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2023-12-31-accounts

Cosmetic, Toiletry & Perfumery Foundation (Programme Title: “Look Good Feel Better”) Trustees Report and Financial Statements 31 December 2023

Registered No: 2850925 - Company Limited by Guarantee Registered Charity No: 1031728

CONTENTS

Trustees and advisors .................................................................................................... 3 Trustees annual report ................................................................................................... 4 Financial review ............................................................................................................ 13 Statement of trustees' responsibilities ........................................................................... 15 Independent auditor’s report ........................................................................................ 16 Consolidated statement of financial activities…………………………………………….. . 20 Consolidated balance sheets ....................................................................................... 21 Consolidated statement of cash flows ........................................................................... 22 Notes to the financial statements .................................................................................. 23 Supporting organisations ……………………………………………………………………..36

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Board of Trustees

Geoff Percy - Chairman, CTPF Mark Spillman -Vice Chair CTPF Chrys Andradi - Trustee, CTPF Kenneth Green - Chairman, Kenneth Green Associates Debbie Lewis - Managing Director, Clarins (UK) Ruth Newton-Jones - Fragrance Group London Debbie Hunter – Trustee, CTPF Ian Marshall - Trustee, CTPF Louise Wallace – Trustee, CTPF Charlene Johnson – Chanel (appointed March 2023) Stuart Sheath – Finance Director, Forma Brands (appointed Sept 2023) Gill Smith, Managing Director, the Perfume Shop (appointed Nov 2023) Anna Bartle (resigned June 2023) Suriya Parksuwan (resigned June 2023) Allie Crawford (resigned Oct 2023) Ian Jepson (resigned Nov 2023)

Executive Services

Mark Flannery – Chief Executive, CTPF Peter Godden (Company Secretary)

Honorary Life President

Richard Bradley

Honorary Vice Presidents

Barbara Daly OBE Gloria Freilich Diana Moran Charles Worthington MBE Susan Taylor Per Neuman

Registered and Administrative Office

West Hill House, 32 West Hill, Epsom, KT19 8JD

Auditors

Crowe U.K. LLP, Black Country House, Rounds Green Road, Oldbury, West Midlands B69 2DG

Solicitors

CMS Cameron McKenna Nabarro Olswang LLP, 78 Cannon Street, London EC4N 6AF

Bankers

Barclays Bank Pic, Piccadilly 9, Leicester LE87 2BB

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Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

Trustees Annual Report

Our Vision – To be recognised as one of the UK’s leading cancer support charities and the only one dedicated to improving the physical appearance and overall wellbeing of people living with cancer.

Our Mission – We deliver cancer support services in local communities through a series of face to face and online group sessions along with video tutorials to help people face cancer with confidence, to regain their sense of normality, to make friends and most of all to look good and feel better.

The first workshop for women was held in 1994, since then the charity has developed special sessions for young adults and, in 2018, introduced vitally needed services for men. Each group session is led by trained volunteers and is a chance to meet others in a similar situation, as well as learning useful skills and techniques to manage the side-effects of cancer treatment. In 2020 our first online workshops were launched and since then new online services including nail care and body confidence have been introduced.

2023: Overview

2023 was a good year for Look Good Feel Better UK. As the charity continued to recover and adapt from the legacy issues presented by the Covid pandemic, an exciting 3-year strategy was approved by the Board of Trustees in April. The strategy set out a range of growth expectations, both financially and relating to growth in beneficiary numbers and overall charity footprint. Despite the challenges faced and continued financial pressures, Look Good Feel Better delivered growth but also delivered on a number of key projects that were set out in the strategy.

An immediate and key piece of work for 2023 was to improve our brand and overall awareness to drive interest and growth in patient support. A subtle but impactful rebrand of the charity was completed to ensure alignment and coordination of the ‘look’ of the charity and to ensure the charity looked modern and fresh. To compliment this, the marketing and communications function for the charity was outsourced to a specialist agency to utilise dedicated skills and experience to grow the charity’s social media presence and awareness amongst delivery and brand partners.

The charity invested a lot of time in improving its data, resulting in a full geographical audit of the cancer population in the UK, mapped against the current delivery and venue footprint to identify areas of unmet demand. Work was also completed to ensure a more robust data capture process from beneficiaries booking onto workshops to allow clear sight of exactly who was utilising our services. Combined these painted a powerful picture of our growth potential but also in terms or making data-based decisions on future programme delivery.

To support a new approach to fundraising, a full fundraising audit was completed by a specialist, external agency to ensure the vision for growth for the charity could be realised through effective focus and resource deployment in the fundraising team.

