczema but, like many treatments, they can have side effects. People with eczema and carers are understandably Conrned about overusing TCS. We believe clear potency labelling will help improve patient understanding and confidence in these widely-used medicines. This initiative has strong support from the eczema community. National Eczema Society conducted an online survey in January 2023. to find out more about people's knowledge and understanding of steroid potency. We received 943 responses, from both adults with eczema and parents of children with eczema, and many thanks to everyone in the eczema community who took part. Some 95°h of respondents said they want to see clear strength labelling on all steroid creams and ointments. This call for clearer labelling also has strong support from healthcare professionals and other charities, which endorsed this Society-led initiative. We are in dialogue with the MHRA about the campaign and are hopeful of a successful outcome. In other work, the Society has contributed to MHRA reviews of topical steroid withdrawal reactions and welcome the MHRA guidance on this. Representlng patient vlews As a national patient organisation for the eczema community, the Society plays a leading role in providing a collective voice to champion the needs of those affected by the condition. We seek lo improve health outcomes for people with eczema by influencing health policy and participating in groups like the Dermatology Council for England and working with professional bodies like the British Association of Demiatologists (BAD) and Primary Care Dermatology Society (PCDS). As a member of the steering group, we contributed to the major NHS England Dermatology Outpatient Transfomiation Programme. which developed a range of new guidance to help dermatology healthcare providers meet the challenges of responding to service funding pressures. Patient interest and awareness of the side effects of topical steroid medication, and concems about topical steroid withdrawal ITSW), continues to grow. NES remains active in this area, building on our earlier work wilh the British Association of Dermatologists to develop a position statement on TSW, and our contribution to the MHRA review of topical steroid withdrawal reactions. Topical steroid withdrawal is complex and research into the causes. symptoms and treatments is limited. NES wants to see more research in this area, to support evidence-based diagnosis and treatment approaches. Page 5
Docusign Envelope ID.. 9F2149Ft322F4E6D-BA66-906B3BDEcF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 One of the challenges is that the symptoms people experience when stopping using topical steroids can appear similar to those of poorly controlled eczema. These symptoms can be very painful and distressing. The Society is emphasising the Importan of using topical steroid treatments safely and effectively, and among other things is calling for clearer labelling of topiGal steroids to show their potencylstrength. National Eczema Week Our goal for National Eczema Week 2023 was to raise awareness of the impact of eczema on patients. mental health. This is not widely recognised or understood outside the eczema community. We encouraged people to open up and start a conversation about living with eczema, sharing their experiences of the emotional, social and personal impacts of eczema. We produced a powerful video for the campaign entitled 'More than just an itch,. funded by corporate partner Sanofi. The short-form documentary-style video focussed on the experiences of five people with eczema, and how the condition has affected them. The videos received over 1.500 views. with 85 hours of watched content. We also produced a series of podcasts to support the campaign. featuring both patients and healthcare professionals talking about the emotional impacts of eczema and approaches for supporting our mental health. The podcast has been downloaded and viewed over 700 times. All the videos and podcasts are available to view on the Society's YouTube channel. We achieved national media profile for the campaign, with 32 items of coverage including two national media hits (The Independent online and Moming Live). Total potential audience reach with the campaign messaging was over 33 million. Overall, on social media. the campaign videos reiVed over 35,000 total views, with a 2.5 % engagement rate on Facebook and 1.2/0 on Instagram. xwItter generated the highest engagement rate at 3.3%. Special thanks to our influencer partners Nicola Johnson and Katie Mackie for producing content to support the campaign, which generated positive engagement. During National Eczema Week we held the 'Eczema and the Mind-skin Connection, webinar, jointly wilh St. John's DermAcademy, which aligned closely with our campaign theme. Over 100 people attended the webinar. Media and social media engagement The Society provided press comment for a number of eczema stories in the media over the year. We contributed to stories about managing eczema in cold weather for BBC Morning Live and BBC Online, as well as coverage in the Mail of Sunday, The Times and i newspaper on topics ranging from waiting times for dermatology appointments lo new treatments for eczema. Society supporter Ellen Vincent was featured in a major article in the Mail on Sunday about a forthcoming new treatment for more severe eczema called lebrikizumab. The Society was also featured in several professional publications including pharmacy publications. The Society was approached for media comment about topical steroid withdrawal during the year and we were mentioned in features on this topic produced by the BBC and ITV. Capacity constraints and Gompeting priorities continue to impact on the proactive media work we are able to undertake. We continued lo grow our social media reach and activity during the year. reflecting how people increasingly seek and share infom)ation about eczema. The Society now has over 25,000 followers on Facebook, an increase of around 1,400 over the year. We also grew our following on xwItter to over 8,500. and almost 12,000 on Instagram by the end of 2023. Page 6
