REGISTERED COIIIP.I.%)' NI'IIBER: 02783.140 {Englattd and Il'ales} REGIS'1"ERED L11,IRI'II' .NLI.%IIIER: 11123376 REPORT OF THE TRUSTEES.4YD FIN.4NCIAL STATE%IENTS FOR THE YE.4R ENDED.11 DECEIIBER 2023 FOR THF. DRISKS TRLIST TIIE DRINKS TRIIST CONTENTS OF TIIE Fl.%JlNC'IAL ST..ITE.%IE.%TS for the i'car ended 31 December 2023 Page Rcference #nd Admlni5tr4tli'e Dcla115 Chaiman'5 Report Rcport of thc Trn51ces Report of the Independent Auditors 11 to 14 Stat¢m¢nt of Flnxn¢ial A¢ili4ti¢1 Balance Shect 16 Casb Flom. %lalemeDt 17 L%oles lo the Cash Flom" Statement 18 t%oles lo the Flnanclal .Stalemenls 19 to 32 TIIE DRINKS TRIIST for the l'ear ended 31 December 2023 TRUSTEES Mr N P Barker Mr T Christensen (resigned 17.10.23) Mr S N Difford Mr E C Dove {resigned 17.10.23) Mr G E Lawrence Mr A J Smiih Ms J Maclean Iresigned 26.2.24) Ms L Willou8hby Ms K D A Kratin8 Mrs N Forrest Mr l A Burrell (apwiinted 7.8.23) Mr P M H&slam {apw)inied 18.7.241 Mr T J Clay (appointed 16.7.?4) Ms J Bxmreuther (apw)inied 16.7.24) Mr l D Bray (appointed 16.7.?4) Mr A D WaLson {ap￿inted 16.7.24) co￿1PAI%y SECRETARY Mr J R Carter REC:lSiTERED ()FFICE Unil 4 Baden Place London SEI IYW REGISTLKLD cufiipAYY t%LNIBER 02783340 (England and Wales) REGISTEKLD CH2lRITY .YU%IBER 1023376 AUDITORS UHY Ilacker Young Chartered AccoLmtsniS & Siaiuiory Audiiors Thames House Roman Square Sillingb)urne ME104BJ SOLICITORS Lee Bolion Monier-williams l The Sancluary Westmin51er London SWIP3JT INN'EST.%IENT ADI'ISORS Julius Baer London 2fv?3 Greville St I_ondon ECIN 8SS Page I TIIE DRINKS TRIIST CHAIRIII,IN'S REPUR'I" for the l'ear ended 31 December 2023 In 2023 The Drinks Trusl continued to execule its primary goal of deliverin8 improved services lo more of our industry colleagiies in need. Ai year end. the Drinks Trust had undertaken 5.049 beneficiary acls. which represenied a new record high of M'elfare provision provided by ihe charity. The charity conlinued to diversify its donor and fimdr￿l￿8 activities, with fuods being received in more varied ways and across a broader section of the indu51ry. Demclnd for ser¥"ices in 2023 remained high. with more applications for 5UPIK)rt ihan in any year prei'iously. includiiig ih05e receiired durin8 the period of ihe COVID pandemic. As a resuli of ihe Cost-of-Lii.'in8 Crisis ihe chall¢n8e5 being faced by ihe industry workforce were profound. and ihe charity moved io support th0￿ applican15 ￿,hO were amonssi ihe most i'ulnerable. Ch#ritsble Rei"enues and Expenditure The year lo 31 December ?0?3 deliN'ered a loss of £36.074. Fundrnising in 2023 iota11￿ £95.3 ?18. Within the totsl funth rnised. rL*ricied revenues were £297.769. having been raised to deliver work across boih ihe Reslore and Develop service5. At year•end. unrestricted revenue delivered total income of £444.137. Remaining fun(ts were raised from iK)th ￿'ents and other 50ur¢es. such a5 the Busine55 Advi50ry Prt)grnmme service. and together represented total revenue of £211.312. Ajslst - Hardship R¢ll¢f .SeTh'l¢es In 10?3 The t)rink5 Trust proi.ided a total of 2.451 financial &￿istanCe with total exrthditure of £474.691. AS in 202? the charity coniinucd to priuriti%c Onc-off (ifdnt applicant% and to rcducc thc numkn of Periodic (ifdnls. The Icvcl of 4upport and impaLI thul Ldn bc aehiei'cd through l)ne ()ft" Cirant 5Up￿rt 1% more profound. dnd The Drink% Tru%1. much like othcr bcnei'olent LhdriliL5. luund this mcthod uf supwrt a highcr likclihood of dllei'iatin¥ financial hardshjp in th¢ long ierni. Restore - W ellbelng .4ier%'lces For the .%L*'i)nd ycar in %UCCQ*%ion. Ihc Icvel of SUp￿)rt deliN'ered through the Re%lorc (w'cllbeing) ￿￿￿'1cC h&$ conlinucd io grow. Whi151 in ?0?? Restore benefiLiUry numbers- grew. by 19020 10 988. the grO￿.th in 2023 ￿.85 SlbmifiLanily higher. w'iih a loldl of1 .702 benefiLiaries ha%'in¥ been supported. an increase of 72•/0 over 2022 levels. This is the highes1 Icvel of supwrt delivered since ihe charity moi'ed to inlroducc wellbeing supEK)rt in 2016. Expendilure on Restore services in 2023 iolalled £36.990. De￿elOP - N:oeallon*l Ilardship Sen'lees DLI.'Llop complLILd ils SLcond l.ull vear of service delikery in 2023. Since its iniroduciion. Ihis iraining and skills sernice io indii'iduals expcriencin8 financial hardship. h&s coniinued io deli%'er %'itsl support (o our induslry w'orkforce. and allracl new people 10 join. Through a N'ariety of training workshops and indusfry qualifications. Dei'elop ￿'aS able ro undenake 850 beneficiary acts in ?0?3. up from $64 in ?0?2. In Ihe short lime Ihis seTh'ice has been ai'ailable. over 1.400 indii'iduals hafv'e been able to access career changing skills and an opporniniry to thrive ￿'1(hin ihe drinks and ￿'¢I-led hospiiality seciors. Expenditure on Develop services in 2023 ioialled £93.613. Equal I1e*sures- tklii'ering Gre4ter Equit!. in the Drinks Industr), The managemeni contrac¢ with Equal Measures continued into 2023. deliNering a lolal of146 beneficiary acts across training and mentoring. Page 2 TIIE DRINKS TRIIST CHAIRIII,IN'S REPUR'I" for the l'ear ended 31 December 2023 I woiild like lo ihank our outgoing Irustees in 2023, Troy Chrisienseffj Edward Dove and Jillian MacL¥dn MBE. Their supp)rt of the charily is greatly apprecialed. Gui LaThrence Chair of Trusiee5 Page 3 TIIE DRINKS TRIIST REPUR'I" OF I'HE TRLISi'EES for ihe l'ear ended 31 December 2023 The tnisiees who are also directors of the charity for the purposes of the Companies Aci 2(￿￿1, preseni their report with the financial slalemenls of the charity for the year ended 31 December 2023. The Iruslees have adopted the proi'isions of Accountin8 and Rewrting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 10?) (effectil'e l January ?019}. OBJECTII'ES AND .4CTII'ITIES ORIGI1%. OBJECTII'ES .4ND PRINCIPLE AI%IS OF CHARITI, Thl Objecti￿"¢5 Ot the C'haril),. ￿.hICh ￿"aS fonned in 111116. as delinLd in the Memoranthim of As50cialion. are io assist members of the Alcohol Drinks Trades and all ancillary trades. organisalions and inslitutions in ihe Uniied Kingdom. w.ho are in need in particular.. By granting regular monihlv payments to alleviate financial hardship By making one-off grnnts or paymenis lo help address suffering or crises By proi'iding emotional OT practical as5islance for 155ues of wellbeing OT hardship By proi'iding 5UPPOrt lo the Tesidcnts of the home5 thai ihe charity ￿5¢￿ to own and run Practical. emotional and financial &s5ist2n¢e is ￿Ven to anyone in the drinks trade who 15 Currently employed. or has been employed. and haNe derive£l their income principally from the alcoholic drinks business and who meet the criteria for eligibil ity. The Trustee5 ¢onfirni that thcy have complied the thlty in wtion 17 of the Charities A¢t 201 I to have thie regard to the publi b¢nelit guidanc¢ publishe£l by thc Charitv Commission in detcrniining the artii'ities undertaken by the Charity. ()BJF.CTII'ES & ACTII'ITIES ThL Drink% Tru.st. dclinbv upon IL4 bL￿evolCnt originK continue5 to meet its objectives by way of %upport in the fomi of rcgular charitable donalioni and onc-off granL% and proi'iding additional emotional and practical 5uprKIrt to b￿CrIe1#r1c￿. ThL l)bjcLlive% of The Drinks TnL%t are &$ follows". "Inanelal ThL' L'hurily aims lo have a balanced budgd ai the same lime as increasing its welfare granls in line wilh budget. All areas of Lost will be examined and kept wiihin budget. PrO￿.1d1n￿ ihe slandards of care and support are nol jeopardized. Quarterly manaBement rqx)rts will be 5ubjecl to close consideration by the (Thief Executive and the Trusltts. 