Charity registration number: 1038728 The Lofthouse Foundation Report of the Trustees and Financial Statements for the Year Ended 31 December 2023 Jones Harris Limited Statutory Auditors 17 St Peters Place Fleetwood Lancashire FY7 6EB
The Lofthouse Foundatlon Contents Reference and Administrative Details Trustees, Report 2to3 Independent Auditor's Report 4t06 Consolidated Statement of Flnancial Activltles Consolldated Balance Sheet Charity 8alance Sheet Consolidated Cash Flow Statement Iotoll Notes to the Accounts 12to21
The Lofthouse Foundation Reference and Admlnistratlve Detalls Charlty name The Lofthouse Foundation Charlty re8lstrntlon number 1038728 Prlnclpal offl¢e clo Lofthouse of Fleetwood, Maritime Street. Fleetwood, Lancashire, FY7 7LP Trustees Mr DC Lofthouse Mrs LM Lofthouse Mr KM Ryan Audltors Jones Harris Limited, Statutory Audltors, 17 St Peter5 Place, Fleetwood, Lancashire, FY7 6E8 Page I
The Lofthouse Foundatlon Report of the Trustees The trustees present their report with the financial statements of the charity for the year ended 31 December 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their account5 in accordance wlth the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffe¢tive l January 2019). ertlves and Actlvltl ObJertl¥es and Alms The object of The Lofthosjse Foundation 15 the furtherance of charitable purposes for the benefit of the inhabitants of the town of Fleetwood and the Fylde Coast including all towns and locations contained within the area covered by the FY postal code. As the Trustees think fit, the charity aims to provide amenities and facllities for the beneflt of the public as are not provided from publlc funds. SSgnlflcant Acll¥ltles The tharity does not solicit applications for funding of projects. Where applications are made by individuals or organisations, they are assessed by the trustees and, where appropriate, grants are made. Projects that are supported by the charity are actively monitored to ensure that any criteria set by the trustees are met. Achlevement and Perfomiance Fundralslng ArtivltSes Durin8 the current financial year, the Foundation received donations and legacies amountlng to £34,71512022- £44,274,893). This included a donatlon of shares in a trading Company in the prior year. Tradlni Subsldlary On 12th May 2022 the charity became the majority shareholder in the trading company Lofthouse of Fleetwood Limited. It is hoped that the charity can benefit from future profits of the company in order to meet its charitable objectives and widen its reach. The company's primary activity is the manufacture of Fishermans Friend Lozenges. The company is operated as a separate entity but the direttor5 are both trustees of the charity. Flnanclal Revl Reser¥es Policy There are no restrictions on the charity's power to invest. The Investment Strategy is set by the trustees, with an overall policy that 15 low risk. It IS the policy of the charity to maintain unrestrirted funds, which are the free reserves of the charity, at a level to provide sufficient Investment income from which to cover unrestrlcted expenditure. This provides sufficient funds to cover management and administration and support costs and to respond to emergency applications for grants which arise from time to time. Future Plans The charity plan5 to continue to provide charitable donations for the benefit of the inhabitants of Fleetwood and the Fylde Coast in the future. However, because of the Significant recent legacy and the dating of the original trust deed. the trustees have spent much of the year reviewing the objerts of the charity and other major clauses In the trust document. Whi15t this review was is in pro8ress the Trustee5 did not make any new grants. Page 2
The Lofthouse Foundation Report of the Trustees Contlnued.. Stfurture Goveinance and Mana Governlng DocumeTrt The Lofthou5e Foundation I'the charity") was established under the terms of a declaration of trust dated 15 June 1994 as amended on 18 April 2023 a5 amended by resolution dated 8 November 2023. It is a charity regulated by the Charity Commissioners for England and Wales under number 1038728. ement Or8an15atlonal Structure The original trustees were appointed by the trust deed as the "First Trustees.. The First Trustees shall hold office for life. Newly appointed trustees are made fully aware of their responsibilities and are given all the information required in respect of the charity's past and future activltie5 in order to enable them to fulfil these responsSbilities. The trustees meet throughout the year and have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable