2023-12-31-accounts

Charity registration number 1010721 Company registration number 02704407 (England and Wales)

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

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Trustees	KVWelch
	Eamonn McGurk
	Philip Marshall
	Ralph Barber
	Edward Helps
	Deborah Barber
	RichardAppleton
	Robert Moreland
	Robert Hargreaves
	David Goff
	Antony Higgins
Secretary	P Marshall
Charity number	1010721
Company number	02704407
Reglstered office	Beaumont House
	172 Southgate Street
	Gloucester
	Glos
	GL1 2EZ
Independent examiner	Griffiths Marshall
	Beaumont House
	172 Southgate Street
	Gloucester
	GL12EZ

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED

CONTENTS

	Page
Trustees’ report	1-4
Independent examiner's report	5
Statement offinancial activities	6
Balance sheet	7-8
Statement of cash flows	9
Notestothefinancialstatements	10-21

THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 ToSeSeSeSSSSSSSSSSSSeeeeseeeeeeee

The Trustees present their report and financial statements for the year ended 31 December 2023 for the Trust which is a non-profit distributing company no. 2704407, formed in April 1992, and a registered charity no. 1010721, which replaced the Herefordshire and Gloucestershire Canal Society launched in 1983.

Governing document

The charity is a company, limited by guarantee as defined in the Companies Act 2006, and as such is governed by its Memorandum and Articles of Association.

Organlsationa! structure

A team of volunteers runs the charity. It is managed by the Trustees who meet regularly, supported by site-based groups of volunteers and committees responsible for promotion and other commercial activities. The board appoint trustees to run The Wharf House Co, Ltd. The Articles of Association allow for up to twelve trustees to be in place but does allow for the co-option of two more to cover special projects. One third of the trustees stand down annually by rotation but can apply for re-election. Potential new trustees can be elected at the AGM or are co-opted during the year, but they must stand for formal election at the next AGM. When new Trustees join, they are provided with the information they need to fulfil their roles, which includes information about trustees and charity law.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are put in place to reduce risks of fraud error or unsafe acts.

The Board of Trustees are aware of the general guidance issued by the Charity Commission on public benefit. The Trustees have regard to this guidance and consider the activities of the charity are conducted demonstrably for the public benefit and this applies also to their plans for future action. The charitable objects are the rebuilding a sustainable canal between Hereford and Gloucester, The Trustees, who are also the directors for the purpose of company law, and who served during the year were:

Richard Appleton

Ralph Barber

Deborah Barber

Dave Goff

Bob Hargreaves

Edward Helps

Tony Higgins

Phillip Marshall

Eamonn McGurk

Robert Moreland

Keith Vaughan Welch

Objectives and activities:

The trust espouses the following core values: -

Restoring, enhancing, and protecting the canal for all

Integrating the canal corridor as a sustainable resource into the life of the communities along its route Endeavouring to complete the work in partnership with all other interested parties.

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS’ REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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Interested Partles This reporting period we have engaged further with the Neighbourhood Plans under development in Newent. Also, further engagement with councillors in local, district and county wide government including an open evening for local councillors at Malswick.

Voluntary help and glfts in kInd

The volunteers form a critical part of the trust, not just in restoring the canal but also maintaining the restored sections and promoting widely through local and national events. All these aspects have continued throughout the year in question and are set to expand. The monetary value of the volunteer work that we have recorded adds up £188,150 but we know this does not reflect all the time dedicated to the business of H&G CT by all our hardworking volunteers.

Risks to the Charity

The Trust continues to negotiate new sites and to rejuvenate former sites with developers and landowners at various places along the line of the canal - including locations in Hereford, Gloucestershire and Ledbury. These can take years to conclude but we continue with an on-going diverse portfolio of negotiations so that a flow of announcements can realistically come over the coming years.

Reserves Policy

The charity aims to hold funds that are to cover the normal operating costs for 12 months.

Charitable activities and achlevements

Chairman's Report:

My thanks go to all Trustees and Volunteers for their ongoing support and involvement in the Trust.