'elfare The objL*li%e of The Drinks Trusl is 10 increase ihe number of beneficiaries by aciively seeking 10 find Ihose in neLd who are eligible for support. This is achie&ed by a suslained aw'areness-rdising campaign conduaed ￿'1[hin ihe UK drinks induslry. The lewLI of the regular monihly granl is lypically L86 per month. The planned budgLI for ￿'elfare grdnls should be considLYed as ihe minimum amouni 10 be given by The Drinks Trusi and ihe budgei will noi be considered a resiraini on welfare, proi.'iding The Drinks Trusl is Able io afford (o increase the level of welfare from its reserves. if no( from curreni income. In pursuing lis objec¢ives ihe charity's aciivities fall into ihree main areas: DirLYt Charilcible acrifv iiies.. Ihese consisi of ihe following: al Regular chnritable donaiions 10 beneficiaries living in Iheir omm homes. bl OnL-off granis for Ihe purchase of & scrn'ices or ihe provision of suppon c) The proi'i5ion of praclical and emolional 5uppon io Ihose in need d) Financial and ￿'ell-being 5uppon io long-standing residen¢s of Ihe Vinrry Estaie in Eastbourne and Woodend in Chorley. propenie5 fornierly o￿Tred by The Drinks TN51 uniil sale of boih siies in 2013 e) Proi'ision of Television licences io some regular grnni beneficiaries 2. Fundraising 3. Govemance Activities Progress in these areas for 2023 is reported below with relevani financial inforniation in the Financial Stsiemeni pages. Page 4 TIIE DRINKS TRIIST REPUR'I" OF THL TRL'S'fEES for ihe l'ear ended 31 December 2023 ACIIIEN'E%IEYT A.YD PERFORI¥IAL%CE DIRECT CllIlRITABLE ACTII'ITIES The Assist programme (financial 8rdnlsl prol'ided 2.451 acts of financial suprrt>n io 1.066 beneficiaries in 2023. Ihese grants were made throiigh one-off and peri' w'ho are in need of prdLIiLal and emolional support. These seTr'ices included the delii.ery of a helpline serw"iLe from SpeLtrum. ii'hiLh proi.'ide 24 hour a day in ihe momenl emolional and praclical supwrt. a new counselling sep+'ice from the online provider Dr Juliun. ofyering iherapy sessions. a mindful drinking course from Club SLNkn and a sleep and insomnia ireaimeni program from Sleepslalion. Flnanelal and well-belng support lo resldenls The Drinks Trusl coniinues lo supNirt ihe prO￿lS1on of life-line arrangemenis 10 qualifying residents in a number of IhL bungalows Ihe charity once owned in Ea￿t￿lUme. as well as coniinuing wilh welfare granis and oiher on-going support 10 all our ex-residenls. Additional Christmas Gift Telei'ision li¢en¢es Gi%'en Ihe genernl increase in service proi'i5ion on Assisi ser4.ices and grants. and Ihe 5ignifi¢ani lei'e15 of demand in 2023. decision ￿'aS laken io noi pay Chrisimas Grunis. as (he recipienis are already sup￿rted ihroughoui Ihe year by way of ihe Periodic Grani scrn'ice. Page 5 TIIE DRINKS TRIIST REPUR'I" OF THL TRL'S'fEES for ihe l'ear ended 31 December 2023 ACRIIEN'E%IEYT A.YD PERFORfvIAL%CE FundrAlslng ac¢l)'Itle5 Fundrdising refers 10 all rei'enue generaling actii.'ities. No income is received from Government or State funds. Almosl all fundraising and i oluntary income is generated through the drU￿S iDdustry. The charity undertakes fvndraisin8 acli%'ity. in line ￿'11h the Fundraising Code of Praclice by the Fundrdisill8 Regulalor, lo its supporlers ￿'la direct mail. lelephone. fundrdising evenis. 4x)llsoTed eN'ents. gala dinners and is in line N'iih our Eniail Mcirketing. Fundrdisill8 Donalions and Legacy Pled8es. w.hich appears on our websile lo reassure supporters of our approach. Il'e hai'e robus1 policies in place regarding vulnerable people and treatin8 donors fairly. We have received no complaints during the year regarding our fundraising activity. The Drinks Trust continues ￿ receive important funds ihrough Corwrnie and Individual tknnations. The iotsl corporate and indiN'idual funding in 2023 £741.906. w'hich ?40/. short of the largeied tolal for the year. Of the ¢otsl funds received indiN'idual donations in 2023 iolalled £20.657. Rejen'es Poli¢v The Charity s principal actifvity is the prmri5ion of welfare 5UPFX)rt for people connected Mith the drinks and ancillary trade5 and the proi'ision of monthly and one.olT Charitable grnnts to those in need. The income generated from ini'estments 15 a iital continuing Source of income. and also proi'ide5 some longer-terni security in the most extreme case that fundrnising may cease or be draniaticallv reduced. The ini'e5tment w)rttolio 15 treated a5 part of the genernl fund. and in an extreme Situation ol" no fundraising b¢ing po.45ibl¢. these res¢r%'e5 w'ould be used to allow the charity to continue its obligations to its bcneticiaries until such fundrai%ing is rcsumed. (iiven the po%ilii'e momentum of awarenL%S and help lo the charity. existing and new drinks companies in the UK agryceinu to uppc)rt IhL charity with annual donationi dnd the high regard in w.hich thc charity is hcld. the ri%k% of thc charity experiLnein¥ ignificantly reduced income from fundraising in the near future. a& stated above. is regarded Ls low. Ai 31 51 DeL"ember 2023 totsl unrestricted funds carried forward amounkd io £5.083.653. Of this sum, £5,095,348 is repre&enled in Ihe 2023 ULLounls wiihin ihe inl'eslmenl fund. Golng Concern ThL "fru51LLS haN'e assessed ihe principal risks and fomiulaied a suitsble rcserves ￿lIcY as stsied above. They are salisfied that ihe Drink5 Trust has adequate resources lo conlinue as a going concern. Page 6 TIIE DRINKS TRIIST REPUR'I" OF THL TRL'S'fEES for ihe l'ear ended 31 December 2023 FIYAYCIAL REN'IEW IliN'EST%IE.YT POII'ER& POLICY AND PERFOR.IIAYCE Per the Memorandum and Articles of Associalion. the Truslees hai'e the p)w'er to inl'esi the money of The Drinks Trusl as they see fil subject to the condilions required by law. The Truslees Inveslment Aci 2(KM) therefore applies. In April 2023 The Drinks TnLSt compleled the second and final trdn5fer of funds lo its new inve5mieni advisors Julius Baer. and has agreed. in writin8. an inl'estmeni policy with ihis adviser. which states the scope. limils and restrictions and invesln)eni objectii'es. This policy is re￿Iewed on a regular basis bv ihe Ini'estmenis Cominitlee. Assels may be inN'ested in slocks. sliares. unils in colleclive inN'estmeni schemes. Go￿'ernment securities. debentures. loan slocks. bonds bul nol options. futures or conlrac¢s for differences. No inl'estmeni is pernlitled on an exchange. which has not been reco8nised OT de5ignaied by ihe Securities and Investment Boards. withoui the wrillen insIn￿liOnS of The Drinks Trusl . In agreeing Ihe investment objectives The Drinks Trust has set a targd io be achieved as well as ihe balance benveen capital gr0￿h and income. The mix benyeen UK and international equity exposure ha5 a150 been agreed. Valuations of the investment portlolio ￿,111 be carefully monitored and will be sent to The Drinks Tru51 ¢￿'Cry 3 monihs. The perforniance of the investnients is measured again51 the relevant benchmark5 and been bnmdly in line wilh these. GR.4YT POI.ICY A new ￿'¢lfare poliry cwted in November 20? I which cover5 all aspect5 of eligibility and Kope of support. This is updated and approved by trusle¢5 annually. and published io the organi5ation'5 web51te. Latest review and update wa5 May 2023. In all ¢&se5. the eligibility of pmspectifve ￿nefiCI￿rIeS is established in line with the Article5 of A550ciation. In many case5 bcnefiLiariL.4 dre of pen%ionable age and are in retircmcnt. howci'cr The Drink% Trust is incTe&%ingly hclpinby those ￿'ithIn the current workplace thai need financial help well prdetical and emtional sup￿rt. Potential bcncficiarith are cOnL￿ted before a regular charitablc donation is offered to their needs. and clibiibility. In addition. bcncfiLiarith are nornially contacted at le&41 once a year by the welt.are Officth to cnsure their circumsL￿Ce& remain unchanged. FL TURL PLANS Slrate&i' and Buslnes5 Plan A three year stralegy plan was presenied in October of 2022. setling oul goals to dclivcr services and revenues over those achieved in 2021. This slrdiegy recognised ihe distincl circumsiances creaied by the COVID19 pandemic and the revenues altained by ihe charily in 2020 and 2021 and soughi io deliver in 2023 81 increased levels over pre-pandemic serb'ices. Servle Ilai ing delii'ered on pre-pandemic goals of launching new wellbeing services. Ihe new Resiore progrnmrne sei oul goals in 2023 10 delil'er significani increases across all wellbeing