re8ular reports to bè produced so that the necessary steps can be taken to lessen these risks. Stat of Tfustees Re nsSbllltl The trustees are responsible for preparing the Report of the Trustees and the financial statement5 in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted A¢countin8 Practice) including Financial Reportin8 Stan¢Jard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" The law applicable to charities in England and Wales, the Charlties Act 2011, Charity (Accounts and fteportsl Regulation$ 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, Including the Income and expenditure, of the charity for that perlod. In preparin8 those financial statements, the trustees are requlred to.. select sultable accountinB pollcies and then apply them conslstently; observe the method5 and principles in the Charity SORP,. make judgements and estlmates that are reasonable and prudent,. State whether applicable accountlng standards have been followed, subject to any material departures disclosed and explained in the financial statements,. prepare the financial statements on the 8oin8 concern basls unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements complv with the Chorities Act 2011, the Charity (Accounts and Reportsl Regulations 2008 and the provislon5 Of the trust deed. 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. Approved by order of the board of trustee5 On . %Lt and signed on its behalf by D C Lofthouse- Trustee Page 3
The Lofthouse Foundation Report of The Independent Audltors Opinlon We have audited the financial statement5 of The Lofthouse Foundation (the 'charity'l for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the 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 (United Kingdom Generally Accepted Accounting Procticel, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,. In our opinion the financial statements.. give a true and fair view of the state of the charity's affair5 a5 at 31 December 2023 and of its incoming resources and application of resources. for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accountin8 Practice. Including Financial Reportin8 Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,; and have been prepared In accordance with the requirements of the Charltles Act 2011. Basls lor Oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII ond applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audlt of the financial statements section of our report. We are independent of the ¢harity in accordante with the ethical requirements that are relevant to our audit of the financlal statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responslbilities In a¢¢ordance wlth these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a ba515 for our opinion. Concluslons Relatlng to Goln8 Concein In audlting the financial statements, we have concluded that the trustees, use of the going concern basls of accountin8 in the preparation of the financlal statements is approprlate. Based on the work we have performed. we have not identifled any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a 80ing concern for a period of at least twelve months from when the financial statements are authorised for Issue. Our respon51bilities and the responsibilities of the trustees with respect to 80in8 concern are described In the relevant sections of thi5 report. Other Infoirnatlon The trustees are responsible for the other Information. The other Information comprises the information included in the Annual Report, other than the financial statement5 and our Report of the Independent Auditors 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. Page 4
The Lofthouse Foundatlon Report of The Independent Auditors In connectlon with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other infofmation 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 materlal inconsistencies or apparent materlal mi55tatements, we are required to determine whether this gives rise to a material mi55tatement 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. Matters on Whlch we are Requlred to Report by Exceptlon We have nothing to report in respert of the following matters where the Charities (Accounts and Reports) Re8ulations 2008 requires us to report to you If, In our oplnion: the information glven in the Report of the Trustees is Inconslstent In any material respert wlth the financlal statements; or sufficient accountlng records have not been kept,. or the financial statements are not in agreement with the accountlng records and returns,. or we have not recelved all the informatlon and explanatlon5 we