Docusign Envelope ID.. 9F2149Ft322F4E6D-BA66-906B3BDEcF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Growing income and building financial sustainability We continue to commit resources to income generation. to achieve our charitable objectives and build future financial sustainability- We are immensely grateful to our thoughttul and generous supporters who choose to leave a gift to National Eczema Society in their Will. Income from legacies was higher in 2023 and this significantly impacls our overall income. We continue to develop partnerships with companies that share our values and are willing to support our work and engage in joint education and awareness-raising activity. During the year we worked with Abbvie, Almirall, Aspire Phamia, Bioderma, Dermal Laboratories, Lilly, LEO Phamia and Sanofi. There were many fundraising highlights during the year. Income from challenge events, including the London Marathon and Great North Run, was strong in 2023 and we thank all our supporters for raising funds and awareness of eczema by participating in events like these. We continue to find it challenging securing grants from charitable trusts and foundations. The Society's West Surrey and North-East Hampshire Support Group undertook various local fundraising activities around Guildford. and presented a cheque for £2,000 at the Annual General Meeting in September. The Society's members and donors generously supported our summer and Christmas fundraising appeals once again and we are grateful to everyone who supported the Society in dirterent ways with their donations over what has been a challenging year with costwof-living pressures. Organisational development During the year, we continued our work preparing for the Society's office move. The lease on the charity's current office expires in March 2025 and future provision needs to take into account the changing needs of the charity following the introduction of hybrid working aangeMents. Strategy work undertaken induded refining the Socievs vision, mission and values and scoping work to refresh the charity's brand and visual identty- We have also positioned our charitable work into three core areas.. Provide infomiation and advice Improve eczema care Support eczema research 2024 Plans and development priorities Looking ahead, we aim to ensure National Eczema Society continues to achieve the greatest impact we can for members and the UK eczema community. The charity's wre charitable work will continue, as well as laking forward strategically important activity including growing our support for eczema research and strengthening our work to improve eczema care. We plan to conduct a strategic review in 2023124 that will potentially change the focus of some areas of National Eczema Society's work. Page 7
Docusign Envelope ID.. 9F2149Ft322F4E6D-BA66-906B3BDEcF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Development priorities for 2024 include- Providing inforniation and advice Continue providing high-quality eczema information and advice, through the websile, printed publications. webinars and other channels. Scope and develop resources to highlight the impact of eczema on people's mental health and emotional well-being. Introduce a regular monthly e-newsletter for NES stakeholders. Scope and plan an NES-moderated online forum and closed Facebook group. Improving eczema care Increase public awareness and understsnding of the challenges of living with eczema, highlighting the impacl on people's physical. mental health and quality of life. Lead the annual national flagship awareness event. National Eczema Week in September. Lead a coalition campaigning for clearer potency labelling of topical steroids. Continue to call for more research into diagnosis and treatment of topical steroid withdrawal. Contribute patient perspectives to dinical guideline development and the assessment of new treatments and policy consLbltations. working with regulatory bodies including the MHRA. NICE and the SMC. Supporting eczema research Scope options for developing an NES research grant programme, to fund studentships and innovation grants for eczema research. Recruit a panel of people with eczema to share their experiences of living with the condition with researchers. Continue to contribute patient insights for major eczema research projects and programmes. Page 8
Docusign Envelope ID.. 9F2149Ft322F4E6D-BA66-906B3BDEcF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Financial Results The Society planned to achieve a budget surplus in 2023. made possible largely by higher legacy income. This is in Gontrast to the loss recorded the previous year. Income for the year was £497,252, with expenditure al £477,562, generating an annual surplus of £19,698. This compares with a deficit of £70.621 in the year ended 31 December 2022. At 31 December 2023, the Society had reserves of £670,7671£651,070). We would like to thank the many people who, as in previous years, by joining or renewing their membership, supporting our appeals and fundraising in a variety of often innovative ways, have enabled us to continue our work. The efforts and contribution of supporters and volunteers is invaluable to the Society. We are grateful also to those who remembered the Society in their Wills, the charitable trusts and companies that have supported us during the year. and to all the healthcare professionals who have provided us with so much time. advi and support especially members of the Medical Advisory Board. Reserves Pollcy The trustees aim to maintain adequate reserves to pemiit the ongoing operations of the charity- In arriving at their assessment of a suitable limit, trustees have considered the predictability of the Society's income and the nature of its expenditure, together with the degree to which these are committed. Legacies form an important part of the Society's income, and whilst legacies can often be substantial relative to overall income, they are unpredictable and historical trends show there can be periods of years where this source of income is much lower than the long-term average. Expenditure. on the other hand. is more consistent and predictable. Trustees last reviewed the ReseNes Policy in 2022. and consider that holding unrestricted reseNes equal to approximately six months unrestrided charitable expenditure would be sufficient to close or merge the charity, should this ever be necessary. However. given the known volatility of legacy income. trustees have detemined a reseNes target of 12 months, future overheads expenditure is more appropriate to respond to fluctuations in income. In order to make unrestricted reserves more transparent, fijnds that are not readily available to spend are held in reserves designated for specific purposes. A key aim of the Society is to promote research into the causes and treatment of eczema. This being so, the trustees have designated a proportion of reserves to fund future research activity. in addition to any funds that donors have specifically restricted for this purpose. Funds that are not readily available to spend, notably those represented by fixed assets, are held in a reserve designated for this purpose. The pension reserve shows future deficit payments owed in relation to an historical defined benefit pension scheme (see note 19). The balance held in unrestricted funds at 31 December 2023 is £664.01612022: £644,319). Unrestricted funds include funds tied up in tangible assets of £12,903 (2022.. £19,721), the pension reserve of1£4,5671 (2022.. 1£8.587)l and designated Research funds of £110.000 12022: £110.0001. The remaining general funds of £545,680 (2022= £523,185) are materially in line with the chariws reserves policy target of 12 months future overheads expenditure, budgeted at £530.000 for the 2024 financial year. Page 9