serves. Improvements in beneficiary upthke We￿ achieved across all Resiore services. Fundraisiog The charity Sei out plan5 10 deliver improN'ed rth'enues from fundraising and donations in 2023. aliliough at year end Ihe total reN'eniies from fundrnising ￿'ere 25• belo￿, the budgeied volumes. This shortfall was offsei by decreased overhead spend. and the availability of funds by Trh'ay of carry fon%'ard from ?02? STRIICTIIRE. GOI'ERNAI%CE AND IIAYAGE￿IEI4T Goi"crnin% document Thc chill It), 15 coniiolled by ils governing dLxumenL a deed of m￿L and consiiwies a limiied company. limiied by guarnntee. as defined by Ihe Companies Ac¢ 2(M)6. Page 7 TIIE DRINKS TRIIST REPUR'I" OF THL TRL'S'fEES for ihe l'ear ended 31 December 2023 The princtpal structure and rLTrOrting lines for the charity are shown below: Trustees are or have been senior execulives employed in ihe Drinks Induslry or haN'e been apwinied for their expertise. Any new appoinlees are fully briefed on the aims and objeclii'es of The Drinks Trusl and receii.'e inforniation and irdining if required as lo (heir responsibilities as a Trustee. The Board detern)ines the 8enerdl tx)licy of The Drinks Trust. The day to da). managenienl of the ch4lrity is delegated ¢0 ihe Chief Execulive. The Board cu￿entlY comprises 13 members including ihe Chair and meels four times per year. The key management of the charity comprise the Chief Execulive. Ihe Operations Manager. Ihe Welfare Manager and the Markeling and ihe Communications Manager. Remuneration for all staff is sei by ihe T￿sttts when considering and agreeing the annual budget. Consideration is tsken of published benchmarking salary surveys such for ihe seclor. Internal Control The system5 of intemal control are designed to provide reasonable. but nol absolute. ￿SUrance against malerial misstatement or loss. They include". - An annual budget approved by the Trustee5 ReN'i¢14" and circulation of Management Accounts to all Trustees four times per year - A review of the remuneration of all 5taft-during the budget rel￿¢1*, proce&5 bv all Trustee5 Regular consideration by the Board of financial results. i"ariance from budgct5. non-financial p¢rforn)an¢e indicator5 and reviews. r)¢l¢gation ot"authority. including ￿'elfare pa)Thcnts. and segregation ol"dutics Identitication and managgment of ri5k5. Page 8 TIIE DRINKS TRIIST REPUR'I" OF THL TRL'S'fEES for ihe l'ear ended 31 December 2023 STRUCTLIRE, COI'ERNAL%CE AND %lA.YAGE￿lEliT R15k management I lai'ing assessed the major risks lo which the Drinks T￿51 is exr￿sed. Ihe iruslees beliei'e ihat by monitoring resern"e le%'els, by ensuring controls exisl o%'er key financial systems. and by examining the operalional and business ris￿ faced by the Drinks Tn￿t, they have established effeclive syslems lo mitigale those risks. The tnisiees reco8nise iheir resN>nsibility for the managemeni of risks faced by the Drinks Trus1. the employees and ihe beneficiarie5. In line with the requiremeni for truslees lo underlake a risk &sses5menl exercise and report on ihe same in their annual report. Ihe trustee5 have looked at ihe risks the Drinks Trws¢ currenily faces and have reviewed the m¢￿re5 already in place, or needing lo pul in place. lo deal M'ith them. The kev risks for ihe Drinks Tru￿. identified by ihe tru51ees. are de5criFKd below logdher wilh the principal ways in w.hich they are rniligated- The Drinks Tntst provides financial &55iStan¢e to those who work or have worked in the drinks industry. The trustees always ensure that th¢v are tully briefed alK)Ut the potential recipient of funds. that fund5 are trJnsferre£l via bank transfer. that pn)ot of re¢¢ipt Is (Trbtained. The Drink5 TrusV5 principal a55¢t comprises listed investh)ents. the value of M'hich is dcr£ndent on movemcnts in UK and world lock mdrkel%. The invcsthenL% are managLxI by rcputable infv'trbtment manageTh w'ho adhcre io 8 policy agrecd by thc tn].4lce%. The tru%iees MLYI regiuldrly with the ini'e%tmenl managers and the managicr%' perfomlance and ihat of the ￿rtfoliO arL' mcinilc?red. The ini'estmcnl strnlcbry is &%ses5ed regularly io cnsurc it remains approprialc io the Drinks Trust's n¢cds" . both now. and in IhL lulure. ThL l)thLY ri.4k% lur Ihc Drink% Tru%t. identified by Ihc trn.%tces. are described below: CyQl'ernance and management thi4 inLludc% the ri%k.% inN'oli'ed in change in the Lcadcp*hip Team or the Board ￿,hICh mighi lack dirL*iion- IuLk uf skills dnd Iraining among members of 51alTand ihe wN)r L￿e of ils resourLes. Operatlonal ihese are risks inherent in the charity's aclivities including shortcomings in the services PTOi'ided- di￿lcultIeS ￿'ith Idft": poor health and safety: lack ofdisasler reL'overy plan etc. Trlnanelal - these risk5 include Ihose arising 8s a resuli of p)or budgetsry control: inappropriaie spending; poor accounling: indpprupriale ini'eslmeni p)licy etc. Kepulailonal - these are risks ihat might resuli from damage to the charily's repulation. Regulalorn. Ihese include those risks outside the chariiy's conth)I such as changes in governmeni policies and non-compliance wilh laws and regulalions. Having assessed ihe major risks io which ihe Drinks Trusi is exkx)sed. Ihe trusiees believe ihal by moniioring reserve le￿els. by ensuring conlrols exisi over key financial sysiems. and by examifting the operaiionAI and business risks faced by (he Drinks Trusi, they have esiablished effeeiive sysiems 10 miligaie (hose risks. Page 9 TIIE DRINKS TRIIST REPUR'I" OF THL TRL'S'fEES for ihe l'ear ended 31 December 2023 STATEI¥IEYT OF TRLSTEES, REsPo￿SIBILITIEs The Truslees are responsible for preparing ihe annual re￿rt and the fuwicial slalements in accordance with applicable law and regulations. Company law requires the Trustees lo prepare financial slalemenls for each financial yfdr. Under thai law the Truslees have elecled ¢0 prepare the financial slalemen15 in accordance TrA'ith Uniied Kin8dom Generdlly Accepted Accouniin8 Practice {Uniied Kingdom Accounling Siandards and applicable law). Under company law ihe Trustees must nol approi'e the financial ￿aleMen15 unless ihey are sat15fied thai ihey give a ITue and fair view of the state of affairs of the Drinks TTUSt and of the result for iha¢ yfdr. In preparing these financial s¢atements. Ihe TrU￿eeS are required io.. select 5uilcible accounting wlicies and ihen apply ihem consislently. . obsen'e the meth(K15 and principles in the Charities SORP: . make judgments and accounling eslimales thal are Teasonable and prudenl: 4. PTepare ihe financial Maiements on the going concem basis unle55 il is inappropriate to presurne ihat the Drinks Trust coniinue in business. The Trust¢e5 are responsible for keeping adequate a¢¢ounting records that are 5uffi¢i¢nt to show and explain the Drinks Trust and subsidiary's ttansactions and dI￿105e with rea50nable a¢cuwy at anv time the financial rK)sition (Trf the l)rink5 Trust and Subsidiary and enable them to ensure that the financial statements comply 1s.ith the Companie5 Act 2(KK). They are also responsible for Safeguarding the assets of the charity and hence for taking re&Y)nable 5tep5 for the prevention and detection of fraud and other irregularities. So far cach ol" the TnL%tecs are a￿.are at Ihc time the report is approvcd: Iherc 1% no relei'unt dudit infomidlion of ￿'hICh the charity'4 audiior% are una￿.arc- and the Trn.%lee% hai'e tdkcn all %lcps that the). ou¥ht to ha%'e takcn to make them5el%'es dm'art of any relei'ant audit infomution and to L%iabli%h that the audiioD• are aware of that inf0m￿tIOn. S%IALL C()IIPIlNY ExE￿lI￿lI)Is In prLpurillbi this fLP(Prt IhL dirLLlurs hdl'e takcn advantage of small company exemplions. ALIDI'I'()RS A resolution reappoinling UHY Hacker Young H'ill be prowsed at ihe AGM in accordance wilh S485 of the Companies Aci 2006. 