require for our audit. Responslbllltles of Trustees As explained more fully In the Statement of Trustees, Responsibilities, the trustees are responsible for the preparation ol the financial statement5 whlch glve a true and fair view, and for such Internal control as the trustees determine is necessary to enable the preparatlon of flnan¢ial statements that are free from material misstatement, whether due to fraud or error. In preparing the financlal statements, the trustees are responsible for assesslng the charity's abllity to contlnue as a going concern, di5¢1o5in8, as applicable, matters related to goin8 concern and usin8 the golng concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Our Respon51bllltles for the Audlt of ihe Flnan¢lal Statements We have been appointed as auditors under Section 144 of the Charitles Act 2011 and report In accordance with the Act and relevant regulations made or having effect thereunder. Our objectlves are to obtain reasonable assurante about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance Is a high level of assurance, but is not a guarantee that an audit conducted in accordance wlth ISA5 IUKI will always detect a material misstatement when it exists. Mi55tatements 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. The extent to which our procedures are capable of detecting irre8ularitles, including fraud is detailed below.. 11 Discussions with trustees, including consideration of known or suspected instances of non-compliance with laws and regulation. This includes legislation that affects the running of the Foundation, such as the Charities Act 2011. 21 Testing all transactions in the year to supporting docLsmentation. includin8 anyiournal entrles made. Page 5
The Lofthouse Foundation Report of The Independent Auditors A further description of our responsibilities for the audit of the financial statements is located on the Financial Reportin8 Council's website at www.frc.org.uvauditorsre5ponsibillties. This descrlptlon forms part of our Report of the Independent Auditors. Use of our Report This report is made solely to the charity's trustees, as a body, In accordance with Part 4 of the Charitles (Accounts and Reportsl Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them In an auditors, 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 charity and the charity's trustees as a body, for our audit work, for this report. or for the oplnions we have formed. Jones Harris Limited Chartered Accountants Statutory Audltors 17 St Peters Place Fleetwood Lancashire FY7 6EB Page 6
The Lofthouse Foundation Consolldated Statement of Flnan¢lal Actlvlties For the Year Ended 31 December 2023 2023 2022 Total Funds Total Funds Note Incoming and Endowments From Donations and legacie5 Commercial trading activitles Investments 34,715 66,489,863 1,073,641 1166.2691 67,431,950 44,274,893 33,641,384 37,734 486,828 78,440,839 Other items Total Resources expended Commercial trading activitie5 Charitable activities Governance costs Amortisation of goodwill Totsl 63,573,185 36 12,720 982,687 64,568,628 32,844,348 6.420 32,850,768 Other reco8nlsed 8aln$1105es {Lossesl/gain5 on investments 18,576,468) Net Movements In funds 2,863,322 37,013,603 Reconclllatlon of fvnd$ Total funds brought forward 105.121,451 39,874,211 Total funds carrled forward 107.984,773 76,887,814 Plus Non-Controllln8 Interest at Acqul$5tlon Total Consolldated Funds 28,233,637 105,121,451 107,984,773 Movement attrlbuted to Controlling party Non-controllin8 interest Total Movement In Funds 1,676,827 1,186,495 2,863,322 36,588.677 424,926 37,013,603 Page 7
The Lofthouse Foundation Consolidated Balance Sheet For the Year Ended 31 December 2023 2023 2022 Total Funds Total Funds Note Flxed Assets Intangible assets Tangible a55ets Investments 8,983,217 49,785,535 9,952,138 47,836,691 io li 12 Investment propertv Tolal 609,550 59,378,302 609,550 58,398,379 Current Assets Stock 13 10,562,048 7,740,757 11,000,000 30,015,330 59,318,135 10.446,768 7,352,930 5,000.000 35,115,858 57,915,556 Debtors 14 15 Current investments Cash at bank Totsl Credltors Amounts fallln8 due withln one year 16 16,677,998) 17,398,225> Net Current Assets 52,640,137 50.517,331 Total Assets Le$$ Current Llabllltles 112,018,439 108.915.710 Provlslon for LSabllltles 17 14,033,666) 13,794,259) Net Assets 107,984,773 105.121,451 Total Unrestrl¢ted Funds 18 107,984,773 105,121,451 Attrlbuted to Controlling partv Non-controlling interest Total funds carrled forwanl 78,139,715 29,845.058 107,984,773 76.462,888 28,658,563 IOS,121,451 Approved by order of the board of trustees on . o)5 and signed on its behalf by D C Lofthouse- Trustee Page 8