We are back to a normal operating environment after the past few years of Covid impacts, with working parties at restoration sites, promotional events attended, and social evenings continuing throughout the year. The AGM in June was face to face in at the Royal Oak, Much Marcle, with many attending. We also celebrated the opening of new canal at Malswick. A Members’ Open Day was held there in September. It was very good that so many people came to see the work that has occurred and take a walk along the new canal, then enjoy a chat while having a cup of tea with cake and review the plans going forward for the site. This report now covers both the complete calendar and Herefordshire and Gloucestershire Canal Trust Financial year.

Work continues in many areas. A planning application has created an opportunity to look at the terminus of the canal at Hereford, the planning for which is now going ahead, and some funds have been assigned to the H&G Canal Trust. Work continues with the planners as to how we can develop the basin in Hereford. The housing development at Holmer has hit some financial issues due to the developer going into receivership. In November we heard that the site owner has appointed another developer, and we will be following up with them to ensure the line of the canal as agreed in the initial planning application is still to be transferred to us. We continue to develop plans around Aylestone Park. Discussions are ongoing with the council linking with their city plans for the development of a Green Corridor along the canal line out to Aylestone Park and ensuring the route continues to be protected in the Herefordshire Local Plan that is currently under review. Kymin: Ongoing site maintenance continued.

~ Yarkhill: Regular maintenance and vegetation clearance continued to keep the volunteers busy on this stretch of canal.

Adjoining Yarkhill: The team have gained access to the site next to Yarkhill and have done an excellent job of clearing the site. Unfortunately, we are finding that a number of landowners are happy to let us work sites but are not allowing the general public on to the site.

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 eee Ashperton: Some further work occurred but until we can get permission from the next landowners to reduce the level of the water we cannot do much further work on the site, Ledbury: As mentioned in the last annual report the planning decision for the development of 625 houses and a number of factory units was given the go ahead to the north of the viaduct. Support for the H&G Canal Trust in land and money was also awarded. Unfortunately, discussions are still under way with the developer and Herefordshire Council to agree a way forward.

Dymock: The pump failed, was replaced and all well for a while, unfortunately it failed again. A further pump via a donation was supplied and this has worked well over the summer months. It will continue to be monitored.

Oxenhall: It was very pleasing to be involved in the replacement of the Stop Lock at the top of House Lock. The teamwork was excellent using skills across several sites. A small group of volunteers with help from Malswick volunteers are keeping the public footpath and the permissive way clear for the local walkers.

Newent: Whilst not a lot has happened on site, we now have a model of the proposed inclined plane that proved to be a good discussion point at a number of the shows the promotions team managed to get to throughout the year.

Malswick: With the planning permission finally received in November 2021, the team, with support from the Inland Waterways Association Waterways Recovery Groups, often known as WRGs, in 2022, enabled us to dig the canal and the first brand new piece of canal was filled with water in July 2023. With the next section of land purchased at the start of the year the team Is preparing to submit a planning application for this section and is looking at the longer-term plans for getting under the Newent to Gloucester road.

Moat Farm: Routine maintenance, including mowing of the grassy areas, continued to be the focus of work here. The ‘wilder’ areas occasionally needed intervention to enhance the habitats that have been created. Over: The land slippage at Vineyard Hill - the area is pegged out and continues to be monitored. There is a plan to improve the ability to get boats along the section of canal at the bottom of the hill. The team is working with the other users on site. A number of the containers were moved around to enhance the look of the area as well as improving the storage of equipment for the H&G Canal Trust and Sailing4Disabled. Heritage Boats: The boats continue to be worked on.

Apart from the existing users of the basin, the model boaters and Sailing4Disabled, we have had new users. We have had further visits by the fire brigade to practice their boating skills, and they also visited Aylestone Park to test out their pumps, the Brownies visited Malswick to do some planting.

Mill Barn: As reported in editions of the Wharfinger throughout the year we are continuing to work this forward. We have a design; the original planned location has had to change due to underground pipes. We are getting the paperwork aligned ready to apply for planning permission when time is suitable.