31 st October 2024 Approvcd by order of the board oftrustccs on ............................................. and signed on its" behalf by: Mr A J Smiih- Trusiee Page 10 REPORT OF TIIE INDEPE%DENT.IL'DITORS TO TIIE ￿lE￿IBERs OF "I'IIE DKI.NKS 'I'RLS'1" plnlon We hai e audited the financial staiements of The Drinks Trnst (Ihe charity'l for Ihe year ended 31 December 20?3. M,hich coiiipr ise (he Sialeineni of Financial Aciii'ilies. the Balance Sheel. (he Sialemenl of Cash Flo￿.5 and noles to the financial slalements including significanl accounting ￿liCies. The financial rep)rting frdmem'ork thai h&$ been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Rew)rting Siandard 102 The Financial Rewrting Siandard applicable in the UK and Republic of Ireland, {United Kingdom Generally Accepted Accounting Praclice). In OUT opinion ihe financial statements- 8ii'e a true and fair view of ihe state of the charitable company's affair5 as ai 31 December 2023 and of the charilable coimpany's incoiming resoiirces and application of resources, including ils income and expenditiire for ihe year ihen ended- - ha￿'e been properly prepared in accordance w'iih Uniled Kingdom Generally Accepted Accounlin8 Practice: and - have been prepared in accordance wilh ihe requiremenls of ihe Companies Aci 2(K)6. Bg$i$ for opinion Il'e conductLd our audit in accordance with Interna¢ional S¢andards on Auditing {UKI (ISAS (UK)) and applicable law. Our responsibilities under those 51andard5 are further described in ihe Audilors, Te5N)nsibilitie5 for the audil of the financial statements section of our rcNirt. We are independeni of the charitsblc company in accordance ￿'11h the dhical requiTemen15 that aTe relevani to our audit of the financial statements in the United Kingdom. including the Financial Reporting Council'5 Ethical StandaTd. and we hav¢ tultilled our other ethical r¢5ponsibilitie5 in xcordance with these requircments. Il'e bclicfve that the audit ci'idcnce ￿,¢ have obtained is sutTJcient and apprt)priate to proi'ide a basis for {￿r opinion. Conclu*l(Jn$ relatlnR to %oln% enn¢ern In auditin¢F the financial stateTn¢nLs. w'e have concluded that the Tn￿ee5. use of the going Concern basi5 of accounting in prcpaTation of th¢ tinancial Statements 15 appropriate. on the work wc ha%'e perfornied. we ha￿'C not identified any matcrial uncerlainli￿I rclating lo cN'ent% or condition% that. indi%'idually or Lollectii-ely. may ca%t significdnl doubt on the charitdblc company'% ability lo continue a ¥oing concern t.ur pcrii)d ol" at Iw'clvc month% from M,hen the financial statements art auihori.sed for i%%ue. Our res￿)n516111tieS and the re%pJnsibilitie% of the Trustees with rest￿1 to going concern are de￿ibed in the rclcvanl ￿l'tIOn￿ of Ihis repun. ther Informailon The Iru%lLY5 are responsible for ihe oiher inforniaiion. The oiher infornvdtion comprises Ihe infornialion included in the Report or the Truslees. oiher ihan the financial slalements and our Auditor's report ihereon. Our opinion on ihe finanLial slulemen15 does not cover Ihe infornialion and exLepl to the extenl othen4'ise explicitly sthied in our report. we do not express any fomi of assurance conclusion Ihereon. In conneciion wilh our audii of the financial siaiemenis. our resp)nsibility is io reid ihe oiher infomiaiion and. in doing so. consider wheiher ihe oiher inforntsiion is maierially inconsisieni w'iih ihe financial slaiements or our kno￿.ledge obiained in ihe audil or oiherw'ise appears io be maierially missthied. If we ideniify such m81erial ineonsisiencies or appareni malerial missiaiemenis. ￿.¢ are required io de¢ern)ine whdher ihere is a material missiaiemeni in ihe financial siaicmenis or a maierial misslaienieni of Ihe oiher inforn)alion. Ir. ￿lS¢d on ihe ￿'ork we hai'e perfornied. we conclude thai ihere is a maierial inisslaiciiieni of ihis other infomiaiion. we are required ¢0 report ihai faci. We have nothing to repon in this regard. Page 11 REPORT OF TIIE INDEPE%DENT.IL'DITORS TO TIIE ￿lE￿IBERs OF "I'IIE DKI.NKS 'I'RLS'1" Oplnlons on other m*tter5 preserllmbd b!, the Companles Ael 2006 In oiir opinion. baied on the il'ork under￿k"Ln in ￿le course of il)L audit: - the information giN'en in ihe Trustees Report for which the financial slatements are prepared is consistenl with the financial statements. - The Trnstees, Report h&$ been prepored in accordance with applicable legal requiremenis. IAtters on H'hl¢h M'c Are requlrcd to report b> eXCCPtion In the light of ihe kno￿,ledge and under51andin8 of the charilable company and its environmeni obtsined in ihe course of the audit. we have not identified malerial misslalemenls in the Truslees, Report. We have nothin8 to report in respecl of the following matters in relation to which the Companies Act 2006 requires us lo report to you if, in our opinion.. - adequate accounting record5 have Mt been kepL or rewrns adequate for our audii have not been received from brnnches not visiled by us- or - the financial statemen¢s are not in agreement ihe accounting records and reWrnS- or ceriain discloSUTes of truslees, remuneration specified by law. arc noi made: or WE hai'e not receii'cd all th¢ in*orniation and explanations we require for our audit: or the Trustees were not entitled io prq)are the tinancial statement5 in a¢cordan¢e with the small companie5 regime and take adfvanlage of the small companie5. exemption5 in preparing the Tru5tees' Report and from the requirement5 to prepare a Strat¢gi¢ RerK)rt. Respon5iblllti¢$ of tru%trts A% cxpluincd more fully in thc Sialcmenl of TnL%iee5' Re%wn4ibilities. the TnL%tees arc rtsTron%ible for ihe prcparaiion of the findllcidl %lalcmcnt% dnd for bein¥ ￿tI￿rIed that they give a true and fair vicTh'. ond for such intcrndl control as thL Tru%tee dctLnninL 1% niLtr&Sary to ¢nabl¢ the pr￿aratiOn of financial sL1temenL% that are frec trom material misstatemcnt. ￿,hclhLr duc lo frdud or cm)r. In prcpdringy IhL financial %tatemcnl%. the Trustcc% arc T￿r￿)n41b1c for as%e4%ing the charilablc company'% ability to conlinuc a% a goinby LollLem. disLI¢)5in¥. as appliLable. mallers relaled io going Loncern and usinbl the going conLern basi5 of aLLounling un IL￿ Ihe Truslees either intend lo liquidale the chariLgble company or lo cease operalions. or hai'e no realistic aliernaliN'e bul to do so. Page 12 REPORT OF TIIE INDEPE%DENT.IL'DITORS TO TIIE ￿lE￿IBERs OF "I'IIE DKI.NKS 'I'RLS'1" Audltor'5 re5ponslblllt!, for the *udlt of thc llnanelAI stalemtntS Our obJectil"LS are lo obtain reasonablL &ssuranLL aknui wheihLr the fmancial statements gs 8 whole are free from material misslalemenl. whether due to fraud or error. and io issue an Audilorfs report thal includes our optnion. Reasonable assurance is a high leN'el of assurance. but is nol a guardnlee ihat an audil conducied in accordance with ISAS (UK) will alvl'ays delecl a malerial misslalemenl H,hen il exists. Mi5statements can arise from fraud or error and are considered inalerial if, Indi￿.Idua1IY or in the aggregate, they could reasonably be expecied io influence the economic decisions of users tsken on the basis of these financial slaleinenis. Irregiill¢ rilies. including fraud. are in51ances of non40mpliance M'ith la￿.5 and re811142tions. We design priKedures in line wilh our responsibilities. ouilincd abo￿.e. to delect malerial misslatements in res￿1 of irregularities. including fraud. The extenl lo iiliich our procedures are capable of detecting irregularities. including fraud is delailed belo￿.: Nonth¢ompliance wilh laws and regulation5 Based on.. our under51anding of the charilable company and the sector in which Tl operates: di5CU55ion ￿'11h managemeni and ihose charged M'ith goN'¢mance- and - obtaining an understanding ol" thc charitable company's policie5 and pr￿edureS regording Compliance with law5 and regulations; We considered Ihc significant la￿,5 and regulations to be the Financial Rgw)rting Standard applicable in the UK and Republic ot" Ireland (FRS102). the Charities SORP (FRS 102). the Charitie5 Act 2011. the Companies Act 2(M)6 and UK tax legislation. The charitabl¢ company is also subject to lakn's and regulation5 where the ¢onsequence of non4omplian¢e could have a material ctTL*I un IhL amount or diiclo%ures in the financial %talcmenls. for example ihrDugh the imposition of fine% or liligalic)n.