The Lofthouse Foundation Charlty Balance Sheet For ihe Year Ended 310ecember 2023 Z023 2022 Total Funds Total Funds Note Flxed Assets Tangible assets Investments Total io 163,410 76.774,468 76,937,878 163,410 76,774,468 76.937,878 li Current Assets Debtors Cash at bank Total 14 188,956 7,236,364 7,425,320 250 7,210,555 7,210,805 Credho Amounts falling due within one year 19.600) 16,0001 Net Current Assels 7,415,720 7,204,805 Total Assets Less Current Llabllltles 84,353,598 84,142,683 Net Assets 84,353,598 84,142,683 Totsl Unrestrlrted Funds 18 84,353,598 84,142,683 Approved by Order of the board of trustees on . 05 102(4 and signed on Its behalf by D C Lofthouse - Trustee Page 9
The Lofthouse Foundation Consolidated Cash Flow Statement For the Year Ended 31 December 2023 2023 2022 Note Cash Flow From Operatln8 A¢tlvltles Cash generated from operations Tax paid Net Cash From Operatlnz Actl¥ltles 5,328,617 7,584,904 990,222 8,575,126 5,328,617 Cash Flow From Investlng Act5vltles Purchase of intangible assets Purchase of fixed assets Sale of intangible fixed assets Sale of fixed assets Interest received 137,2891 15.268,7521 122 125,7471 1629,241} 9,348 1,073,641 14,222,930) 17,069 59,112 1578,8071 Net Cash From Inve$tlng Artlvltles Cash Flow From Flnanclng Actlvltles Current asset investment Dividend paid Share issue Introduced by directors Wlthdrawn by directors Nel Cash From Flnancln8 A¢tlvltles 16,000,000) 11,ocoi 15,LM)O,O¢)01 12,0001 iioi 1.000 1206,2151 16,206,215) 1147,0371 15,147,0471 Change In cash and cash equivalents 15,100,528) 2,849,272 Net cash on acquisition 32.130,253 Total Increasel{Decrease) lfi C45h Balance 15,11)0.5281 34,979,525 Cash brought forward 35,115,858 136,333 Cash at Year End 30.015,330 35,115.858 Page 10
The Lofthouse Foundatlon Notes to the Conwlidated Cash Flow Statement For the Year Ended 31 December 2023 2023 2022 Net Income From Lofthouse of Fleetwood Ltd Net Income from The Lofthouse Foundatlon 4.676,882 210,915 2.308,999 44,268,472 Adjustments for: Depreciation Loss on sale of fixed assets Investment income Non cash legacv (Increaselldecrease in stock (Increaselldecrea5e in debtors Increaselldecreasel in creditors 3,073,304 260,649 11.073,6411 3.193,586 14,443 159,1121 137,200,000) 12,017,181> 13,473,1301 548,827 1115,2801 1387,8271 11,316.3851 Cash Generated Irom Operatlons 5,328,617 7,584,904 Page 11
The Lofthouse Foundatlon Notes to the Accounts l. Accounting Policies Basls of Preparatlon The financial statements of the charity* which 15 a public beneflt entity under FRS 102, have been prepared in accordance with the Charities SORP IFRS 1021 'Accounting and Reportin8 by Charilies.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financlal Reporting Standard applicable in the UK and Aepublic of Ireland IFRS 1021 leffettive l January 20191,, Financial Reporting Standard 102 'The Financial Reportin8 Standard applicable in the UK and Republic of Ireland, and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of Investments which are included at market value, a5 modified by the revaluation of certain assets. Goln8 Con¢em The Trustee5 have a reasonable expertation that the Charity has adequate resources to contlnue in operational existence for the foreseeable future. Thus they contlnue to adopt the 80in8 ¢oncern basis of accounting in prepafin8 the annual financial statements. B•s15 of Consolldatlon The con501idated financial statements In¢lude the financial statements of the Charity and Its subsldiary undertakln8 made up to 31 December 2023. A subsidlory Is an entlty that is controlled by the Charlty. The result5 of subsidiary undertakings ore included in the consolldated statement of flnancial attivitles from the date that control commences until the date that control ceases. Control Ss established when the Charity ha5 the power to govern the operating and financlal policles of an entity so as to obtain benefits from it's activitles. From 12 Mav 2022 the Charity was considered to control Lofthouse of Fleetwood Limited and consequently the Bross income and expenditure from operations are presented on the Statement of Financial Activities from this date. Income All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it Is probable that the income will be reteived and the amount can be measured reliably. Turnover in the company represents sales of medicated confectionery, net of VAT and trade dlscounts which are recognised when the goods are physically despatched to the customer. Expendlture Liabilitie5 are recognlsed as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to partlcular