Docusign Envelope ID.. 9F2149Ft322F4E6D-BA66-906B3BDEcF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Risk Management The trustees have taken steps to identify and address major risks facing the Society. including maintaining a risk register. The principal uncertainty in respect to the Society's future is the ability to maintsin sufficienl income to deliver the charity's operations, and ensure the Society has adequate resources lo comply with regulatory changes affecting the voluntary seclor. Greater focus and investmenl are being directed to fundraising activities. to ensure the Society generates sufficient income each year to fund planned activities. This includes building sustainable sources of non-legacy income. The principal risk of financial sustainability for the charity is dosely monitored by the trustees on a regular basis, including reviewing management accounts at quarterfy Board meetings. Attention also continues lo focus on non-financial risks including reputation, health and safety, security, confidentiality and data protection, which are supported by appropriate policies and procedures as well as management updates as needed. The Trustees and Organisation The Society is a charitable company. Although called trustees. we are the directors of the company for the purposes of company law. The trustees who served during the year and up to the date of this report are given onpage1. The Society's governance processes are set out in its Articles of Association. The Board of Trustees administers the Society, which meets routinely four times a year and additionally as circumstances demand. A chief executive is appointed by the trustees to manage the day-t(Hlay operations of the Society within a framework agreed by the Board. There must be a minimum of three trustees bLrt there is no maximum number. and trustees must be elected by the members of the Society at its Annual General Meeting (AGM). Trustees may be co-opted onto the Board during the year and must then stand for election by the members at the next AGM. At least a third of truslees are required lo retire from office each year but may, if they wish, offer themselves for re-election al the AGM. Trustees are recruited through the Society's membership, local support groups, other eczema community networks and open advertising. In seeking trustees, the Society has regard of the need to ensure that the Trustee Board has an appropriate range of professional skills and experience, reflects our commitment to diversity, and also that trustees are drawn from different areas of the UK. Although not constitutionally binding. the Society wishes to work towards aligning with the Charity Govemance Code, which recommends trustees serve fixed terms in office. The guidance recommends trustees serve an initial three-year temi. with the possibility of being reelected by members for a further three-year period. Trustees in particular roles {e.g. Chair, Treasurer) could serve a longer nine-year period, subject to formal review. One current trustee has served longer than nine years and provides specific professional skills to the Board. As yet, it has not been possible to find a replacement with comparable expertise. New trustees are provided with an introduction pack, which includes the Society's governing documents, copies of the past year's accounts, and a briefing on their duties and responsibilities and of the Society's governance processes. Prior to joining the Board. new trustees will usually attend at least one Board meeting in an observer Gapacity, which gives them the opportunity to meet the trustees and chief executive. Trustees receive no remuneration and no trustee has a beneficial interest in any of the group companies. Page 10
Docusign Envelope ID.. 9F2149Ft322F4E6D-BA66-906B3BDEcF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Society has a Medical Advisory Board IMAB). comprised of healthcare professionals who act in an advisory and ambassadorial capacity for the charity- Members volunteer their time and are all experienced healthcare professionals who work in the field of dermatology, and who have a particular professional interest in eczema management and research. The MAB is chaired by National Eczema Society trustee, Professor Celia Moss OBE. The trustees set the remuneration of the chief executive and approve the remuneration of other Society stsff. Remuneration levels are based on research of similar roles in the sector and benchmark salary data. The Trustees Report has been prepared in accordance with the provisions applicable to entities subject to the small companies regime. This report was approved by the Board of Trustees on signed on their behalf by: 3vJned by.. 3E26469DD84CW:.......... Stephen Pugh Chair September 25, 2024 Page11
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees, Report and the financial stalements in accordance with applicable law and United Kingdom Accounling Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure. for that period. In preparing these financial statements. the Trustees are required to.. select suitable accounting policies and then apply them consistently. observe the methods and principles of the Charities SORP (FRS 1021- make judgements and accounting estimates that are reasonable and prudent- stale whether applicable UK Accounting Standards IFRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the going concem basis unless it is inappropriate to presume that the Group will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by order of the Members of the Board of Trustees and signed on its behalf by- Stqned by.. en Chair Date: September 25, 2024 Page 12