%. We idenlilied %uch laii'% and rcgulations lo be thc Hcalth and Safety at Work Act l 974. the Data PrDtcclion Act 20111. Emplcjyment RibFhts ALL 1996 dnd thc Bribery Act ?010. ()ur procedurv* in of the above included: RLN'ieM' ot" the finuncial .%talemenl di%elo%urc4 and agrecing to suprM)rting documentation: Re¥'le￿. of minuies ofmttiings of those Lharged w'ith go¥ernanLe for any inslanLe of non-compliance wilh laws and regyulalions; Rei'iew ofLOTrespondence wilh regulatory and authorities for any inslances of non-compliance wilh laws and rebiuliilions. and - Review of legal ex￿dit￿re accounts to undersLgnd the nature ofcxpenditure incurred. Fraud We assessed Ihe suscepiibility of the financial sthiemen(s (o maierial missta(emeni. including fraud. Our risk assessmeni procedures includLd.. - Inquiry ￿'11h managemeni and ihose charged with governance regarding any known or suspethed instances of fraud: - Obiaining an undersianding of ihe charilable company, p)licies and procedures relaiing lo.. o Deiecling and resFK)ndin8 10 the risks of frdud: and o Iniernc11 conirols established io miligaie risks relaied io fraud. Re%'ieii' of minuies of mtttings of ih05e charged ￿'Ith gofv'emance for any known or suswed instances of fraud. Discussion amongsi Ihe engagemeni ieam as 10 how and where frnud mighi occur in ihe financial s¢a¢ements: Page 13 REPORT OF TIIE INDEPE%DENT.IL'DITORS TO TIIE ￿lE￿IBERs OF "I'IIE DKI.NKS 'I'RLS'1" - Perforniing anaI￿le￿I pr￿edureS lo identify any unusual or unexpected relationships thal may indicate risk of material misstatement due to frdud. Based on our risk assessmeni. we considered the are&s mosi susceptible to frdud to be journals and key eslimates and jud8emenls. Our pr￿edureS in re5￿t of the above included: -Tesling a swnple of Journal entries throughout the year, wbich mel a defllKd risk criteria. by agreeing to supwrtin8 documentalion. - Assessing significan¢ eslimales and judgements made by management for bi&s. includin8 ihe allocation of 5UPPOrt costs: - Testin8 the exislence and accUr￿Y of income recognised in ihe year. We also communicated relevani ideniified laws and regulalions and w)tential fraud risks to all en8agemeni team meinbers and remained alert to any indications of fraud or non-compliance ￿.7¢h laws and regulations ihroughout the audit. Our audit procedures were designcd to res￿nd to risks of maierial misslalemeni in ihe financial slalements. recognising thal the risk of not detecting a material misstatement due io fraud is higher ihan ihe risk of no detecting one resulting from error. as fraud may In￿01￿,e deliberate concealment by. for example. forgery. misrepresentations or ihrough collusion. There are inherent liniitalions in the audit procedures perfomled and the further remo￿.Cd non-con)pliance ￿.7¢h laws and regulalion5 is from ihe events and transactions rellected in the financial 5talemcnts. the less likely ￿e are to bccome a￿.arE of il. A turth¢r description of our resw)nsibilities for the audit of the financial 51atement5 is Iwated on the Financial R¢w)rting C.ouncil'5 web51te at ￿.trrc.0rg.uklaUdItor5r¢5pQnsibIlitI¢5. This description fomis part of (wr RetX)rt of th¢ Independent Auditor5. Other I1atter4 ThL lindncial %￿leMenL5 for thc year cndcd 31 December 2022 were audited by the predecc￿y)r audiior. Hoy%macinW LLP. The audit rcrx)rt wa% issued on 15 September 2023 and expre￿ an unqualified opinion on the financial statements. Use of our report Thi% report 1% madc solely to the charitable company's members. a% body. in accordancc with C"haptcr 3 of Part 16 of the LumpaniL% Act ?006. Our audit ha% been undertdken ￿ that M'e might 4latc to the charitable compan) % members th0￿ mallcrs we are rL'4uifLd lo stale lo ihem in an dudil0rf5 report and for no other purwse. To the lullesl Lxleni pemiilied by law.. ￿'C do nol aLcepl or assume responsibility lo anyone other than the charitable company and the charitsble company's members as a body, for our audil w'ork. for Ihis rep)rt. or for the opinions w'e have fornied. fvLY fr(ALkér Y Trneei, Moore, BFP ACA (Senlor Slalutorn Audllor) For and on behalf of UIIY Ilaeker I'oung C'hariLrcd Accountsnis & S¢aNiory Audiiors Thamcs House Romcin Square Sillingbourne Keni MEIO 4BJ Date: 31 October 2024 Page 14 TIIE DRINKS TRIIST ST,lI.E￿I￿[￿T OF TrINA)C12lL AC"'III'I'I"IES II%CURPUILI'I'I.NG .IN I.%LOIIL .,I.ND E.XPENDI'I"I:RE ACCOLI.%'r for the l'ear ended 31 December 2023 2023 Tolal funds 2022 Total funds Unrestricted funds Restricied funds Notes 1￿co￿lE AND ENDOII'NIENTS FRO%1 Donations and legacies 444.137 297.769 741.9)6 841.239 Oiher trading activities In￿estMent income 211.312 70201 211.312 70.201 262,$12 63,0?3 To¢41 725.650 297.769 .023.419 1.166.774 EXPENDITURE ON Raising tunds 83.017 138.950 221.967 345.588 Charitible #ctliities Pro%'ision of financial ￿sIstance to those who worked in the drinks inthlsty 909.554 310.965 .220.519 1.237.463 Tot*1 99? 571 449.915 1.44?.486 ,583.051 Net gaIn￿lI055¢S) on investments 382.W3 382.W3 585,588) I%F.T INCQNIFJ{F.XPF.I%DITURF.) Tran5fer5 betm'een funds 16,07) (64.409) (15? 146) 64.4(19 (36,074) (1.001,865) l%et moi'emcnt in fund5 51.663 (87.737) (36.074) (1.001,865) REC()YCII.IATII)N ()F FLI%DS Totsl lunds bruuiyhi 5.031.9 115.1167 5.147.X57 6.149.722 TOTAL FUNDS CARRIED FORM'ARD 5,083.653 ?X.130 5.111,783 5.147.857 C()YTIliLINC: ()PERATI()N All in¢om¢ und cxpcnditurc arisen from Continuing activities. The Statemeni of Financial Adivilies includes all gains and losses recogniscd in the year. The notes forni part of these financial stsiements Page 15 TIIE DRINKS TRIIST B,ILAYC"E SHEE"f 31 December 2023 2023 Tolal funds 2022 Total funds Unrestricted funds Restricied funds Notes FIXED ASSETS Tangible assels In￿eStMentS 2.612 5.095.348 ?.642 S.095.348 3.4?3 2.$3 S,337 16 5,097,9 5,097.990 2,538.760 CURRE]%T ASSETS Dcbiors Cash ai bank and in hand 17 60.066 3.691 13.195 14.935 18.626 2,574.575 63.757 28.130 91.887 2.651.036 CREDITORS Amoiints f4911ing duc wiihin one year 18 (78.(P)4) (78.(K)4) (41.939) I%ET CLRRF.YT ASSETS (14.33n 28.130 13.793 2.609.097 TOTAI. ASSF.TS I.F.SS CURRF.NT I.1.4BII.ITIF.S 5.083.653 28.130 5.111.783 5.147.857 I%F.T ASSF.TS 5.OS3.653 )8.130 5,111.783 5.147,857 FUNDS UTJrestricled funds Re51ricted tunds 5.08.3.653 2X.130 5,n.I1.990 115.X67 TOTAI, FUNDS 5.111.783 5.147.857 These financial s¢at¢ment5 have been PTepaTed in accordance with the provision5 applicable to charitsble companie5 subject to th small companie5 regime. 31 st October 2024 The financial Statements were approved by the Board of Tn￿lee5 and auih0ri5C4J for issue on ............................................. and wer on il% bchalt. by: Mr A J Smith- Trnslce RE(ilSTERED COMPANY NUMBER: 02783340 The notes forni part of these financial stsiements Page 16 TIIE DRINKS TRIIST C,ISH S'IAI'E.%IE%T for (he l'ear ended 31 December 2023 2023 20?2 Noles Cash flo￿ 5 from opcratlng Aetli'ltles Lasli RLlieraiL￿ froLn operations 383 892) 194.991) Net cash used in operaling activilies 383.892) 194.Wl) Cash 1101Trs from Inve5t6ng actl)'Itles Purch&se of tan8ible fixcd assets Purchase of inTr4'esiments Proceeds from sale of inveslmenls Interesl receii'.ed {l.(H7 (5.991.682 3.814.664 7.649 (2.182) {1.593?01) 4.211.517 99$ Nrt cash (u￿d in)Ipro%ided by investing activities 2.170.416) 2.617.129 Chan%e in cash and ¢g$h equi)'alents in the reporting period C.A5h and cash ¢quiv21ents 9¢ ihe beginning of th¢ r¢portin% period {2.554.308) 2.42? 138 2.571.669 149..531 Cash and cash equivalents Ot Ihe cnd of the rcportln% pcrlod 17.361 2.571.669 The notes forni part of these financial stsiements Page 17 TIIE DRINKS TRIIST I%O'I"ES I'O THE CASH TrLUII 5I'.A'I'E,IIEN"I' for the l'ear ended 31 December 2023 RECONCILIATIOL% OF .YET E.XPE.YDITLRE TO .YET CASII FLOM, FRO￿1 OPERATING ACTII'ITIES ?0?3 10?2 Nel expendlture for tbc re￿rtIng perlod {#s per the Slatemenf of Flnlnelal AcilJ,Illcs) Adjustmcnls for: Deprecialion charges (Gainl1105ses on invesimenls nteresl receii'ed Decrease in debtor5 Increase in creditor5 (36.074) (I,(K)1,865) 1.828 (382.993) (7.fv19) 1.776 585.