headings they have been allocated to activities on a basis consistent with the use of resources. Inlanglble Assets Trademarks are amortised on a stralght line basis over the perlod from their acquisition to the date of their expiry. They are stated at cost le55 accumulated amortisation and accumulated impairment1055es. Goodwill is recognised under the purchase meihod on consolldatlon. Goodwill is the dlfference between the falr value of the consideration given at acquisStion and the fair value of the parent's interest in the net asset5 of Lofthouse of Fleetwood Ltd at 12 May 2022. Goodwill is being amortise(J over a period of 10 years in line with the FRS 102 recommended limit where a reasonable estimate tannot be made. Page 12
The Lofthouse Foundation Notes to the Account5 l. AccountSn8 Policies Contlnued... Tan8lble Fixed Assets Tangible assets are stated at cost less accumulated depreciation and accumulated impairment105ses. Such cost includes cost directly attributable to making the asset capable of operating as intended. Depreciation 15 provided on all tangible asset5 at rates calculated to write off the cost. less estimated residual value, of each asset on a systematic basis over Its expected useful life. The carrylng values of tangible assets are revlewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. Depreciation Is provided at the following annual rates in order to write off each asset over its estimated useful Ilfe. - Freehold property - Asset5 under construction Plant and machinery Fixtures and fittin85 Motor vehicles 15 10 50 years S% on cost 2 to 5 year5 5 to 10 years Land Is not depreciated, nor is the freehold property owned by the charity itself because the trustees belleve the value is in excess of its historlc cost. Investment Propertv Investment property is shown at most recent valuation. Any aggregate surplus or deficit arlsing from changes in fair value is shown in the Statement of Financial Activities. Stocks Stotk Is valued at the lower of cost or net realisable value. Finished Boods are valued using the standard costln8 method whlch Incorporates and element of overheads and labour Into the final cost of the finished goods. When stocks are 501d, the carrying amount of those Stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of Stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of anv reversal of any write-down of stocks is re¢o8nised as a reduction in the amount of Stocks reco8nised as an expense in the period in which the reversal occurs. Taxatlon The chority is exempt from tax on its charitable actlvities. Taxation for the year comprises current and deferred tax. Tax is recoEnlsed In the Statement of Financlal Activities, except to the extent that it ielates to items recognised in other comprehensive income or directly in equity. Delerred Tax Deferred tax is recognised in respert of all tlming differences that have originated but not reversed at the balance sheet date. Timing differences arise from the inclusion of income and expenses in tax assessments In periods different from those in which they are recognised in the financièl statements. Page 13
The Lofthouse Foundation Notes to the Accounts l. Accounting Poll¢les Contlnued... Research and Development Expenditure on research and development is written off in the year in which it is incurred. Forelin Cuffencles A55ets and liabilities in foreign currencies are translated into sterlin8 at the rates of exchange ruling at the balance sheet date. Transactions In foreign currencies are translated into sterling at the rate of exchan8e rulin8 at the period end. Exchange differences are taken into account in arrivlng at the operatlng result. Penslon Costs and Other Post-Retlrement Beneflts The company operates defined contribution scheme5 in respect of its directors and employees. The assets of the schemes are held separately from those of the company In independently administered funds. The pension cost charge represents contribution5 payable by the company to the directors. fund and payments to individual pension plan5 Of employees. Provlslons for Llabllltles Provisions are retO8nised where there is a legal or construct5ve obligation to transfer economic benefits as result of a past event and it 15 probable that an outflow of economic benefits will be required to settle the obligation. Where the Company expe¢t5 some or all of a provision to be reimbursed. the reimbursement is only recognised as a separate asset if recovery is vlrtually certaln. Fund accountln8 Unrestricted funds can be used in a¢¢ordance with the charitable objectives at the discretion of the trustees, there are currently no restrlcted funds. 