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA6&906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Independent Examinerfs Report to the Trustees of National Eczema Society ('the Group.) I reporl to the Charity Trustees on my examination of the consolidated accounts of the Group, set out on pages 14 to 45, comprising the National Eczema Society {'the parent Charity) and its subsidiary undertakings for the year ended 31 December 2023. Responslbllltles and Basls of Report As the Trustees of the parent Charity (and its directors for the purposes of company lawl you are responsible for the preparation of the consolidated accounts of the Group in accordance wtih the requirements of the Companies Act 2006 {'the 2006 Act.). Having satisfied myself that the consolidated accounts are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Group's accounts as carried out under section 145 of the Charilies Act 2011 ('the 2011 Act.). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145{5)(b) of the 2011 Act. Independent Examiner's Statement Since the Group's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that l am qualrfied to undertake the examination because l am a member of the Institute of Chartered Accountants in England and Wales. which is one of the listed bodies. I have completed my examination. I confimi that no matters have come to my attention in connection with the examination giving me Cause to believe in any material respect.. accounting records were not kept in respect of the parent Charity and its subsidiaries as required by section 386 of the 2006 Act., or the accounts do not accord with those records., or the accounts do not comply wth the accounting requirements of section 396 of the 2006 Acl other than any requirement that the accounts give a 'true and fair. view which is not a matter considered as part of an independent examination- or the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102). I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understsnding of the accounts to be reached. Signed: Dated: September 25, 2024 Rachel Doyle ACA FCCA DChA MHA Chartered Accountants MHA House Charter Court Swansea Enterprise Park Swansea SA7 9FS Page 13
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestricted tunds 2023 Restricted funds 2023 Total funds 2023 Total funds 2022 Note Income from: Donations and legacies Other trading activities.. Income from fundraising Income from trading activities Investments 481.158 481.158 327,075 5,732 2.965 7.397 5,732 2.965 7,397 10.205 4,109 1,432 Total income 497.252 497,252 342,821 Expenditure on: Raising funds Charitable activities 71.317 406.245 71.317 406,245 64,906 348,853 Total expenditure 477.562 477,562 413,759 Net movement in funds before other recognised gains 19.690 19,690 170,938) Other recognised gainsl(losses): Gainsl(losses) on pension scheme 317 Net movement in funds 19,698 19,698 170,621) Reconciliation of funds: Total funds brought forward Net movement in funds 644,319 19.698 6,751 651,070 19.698 721.691 170,621) Total funds carrled forward 664,017 6,751 670,768 651.070 The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 20 to 44 fomi part of these financial statements. Page 14
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) REGISTERED NUMBER: 02685083 CONSOLIDATED BALANCE SHEEr AS AT 31 DECEMBER 2023 2023 2023 2022 2022 Note Fixed assets Intangible assets Tangible assets 14 1.462 10,733 1,836 17.885 15 12,195 19,721 Current assets Debtors- Amounts falling due within one year Cash at bank and in hand 17 88.906 728,799 65,445 687,108 817.705 752,553 Creditors= Amounts falling due within one year 18 (158,773) 1116.940) Net current assets 658,932 635,613 Total assets less currenl liabilities 671,127 655,334 Creditors= Amounts falling due afler more than one year 19 {360) (4,264) Total net assets 670,767 651.070 Group funds Restricted funds 20 6,751 664.016 6.751 644,319 Unrestricted funds 20 Total funds 670,767 651,070 Page 15
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) REGISTERED NUMBER: 02685083 CONSOLIDATED BALANCE SHEEf (CONTINUED) AS AT 31 DECEMBER 2023 The Charity was entitled to exemption from audit under section 477 of the Companies Act 2006. The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006. The Trustees acknowledge Iheir responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordan with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. 3vJned by.. (gtyffi...Pts4..................... 3È 6t169D Stepken Wug Chair Date: September 25, 2024 The notes on pages 20 to 44 fonn part of these financial statements. Page 16
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) REGISTERED NUMBER: 02685083 CHARITY BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2023 2022 2022 Note Fixed assets Intangible assets Tangible assets Investments 14 1.462 10,733 100 1,836 17.885 100 15 16 12,295 19.821 Current assets Debtors: Amounts falling due within one year Cash at bank and in hand 17 154,841 581,497 132,652 647.525 736,338 780,177 Creditors: Amounts falling due within one year 18 (115.791) (115,140) Net current assets 620,547 665.037 Total assets less current liabilities 632,842 684,858 Creditors: Amounts falling due after more than one year 19 (360) {4,264} Total net assets 632,482 680.594 Charity funds Restricted funds 20 6.751 625,731 6,751 673,843 Unrestricted funds 20 Total funds 632,482 680,594 Page 17
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) REGISTERED NUMBER: 02685083 CHARITY BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2023 The Charity's net movement in funds for the year was £(48.112) (2022 - £(69,7281). The Charity was entitled to exemption from audit under section 477 of the Companies Act 2006. The members have not required the company to obtain an audit for the year in question in accordan with section 476 of Companies Act 2006. The Trustees acknowledge their responsibilities for complying with the requirements of Ihe Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordan with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by Ihe Trustees and signed on their behalf by.. 5vJned by.. en Chair Date: September 25, 2024 The notes on pages 20 to 44 fonn part of these financial statements. Page 18
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Note Cash flows from operating activities Net cash used in operating activities 38.315 36,416 Cash flows from Investing actlvltles Investment income 7,397 (2,021) (2,000) 1.432 Purchase of intangible assets Purchase of tangible fixed assets Net cash provided by investing activities 3,376 1,432 Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 41,691 37,848 687,108 649.260 Cash and cash equivalents at the end of the year 23 728,799 687,108 The notes on pages 20 to 44 form part of these financial statements Page 19