$88 1995) 215.340 5.165 37.746 Net ush used in operation5 383,892) 194.991) ANALI'SIS OF CASEI thD CASII EQUIN'ALE.YTS 2023 2022 C&sh in hand Nolice deposi15 (less than 3 monih5) Overdrafts included in bank Iiwns and overdrafis falling due within one year 1571) 19.197 (441) 2.574.96(? ?.856) Totsl cash and cash equivalents 17.361 2.571.C)69 RECONCILIATIOY OF YET DEBT Ai 1.1.23 C￿h flow At31.12.23 Yct ¢*sh Cash at bank and in hand Bank o%'eTdTaft 2.574.5?5 2.856 (2.555.899) 1.591 18.626 2,571.669 (?,554.30X 17.361 Total 2.571.669 (2.554.30X 17.361 The notes forni part of these financial stsiements Page 18 TIIE DRINKS TRIIST I%U'fES I'U'I"HE Tr"INANC"I,IL S'l'il'fE.%lEN'fS for the l'ear ended 31 December 2023 GENEIL4L l￿Fo[L%1ATIO The Drinks Trusl is a charitsble company limiied by guarantee. incorwraied iti England and W'ales. The charity's regiitered number is O?783340. The address of the charitys rc8isiercd otTicc and principle place of business is . Unit 4, Baden Place, London. SEI I YW. ACCOUNTII%G POLICIES B*sls of prepArlng the fin*nrl*l slltcmfnls The fincincial slalements of ihe Drinks Trust. which is a public benefit entity under FRS 102, have been prepared in accordance M'iih the Charilies SORP (FRS 102) 'Accounting and Reporting by Charities". Sialemenl of Reconimended Practice applicable lo chariiies preparing their accounts in acconlance M'ith the Financial Reponing Siandard applicable in the LIK and Republic of Ireland (FRS I O? i (effectiN'e l January ?019)'. Financial Reporting Standard l O? The Financial Reporting Standard applicable in ihe UK and Republic of Ireland. and the Companies Acl ?(K)6. The financiul 51alement5 have been prepared on a going concern basis under ihe historical cosl conveniion. with the exception of investnients ￿'hICh are included at markel value. Goin% ¢on¢ern Thc tru5tees' consider that there no material uncertainties ol'er the Trust'5 ability to continue a5 a going concern for the for5eeabl¢ tuture b¢ing a p¢ri(Kl of at least 12 month5 from the date of signing the financial 5tatement5. The con5id¢rntion5 made in thi5 review include the review of current and future a¢tivitie5 of the Trust. together with a re%'iew of its ca%h and Position up to 31 October 2025. Ineome Inccimc 1% recogni&ed when the charity entitlement to the fun(Ls. any wforn)ance conditions attached to ihc item(i} of inLome have been meL it 1% probablc that the income will be received. and the amount be mc&surcd reliably. Donalions and gifts are includcd in full in the period in which thry are received. Donations in kind are %'aluLxI 81 the eslimaled market value of ihe Iransaclion. Grdnl income is included in the period in which the gr8nl is receivable unless il relates lo a spccifie future r*ui(Kl in which Lase il is defLYred. Expendliure CharilablL cxpcnditure represenis ihe cosis of fundraising. housing. welfare. and suppK)rt cosis. li includes siaff cosis i4.hich are dirLYtly aiiribulable lo ihcsL' aclivilies. Redundancy and (ern)inalion cosls are accruLd in (he Peri￿ in ¥s,hiLh (he decision is made and communicaied io (he affttied employeels). Support cosls comprise all serK'ices supplied cenfrnlly. ideniifiable as wholly or mainly in suppon of direct charithble purp)ses and include an appropriaie proportion of genernl oi,erheads. Where cosis canno¢ be direthly allribuied. Ihey have been alloca¢ed ¢0 activiiies on ihe basis of the esiimate of ihe lime speni on ihe relevani funciions. Central ovetheads are allocated ¢0 direct costs. sup￿n$ costs and grants in Iwo key areas.. fundrnising and charitsble aclii'ities. The basis of ihe allocaiion is lo ensure thai ihe costs wiihin administration relaied io ihe managemeni of the Chariry's asse15. operational administration and compliance wilh conslituiional and statuiory requiremen¢5 are appropriaiely apportioned ￿.1¢h1n Ihese areas. Goi'ernance cosis are Ihe costs associaied with ihe go%'ernance arrangemenis relaiing to the general running of the charity. including costs of strategic planning for the longer term development of the Charity. Grants pa)'able Grants are recognised in the accounts when awarded by the Tn￿e¢S and notified to ihe recipients. Page 19 coniinued... TIIE DRINKS TRIIST NOI'ES TU'IHE Tr-IN,INC"12IL SI'AI'E.IIEN'I'S- contlnued for the l'ear ended 31 December 2023 ACCOUNTII%G POLICIES - contlnued Grdnls offered subject lo condilions which bave not been ai the year end date are noied as a commilment bul not accrued as expenditure. Drblor5 Debiors and oiher debtor5 are recognised ai ihe settlement amouni thie after any discount offered. Prepayments are valued at the amounl prepaid net ofany discounts due. C15h at bank and In hand Cash and cash equivalen15 consisi of cash in hand and balances with banks. and ini'estments in money market instruments which are readily coni'ertible. being those w'ith original maturitie5 of three months 01 less. Crcditor5 Creditor5 and provisions are recognised where ihe charity has a presenl obligation resuliing from a past ei'enl ihal Mill probably result in the trnn5fer of fund5 to a third party and the amount due 10 Settle the obligation can b¢ measurd or estimated reliablv. Creditors and provision5 are nornially recogni5ed at their settlement amount after alloN"ing lor any di5¢0unt5 due. Tan%ible filed a$5¢ts Depreciation 15 pTON.id￿ at the following annual rate5 in order to ￿TIte off each over it5 estimated wseful life. Fixlurc% and fillings Qomputir equipment StrdiLrht line oN'er 5 yc StrdiLTht lin¢ oN'er 4 ycapi Tangible fixLxI as%eL% under the cosl model arc %tated at hi%lorical co%1 accumulalcd depreciation and any acLumulated impdirn)Lnt lo%Ne%. Hi4torical co%1 inLlude% expenditurc thal 1% dirccil! attributable lo bringing the L%set to thc IoLation and condiiiun necessary for li io be Lapable L>f o￿Taling in the manner intended b). managemenl. DepreLialion 15 Lharged so as to allocate the cost of assets less their residual value over their cstimaied useful lives. using Ihe slr8ighi-line rneth￿. The assets, residual values. useful lives and deprecialion mcthlxls are reviewed. and adjU￿ed prospeclii'ely if appropriate. or ifihere is an indicaiion of a significani change since the lasi reporting da*. Gain5 and losses on disp)sals are deiemiined by conwing the proceeds with the carrying amouni and are recognised in profil or loss. Ini'estments In%'LstniLnis are a forni of basic financial insirumeni and are iniiially recognised ai their transaaion value and subsequenily mec15ured a¢ Iheir fair value as a¢ Ihe balance sheet dale using iheir closing quoied markd price. Realised and unrealised gains and losses are Show￿ in the stsiemeni of financial activiiies iogdher as nd gain￿ (losses) on investmenis. The Trnsi does noi acquire pui opiions. derivaiives or oiher complex fmancial insirumenis. The main forn) of financial risk laced by ¢he Trust is ihat of volaiiliry in ihe ini'estmeni market due lo wider econoniic condiiions. Ihe anitude of in￿e$lor$ ¢0 inve51meni risk and changes in seniiment concerning equities and wiil)in panicular sector5 of 5ub- seciors. Page 20 coniinued... TIIE DRINKS TRIIST NOI'ES TU'IHE Tr-IN,INC"12IL SI'AI'E.IIEN'I'S- contlnued for the l'ear ended 31 December 2023 ACCOUNTII%G POLICIES - contlnued TAxatfjon The company is considered to pass ihe lesls sel out in Sch. 6. para. l of ihe Finance Act ?010 and therefore il Ineets ihe definilion of a charilable company for UK corpordtion lax purwses. Accordingly. the company is p)ienlially exeinpl from taxcilion in resp￿1 of income or capital 8ains received ￿'IthIn categories covered by Pt. I l. Ch. 3 of ihe Corporaiion Tax Act 2010 or 5. 