Further audits and reviews were carried out as part of selected ‘deep dives’ into areas such as Grants and Trusts to assess growth potential and resource requirements. The audit work had an

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immediate impact on fundraising across 2023 and further reinforced the confidence in plans for the years of the strategic plan. A number of key projects were implemented such as the introduction of a new regional fundraising model to focus more on local relationships and noncorporate supporters and also the formation and 2024 implementation of a Look Good Feel Better charity lottery, delivered through a specialist charity lotter provider.

Across 2023, Look Good Feel Better also invested in developing and improving its volunteering function, through the recruitment of the charity’s first Volunteer Recruitment and Engagement Manager. This role was tasked to improve communications with volunteers, improve the volunteer recruitment journey and to ensure that the charity has sufficient volunteer capacity to deliver the workshops required in the future years of the strategic plan.

As part if this investment, the charity has conducted a full review of Volunteer training and development, is developing a new, overarching volunteer strategy and has made immediate improvements in the process to recognise and reward both excellent performance and length of service.

In 2023, we delivered face to face and online sessions to 10,904 individuals. Overall, there were 16,356 attendees with the different types of session allowing multiple attendances.

We delivered face-to-face workshops during the year in 122 locations with 5 more locations anticipated to re-open (post covid) in 2024. We are actively seeking new venues to support our ambition to grow services again more quickly. Our services include hair care, nail care, styling for confidence, gentle exercise sessions , mindfulness and men’s workshops.

Supporting these online services has been made possible through our website and Patient Booking System to allow beneficiaries to link directly to a portal to view all sessions available and make an immediate and direct booking. In 2023, there were 21,120 transactions via the patient booking system and hospital portal.

Financially, as planned, LGFB reported a deficit of £98k which has been funded through the prudent reserves policy.

Donated Products and Services

The Foundation’s charitable activities continue to rely on:

The Board recognises the significant benefit to the charity of donated products; over 29 companies donate products in a normal year.

The charity is also very grateful for the significant logistical support it receives from one company, which enables products to be sent to support sessions across the UK.

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Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

Raising Funds

The charity is registered with the Fundraising Regulator and committed to following the Code of Fundraising Practice. The charity’s main fundraising objective for 2023 was to contribute to secure the financial stability of the charity post-Covid. The Trustees believe that this has been achieved, with income exceeding budget and contributing to a lower than planned deficit.

The fundraising environment remained tough throughout 2023, however, with a determined focus from the fundraising team, income, excluding gifts in kind, grew by 35%. Careful management of individual and community activities was combined with stronger corporate initiatives.

A full list of key organisations which supported the charity in 2023, whether through product donations, staff time or fundraising, has been included in Note 15 to the Accounts at the back of this document. The charity is very grateful to every one of them for the part they have played in helping support women, young adults and men living with cancer.

The charity did not pay any third party or agency to undertake material fundraising activities on its behalf and received no complaints during the course of the year regarding any fundraising activities.

The charity and its Trustees are fully aware of the requirements and duties set out in the Charities (Protection and Social Investment) Act 2016 with respect to fundraising activities and are focused on ensuring any future fundraising activities are fully compliant.

Protecting vulnerable people

The charity endeavours to ensure that all staff, volunteers and the general public are safe and protected while taking part in fundraising activities.

Respecting our supporters is a key element of our Fundraising Promise. We must be able to identify and respond to those supporters who may be in vulnerable circumstances, in a way that is sensitive to their needs. All our supporter-facing staff have access to guidance and associated training. This is informed by the Fundraising Regulator Code and the Chartered Institute of Fundraising’s own guidance on ‘Acceptance, Refusal and Return of Donations’. We follow the Code of Fundraising Practice in relation to all fundraising which helps to ensure that vulnerable people can be easily identified and, critically, that they are responded to and protected in a non-discriminatory way.

Fundraisers may sometimes find themselves approaching donors who may be vulnerable or need additional support to make a decision. We have guidance in place and available for review on our website to ensure all our fundraisers are aware of the risks and know what to do if they are concerned about an individual and their circumstances.

We endeavour to ensure that our staff, volunteers and the general public are safe and protected while taking part in our fundraising activities. The charity has a zero-tolerance approach to bullying, harassment or sexual harassment of any kind towards any of our staff or volunteers.

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We encourage people of any age or background to fundraise for us, and we stipulate that those under the age of 16 must be supervised by a responsible adult when fundraising.

In 2024 we will be training and appointing a Designated Safeguarding Lead and a Deputy Designated Safeguarding Lead. This will be followed by training for all staff and volunteers, and a Safeguarding Policy will be developed and implemented. Currently any safeguarding concerns connected to our activities can arise from our staff or volunteers, or from members of the public, and reported to head office and investigated by the senior leadership team.

Strategic Direction and Governance

The Cosmetic, Toiletry and Perfumery Foundation (Registered No: 2850925 - Company Limited by Guarantee, Registered Charity No: 1031728) is governed by its Memorandum and Articles of Association and operates through its Programme, Look Good Feel Better (LGFB).