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 General infonnation National Eczema Sociely is a charitable company limited by guarantee and is registered with the Registrar of Companies (Company Registered Number- 02685083). the Charity Commission in England and Wales (Charity Registered Number= 1009671). In the event of the Charity being wound up. the liability in respect of the guarantee is limited to £1 per Member of Ihe Charity. The address of the registered office is given in the Charity information on page 1 of these financial statements. The nature of the Charitys operations and principal activities are detailed in the Trustees, Report. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistendy applied to all years presented unless otherwise stated. Accounting policies 2.1 Basis of preparatlon of financial statements The financial statements have been prepared in accordance with the Charities SORP (FRS 1021 Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. National Eczema Society meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The financial statements are prepared in sterling which is the functional and presentational currency of the Group and are rounded to the nearest pound. 2.2 Going concern The Trustees have assessed the use of going concem and have considered possible events or conditions that tllight cast signficant doubt on the ability of the Group to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of the approval of these financial statements. The Trustees have concluded that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for Ihe foreseeable future, and that no material uncertainties exist. The Group therefore continues to adopt the going concem basis in preparing these financial statements. Page 20
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies (continued) 2.3 Income All income is recognised once the Group has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. For donations and gift aid to be recognised the Group will have been notified of the amounts and the settlement date in writing. If there are conditions attached lo the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fuifilment of those conditions is within the control of the Group and it is probable that they will be fulfilled. The recognition of income from legacies is dependent on establishing enlillement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Group has SLrfficient evidence that a gift has been left to them (through knowledge of the exislence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Group. can be reliably measured. Subscription income is received in full and recognised evenly over the course of the subscription. The amount recognised in the Consolidated Statement of Financial Activities relates to the financial period in question. Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the Group. Income is received in exchange for supplwng goods and services in order to raise funds and is recognised when entiuement has occurred. Corporate membership income is received in full and recognised evenly over the course of the membership. The amount recognised in the Consolidated Statement of Financial Activities relates to the financial period in question. 2.4 Expenditure All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the categories. Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a Ihird party, il is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity- The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated direcdy to that activty- Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent. and depreciation charges allocated on the portion of the asset's use. Expenditure on charitable activities is incurred on diredy undertaking the activities which further the Group's objectives, as well as any associated support costs. All expenditure is indusive of irrecoverable VAT. Page 21
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies (continued) 2.5 Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group,. this is nonnally upon notification of the interest paid or payable by the institution with whom the funds are deposited. 2.6 Taxation The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore il meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is FX)tentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Acl 1992, to the extenl that such income or gains are applied exclusively to charitable purposes. 2.7 Intangible assets and amortisation Intangible assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over 3 years. Assets under construction are not amortised until ready for use. 2.8 Tangible fixed assets and depreciation Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset inio its inlended working condition should be included in the measurement of cost. At each reporting date the Group assesses whether there is any indication of impaimient. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impaimient loss is recognised where the carrwng amount exceeds the recoverable amount. Page 22
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies (continued) 2.8 Tangible fixed assets and depreciation (continued) Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. using the straight-line method. Depreciation is provided on the followng bases-. Leasehold improvements Furniture and fittings Office equipment Computer equipment over 10 years over 10 years over 10 years over 3 years 2.9 Investments The investment in the subsidiary company is valued at cost less provision for impairment. 2.10 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 2.11 Cash al bank and in hand Cash at bank and in hand includes cash and short-tem) highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 2.12 Liabilities and provisions Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit wll be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Group anticipates it will pay to settle the debt or the amount it has received as adVand payments for the goods or ServIS it rnust provide. Provisions are measured at the best estimate of the amounts required to settle the obligalion. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the prfrtax discount rate that refleGls the risks specific to the liability- The unwinding of the discount is recognised in the Consolidated Slatement of Financial Activities as a finance cost. Page 23
