THE SPEAR CHARITABLE TRUST
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2020
THE SPEAR CHARITABLE TRUST
## CONTENTS
||Page|
|---|---|
|Legal and Administrative Information|1|
|Report of the Trustees|2|
|Independent Examiner’s Report|4|
|Statement of Financial Activities|5|
|Balance Sheet|6|
|Notes forming part of the Financial Statements|7|
## THE SPEAR CHARITABLE TRUST
## LEGAL AND ADMINISTRATIVE INFORMATION
|REGISTERED CHARITY NUMBER|:|1041568||
|---|---|---|---|
|CURRENT TRUSTEES|:|Philip N Harris||
|||Francis A Spear||
|||(Deceased 13 December 2020)||
|||Hazel E Spear|(Secretary)|
|||Nigel R N Gooch||
|ADMINSTRATOR|:|Flora Gaughan|(01992-305229)|
|REGISTERED OFFICE|:|Roughground House||
|||Old Hall Green||
|||Ware||
|||Hertfordshire||
|||SG11 1HB||
|INDEPENDENT EXAMINER|:|Mrs Jacqui Lee Foster||
|||31 Gellatly Road||
|||London||
|||SE14 5TU||
|SOLICITORS|:|Longmores Solicitors LLP||
|||24 Castle Street||
|||Hertford||
|||SG14 1HP||
|INVESTMENT ADVISERS|:|Brewin Dolphin||
|||12 Smithfield Street||
|||London||
|||EC1A 9BD||
|BANKERS|:|HSBC Bank plc||
|||31 Holborn||
|||London||
|||EC1N 2HR||
1
## THE SPEAR CHARITABLE TRUST
## REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020
The trustees present their report along with the financial statements of the trust for the year ended 31 December 2020. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the trust deed, applicable law and the requirements of the Charities SORP (FRSSE) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities (the FRSSE) (effective 1 January 2015).
## OBJECTIVES AND ACTIVITIES
The trust receives no income other than dividends, interest and any profits on sale arising from its investments. These monies are applied for the purpose of distributing monies to or for such charitable purpose or purposes or institution or institutions as the trustees shall in their absolute discretion think fit, with particular regard to charitable assistance of employees and former employees of J W Spear and Sons plc and the family and dependants of such employees and former employees.
The trustees have had regard to the Charity Commissioners’ guidance on public benefit. They consider that the grants made by the fund fulfil the public benefit requirement.
The trustees will make grants without a formal application but organisations are encouraged to provide feedback on the use made of grants. These explanations are then used to monitor the quality of grants made and to provide the basis on which any further applications can be assessed.
The trustees intend to continue to provide grants in the areas currently supported and to monitor the use of donated funds to maximise the benefits provided.
The present policy of the trustees is to retain an investment portfolio to generate sufficient income to effectively maintain a constructive programme of charitable donations while researching opportunities to make further major grants. Current reserves of £3,946,703 are sufficient to satisfy these objectives.
## STRUCTURE, GOVERNANCE AND MANAGEMENT
The trust was established by deed on 8 July 1994 and is based in the UK at the registered office shown on page 1.
The power to appoint any new trustee is vested in the existing trustees (all of whom served throughout the year) whose names are set out on page 1.
The trustees conduct a risk assessment annually to review the major risks faced by the trust and to ensure that they have a sound knowledge of the charity and are in an informed position regarding its operations.
The trustees have a general power of investment and have agreed to delegate the management of available funds to their investment advisers subject to no one equity investment representing more than 5% of the overall portfolio valuation.
The trustees have adopted a medium risk investment strategy to maintain a balanced approach between income earned and capital appreciation.
2
## THE SPEAR CHARITABLE TRUST
## REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020
## ACHIEVEMENTS AND PERFORMANCE
During the year the trust has been able to sustain its support to beneficiaries by utilising the continuing returns in investment income and surpluses on sales of investments.
The charitable trust meets its charitable purposes by providing grants and donations in accordance with the charitable objects of the trust.
A summary of the grants and donations made by the trust is set out on pages 8 to 11.
## FINANCIAL REVIEW
There was an overall decrease in funds of £619,174 (2019 - increase £257,608) after accounting for profits on investment assets of £79,622 (2019 – £574,830)
The assets of the trust are predominantly an investment portfolio and regular meetings are held with the investment advisers.
## STATEMENT OF TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS
Charity law requires the trustees to prepare financial statements that give a true and fair view of the state of affairs of the charity at the end of the financial year and of the incoming resources and application of resources of the charity for the financial year. In doing so the trustees are required to: -
- a Select suitable accounting policies and then apply them consistently;
- b Observe the methods and principles of the Charities SORP (FRSSE);
- c Make judgements and estimates that are reasonable and prudent;
- d State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- e Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate.
The trustees are also responsible for maintaining 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 comply with relevant legislation. The trustees 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.
So far as the trustees are aware there is no relevant information of which the trust’s independent examiner is unaware, and the trustees have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant information and to establish that the trust’s independent examiner is aware of that information.