Our charitable purposes are:

  1. to give assistance help advice counselling and Information to cancer patients who have suffered appearance-related side effects from chemotherapy, radiotherapy and /or other treatments undergone by them for or in relation to cancer, and to develop and promote the "Look Good Feel Better" programme and other similar programmes in the United Kingdom and to provide cosmetic products, volunteer beauty consultants, makeover workshops and other necessary support to such patients with a view to assisting them in improving their appearance and quality of life.

  2. to give assistance, help, advice, counselling and information to persons suffering from the appearance-related side-effects resulting from cancer and/or other disease, illness, injury or condition.

  3. to encourage and promote the study into and research related to the relationship between appearance, quality of life and recovery to health of patients and the effects of such recovery, and to educate and inform the public as to the results of such study and research.

The Members of the Board are the charity Trustees and also the Directors for the purposes of the Companies Act 2006. The Board is made up of Senior Directors nominated by supporting companies who are actively engaged in the LGFB Programme as well as independent individuals who are selected through an interview process with other Trustees. Nominations are made to maintain a balance of expertise at a senior level.

Newly nominated Trustees are given a thorough understanding of the Programme through meeting with the Chief Executive/Chairman of Trustees, other members of the Executive Team and are encouraged to observe workshops on a regular basis. They are encouraged to attend appropriate external training events where this would facilitate the undertaking of their role.

The Board is responsible for overseeing the strategy of the charity and ensuring the Foundation’s finances are on a firm footing using the guidance of a Finance Committee drawn from senior finance executives of member companies and individuals.

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An Ambassador Group, made up of individuals directly employed by member and supporting companies, champion and manage their company’s input to the LGFB Programme.

The Chief Executive, Mark Flannery, joined in September 2022 and has overall responsibility for all operational matters to ensure the successful delivery of the Programme.

The Foundation has a wholly owned trading subsidiary, Look Good Feel Better Trading Limited, which was formed to undertake non primary purpose trading activities to raise funds on behalf of the charity. All profits from this subsidiary are gifted to the parent charity on an annual basis under a deed of covenant.

Public Benefit

The Trustees confirm that they have complied with their duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission and have considered this in setting the key strategic objectives of the Foundation.

Risk Management

The Board acknowledges its responsibility for establishing a risk management system and is satisfied that appropriate procedures have been established to identify and mitigate major risks which the Foundation faces. A risk register is maintained on this basis, including an assessment of the scale of probability of specific risks to better identify strategic areas for review. It is recognised that systems can only provide reasonable but not absolute assurance that major risks will be adequately managed.

The operational and financial risks facing the charity as a result of the above are summarised as follows:

Key Operational Risk Mitigating Action
Reduction in donated goods
impacting on the number of
workshops we can facilitate
Comprehensive product requirement
list has been developed to calculate
‘in-year’ requirements and
requirements for the following year.
Recruitment of 2 new Corporate
Partnership Managers, all with a remit
to seek new product donations from
brand partners in line with requirement
list.
Product requirement list is shared with
the Board of Trustees to allow for
discussion with their networks.

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Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

Lack of warehousing to hold
donated product and donated
fulfilment logistics
Reduce number of products in each
make up bag which will reduce stock
levels
A third warehouse / storage provider
has been secured to ensure we have
additional, flexible capacity to house
new donations.
All storage providers to undergo a
review in 2024 to establish capacity for
2025 stock levels.
Loss of volunteer support
resulting in reduced capacity to
deliver workshops effectively, in
turn, diminishing service and
beneficiary experience.
New Volunteer Recruitment and
Engagement Manger has been recruited.
Full review of recruitment, induction and
training process has been conducted.
Implementation of a new reward and
recognition scheme has been
implemented to boost volunteer
satisfaction
Volunteer newsletters are now being
circulated frequently to significantly
improve communications.
A number of brand partners are
proactively sourcing volunteers for LGFB
to support our work
External environment is uncertain,
and could impact on our objectives
Rigorous strategic planning process that
analysis internal and extern environment
highlighting areas of key risk
Keeping a mix of income streams
Monthly financial review and monitoring
against targets
Governance failure – trustees
maintain oversight of key risks with
limited training and resources
A new Trustee training and induction
process will be presented to Board for
approval in April 2024 to ensure all
trustees are trained using Charity
Commission trustee training.