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies (continued) 2.13 Financial instruments The Group only holds basic Financial Instruments. The financial assets and financial liabilities of the Group are as follows.. Debtors other debtors are basic financial instrumer7ts and are debt instruments measured at amortised cost as detailed in Note 17. Cash al bank- is classified as a basic financial instnJment and is measured at face value. Liabilities accruals are classified as financial instruments, and are measured at amortised cost as detailed in Notes 18 and 19. 2.14 Operatlng leases Rentals paid under operating leases are charged to the Consolidated Statement of Financial Activities on a straight line basis over the lease term. 2.15 Pensions Through its past participation. the Group has a liability to a pension scheme called the Series 3 Growth Plan, which closed in 2013. Since then, the Group has participated in a defined contribution pension scheme for employees. operated by workplace pension provider TPT. The Group is part of the Series 3 Growth Plan which is a multi-employer pension Scheme which Closed in 2013. The Scheme administrators have confirmed that it is not possible to separately identify the assets and liabilities of participating employers on a consistent and reasonable basis. The assets of the Scheme are co-mingled for investment purposes and benefits are paid from total Scheme assets. A deficit reduction plan has been agreed. The Group accounts for its participation in this Plan as a defined contribution plan, as there is insufficient information available to account for this as a defined benefit plan, as the share of its assets and liabilities cannot be identified. To avoid crystallizing an immediate payThent of the apparent under-funding in the Series 3 Scheme, the Group is participating in the Series 3 Recovery Plan and the liability is included in Notes 18 and 19. The Group recognises its liability to make payments lo fund the deficit relaling lo past setvice under an agreement to make those payTnents. It recognises the full liability for the present value of contributions payable that results from the agreement for funding the multi employer plan. The Group also parbcipates in a defined contribution pension scheme for its employees. The Group pays fixed contributions into a separate scheme. Once the defined contribution payments have been made, the Group has no further payTnent obligations in respect of this scheme. The Gontributions are recognised as an expense in the Consolidated Statement of Financial Activities as they fall due. Page 24
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies (continued) 2.16 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricled fund is set out in the notes to the financial statements. Investment income. gains and losses are alli)cated to the appropriate fund. Critical accounting estimates and areas of judgement Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions: The Group makes estimates and assumptions conceming the future. The resulting accounting estimates and assumptions will, by definition. seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are listed below. Allocation of support costs Legacy income recognition Depreciation rates for tangible fixed assets Useful economic lives of assets The discount rate used in valuing the year-end Pension Scheme deficit. Page 25
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Income from donations and legacies Unrestricted Restricted funds funds 2023 2023 Total funds 2023 Donations and similar income Legacies Subscriptions Gift aid 205,431 110,610 141.813 23,304 205,431 110,610 141,813 23.304 Total 2023 481,158 481,158 Unrestricted funds 2022 Restricted funds 2022 Total funds 2022 Donations and similar income 132.853 24,706 143,952 20.551 5.013 137.866 24,706 143,952 20.551 Legacies Subscriptions Gift aid Total 2022 322.062 5.013 327,075 Page 26
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Income from other trading activities Income from fundraising events Unrestricted funds 2023 Total funds 2023 Other corporate income Other activities 2.896 2,836 2,896 2,836 Total 2023 5,732 5,732 Unreslricted funds 2022 Total funds 2022 Other corporate income Other activities 6,265 3,940 6,265 3,940 Total 2022 10,205 10,205 Income from non charitable trading activities Unrestricted funds 2023 Tolal funds 2023 Trading subsidiary 2,965 2,965 Unrestricted funds 2022 Total funds 2022 Trading subsidiary 4,109 4,109 Page 27
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Income from investments Unrestricted funds 2023 Total funds 2023 Bank interest receivable 7,397 7.397 Unrestricted funds 2022 Total funds 2022 Bank interest receivable 1,432 1,432 Page 28
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Expenditure on raising funds 2023 2022 Fundraising ¢ost$ Direct costs 65,707 5,604 59.330 5.574 Support costs 71,311 64.904 Analysis of support costs - fundraising costs 2023 2022 Staff costs 1,912 382 1,735 562 Depreciation Premises costs Carriage and postage HCP services and fees Professional fees Bought-in services Website, database and computing Other costs Governance costs 728 116 727 289 33 349 41 370 33 583 931 344 712 835 496 5,604 5,574 2023 2022 Trading costs Trading subsidiary- Direct costs In both the current and previous financial years all Expenditure on raising funds was from Unrestricted funds. Page 29
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Analysis of expenditure on charitable activities - by fund Unrestricted funds 2023 Tolal 2023 Helpline Membership ServIS Information services 110.547 181,415 114,283 110,547 181,415 114,283 Total 2023 406,245 406,245 Unrestricted funds 2022 Total 2022 Helpline Membership services Information services 100,310 174,303 74,240 100,310 174,303 74,240 Total 2022 348.853 348.853 Page 30
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Analysis of expenditure on charitable activities - by type Activities undertaken directly 2023 Support costs 2023 Total funds 2023 Helpline Membership SeNiS Information services 60,804 102.860 73,335 49,743 78.555 40,948 110,547 181,415 114.283 Total 2023 236,999 169,246 406,245 Activities undertaken directly 2022 Support costs 2022 Total funds 2022 Helpline Membership ServIS Information services 56,071 96.182 33,519 44,239 78.121 40.721 100,310 174.303 74,240 Total 2022 185.772 163.081 348.853 Page 31
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Analysis of expenditure on charitable activities - by type (continued) Analysis of support costs Total funds 2023 Total funds 2022 Staff costs Depreciation Premises costs 55,947 11,165 21,302 3,399 13,130 1,205 20,833 1,750 27,930 11,619 966 50.750 16,435 21,266 8,468 10,838 962 Carriage and postage Professional fees Bought-in services Website, database and computing Insurance 17,050 Other costs 27.236 10,076 Governance costs HCP services and fees 169.246 163,081 10. Governance costs 2023 2022 Independent Examinerfs remuneration staff training Insurance 2.000 2,065 5,789 2,000 6.681 1.150 50 Recruitment Room hire & Conference expenses Trustees expenses Travel, hotels & subsistence General office expenses 1,498 198 639 245 26 96 12,017 10,420 Total Governance costs above comprise £398 (2022 - £344) of Expenditure on raising funds and £11,619 (2022 - £10,076) of Expenditure on charitable activities. Page 32