Llanthony: Both properties are let, and the lock basin has had a couple of visits for volunteers to keep the Wysis Way footpath open which runs through the lock. We have also reached out to the Community Payback Team who have continued this work,

One of the keys to a solid restoration is the involvement of others - councils, locals, all types of groups. Work has occurred to continue to ensure the canal route is protected and supported by all, Positive comments have been received about the change in direction the trust is now taking, after a few years of some negative comments. The sharing of ideas and use of social media with Facebook and the many videos that have been published on YouTube as well as extra local signage have helped with the messaging.

Membership: Although we sadly lose members each year, the overall figure has this year increased to 1125. With the ability to get out to shows to promote the Trust we have had a steady increase in new members. We thank members for their generosity with all their donations.

Volunteers: A steady increase and interest in getting involved in the restoration work. We always need more including volunteers who would be able to take on extra responsibility around the sites or get involved in the promotion of the H&G Trust at sales events or presenting at talks. The Wharfinger: Its high standard has been maintained thanks to many volunteer hours given by writers, photographers, editors, proof-readers, layout and delivery,

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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Website: This is constantly running behind the scenes. Quaries are passed to the relevant H&G Trust member for a response, Sales & Promotion: A very full calendar of promotion events, starting in Hereford with the Water Works Museum, Ledbury Community Day, Voluntesr days at Malswick, Newent and Hereford, Braunston, Tibberton. Retro on the Water at Gloucester. The Winter Fayre at Newent was a very successful promotion and fundraising event seeing so evema n t.y voluntears being involved and an Increase in money to the H&G Trust even better than the 2022 splendid Socials: A full calendar was undertaken, talks on Many subjects, canal related, Rall related and another subject that Herefordshire Is famous for. applas,

Grand Holiday Draw rafsed £2,000 Our gratitude goes to those who donate all the prizes.

Financial review, Achievements and Performance

We can report another good year financially. The income for the Trust and its subsidiary (Ths Wharf House Co Ltd) (exctuding Restricted incetne) was £180k (2022 £162k) and rental income was £410k (2022 £104k}, Costs were kept under control, with £82k spent including £62k on sites (2022 £70k). In consequence the companies recorded a useful surplus together totalling about £75k (2022 £30k). It was especially pleasing to receive a large, £35k, legacy which was much appreciated,

The Wharf House Co Ltd continued to trade profitably enabling it to pass over £60k to the Trust during the year to further the restoration projects. Tha Balance Sheets of both companies continued fo strengthen and bank debt in the Trust continues to be repaid, with the fong term bank loan being repaid by £15k during the year and now stands at £117k,

This year for the first tire recently it was decided not ta charge interest on the borrowings by The Wharf House Co Ltd from the Trust an the basis that i's a paper fransaction and fairly meaningless. As a result the inter-company account should be reduced quicker over time.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no Information of which they are aware which is relevant to the audit, but of which the auditor Is unaware, They fave further confirmed that they have taken appropriate steps to identify such refevanit Information and to establish that the auditor Is aware of such Information,

The Trustees! report was approved by the Board of Trustees.

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED

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| report on the financial statements of the H&G CT for the year ended 31 December 2023, which are set out on pages 6 to 21.

Respective responslbilities of Trustees and examiner

The H&G CT's Trustees, who are also the directors of The Herefordshire and Gloucestershire Canal Trust Limited for the purposes of company law, are responsible for the preparation of the financial statements. The Trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

• (i) | examine the financial statements under section 145 of the 2011 Act:

• (ti) to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and

• (iii) to state whether particular matters have come to my attention.

Basls of Independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.