2. Crftlcal Ac¢ountln8 Judgements and Key Sources of Estlmatlon Untertalnty In the application of the company's accounting policie5, the directors are required to make judgements, estlmate5 and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and assumptions are based on historical experience and other factors that are conslileied to be relevant. Actual results may dlffer from these estimates. The estimate5 and underlying assumptions are reviewed on an ongoin8 basis. Revisions to accounting estimates are retognised in the period in which the estimate is revised if the revision affect5 only that period or in the period of the revision and future periods if the revision affects both current and future periods. Page 14
The Lofthouse Foundation Notes to the Accounts 2. Crltltal Ac¢ountln8 Judgements Ind Key Sources of EstimatSon Uncertalnty Contlnued... Crltlcal Jud8ernents in applylng the Company's ac¢ountin8 pollcies and key source ol estlmatlon uncertalnty The following are the key sources of estimation uncertainty that the directors have assessed as bein8 applicable to the entity and that have the most Sl8nificant effect on the amounts recognised in the financial statements. It is deemed that there are no critical accounting jud8ement5. Flxed Assets Accountin8 for fixed assets involve5 the use of estimates for lal the useful live of the assets over which they are to be depreciated, and Ibl the existence and any amount of impairment. Fixed assets are depreciated over their estimated useful lives. When the company estimates useful lives, various factors are considered including expected technology obsolescence and the expected usage of the asset. The company regularly reviews these assets useful lives. their future economic utilization and the physical condition of the assets concerned. The carrying value of the asset5 15 assessed periodically to determlne whether there are any indl¢ations of any Impairment of the value beyond the depreciatlon charge. If this is the case, an impairment charBe is taken against the carrying value of the assets and charged to profit and loss account. The impairment of fixed assets requires management jud8ement in determinlng the amounts to be Impaired, In particular, judgement is used when assessing the future ¢ash flows. Investment Property The fair value, £609,55012022.. £609.5501, of the investment property has been arrived at on the basis of the directors valuation carried out on 31st December 2023. The valuation was made on an open market value basls by reference to market evidence of transaction prices for similar properties. Stock Sto¢k provisions are provlded where It is considered that the amount realisable is considered to be less than it5 carryin8 amount. The provisions are made uslng mana8ement's best estimate for recoverable amounts. 3. Donatlons, Le8acles and Turnover and Other Income 2023 2022 Income from Legacies Income from Donations Sales of Goods Interest Recelved Forelgn Exchange Gains Sundry Income 34.715 44,274,893 66,489,863 33,641,384 1.073.641 37,734 1269.4541 460.600 103,185 26,228 67,431,950 78,440,839 Page 15
The Lofthouse Foundation Notes to the Accounts 4. Expendlture on Commerclal Trading Act5¥llles 2023 2022 Cost of Sales Direct Staff Costs Direct Utilities 36,216,851 17,365,395 8,651,250 5.465,877 2.268,187 1,317,146 2,940,867 1,962,437 5.374,869 2,764,366 327,696 271.899 27,185 18,912 4.240,038 2,491,885 706,493 404,577 192,181 117,274 26,181 IS,232 79,071 42,065 1,063,966 372,945 1,047.218 150,364 Dlrect Depreclation Commlssion Dlstrlbution Costs Distribution Depreciation Administration Staff Costs Administration Costs Administration Utilities Administration Amortisation Administration Depreciation Legal & Professlonal Taxation Dlvldends ProfitllLoss1 on Sale of Tangible Fixed Assets Bank Charges Auditors Remuneration Auditors Remuneration Non Audit Work 260,649 19,2201 5,683 3,229 88,000 51,925 55,800 36,040 63,573,185 32,844.348 5. Éxpendlture on Charltable Actlvltl¢$ 2023 2022 Sundries 36 36 6. Governance Costs 2023 2022 Auditors Remuneration Auditors Remuneration Non Audit Work 12,720 6,0 420 12,720 6,420 Page 16