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 11. Auditors, and Independent examinerfs remuneration 2023 2022 Independent Examinerfs remuneration - Examination of the financial stalements 5,250 5,010 (3.010) Independent Examinerfs remuneration - prior year over-accrual 12. staff costs Group 2023 Group 2022 Charity 2023 Charity 2022 Wages and salaries Social security costs Pension costs 212,525 19,710 10,327 203.865 18.600 8.470 212,525 19,710 10,327 203,865 18.600 8,470 242,562 230.935 242,562 230,935 The average number of persons employed by the Charity during the year was as follows.. Group 2023 No. Group 2022 No. Direct charitable activities Fundraising and communication Support and governance The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: Group 2023 No. Group 2022 No. In the band £60,001- £70,000 The total amount of employee benefits, including employers national insurance and pension contributions, received by Key Management Personnel is £138,823 (2022 - £72,726). The Charity considers its Key Management Personnel comprise the Trustees and the Chief Executive Officèr and deputy CEO. Page 33
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 13. Trustees. remuneration and expenses During the year, no Trustees received any remuneration or other benefils (2022 - £NIL). During the year ended 31 December 2023. expenses totalling £499 were reimbursed or paid directly to 2 trustees (2022 - £198} in relation to travel and conference costs. 14. Intangible assets Group and Charity Website Cost At 1 January 2023 Additions 20,988 2,021 At 31 December 2023 23,009 Amortisation At 1 January 2023 Charge for the year 19,152 2.395 At 31 December 2023 21,547 Net book value At 31 December 2023 1,462 At 31 December 2022 1,836 Page 34
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 15. Tangible fixed assets Group and Charity Leasehold Fumitu improvements and fixtures Office equipment Computer equipment Tolal Cost or valuation At 1 January 2023 Additions 41,470 2,493 3.873 24,189 2.000 72,025 2.000 At 31 December 2023 41,470 2,493 3,873 26,189 74,025 Depreciation At 1 January 2023 Charge for the year 30,078 4,152 1,929 249 2.693 370 19,440 4,381 54,140 9,152 At 31 December 2023 34,230 2,178 3.063 23,821 63,292 Net book value At 31 December 2023 7,240 315 810 2,368 10,733 At 31 December 2022 11.392 565 1,179 4,749 17,885 Page 35
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 16. Fixed asset investments Investment in subsldlary company Charity Cost or valuation At 1 January 2023 100 At 31 December 2023 100 Principal subsidiaries The following was a subsidiary undertaking of the Charity. Name Company Registered office or number principal place of business Holding Included in consolidation Eczema Trading Limited 06895048 11 Murray Street, London, NW19RE 1000/0 Yes The financial results of the subsidiary for the year were: Name Income Expenditure Profit for the year Net assets Eczema Trading Limited 67.816 (5,006) 62,810 33,385 The results of Eczema Trading Limited are included in these consolidated accounts. Eczema Trading Limited did not meet the audit threshold and therefore did not require an audit for the year ended 31 December 2023. The reported surplus relates to intercompany management Gharges and minimal advertising and corporate membership revenue. For the year ended 31 December 2023. Corporate memberships. the advertising revenue from our membership magazine. together with limited income from company supporters. is accounted for in Eczema Trading Limited. Page 36
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 17. Debtors Group 2023 Group 2022 Charity 2023 Charity 2022 Due within one year Trade debtors Amounts owed by group undertakings Other debtors Prepayments and accrued income 20,762 26,160 2,762 83,935 50,622 17.522 93,367 26.219 13,066 50,622 17.522 26.219 13,066 88,906 65.445 154,841 132,652 18. Creditors: Amounts falling due within one year Group 2023 Group 2022 Charity 2023 Charity 2022 Trade creditors 5.127 15,401 4,395 133.850 5,680 12,616 6.995 91,649 5.127 15,401 4,395 90.868 5,680 12,616 6.995 89,849 Other taxation and social security Other creditors Accruals and deferred income 158,773 116.940 115,791 115.140 Group 2023 Group 2022 Charity 2023 Charity 2022 Deferred income Deferred income at 1 January Resources deferred during the year Amounts released from previous periods 79,880 181,318 (150,585) 75,422 78,080 {73.622) 78,080 99,318 {77,235) 73,622 78,080 173.622) Deferred income at 31 December 110,613 79.880 100,163 78.080 Deferred income consists of membership income relating to future periods. Page 37
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 19. Creditors: Amounts falling due after more than one year Group 2023 Group 2022 Charity 2023 Charity 2022 Pension Scheme deficit 360 4.264 360 4.264 Through its past participation. the Group has a liability to a pension scheme called the Series 3 Gr0h Plan, which closed in 2013. Since then, the Group has participated in a defined contribution pension scheme for employees. operated by workplace pension provider TPT. The Charity is participating in a recovery plan to eliminate its Series 3 scheme deficit over a ten year period. The Pensions Trust. the scheme administrator. has however advised that the amounl of employer debt on the alternative of withdrawal from the Series 3 scheme has been estimated by actuaries to have been £200,161 as at 31 December 2016. As the Charity intends to continue participating in the recovery plan, no provision has been made for this potential withdrawal debt however, Ihe Society accounted for the present value of all remaining contributions under Ihe recovery plan in the 2017 accounts at their present value of £120.000, as advised by the scheme administrator. This liability has been adjusled annually to unwind the relevant discount applied. In order to meet their share of the shortfall. the Charity has been asked lo pay additional contributions to the scheme until 2025. A full actuarial valuation was carried out by the actuaries at 30 September 2017 and the funding shortfall calculated al that date gave rise to a remeasurement reduction of £15,624 in the deficit as at 31 December 2018. The deficit of the scheme is £4,556, (2022 - £8,587) at 31 December 2023. The payment by