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Under Part 16 of the Companies Act 2006 the charity is taking advantage of its exception from have an audit, Independent examiner's statement

In connection with my examination, no matter has come to my attention:

• (a) which gives me reasonable cause to believe that in any material respect the requirements: (i) to keep accounting records in accordance with section 386 of the Companies Act 2006; and (ii) to prepare financial statements which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities;

• have not been met or

• (b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

Gretta Mais lel «

Griffiths Marshall

Beaumont House 172 Southgate Gloucester GL1 2EZ

172 Southgate Street

Dated: 24 April 2024

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED

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STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023

FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBER 2023	FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBER 2023	FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBER 2023	FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBER 2023	FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBER 2023	FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBER 2023	FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBER 2023	FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBER 2023
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		Unrestricted	Restricted	Total	Unrestricted	Restricted	Total
		funds	funds		funds	funds
		2023	2023	2023	2022	2022	2022
	Notes	£	£	£	£	£	£
Income from:
Donations andlegacies Other trading activities Investments	3 4 5	56,074 68,350 876	26,476 - 1,698	82,550 68,350 2,574	19,441 64,291 28,386	33,844 - 272	53,285 64,291 28,658
Total Income		125,300	28,174	153,474	112,118	34,116	146,234
Expenditure on:
Raisingfunds	6	12,976	-	12,976	12,701	-	12,701
Charitable activities	7	79,617	11,991	91,608	90,560	8,247	98,807
Total expenditure		92,593	11,991	104,584	103,261	8,247	111,508
Net gains/(losses) on
investments	11	-	-	-	(6,500)	-	(6,500)
Gross transfers between
funds Net Income fortheyear/		-	-	-	16,323	(16,323)	-
Netmovement in funds		32,707	16,183	48,890	18,680	9,546	28,226
Fund balances at 1 January
2023		856,959	65,762	922,721	838,280	56,215	894,495
Fund balances at 31
December2023		889,666	81,945	971,611	856,960	65,761	922,721

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST ) LIMITED

BALANCE SHEET

AS AT 31 DECEMBER 2023

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			2023		2022
	Notes	£	£	£	£
Fixed assets
Tangible assets	13		332,882		335,842
Current assets
Stocks	14	5,214		247
Debtors	16	567,081		645,470
Cash at bank and in hand		210,462		109,429
		782,757		755,146
Creditors: amounts falllng duewithin
oneyear	17	(42,193)		(52,870)
Net current assets			740,564		702,276
Totalassets less current liabilitles			1,073,446		1,038,118
Creditors: amounts falling due after
morethan one year	18		(101,835)		(115,397)
Net assets			971,611		922,721
Income funds
Restricted funds	19		81,945		65,761
Unrestricted funds			889,666		856,960
			971,611		922,721

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2023

The company ie entitled to the exemption from the audit requirement contalned in section 477 of the Companies Act 2006, for the year ended 31 December 2023.

The diractors acknowledge thelr responsibildles for complying with the raquirements of the Companies Act 2006 with respect to accounting records and the preparation of financlal statements.

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

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

The financtal statemeanta wore approved by the Trustees Off cellelol drape

Philip Marshall Trustee

Company registration number 02704407

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2023

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|||||||||| |---|---|---|---|---|---|---|---|---| |eee| |2023|2022| |Notes|£|£|£|£| |Cash|flows|from|operating|activities| |Cash|generated|from|operations|23|116,614|56,866| |Investing|activities| |Purchase|of tangible fixed|assets|,|(3,195)|(75,657)| |Proceeds|from|disposal|of investment| |property|-|(6,500)| |Investment|income|received|2,574|28,658| |Net cash|used|In|InvestlIng|activities|(621)|(53,499)| |Financing|actlvities| |Repayment|of bank|loans|(14,960)|(16,042)| |Net cash|used|In|financing|activities|(14,960)|(16,042)| |Net|Increase/(decrease)|In|cash|and|cash| |equlvalents|101,033|(12,675)| |Cash|and|cash|equivalents|at|beginning|of year|109,429|122,104| |Cash|and cash|equlvalents|at end|of year|210,462|109,429|

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 eee

• 1 Accounting pollcles

Company Information

The Herefordshire and Gloucestershire Canal Trust Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Beaumont House, 172 Southgate Street, Gloucester, Glos, GL1 2EZ.