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Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

Regulatory / compliance risk Policies and procedures in place;
regular staff training
Safeguarding – failure to
safeguard beneficiaries, staff and
volunteers
Safeguarding procedures in place and
shared with staff and volunteers upon
appointment
Designated Safeguarding Leads to be
a
Safeguarding procedures in place and
shared with staff and volunteers upon
appointment
Designated Safeguarding Leads to be
appointed/trained April 2024
Key Finance Risk Mitigating Action
Financial management / financial
fraud
Robust financial procedures, policies
and segregation of duties in place.
Active Finance Committee are
provided with regular financial
updates to allow for independent
review and scrutiny.
Financial sustainability, reduced
financial support from member
companies, inability to maintain
financial reserves
Regular engagement with member
companies; robust financial monthly
monitoring/review; diversification into
alternative income streams
Cyber-attack/ Ransomware Robust IT systems / firewall / external
monitoring in place 24/7
Financial fraud by staff or
volunteers feeling effects of cost-
of-living crisis
Procedures in place regarding
segregation of duties for all cash and
bank payments and authorisation of
expenses and payroll payments.

The Board recognises the need for all risks associated with the efficient delivery of the Programme to be kept under review, especially as it reshapes the organisation and its services to provide continued public benefit.

Going Concern

On page 10 we have set out a review of financial performance and the charity's reserves position. The reserves held prior to the outbreak of Covid-19, together with the steps taken to streamline the organisation and maintain focus on income generation have placed it in a strong position to continue operations during the pandemic and beyond.

Our planning process, including financial projections, has taken into consideration the current economic climate and its potential impact on the various sources of income and planned expenditure. The newly approved strategic plan increases focus on growing and diversifying our income generation activities. We have a reasonable expectation that we have adequate

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Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

resources to continue in operational existence for the foreseeable future and the accounts have, therefore, been prepared on the basis that the Foundation is a going concern. Whilst there is uncertainty around income forecasts during the ongoing effects of global uncertainty, year-to-date income in 2024 is tracking on budget. The Board is aware of the inflationary pressures on its cost base due to both the high energy and general cost increases and believes it will be able to absorb them in its plans. In the event of further pressures, it remains confident that the Foundation can adapt and mitigate as needed as was demonstrated over the past 3 years.

Remuneration

The Remuneration Committee, which operates as a sub-committee of the Finance Committee, is expected to meet twice a year. This committee makes recommendations on overall remuneration levels and specific recommendations for the remuneration of the Chief Executive.

Salary awards are benchmarked using a variety of publicly available data including ONS salary trends, Charity Jobs survey and a wide variety of individual charity reports.=8

Charity Governance Code

The Charity Governance Code was published in 2017. The code sets out seven principles of good governance and encourages charities to review their governance structures and processes against this code to ensure they are fit for purpose and operate efficiently. The Board’s review of its governance processes is ongoing and no material weaknesses have been identified however, in view of the rapid changes in the external environment experienced over the last couple of year, it is focussing on ensuring they are fit to reflect the changes in both activities and fundraising.

Charity Objectives for 2024

The newly agreed 2023 strategic plan is built around 5 strategic pillars and our objectives for 2024 will support these:

As the charity looks to an exciting 2024, the objectives are clear and these are to focus on the continued growth of the charity’s income to ensure longer term financial sustainability and also to significantly grow the number of beneficiaries that it services in a face to face workshop environment. It is planned for Look Good Feel Better to grow its income to £2m (approx. 40% growth from 2023) and to service up to 19,000 beneficiaries (approx. 80% growth from 2023).

Across 2024, Look Good Feel Better UK is looking to deliver three new face to face workshop

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services, from converting its three most popular online services, these being Hand and Nail Care, Body Styling for Confidence and a holistic cancer support package for men.

To further the work carried out across 2023, to make significant improvements to the charity’s brand, external awareness and engagement journey, a new website is planned for launch in Q3 of 2024. This will see a significant cosmetic improvement, significant improvements in communications with donors, supporters and beneficiaries and more intuitive processes for workshop bookings and making financial donations.

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Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

Financial Review

The financial statements show a net deficit in resources for the year of £101,197 (2022: £51,810 net deficit) which together with the funds brought forward of £1,025,833 (2022: £1,077,643) results in funds to be carried forward of £924,636 including unrestricted reserves of £879,176.

Our supporters raised £2.9m (2022: £2.2m) in 2023, including £1.5m Gifts in Kind (2022: £1.1m). The remaining £1.4m came from member companies, corporate partners, individual supporters and trusts, all of whom fundraised to help the charity support its patient beneficiaries.

The charity invested £3m (2022: £2.2m) in services for cancer patients including £1.5m of donated products and services. The charity’s main direct expense is on its staff £0.87m (2022: £0.7m). Most of these are directly involved in running frontline services, including:

Other expenditure is on consumable products for the support sessions, travel costs for volunteers and running costs for head office.

Budgeting and Forward Planning

The Foundation is fortunate to have a highly qualified Finance Committee on whose expertise they can draw. This Committee sits 2 times a year and gives input and advice on the Foundation’s plans and financial projections for the year ahead, as well as scrutinising the report of the Auditors. The Finance Committee then makes recommendations to the Board of Trustees in relation to these items.