256 of ihe T￿allOn of Chargeable Gains Ath 1992. ￿ the exieni thal such income or 8ains are applied exClusi￿.elY to charitable pur￿5. Fund a¢¢ountlng Unrestricted funds These funds comprise accumulated surpluses and deficits on the General Fund. They are available for use al the discretion of ihe Truslee5 in furtherance of The Drinks Trust's general charitable objeclii'es. Restricled funds These funds are subjccl lo specific restricted conditions imkwd by the donors. Investment income Investment income is accounted for as it ac¢rue5. Operatln% leases ()PLYatinb leL%e renta15 are chargLxI to the Statement of Financial Actii'ities on a slrnight-linc b&%1% over the temi of the Penslon costs and olber post-retlrement benefits ThL Drink.4 Trust arranged a defined contribution pension schcme for its employees. Contributions are chargcd to the Statement of Financial Activities in the ytrar they became pyable. Inanel*l Instruments The Lharily only has financial assets and financial liabililies of 8 kind thal qualify as basic financial in.%lrnmenls. Basic rinancial instrnmenls. including trdde and other debtors and credilors are initially Tecognised at transaLlion value and subsequenily measured ai their settlement i'alue. CRITICAL ACCOUNTING JLIDGE%IEYTS AliD KEI, SOURCES OF ESTINIATION UNCERTAINTY Islim8ies and judgemenis are coniinually evaluaied are based on historieal experience and o(her faciors. including expLclalions of future evenis ihai are believed io be reasonable under ihe circumsiances. The Charily makL% LStimalLS and assumptions concerning ihe fulure. The resuliing accounting esiimaies and 25sumpiiofts will. by definilion. seldom equal (he relaied aciual resulis. No judgements (apart from ihose involving esiimaiesl have been made tn the process of applying the abol'e accouniing policies. The key assumpiions concerntng the future and key sources of e￿Imal10n of uncenainty ai ihe reponing dale thai have significant risk of causing a maierial adjustment to the carrying amounis of assets and liabilities ￿'1th1￿ the nexi financial year include.. - esiimarion of ihe useful economic life of furniNre and office equipmenl. IT equipmenl: and. - Ihe level of investment return and perfornMnce of ¢he invesnneni markds. Page21 coniinued... TIIE DRINKS TRIIST NOI'ES TU'IHE Tr-IN,INC"12IL SI'AI'E.IIEN'I'S- contlnued for the l'ear ended 31 December 2023 DO.NATIONS MD LEGACIES Unrestricled 2023 Reslricted 2023 Total 2023 Donalions 444.137 297.769 741.906 Unrestricted 2022 Restricred 20?? Total 2022 Donations 474.511 366.7?7 OTFIER TIL4Dl￿G ACTII'ITIES 2023 2022 Fundraising events Other income 176.645 34.667 26?.512 211.312 262.$1? In 2022. all other tradin8 activities incom¢ r¢pr¢sentcd unr¢stricied funts. IriN'ESTi¥IENT INCOME Unrestricted 2023 2022 Income from inN'esmients Deposit accounl interesl 62..552 7.649 6?.0?8 995 70.201 C).3.02. In 2022, £63.023 of inveslment income represenied unrestricted funds. Page 22 coniinued... TIIE DRINKS TRIIST NOI'ES TU'IHE Tr-IN,INC"12IL SI'AI'E.IIEN'I'S- contlnued for the l'ear ended 31 December 2023 RAISIL%G FUNDS RalslDg donallons and legAcles 2023 20?2 sUp￿rt Cosls 176.693 299.806 Other tr4ding 4clivilies 2023 2022 Bad debls 1.375 InveslmeDI management costs 2023 2022 Portfolio management 43.899 A%%rcxale amounts 221967 34S.588 CEIARITABLE .4(TII'ITIES COSTS Grant funding activities (see note Supwrt costs (see nole 9) Dirccl osls Tolals Provision of financial a$5i5tanc¢ lo Iho who WOTkc(l in the drink5 industry 461.543 623.108 135.868 .220.519 2022 44X.0.I8 656.?31 1.13.194 .217.46.1 Page 23 coniinued... TIIE DRINKS TRIIST NOI'ES TU'IHE Tr-IN,INC"12IL SI'AI'E.IIEN'I'S- contlnued for the l'ear ended 31 December 2023 GRLYTS PAYABLE 2023 20?2 Proi'ision of financial &85isiance to ihose who worked in the drinks inthistry 623.108 6$6.231 The iothl granrs paid io individuals during ihe year was as follows.. 2023 20?? Gron¢s to individuals 623 108 656.231 io. SUPPORT COSTS InfOrn￿tIOn techtM>logy Governance costs Management Finance Tolals 2023 ProN'ision of financial wistance to those ￿'hO worked in the drinks industry 75.729 556 60.865 135.868 2022 Prol'ision of financTal assistance to those ￿,hO w.'orkcd in the drinks industry 72.?69 1.930 58.995 133.194 NET II%CONIEI(EXPENDITURE) Nel incomel(expenditure) is stated after Chargin￿(CredIting). 2023 2022 AuditOTS' remuneration- statutory awlil Depreciation - &4sets Amounls payable under operaling leases 10.350 .8?8 29.568 19.2(K) 1.770 29.568 Page 24 coniinued... TIIE DRINKS TRIIST NOI'ES TU'IHE Tr-IN,INC"12IL SI'AI'E.IIEN'I'S- contlnued for the l'ear ended 31 December 2023 12. TRUSTEES, RENIUliERATION AND BE.YEFITS There w'ere no trustees, remunerdlion or other benefils for the year ended 31 December 2023 nor for the year ended 31 December 2022. Trnslees. expen5 There were no tru51ees' expenses paid for ihe year ended 31 December 2023 nor for the year ended 31 December 2022. 13. STAFF COSTS 2023 2022 Wagcs and salaries Social security costs Pension contribulions 387.112 36.?13 38.?18 374.621 37.608 461.543 448.n38 Included in the lotal ernolurnent5 figure aboN'e 15 Jn ex-grntia pajmient of £S.0(K) to one emplo)'ee. This cost Th'a5 Tncurred on the lermination of employvnenl a5 part of a programme of work to enSUTe ￿.¢ hai'e ihe righi people ￿.]lh the righi 5ki115 to mect the needs of our beneficiarie5 effeCti￿clY. Where redundancy. terniination and compensation paymcnts ￿'gre made. payments were b&sed on ￿r¥i¢¢. There payment5 are managed by the Chief F.xecutive in line with poliry and procedure5 and 4uth0ri5ed accordingly to the ￿h¢m¢ of delegation b&sed on siz¢ of payment. The averdge monthly number of employee5 during the year w&s as follo￿￿. 2023 2022 W¢lt"are Activiiies sup￿)rt.M#n#SeMent and administrdtion The numbcr of employees whos¢ ¢mploye¢ b¢n¢fits (ex¢lwling employer pen%ion cos15) ¢x¢e¢d¢d £60.1KKI was: 2023 2022 £90.(M) I - £100.( £ l (K).001- £1 10.(KK) Thc kcy managcmcni pcrwnncl of thc charity arc the tnLStC¢s. thc Chicf Exttutii'c Ofticcr and th¢ ExccutiN'c tcum ot" 3 (3 in 2022). Aggrcgalc remuncralion and I￿nefIts for the key managemcni pcrsonncl in 2023 was L255.688 12022: £2111.501). Truslees Total ofdon81lo￿% given by t￿￿te¢S in thc ytrar is £28.250 (2022: £39.875). Page 25 coniinued... TIIE DRINKS TRIIST NOI'ES TU'IHE Tr-IN,INC"12IL SI'AI'E.IIEN'I'S- contlnued for the l'ear ended 31 December 2023 14. CO.IIPARATIN'ES FOR TIIE STATE.%IENT OF FI￿￿CIAL ACTIN:ITIES Unreslricted Reslricied funds Total funds INCONIE A.YD ENDO11.￿lE.wTs FROM Donalions lind legacies 474.512 366.727 841.239 Olher trading aclivities Ini'eslmenl income 26? $1? 262.$12 63.0?3 Tot41 8￿.047 366.727 1.166.774 EXPENDITLRE ON Raising funiLs 207.011 138.577 345.588 Ch4rit4blf a¢tiYlties ProN'ision of financial ￿l￿ance to those who worked in the drinks induslry 944.462 293.(M)I 1.237.463 TotAI 1.151.473 4.11.578 .583.051 Net gaIn￿{lO&s¢S) on inve5tm¢nts 585.5881 15x5.588 NF.T 1￿COl¥lFj(F.xPF.￿DITURF.) Transfers between fund5 (937,014) 18.6461 (64.851) (1.001,865) Net movcmcnt in fund5 (945.660) (56205) (1.001.865) REC()YCILIATI()I% ()F FUNDS Total tun(Ls bn)uBht I"orw8rd 5.977.650 172.072 6.149.722 T()TAL FLINDS CARRIED FORII"ARD 5.031.9 115,X67 5.147,1157 Page 26 coniinued... TIIE DRINKS TRIIST NOI'ES TU'IHE Tr-IN,INC"12IL SI'AI'E.IIEN'I'S- contlnued for the l'ear ended 31 December 2023 TA￿GIBLE FIXED ASSETS FixturL and fillings Computer equipmeni Tolals COST Ai l January 2023 Addi¢ions 56.842 897 1.047 57.739 1.047 Ai 31 December 2023 56.842 58.786 DEPRECIATION Ai l January 2023 Charge for year 54.092 1.342 224 486 Ai 31 December 2023 55.434 710 56.144 YET BOOK I'ALUE At .1 l Deceniber ?11?3 1.408 1.234 2.64? Al 31 December 2022 2.750 673 3.423 16. FIXED.4SSET INI'EST%IEf*TS Listed investtnenls %1.4RKET 1'.4LUE Ai l January 0,3 Additions at cost Disposal pr(Keeds Nel 8ainw{lo&ses) on disposal and revaluations 2.535.337 5.991.682 (3.814.664} 382.993 Al 31 December 2023 5.095..148 YET BOOK I'AI.UE AI 31 DLcLtnber ?0?3 5.095.348 Al 31 December 2022 2.5.35..137 2023 2022 Historic cost Ca￿led forward 4.760.45. 