1.1 Accounting convention The financial statements have been prepared in accordance with the H&G CT's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016), The H&G CT is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the H&G CT. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

• 1.2 Golng concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the H&G CT has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3. Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Interest received on restricted funds is apportion on a pro-rata basis.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the H&G CT.

• 1.4 Incomlng resources

Income is recognised when the H&G CT is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the H&G CT has been notified of the donation, unless performance conditions require deferral of the amount, Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the H&G CT has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 eee 1 Accounting policies (Continued)

1.6 Resources expended

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 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 directly to that activity. 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 are allocated on the portion of the asset's use.

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings	Nil
Plant and machinery	20% on cost
Fixtures,fittings&equipment	10%oncost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement offinancial activities.

1.7 Impalrment of fixed assets

At each reporting end date, the H&G CT reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recdverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/ (expenditure) for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 eee 4 Accounting pollcles (Continued)

1.8 Stocks Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.9 Cash and cash equlvalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financlal instruments

The H&G CT has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the H&G CT's balance sheet when the H&G CT becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financlal assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transactioneffective price including transaction costs and are subsequently carried at amortised cost using the interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilitles

Financial liabilities are derecognised when the H&G CT’s contractual obligations expire or are discharged or cancelled.

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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2 Critical accounting estImates and Judgements

In the application of the H&G CT's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future Periods where the revision affects both current and future periods. 3 Donations and legacies

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||||||||| |---|---|---|---|---|---|---|---| |Unrestricted|Restricted|Total|Total| |funds|funds|2023|2022| |£|£|£|£| |Membership|Subscriptions|7,180|-|7,180|8,218| |Donations|- General|9,282|-|9,282|7,594| |Tax on|Gift Aid|Reclaimed|3,698|-|3,698|3,429| |Oxenhall|Covenants|-|1,147|1,147|803| |Dymock Covenants|-|2,656|2,656|1,225| |Over Covenants|-|6,673|6,673|6,062| |Over|Link|2,000|2,000|-| |Hereford|Covenants|-|2,736|2,736|8,302| |Donations -Braunston|Marina|-|-|-|200| |Donations|-|Land|Fund|~|11,264|11,264|17,562| |Donations|-|Mill|Barn| |Perpetual|-|~|104| |Radcliffe|Trust Endowment|-|-|39| |Legacies|35,914|--|35,914-|19-| |For the year ended|31|December 2023|56,074|26,476|82,550|53,557| |For the year ended|31|December 2022|19,441|34,116|

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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4 Other trading activities

	2023	2022
	£	£
Social events & donations Over Fishing	1,368 -	892 120
Rental income (Llanthony) Rental income (Hereford) Rental income (Newent site) Advertisement signs Advertising -Wharfinger Sales Incomefrom sites Draws	26,668 15,000 14,000 2,073 1,790 2,543 3,250 1,658	23,597 15,000 15,200 2,198 2,072 1,139 2,634 1,439	-
	68,350	64,291

6 Investments

		Unrestricted	Restricted	Total	Unrestricted	Restricted	Total
		funds	funds		funds	funds
		2023	2023	2023	2022	2022	2022
		£	£	£	£	£	£
Interest	receivable	876	1,698	2,574	28,386	272	28,658

6 Ralsing funds

	2023	2022
	£	£
Fundraising and publicity
Wharfinger and leaflets Stocks forevents	8,611 645	8,356 280
Supportcosts (note 8)	3,720	4,065
Fundraising and publicity	12,976	12,701
	12,976	12,701

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

aSSeFeSSSSSSSSSSSSSSeeeeeeeSSSSSeEEEE 7 Charitable actlvitles

	2023	2022
	£	£
Sitecosts PropertyMaintenance costs Health, Safety&Welfare RBS Loan Interest	62,066 1,593 2,166 9,043	70,083 2,721 2,063 5,911
	74,868	80,778
Share ofsupportcosts (see note 8) Share ofgovernance costs (see note 8)	14,880 1,860	16,259 1,770
	91,608	98,807
Analysis by fund
Unrestricted funds Restricted funds	79,617 11,991	90,560 8,247
	91,608	98,807