The Foundation’s budget is always prepared on a prudent basis, recognising the inherent unpredictability of donation income.

Donated Services

The Foundation is exceptionally grateful for the donated volunteer time, logistical support and the products used in the patients’ gift bags, which have all been donated by the Cosmetic’s Industry (without cost to the Foundation) without which the Programme would be unable to run. The value of the product donations and logistical support received has been included as ‘Gifts in Kind’ in the Statement of Financial Activities.

The charity sometimes receives donated advertising space which assists in raising awareness of

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the work of the charity. The charity is very grateful to the relevant publishers for the publicity this provides, but no financial value is attributed to this advertising space as the advertising would not be undertaken if not donated.

The volunteer time, although crucial to the success of the programme, has n ot been valued in line with the recommendations of the Charities’ SORP.

Reserves Policy

At 31 December 2023 the Group had free reserves (i.e. unrestricted reserves not used to fund fixed assets) totalling £852,692 (2022: £954,840). The reserves policy is set by the Trustees and is intended to reflect the changing scale of the charity and operations over time.

At 31st December 2023, based on the plans for 2024, this calculation gave a desired reserves figure in the region of £900,000. The three-year strategic plan envisages investment of some of the excess in 2024 to accelerate both spending on activities and resource to generate further income growth, as well as investment in the website.

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Statement of Trustees’ Responsibilities Year ended 31 December 2023

The Trustees (the members of the Board who are also Directors of The Cosmetic, Toiletry & Perfumery Foundation for the purposes of company law) are responsible for preparing the Annual Report and the financial statements in accordance with applicable laws and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditors

So far as the Members of the Board are aware, there is no relevant audit information of which the charity’s auditors are unaware. The Members of the Board have each taken all the steps that we ought to have taken as Members of the Board in order to make ourselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.

Crowe U.K. LLP has expressed their willingness to continue as auditors for the next financial year.

On behalf of the Board 27[th] June 2024

Geoff Percy Chairman

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Independent Auditor’s Report to the Members Foundation for the year ended 31 December 2023

Opinion

We have audited the financial statements of The Cosmetic, Toiletry and Perfumery Foundation for the year ended 31 December 2023 which comprise the Consolidated Statement of Financial Activities (Incorporating the Income and Expenditure Account), the Consolidated and Charitable Company Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102. The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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Other information

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

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 15, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable

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the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations included Employment Legislation, Taxation Legislation and General Data Protection Regulation (GDPR).

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Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance Committee about their own identification and assessment of the risks of irregularities, designed audit procedures on income recognition, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Helen Blundell LLB FCA FCIE DChA Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Black Country House Oldbury West Midlands B69 2DG

29 July 2024

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The notes on pages 23 to 35 form part of these financial statements.

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Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

The parent charity’s net expenditure included in the consolidated results above, was £101,198 (2022: £224,633 net expenditure)

Geoff Percy Chairman 27[th] June 2024

21

Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee) Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee) Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)
Consolidated Statement of Cashflows for the year ended 31 December 2023 Consolidated Statement of Cashflows for the year ended 31 December 2023
2023 2022
£ £
Net cash (used) / generated by operating activities (95,687)
50,127
50,127
Cash flows from investing activities
Interest 1,136
3,711
3,711
Purchase of intangible assets (4,641) (7,937)
Purchase of equipment (2,577) (11,605)
Net cash (used) by investing activities (6,082) (15,831)
Change in cash and cash equivalents in the reporting
period (101,769)
34,296
34,296
Cash and cash equivalents at 1st January 2023 895,232
860,936
860,936
Cash and cash equivalents at 31st December 2023
793,462 895,232
793,462 895,232 793,462 895,232
Reconciliation of net movement in funds to net cash flow from operating activities: Reconciliation of net movement in funds to net cash flow from operating activities:
2023 2022
£ £
Net movement in funds for the reporting period (101,197) (51,810)
Adjustments for:
Depreciation charges 25,820
29,546
29,546
Interest (1,136) (3,711)
Decrease/ (increase) in stocks 16,512 (15,342)
Decrease / (increase) in debtors (36,602)
163,734
163,734
(Decrease) / increase in creditors 916 (72,290)
Net cash (outflow) / inflow from operating activities (95,687)
50,127
50,127
Analysis of cash and cash equivalents
2023 2022
£ £
Cash in hand 580,379
683,326
683,326
Notice deposits (less than 100 days) 213,083
211,905
211,905
Total cash and cash equivalents 793,462
895,231

22

Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

Notes to the Accounts Year ended 31 December 2023

1.Accounting Policies

a) Basis of Preparation

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared under the historical cost convention in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS102), the Companies Act 2006 and the 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 (FRS102) (Charities SORP (FRS102)).