The Lofthouse Foundatlon Notes to the Accounts 7. Trustees Rernuneration and Beneflts There were no trustees, remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022. There were no trustees, expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022. 8. Employees and Olrectors The average number of employees during the year was as follows.. 2023 2022 Productlon Staff Office and Management 27S 272 59 58 330 334 Directors remuneration: 2023 2022 Directors remuneration ioo,(NJo 100,000 109,541 109,541 9. Int•nglble Flxed Assets Consolldated Balance Sheet Goodwill Trademarks Total Cost At l January 2023 Addltlon5 Disposals Reclassification At 310ecember 2023 9,826,867 140,503 9,967,370 37,289 37,289 134,3101 134,3101 2,780 2,780 146,262 9.973,129 9,826,867 Amort15atlon At l January 2023 Charge for Year Elimination on Disposal At 31 December 2023 15,232 26,183 134.1901 7.225 15,232 I,CQ8,870 134,1901 989,912 982,687 982,687 Net Book Value At 31 December 2023 8,844,180 139,037 8,983,217 At 31 De¢ember 2022 9,826,867 125,271 9,952,138 Page 17
The Lofthouse Foundatlon Notes to the Accounts 10. Tanglble Flxed Assets Consolldated Balance Sheet Freehold Assets Under Property Construction Plant and Fixtures and Machinery Fittings Motor Vehicles Total Cost At l January 2023 Addltions Disposals Reclassifications At 31 December 2023 15,484,185 4,747,293 5,108,090 29,331,385 24,240 12.446,4351 198,378 27,107,568 256,347 136,422 188,9281 40,895 49,860,105 5,268,752 12,53S,3631 12.7811 40,895 52,590,713 1201,1591 9,654,224 15,484,185 303,841 Depr•cSatSon At l January 2023 Char8e for Year Eliminalion on Dlsposal At 31 December 2023 271,685 361,169 1,653,508 2,581,212 12,176,433) 2,058,287 97,851 102,524 188,9281 111,447 370 2,023.414 2,220 3,047,125 12,265,361> 2,805,178 632,854 2,590 Nèt Book Value At 31 December 2023 14,851,331 9,654.224 2S,049,281 192,394 38,305 49.785,535 At 31 December 2022 15,212,500 4,747,293 27,677,877 158.496 40,525 47,836,691 Ch•rlty Balanfe Sheet Freehold Property Total COSQ At l January 2023 Additions Reclasslflcation5 At 31 December 2023 163.410 163,410 163,410 163AIO Depreclallon Charge for Year Net Book Value At 31 December 2023 163,410 163,410 At 31 Oecember 2022 163,410 163,410 11. Investments Prior to the 12 May 2022, the investment represented the fair value of the Foundation's investment in share5 of Lofthouse of Fleetwood Limited. the amount being £39,574,468. In the Charity individual balance sheet to 31 December 2022 this became £76,774,468 as the Charity received additional shares. In the Consolidated Balance Sheet the fair value of the investment is removed on consolidation. Page 18
The Lofthouse Foundatlon Notes to the A¢counts 12. Investment Property Consolldated Balance Sheel Falr Value Brought forward 609.550 At 31 December 2023 609.550 Net 8oak Value At 31 December 2023 609,550 At 31 December 2022 609,550 13. Stock Consolldated Balance Sheet 2023 2022 Raw Materia15 Finished Goods 7,900,388 8,738,229 2,661,660 1.708,539 10,562.048 10,446,768 14. Oebtors Consolidated B•lance Sheet 2023 2022 Trade Debtors Other Debtors 6.571,482 6,108,555 495.866 808,954 673,409 435,421 7,740.757 7,352,930 Prepayments The chaTlty balance sheet contains £188.956 of interest which is accrued as at 31 December 2023. 15. Current Investments Current investment5 of £ll,fyJO,00012022 - £5,000,(KJOl in the Consolidated Balance Sheet represent short time dep051ts held with the Bank. Page 19
The Lofthouse Foundation Notes to the Accounts 16. Creditois Consolidated Balance Sheet 2023 2022 Trade Creditors Taxation and Social Securitv Other Creditors 3,978,661 1.085,738 1,613,599 6,677,998 5,618,185 266,591 1,513,449 7,398,225 17. Provlslon for Llabllltles Consolldated Balan¢e Sheet 2023 2022 Deferred Tax 4,033,666 3,794,259 18. Movement In Funds Consolldated Balance Sheet Net Movement At 31112123 At 111123 Unrestrlrted Fund$ General Fund 105,121,4SI 105,121,451 2,863.322 107.984,773 2,863,322 107,984,773 Total Funds Net Movement In funds Is as follow5.. Incoming Resources Resources Expended Investment Revaluation Total Movement Unrestrl¢ted Funds General Fund Total Fund5 67,431,950 164,568,628) 67,431,950 164,568,6281 2,863.322 2,863,322 Total Funds are attributed as follows.. Controlling party Non-controllin8 interest Total funds carrled forward 78,139,715 29,845,058 107,984,773 Page 20
The Lofthouse Foundation Notes to the Accounts 18. Movement In Funds Contlnued... Charity Balance Sheet Net Movement At 31112123 At 111123 Unrestilcted Funds General Fund Total Funds 84,142,683 84,142,683 210,915 84,3S3,598 210,915 84,353,598 Net Movement in funds Is as follows.. Incomin8 Resource5 Resources Expended Total Movement Unrestrlrted Funds General Fund Total Funds 223,671 223,671 112,7561 112.7561 210,915 210,915 19. Related Party Dlsclosures On 12 May 2022, the Foundation became the majorlty parent of Lofthou5e of Fleetwood Llmlted with a 67.4% shareholding. The Directors of the company are both Trustees of the Foundation. Durln8 the year there were no transactions between the two entities. Page 21