8 Support costs

Support costs
	Support costs	Governance costs	2023	Support costs	Governance costs	2022
	£	£	£	£	£	£
Depreciation Insurance Administration Legal & Professional	6,155 7,497 826 4,122	- - - -	6,155 7,497 826 4,122	4,939 5,135 1,246 9,004	- - - -	4,939 5,135 1,246 9,004
Audit fees	-	1,860	1,860	-	1,770	1,770
	18,600	1,860	20,460	20,324	1,770	22,094
Analysed between
Fundraising Charitable activities	3,720 14,880	- 1,860	3,720 16,740	4,065 16,259	- 1,770	4,065 18,029
	18,600	1,860	20,460	20,324	1,770	22,094

Tas I009090909 0 0II_—

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the H&G CT during the year. Expenses are reimbursed to Trustees and officers as appropriate and when requested but the amounts involved are not material.

10 Employees

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|||||||| |---|---|---|---|---|---|---| |;| |2023|2022| |Number|Number| |Total|-|-| |11.|Net|galns/(losses)|on|Investments| |Total|Unrestricted| |funds| |2023|2022| |£|£| |Gain/(loss)|on|sale|of investment|properties|-|(6,500)|

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The loss in 2022 comprised a payment made under an overage agreement which became due following the sale of 10 Winding Pool Close, Dymock in 2021

:

12 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBER 2023	FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBER 2023	FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBER 2023	FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBER 2023	FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBER 2023	FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBER 2023
See
13	Tangible flxed assets
		Landand bulldings	Plantand machinery	Fixtures, fittings&	Total
				equipment
		£	£	£	£
	Cost
	At 1 January2023 Additions	334,983 3,195	63,971 -	7,456 -	406,410 3,195
	At 31 December2023	338,178	63,971	7,456	409,605
	Depreciation and Impalrment
	At 1 January2023 Depreciation charged in the year	- 5,296	63,112 859	7,456 -	70,568 6,155
	At 31 December2023	5,296	63,971	7,456	76,723
	Carrying amount
	At 31 December2023	332,882	-	-	332,882
	At 31 December2022	334,983	859	-	335,842
14	Stocks
				2023	2022
				£	£
	Raw materials and consumables			§,214	247
15	Debtors
				2023	2022
	Amounts falling due within one year:			£	£
	Otherdebtors Prepayments and accrued income			27 560	23,500 -
				587	23,500
				2023	2022
	Amounts falling due aftermore than one year:			£	£
	Amountsowed bysubsidiary undertakings			566,494	621,970
	Totaldebtors			567,081	645,470

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED

:

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

See

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||||| |---|---|---|---| |16|Loans|and|overdrafts| |2023|2022| |£|£| |Bank loans|117,061|132,021| |Payable within|one year|15,226|16,624| |Payable|after one year|101,835|115,397|

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All loans are secured by fixed charges over the land and property. There are also floating charges held over all of the charity assets.

17 Creditors: amounts falling due within one year

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|||||||| |---|---|---|---|---|---|---| |2023|2022| |Notes|£|£| |Bank loans|16|15,226|16,624| |Other|creditors|25,107|30,000| |Accruals and|deferred|income|1,860|6,246| |42,193|52,870| |18|Creditors:|amounts|falling|due|after more than|one year| |2023|2022| |Notes|E|£| |Bank|loans|16|101,835|115,397|

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED

;

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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19 Restricted funds The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