the Charty in the year was £4,324, (2022 - £7, 105) with an interest payment of £311 {2022- £130) and a revalualion gain of £8 (2022- £317). In addition. the Charity elected to switch, with effect from 1 October 2013. from Series 3 to Series 4, a defined contribution scheme. The pension cost in the accounts represents amounts payable by the charity as ordinary employer contributions to the Series 4 defined contribLrtion fund. During the year employer contributions of £10,327 (2022 - £8,470). interest of £311 (2022 £130). actuarial Igains)Aosses of £8 (2022 £317) and remeasurements for amendments to the conlribulion schedule of £Nil (2022 £Nil) have been charged to the Consolidated Statement of Financial Activities, along wth scheme costs of £3.625 (2021.. £Nil). There were no accrued contributions at 31 December 2023 (2022 £NIL) but there is a liability of £4,566 (2022 £8,587) for fulure contributions under Ihe Series 3 Recovery Plan. Of this £360 (2022 - £4,323) is reported in Creditors.. Amounts falling due within one year as part of Other creditors and £360. (2022- £4,264) is reported in Creditors.. Amounts falling due after more then one year. Page 38
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 20. Statement of funds Statement of funds - current year Balance at 31 December 2023 Balance at 1 January 2023 Transfers inl(out) Gainsl {Losses) Income Expenditure Unrestricted funds Designated funds Fixed asset fund Pension reserve Research fund 19,721 (8,587) 110,000 (10,839) (5,579) 4,021 9,591 12,903 (4,567) 110,000 121.134 (16.418) 13.612 118.336 General funds General funds 523.185 497.252 (461.145) (13.6121 545.680 Total Unrestricted funds 644.319 497.252 (477.563) 664,016 Restricted funds Restricted Funds all funds 6,751 6,751 Total of funds 651,070 497,252 (477,563) 670,767 Page 39
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 20. Statement of funds (continued) Statement of funds - prior year Balance at 31 December 2022 Balance at 1 January 2022 Transfers inlout Gainsl (Losses) Income Expenditure Unrestricted funds Designated funds Fixed asset fund Pension reserve Research fund 36.718 (15,879) (16.997) (3.755) 19.721 {8,587} 110,000 10,730 110.000 317 20,839 (20,752) 120,730 317 121,134 General funds General funds 699,114 337,808 (393,007) 1120,730) 523,185 Total Unrestricted funds 719,953 337,808 (413.759) 317 644,319 Restricted funds Research 1,738 5,013 6,751 Totsl of funds 721,691 342,821 (413.759) 317 651,070 Page 40
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 20. Statement of funds (continued) Desi nated funds The Pension reserve has been established to show the future pension deficit payments in regards to a defined benefit pension scheme. This pension scheme is being treated as a defined contribution pension scheme as a reliable estimate cannot be made of the liability at the year end. The transfer of £9,591, was made to separate the deficit payments due as at 31 December 2023 from the Unrestricted general fund. Actuarial gains l (losses) are charged to this fund as they arise. The Fixed asset fund has been established to reflect the funds tied up in Tangible and Intangible fixed assets and agrees back to the Net Book Value presented on the Consolidated Balance Sheet. Depreciation is charged to this fund as expenditure. The Research fund has been established to designate funds for research into the causes and treatment of eczema, which is a key aim of the Society. The Society will provide grants to researchers on a periodic basis and it is necessary to designate sufficient reserves to fund the expected grant costs. The fund is expected to be ulilised and grants avRrded commencing in the financial year to 31 December 2024. Unrestricted funds General funds reflects funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and vthich have not been designated for other purposes. Restricted funds The Research fund exists to provide resources for research into the causes of eczema, with the aim of developing more effective treatments or a cure. 21. Analysis of net assets between funds Analysis of net assets between funds - current year Unrestricted funds 2023 Restricted funds 2023 Total funds 2023 Tangible fixed assets Intangible fixed assets Current assets Creditors due within one year Creditors due in more than one year 10.733 1.462 810,954 (158.773) {360) 10,733 1,462 817.705 (158,773) {360) 6,751 Total 664.016 6.751 670,767 Page 41
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 21. Analysis of net assets between funds (continued) Analysis of net assets between funds - prior year Unrestricted funds 2022 Rèstricted funds 2022 Total funds 2022 Tangible fixed assets Intangible fixed assets Current assets Creditors due within one year Creditors due in more than one year 17,885 1.836 745,802 (116,940) (4,264) 17,885 1.836 752,553 1116,940} {4,264) 6,751 Total 644.319 6.751 651.070 22. Reconciliation of net movement in funds to net cash flow from operating activities Group 2023 Group 2022 Net incomelexpenditure for Ihe year (as per Ststemenl of Financial Activities) 19,690 170.938) Adjustments for: Depreciation charges Amortisation charges Losses on investments 9,152 2,395 (7,397) {53,516) 60.041 10.001 6.996 {1,432) 94.070 (2,598} 317 Decreasel(increasel in debtors Increasel(decreasel in creditors Actuarual Gainsl {loss) on pension Net cash provided by operating activities 30.365 36,416 Page 42
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 23. Analysis of cash and cash equivalents Group 2023 Group 2022 Cash in hand 728,799 687,108 Total cash and cash equivalents 728,799 687.108 Analysis of changes in net debt At1 January 2023 Cash flows At31 December 2023 Cash at bank and in hand 687,108 41,691 728,799 687.108 41.691 728.799 25. Operating lease commitments At 31 December 2023 the Group and the Charty had commitments to make future minimum lease paymenls under non-cancellable operating leases as follows: Group 2023 Group 2022 Charity 2023 Charity 2022 Not later than 1 year Later than 1 year and not later than 5 years 21,000 4,333 21,000 25,333 21,000 4,333 21,000 25,333 25,333 46.333 25,333 46.333 The following lease payments have been recognised as an expense in the Statement of Financial Activities.. Group 2023 Group 2022 Charity 2023 Charity 2022 Operating lease rentals 21,000 21,000 21,000 21,000 Page 43
Docusign Envelope ID.. 9F2149Ftk322F4E6D-BA66-906B3BDECF3D NATIONAL ECZEMA SOCIETY (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 26. Related party transactions In the year ended 31 Dmber 2023, unrestricted donations of £120 (2022 - £1, 758) were made by the Trustees of the Charity. Page 44