Our planning process, including financial projections, has taken into consideration the current economic climate and its potential impact on the various sources of income and planned expenditure. We have a reasonable expectation that we have adequate resources to continue in operational existence for the foreseeable future and the accounts have, therefore, been prepared on the basis that the Foundation is a going concern.

Having regard to the above, the Trustees believe it appropriate to adopt the going concern basis of accounting in preparing the financial statements.

Intragroup balances are eliminated fully on consolidation. No statement of financial activities is presented for the charitable company alone as the results of the subsidiary company are separately identified within the group accounts and the charitable company is exempt from presenting such a statement under s408 Companies Act 2006.

b) Company Status

The charity was incorporated on 1 September 1993 in England and Wales and is limited by the guarantee of its members. Its registered address is West Hill House, 32 West Hill, Epsom, KT19 8JD.

The members of the company are the Members of The Board named on page 3. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

c) Fund Accounting

Restricted funds can only be used for the purposes specified by or agreed with the donor. Unrestricted funds comprise those funds, which are available for use at the discretion of the Trustees in furtherance of the objectives of the charity and which have not been designated for other purposes.

d) Incoming Resources

All incoming resources are included in Statement of Financial Activities (SOFA) when the charity is legally entitled to the income and the amount can be quantified with reasonable probability. For the member pledges, this translates to recognition at the point of invoices raised. The majority of the remainder of the Charity’s income is ‘pure’ donations, which are recognised on receipt.

23

Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

Notes to the Accounts Year ended 31 December 2023

1. Accounting Policies Continued…

e) Resources Expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

f) Donated Products

The charity relies on the donation of suitable cosmetic products by various cosmetics companies for use by the charity’s beneficiaries.

The products have been valued at approximate wholesale value using the market average retail price as reported by the Cosmetic, Toiletry and Perfumery Trade Association. Due to stocks of these products being kept in hospitals it is very difficult to accurately count these at the year end, so the Trustees have chosen to value the product donations at the point of distribution.

g) Donated Volunteer Time

The charity’s workshops are provided using donated beauty consultant time freely volunteered from companies and freelancers.

In line with the Charity SORP the Trustees do not consider that they are able to reliably quantify and measure the value to the charity in financial terms of the volunteer time and this is not therefore included in the SOFA.

h) Donated Services

The Charity receives donated services from a corporate partner for the distribution of the cosmetic products to the hospital workshops. This is not a service normally provided by this company for a fee.

However, the Trustees recognise that the scale of the Charity has grown to the extent that it is significant enough that we would be required to pay for the service if it were to lose this support and therefore have chosen to value it at the market rate which would be payable to a third-party provider.

i) Tangible and Intangible Fixed Assets and Depreciation Tangible fixed assets costing more than £500 are capitalised and included at cost including any incidental expenses of acquisition.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost less estimated residual value of each asset evenly over its expected life as follows:

24

Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

Notes to the Accounts Year ended 31 December 2023

1. Accounting Policies Continued…

The carrying values of tangible and intangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate the carrying value may not be recoverable.

j) Stock

Stocks are valued at the lower of cost to the Group or net realisable value. The stock value on the balance sheet is with regard to purchased goods for re-sale and not donated goods.

k) Pension Costs

The company operates a defined contribution pension scheme and has complied with autoenrolment legislation. Contributions are charged in the SOFA as they become payable in accordance with the rules of the scheme. Expenditure is allocated to the appropriate heading in the accounts on the basis of average headcount.

l) Leasing Commitments

Rentals payable under operating leases are charged in the SOFA on a straight-line basis over the lease term.

m) Financial Instruments

The charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method.

Financial assets held at amortised cost comprise cash and bank and in hand, together with trade and other debtors.

Financial liabilities held at amortised cost comprise bank loans and overdrafts, trade and other creditors.

Investments in subsidiary undertakings are held at cost less impairment.

n) Key Judgements and Estimates In the application of the accounting policies, Trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources.

The estimates and underlying 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.

Donated products are valued on distribution using costs noted on the CTPA annual report.

Donated logistic services are valued per product using estimated costs from the logistics

25

Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

supplier.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period. If the revision affects current and future periods it will be recognised in the period of the revision and future periods.

Notes to the Accounts Year ended 31 December 2023

1. Accounting Policies Continued…

In the view of Trustees, no assumptions concerning the future or estimated uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

o) Public Benefit

The Foundation meets the definition of a public benefit entity under the guidance issued by the Charity Commission.

2 Donated Products and Consultant Time

During the year the charity received approximately 224,896 donated cosmetic product items (2022: 245,000 items) and benefited from approximately 9,039 hours of volunteer time (2022: 6,585 hours) donated by 975 (2022: 517) beauty consultants and others (hospital contacts volunteer to organise workshops within hospitals) and 97 (2022:91) semi-voluntary Lead Volunteers support the consultants at each workshop).