2,35?.650 Investments comprise ihe following 2023 2022 F.quiiies and Unit Trusts listed on UK Stock Exchange l.isted on overseas stock exchange c.ash balance 1.963.n95 2.8.30.895 .301..358 1.416.C)56 1.17.688 Total 5.095.348 2.535.337 Page 27 coniinued... TIIE DRINKS TRIIST NOI'ES TU'IHE Tr-IN,INC"12IL SI'AI'E.IIEN'I'S- contlnued for the l'ear ended 31 December 2023 16. FI.XED ASSET INN'EST%IE.NTS - eonthiued As at I st January 2023, the investment funds were not fully InVe￿ed, 8nd a proportion of funds aw8ilin8 investment we held in ihe charity's derrt)sil account. 17. DEBTORS: A￿lOLl￿Ts FALLING DLIE II'ITHIN OI%E YEAR 2023 20?2 Trade debtors (hher debtors Prepayments 58.949 385 13.927 83.872 307 7.668) 73.261 76.51 18. CREDITORS: AIIOLINTS FALLI￿G DUE II'ITEIIli O.YE I'EAR 2023 2022 Bank loan5 and overdrafts Trade creditor5 Social security and other taxes Pensions Other creditor5 Accwed exp¢n5es 1.265 44.85? 9.791 2.765 3.700 15.721 2.856 13.943 7.37.5 2.04.5 15.7?0 78,094 41.939 Bank oi'eTdraft facility is repayable on demand. 19. FINANCIAI. INSTRLINIF.YTS 2023 2022 Financial 5.113.972 5.109.1162 Financial a&5els measured at fair value through incorne and expenditure compris¢ fixed a&set investments and cash al bank. Page 28 coniinued... TIIE DRINKS TRIIST NOI'ES TU'IHE Tr-IN,INC"12IL SI'AI'E.IIEN'I'S- contlnued for the l'ear ended 31 December 2023 20. LEASING AGREE￿IE.￿Ts Minimum lease paymenis under non-cancellable Ly*raiing leases fall due &s follows: 2023 2022 Within one year Betw'een one and five year5 29.$68 69.745 40.086 69.606 99.313 21. MOI'ENIENT I.Y FU.NDS Net moN'¢ment in funds Trdnsfers belween funds At 31.12.23 At 1.1.23 Unrc5trlctcd funds General fund 5.031.9fK) 116.072 {64.4(P)) 5.083.65.1 RcstTlcled funds C&5e Related tuTJd F.nergv Poverty tund rjiageo tund F4ual Mea5ure5 fund Restore fund Defvclop fund (10) (106.(rf)9) (i.(Mi) (26.618) {27.490) 9.682 990 104.X54 1.815 1.714 2.995 4.263 38.099 24.495 13.195 13.945 115.867 (15? 146) 04.4( ?8,130 T()TAL FLIND6i 5.147.t157 136.074) 5.111.7143 Page 29 coniinued... TIIE DRINKS TRIIST NOI'ES TU'IHE Tr-IN,INC"12IL SI'AI'E.IIENTh- contlnued for the l'ear ended 31 December 2023 21. mol'E￿IENT I.Y FU.NDS - contltsued Nei movemenl in funds. included in the above are as follows: Gains and 105ses Movement in funds Income Expenses Unrestrl¢tcd funds GenLral fund 725.650 (992.571) 382,993 116.072 Rrstrlclcd funds Rent fund Case Relaled fund Energy Poverty fund Diageo fund Equal Measures fund Restorc tund Champions D¢Nclop tund Community Fund 128 ?96) (9.800) (106.669) (1.[￿1) 194..$41) l36.990) (13.tMKI) (129.498) 30.080) 9,790 (10) (106.669) 11.041) (26.6181 (?7.490) 67.923 9.5 13.(MXI 139.180 30.080 9.682 ?97.769 1449.915) 15? 14fi) TOTAI. FLINDS .023.419 1.44?.486) 38?.993 fi.n74) Comparatii'es for moi'ement ID funds Nct moN'cmcnt in lunds TraTL%fcrs bc1￿'￿'n fun(L At 31.12.22 Ai 1.1.22 Unre%tri¢ted fund5 (icnLral lund 5,977,650 (937,014) (8.646) 5,031.990 Restrlcled funds 'inlr)' l-und Reni fund Case Relaied fund Energ). Poi'erty fund Diageo fund Iqual Measures fund Champions Fund Resiore fund Deielop fLU)d (2.315) (4.916) 2.315 4.916 l.(M)O 104.X54 1.041 1.714 104.854 151 ?18) 86.635) (2.944) 125.940) 52259 88.349 .529 28.935 1.415 ?.995 172.072 64,851) 115.867 TOTAL FLINDS 6.149.722 l.(MTrl.865) 5 147.857 Page 30 coniinued... TIIE DRINKS TRIIST NOI'ES TU'IHE Tr-IN,INC"12IL SI'AI'E.IIEN'I'S- contlnued for the l'ear ended 31 December 2023 21. mol'E￿IENT I.Y FU.NDS - contltsued Comparalive nei movement in funds. included in the above are as follows: Gains and 105ses Movement in funds Income Expenses Unrestrl¢tcd funds GenLral fund 8￿.[￿7 (1,151.473) (585588) {937.014) Rrstrlclcd funds Vintri. filnd Reni fund Related fund Energy Poverty fund Diageo fund F4ual Mea5ure5 fund Champions Fund Restore fund DeNclop fvnd 1.145 28.296 (3.4(rf1) (33?12) (6.(KKI) 16?.899) {?.315) (4.916) 167.753 (51 ?18) (86.635) 12.944) (25.940) 4.263 34.832 1.396 I O.IKK) 117.305 (1?1.467) (4.340) 135.940) 113.042) 366.727 (431,578) IA,5151) TOTAI. FLINDS 1.166.774 .583.n51) 15R5.588) ( I.¢Y)1.8fi5) Vintri fund Th￿ie funds rtprcsent monieg reccii'ed toN'ar&s the suptx)rt of the rthidcntg at thc Vintry home in F.&stbournc. Thi% facility 'as oncc ON￿￿ed by Thc Bcnel'olent (prcl'io￿% namc of The Drinks Trustl and sub4cqucnt to 114 %alc Thc Drink% Trusl continuc% to sUPPOrt rL*idLnt% w'ho w'orklxl in thc drink% and hobpiLalily Kclor% w,ho arL rL*idLnt ihL'rc. Support ib %uppliL.d by ￿'aY uf Lifclinc cmL'rgcncy call 5y4lcm granL%. gas utility Chri%lm&% hampcTh, thc i'chiclc un thc Minib￿ for thc homc. Rent Fund ThL rcnt lund 1% hcld to rnanagc dOn￿lon5 rn&dc on bchalf of thc WSET. and in ordcr to cover rcnl chargc% for thc Drink Trnst oifice space. Case-rel*led fund The Lase relaied fund represents donaiions specifically to assist individual case> being handled by The Drinks Trus1. These are mosi often high-LOsl Lases. where ind1￿.1duajS require exwi serviles or equipmeni, and are often facing signifiLani hards"hip, Mell￿1 healih concems or criliLal illness. Energ> Poverty Fund The Energy Po￿trtY Fund was launched in Sepiember 2022 to recei￿.¢ donaiions i0￿,8rd5 grant giwing for indii'iduals in the drinks and on-premise indusuy struggling 10 pay energy bills. This ￿'aS in ￿￿[￿}n$¢ io the significant incre&*e in wholesale energy prices and the impact on the financial wellbeing of beneficiaries. Cosl-of-Living Fund Th¢ C'os1-of-Li¥'ing Fund ￿,&$ introduced in ?023 to raise funds for ihe prO￿.1510n of financial hardship relief lo ihose qualifying beneficiaries who had been particularly impacied by ihe recenl economic ¢n%'ironm¢ni cr¢aied by ihe cosl-of-lii'ing crisis. Page31 coniinued... TIIE DRINKS TRIIST NOI'ES TU'IHE Tr-IN,INC"12IL SI'AI'E.IIEN'I'S- contlnued for the l'ear ended 31 December 2023 21. mol'E￿IENT I.Y FU.NDS - contltsued Dlageo Fund The Diageo tund ￿'aS creaied to manage ihe one-off donalion made by Diageo iow'ards financial supwrt of Drinks Trusl beneficicvies. The donalion ￿'aS made w'ith addilional requirements regarding ￿'ork hislory, and the Diageo restric(ed fund was used to manage 8fdnl givin8 and on the basis on the wuirements sei by ihe donor. Equil %leAsure Fund - Prcvlousl!. Dlierslh and In¢lu51on Fund The D&[ Fund M'as also set up in IU)0 io manage granls and donation5 made wilh ihe 5￿cifIC iniention of developin8 greater diversity in ihe drinks and hospiLg1ity s¢clors. A transfer of £38.OW made from the unrestricied fijnds lo coi'er the fund overspend in ihe year. Rc5tore Fund - Prcviousli W'cllbein% fund The Il'ellbeing Fund ￿.&$ sel up in ?O?O to manage monies th>naied to cover the cost of three of The Drinks Trust'5 wellbeing service5. They are: Counselling ser¥ices pro￿.1ded by the Dr Julian digilal counselling platfomi. Miiidful Drinking tuition supplied by Club Soda and Sleep & Insomnia treatment frovn Sleepsialion. A transfer of £24.495 made Irom the unrestricted liin(ts to co1,￿ thc tund oNgr5pend in the )'ear. D¢trelop Fund The r)ei'elop Fund is used to manage funds donated toward the I)rinks Trust's lkn.elop initiatii"e. a programme dedicated to deliN"ering 5ki115 and cducation across drinks and drink5 5cfwice. and specitically to beneliciarie5 Strugglins due to financial har&ship. Comjnunlti. Fund ThL Lummunit). Fund 1% fundinB to deliver the Dn'nk.s Tn￿1 online community plaiforni. which has the purpo%e of creating oprM)rtunity for those in the indu4try lo learn ihn)ugh peer-tow￿r support. Champlons Fund ThL Lhampi(pns I. und is funding received io delivering Wellbeing Champions training. 22. ENIPLOI'LE BEI%ETrIT OBLIGATIOI%S The Drinks Tn￿1 operates a defined contribulions pension scheme. The assels of ihe scheme are held separalely fn)m those of ihe Drinks Trust in an independenily administered fund. The pension cosls charge represenls conlribulions payable by Ihe charily 10 the fund an￿Unlin8 10 £38.21812022 - £37.608). 23. RELATED PARTY DISCLOSURES There were no relaied party transaclions for the years ended 31 December 2023 8nd 31 December 2022. Page 32