			Balance at 1 January 2023	Incoming resources	Resources expended	Intereston funds	Balanceat 31 December
							2023
			£	£	£	£	£
	PerpetualEndowment Land Fund Mill Barn Oxenhall Covenants Dymock Covenants Hereford Covenants OverCovenants RadcliffeTrust Over Link		10,042 562 27,106 - 18 14,109 8,904 §,021 -	- 11,264 ~ 1,147 2,656 2,736 6,673 - 2,000	- - - (1,147) (2,211) - (8,634) ~ -	217 252 585 - 21 359 157 108 -	10,259 12,078 27,691 - 484 17,204 7,100 5,129 2,000
			65,762	26,476	(11,992)	1,699	81,945
20	Analysis of net assets between funds
		Unrestricted funds	Restricted funds	Total	Unrestricted funds	Restricted funds	Total
		2023	2023	2023	2022	2022	2022
	Fund balances at 31	E	£	£	£	£	£
	December 2023 are
	represented by:
	Tangible assets Currentassets/(liabilities) Long term liabilities	332,882 658,619 (101,835)	- 81,945 -	332,882 740,564 (101,835)	335,842 636,515 (115,397)	- 65,761 -	335,842 702,276 (115,397)
		889,666	81,945	971,611	856,960	65,761	922,721

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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21 ~=‘Related party transactions As detailed in note 15 at 31 December 2023 the charity is owed £566,494 (2022 - £621,970) from The Wharf House Company Limited as an intercompany loan. The full value of the loan is £666,494 less a provision of £100,000 considered irrecoverable. In the period the Trust did not charge interest on the loan (2021 - 29,833)

H&G CT Ltd owns The Wharf House (TWH) Co Ltd which takes responsibility for repaying loans for purchase of Malswick House.

22 Subsidlarles

These financial statements are separate H&G CT financial statements at 31 December 2022.

Details of the H&G CT's subsidiaries at 31 December 2023 are as follows:

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|||||||||| |---|---|---|---|---|---|---|---|---| |Name|of undertaking|Reglstered|Nature|of business|Class|of|%|Held| |office|Shares|held|Direct|Indirect| |The Wharf House Co|Ltd|Property|rental|Ordinary|£1|100.00|

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The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:

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|||||||| |---|---|---|---|---|---|---| |Name|of undertaking|Profit/(Loss)|Capltal|and| |Reserves| |£|£| |The Wharf House Co|Ltd|41,964|(321,772)| |23|Cash|generated|from|operations|2023|2022| |£|£| |Surplus|for the|year|48,890|28,226| |Adjustments|for:| |Investment income|recognised|in statement|of financial|activities|(2,574)|(28,658)| |(Gain)/loss on disposal|of investment|property|-|6,500| |Depreciation|and|impairment|of tangible|fixed assets|6,155|4,939| |Movements|in|working|capital:| |(Increase)/decrease|in|stocks|(4,967)|158| |Decrease|in debtors|78,389|16,435| |(Decrease)/increase|in|creditors|(9,279)|29,267| |Cash|generated from|operations|116,614|56,867|

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THE HEREFORDSHIRE AND GLOUCESTERSHIRE CANAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

NOTES TO THETHE FINANCIAL STATEMENTSSTATEMENTS (CONTINUED) FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBERDECEMBER 2023	NOTES TO THETHE FINANCIAL STATEMENTSSTATEMENTS (CONTINUED) FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBERDECEMBER 2023	NOTES TO THETHE FINANCIAL STATEMENTSSTATEMENTS (CONTINUED) FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBERDECEMBER 2023	NOTES TO THETHE FINANCIAL STATEMENTSSTATEMENTS (CONTINUED) FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBERDECEMBER 2023	NOTES TO THETHE FINANCIAL STATEMENTSSTATEMENTS (CONTINUED) FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBERDECEMBER 2023	NOTES TO THETHE FINANCIAL STATEMENTSSTATEMENTS (CONTINUED) FOR THE YEAR ENDEDYEAR ENDEDENDED 31 DECEMBERDECEMBER 2023
——- fs $$.
24	Analysis ofchanges in net funds/(debt)
		At1 January		Cashflows At 31 December
		2023			2023
		£		£	£
	Cash atbank and inhand	109,429		101,033	210,462
	Loansfallingduewithinoneyear Loans fallingdueaftermorethanoneyear	(16,624) (115,397)	.	1,398 13,562	(15,226) (101,835)
		(22,592)		115,993	93,401

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