This enabled the charity to run the 1,596 (2022: 1,429) workshops. As explained in the accounting policies in Note 1, no financial value is attributed to the volunteer time in the financial statement.

26

Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

Notes to the Accounts Year ended 31 December 2023

3. Resources Expended

2023 Staff
Costs
Direct Costs Support
Costs
Governance
Costs
Total
£ £ £ £ £
Raising Funds 422,124 207,371 92,919 14,852 737,266 207,371 92,919 14,852 737,266 207,371 92,919 14,852 737,266 207,371 92,919 14,852 737,266
Charitable
Activities
Gifts in Kind - 1,420,208 - - 1,420,208 - 1,420,208 - - 1,420,208 - 1,420,208 - - 1,420,208 - 1,420,208 - - 1,420,208 - 1,420,208 - - 1,420,208
Other 469,622 197,048 107,214 17,137 791,021 469,622 197,048 107,214 17,137 791,021 469,622 197,048 107,214 17,137 791,021 469,622 197,048 107,214 17,137 791,021 469,622 197,048 107,214 17,137 791,021
464,669 1,617,256 107,214 17,137 2,211,229 464,669 1,617,256 107,214 17,137 2,211,229 464,669 1,617,256 107,214 17,137 2,211,229 464,669 1,617,256 107,214 17,137 2,211,229 464,669 1,617,256 107,214 17,137 2,211,229
Total 2023 Total 2023 891,746 1,824,627 200,133 31,989 2,948,495 891,746 1,824,627 200,133 31,989 2,948,495 891,746 1,824,627 200,133 31,989 2,948,495 891,746 1,824,627 200,133 31,989 2,948,495 891,746 1,824,627 200,133 31,989 2,948,495
2022
Raising Funds 311,074 92,421 58,464 7,978 469,937 311,074 92,421 58,464 7,978 469,937 311,074 92,421 58,464 7,978 469,937 311,074 92,421 58,464 7,978 469,937 311,074 92,421 58,464 7,978 469,937
- -
Charitable
Activities - -
Gifts in Kind - 1,145,843 - - 1,145,843 - 1,145,843 - - 1,145,843 - 1,145,843 - - 1,145,843 - 1,145,843 - - 1,145,843 - 1,145,843 - - 1,145,843
Other 397,668 146,716 77,952 10,637 632,973 397,668 146,716 77,952 10,637 632,973 397,668 146,716 77,952 10,637 632,973 397,668 146,716 77,952 10,637 632,973 397,668 146,716 77,952 10,637 632,973
397,668 1,292,559 77,952 10,637 1,778,816 397,668 1,292,559 77,952 10,637 1,778,816 397,668 1,292,559 77,952 10,637 1,778,816 397,668 1,292,559 77,952 10,637 1,778,816 397,668 1,292,559 77,952 10,637 1,778,816
Total 2022 Total 2022 708,742 1,384,980 136,416 18,614 2,248,753 708,742 1,384,980 136,416 18,614 2,248,753 708,742 1,384,980 136,416 18,614 2,248,753 708,742 1,384,980 136,416 18,614 2,248,753 708,742 1,384,980 136,416 18,614 2,248,753

27

Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

Notes to the Accounts Year ended 31 December 2023

3. (cont) Analysis of Support and Governance costs

Raising Raising Charitable
2023 Support Costs Funds Activities Total
£ £ £
Office rent and admin 37,184 37,184
42,905
42,905 80,089
IT 27,965 27,965
32,268
32,268 60,233
PR 17,782 17,782
20,518
20,518 38,300
Other 9,988 9,988
11,523
11,523 21,511
Total Support 92,919 92,919
107,214
107,214 200,133
Raising Raising Charitable
2022 Support Costs Funds Activities Total
£ £ £
Office rent and admin 27,104 27,104
36,139
36,139 63,243
IT 24,356 24,356
32,474
32,474 56,830
PR 2,927 2,927
3,903
3,903 6,830
Other 4,077 4,077
5,436
5,436 9,513
Total Support 58,464 58,464
77,952
77,952 136,416
Governance Costs 2023 2022
£ £
Trustees’ expenses 1,117 1,731
Audit fees 23,384 16,058
Legal fees 7,488 826
Other - -
Total Governance 31,989 18,615

28

Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

Notes to the Accounts Year ended 31 December 2023

4. Employees

4. Employees
2023 2022
£ £
Wages and Salaries 771,139
621,962
621,962
Social Security Costs 70,567
60,736
60,736
Pension costs 23,871
15,984
15,984
865,577
698,682
698,682

Travel expenses and allowances were paid to Volunteers totalling £4,052 in the year (2022: £10,131).

One employee received emoluments as defined for taxation purposes of between £60,000 and £70,000 in the year (2022: nil employees) and one employee received emoluments as defined for taxation purposes of between £90,000 and £100,000 (2022: one employee). Both employees are members of the defined contribution pension scheme; employers' contributions paid into the scheme in relation to these employees was £7,360 (2022: £1,588) in the year.

There were five key management personnel in 2023, defined as those with strategic influence. These were:

• Chief Executive • Head of Programme Services • Finance Director • Director of Fundraising • Financial controller

Between them these five key management personnel (as defined in the Trustees Report) received total remuneration packages of £311,278 (2022: 4 heads received £171,348)

The number of employees (headcount) analysed by function during the year was:

2023 2022
No. No.
Charitable Programme 10 7
Fundraising and PR 7 8
Management and Administration 7 6
24 21

There were no redundancy payments made during the year.

In 2023 one trustee (2022: one) was reimbursed for their travel and meeting expenses in relation to their activities on behalf of the foundation. In total, they incurred expenses of £1,117 (2022: £1,739) in the year, of which £0 remained as a creditor at year end (2022: £0).

29

Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

Notes to the Accounts Year ended 31 December 2023

5.Net Incoming resources for the year

Net incoming resources are stated after
charging:
2023 2022
£ £
Operating lease rentals 16,860 15,694
Depreciation 25,820 29,546
Audit fees 19,600 16,058

6. Intangible and Tangible Fixed Assets (Group & Parent Entity)

Intangible Assets Office Furniture &
Equipment
Total
2023 2023 2023
£ £ £
Cost:
At 1 January 2023 139,837 63,769
203,606
203,606
Additions 4,641 2,577
7,218
7,218
Disposals - -
-
At 31 December 2023 144,478 66,345
210,822
210,822
Depreciation:
At 1 January 2023 107,259 51,260
158,519
158,519
Charge for the year 20,499 5,320
25,820
25,820
Disposals - -
-
At 31 December 2023 127,758 56,580
184,339
184,339
Net book value:
At 31 December 2023 16,720 9,765
26,485
26,485
At 31 December 2022 32,577 12,509
45,086
45,086

30

Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

31

Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

32

Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

999,928 33

Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

There were no other transactions with Trustees during the year nor balances at the year end. 34

Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

Notes to the Accounts Year ended 31 December 2023

14. Prior year comparatives
Unrestricted Restricted Total
Funds Funds 2022
£ £ £
INCOME AND ENDOWMENTS FROM:
Donations and legacies
- General donations and
legacies 577,721 78,825 577,721 78,825
656,546
656,546
- Member Pledges 150,750 - 150,750 -
150,750
150,750
- Gifts in Kind 1,145,843 - 1,145,843 -
1,145,843
1,145,843
Other trading activities 235,085 - 235,085 -
235,085
235,085
Other
8,719 - 8,719 -
8,719
8,719
TOTAL 2,118,118 78,825 2,118,118 78,825
2,196,943
2,196,943

EXPENDITURE ON:
Raising funds 469,937 - 469,937 -
469,937
469,937
Charitable activities - - - -
-
-
Gifts in Kind 1,145,843 - 1,145,843 -
1,145,843
1,145,843
Other 529,238 103,735 529,238 103,735
632,973
632,973
TOTAL 2,145,018 103,735 2,145,018 103,735
2,248,753
2,248,753

NET INCOME/EXPENDITURE
FOR THE YEAR
(26,900) (24,910) (51,810)
Funds brought forward at 1 January 1,031,676 45,967
1,077,643
1,077,643
Funds carried forward at 31 December 1,004,776 21,057
1,025,833
1,025,833

35

Cosmetic, Toiletry & Perfumery Foundation (Limited by Guarantee)

15. List of Supporting Organisations

The following is a list of significant donors to the LGFB Programme in 2023. The donations may have been financial or of products, volunteer time, advertising space or other services. The Foundation would like to express its gratitude for all donations received over the period.

Member Companies

Partner Organisations

Arthur Edward

Chanel

Clarins

Estée Lauder Companies FDD International

Karium Ltd

Kenneth Green Associates

Annabelle Charles Associates Avon Cosmetics Beauty Pro (Barber Pro) Benefit Cosmetics Charlotte Tilbury Collection Cosmetics

Coty UK Limited

CTPA

La Prairie UK

COPRA

L’Oréal UK

Elemis

LVMH Group Morphe

Procter & Gamble UK Philip Kingsley

Puig

Revlon International/

Elizabeth Arden

Shiseido Group

England Netball Grape Tree Health Foods

Morley’s Group

Orean Group

The Beauty Show The Orange Square Company Trendco Wella Group Yardley London

The Perfume Shop

36