Approved by the trustees and signed on their behalf by:
………………………………………………………………
17 May 2021
3
## INDEPENDENT EXAMINER’S REPORT TO THE
## TRUSTEES OF THE SPEAR CHARITABLE TRUST
I report on the financial statements of the trust for the year ended 31 December 2020 which are set out on pages 5 to 15.
## RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND EXAMINER
As described on page 3 the trustees are responsible for the preparation of the trustees’ annual report and financial statements. You consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the Act) and that an independent examination is needed. It is my responsibility examine the accounts under section 145 of the 2011 Act, to follow the procedures laid down in the General Directions given by the Charity Commissioners (under section 145(5)(b) of the 2011 Act and to state whether particular matters have come to my attention.
## BASIS OF INDEPENDENT EXAMINER’S REPORT
My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a “true and fair” view.
The report is made solely to the trustees for and is limited to those matters set out in the statement below. To the fullest extent permitted by law I do not accept or assume responsibility to any one other than the trustees for my work, for this report or for the opinions I have formed.
## INDEPENDENT EXAMINER’S STATEMENT
In connection with my examination nothing has come to my attention:
- a which gives me reasonable cause to believe that in any material respect requirements
- to keep accounting records in accordance with section 130 of the Charities Act 2011; and
- to prepare financial statements which accord with the accounting records and to comply with the accounting requirements of the Charities Act 2011
have not been met; or
b to which in my opinion attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
Mrs Jacqui Lee Foster 31 Gellatly Road London SE14 5TU
27 May 2021
4
## THE SPEAR CHARITABLE TRUST
## STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020
|Note
INCOME FROM:
Investments
2
Grant returned
EXPENDITURE ON:
RAISING FUNDS
Investment manager’s fees
Irrecoverable VAT thereon
CHARITABLE ACTIVITIES
Grants and donations
3
OTHER
4
TOTAL
NET (EXPENDITURE)
OTHER RECOGNISED GAINS
Gains on investment assets
8
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD||Unrestricted
Funds
2020
£
110,911
7,500
118,411
20,743
4,148
24,891
783,079
9,237
817,207
(698,796)
79,622
(619,174)
4,565,877
3,946,703||Unrestricted
Funds
2019
£
155,838
-|
|---|---|---|---|---|
|||||155,838|
||||||
|||20,743
4,148||23,447
4,689|
|||||28,136
415,282
29,642|
|||||473,060|
|||||(317,222)
574,830|
|||||257,608
4,308,269|
|||||4,565,877|
The statement of financial activities includes all gains and losses recognised in the year.
5
## THE SPEAR CHARITABLE TRUST
## BALANCE SHEET AS AT 31 DECEMBER 2020
|Note
FIXED ASSETS
Investments
8
CURRENT ASSETS
Debtors
5
Cash at bank and in hand
TOTAL CURRENT ASSETS
LIABILITIES
Creditors: Amounts falling due within one year
6
NET CURRENT ASSETS/(LIABILITIES)
TOTAL NET ASSETS
THE FUNDS OF THE CHARITY
Unrestricted funds|2020
£
3,879,961
52,941
50,899
103,840
(37,098)
66,742
3,946,703
3,946,703|2019
£
4,604,000|
|---|---|---|
|||33,652
7,821|
|||41,473
(79,596)|
|||(38,123)|
|||4,565,877|
|||4,565,877|
Approved by the Board of Trustees and signed on its behalf by
...…………………..…..……… Trustee
17 May 2021
6
THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
## 1 PRINCIPAL ACCOUNTING POLICIES
## Accounting Convention
The financial statements have been prepared under the historical cost convention as modified by the valuation of investments at market value and in accordance with the requirements of the Charities SORP (FRSSE) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities (the FRSSE) (effective 1 January 2015).
The principal accounting policies adopted in the preparation of the financial statements are as follows: -
## Income
## Investment income and interest received
Income is recognised in the period in which the charity is entitled to receipt and the amount can be measured with reasonable certainty.
## Expenditure
All expenditure is accounted for on an accruals basis. Costs to manage and administer the charity represent costs incurred attributable to the management of the charity’s assets, organisation, administration and compliance with the constitutional and statutory requirements.
## Fund accounting
Funds held by the charity are unrestricted general funds which can be used in accordance with the charitable objects at the discretion of the trustees.
## Value added tax
The trust has charitable status and is therefore unable to recover VAT within its governance costs. The trustees consider that the incidence of the indirect tax should be highlighted.
|2|INVESTMENTS
Deposit interest
Investment income from quoted investments|2020
£
37
110,874
110,911|2019
£
86
155,752|
|---|---|---|---|
||||155,838|
7
## THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
|3|CHARITABLE ACTIVITIES- Grants and Donations
All Saints PCC (Bells Appeal)
Battersea Dogs and Cats Home
Beds, Cambs and Northants Wildlife Trust
Bletchley Park Trust
Blue Cross
British Hen Welfare Trust
Butterfly Conservation Scotland
Camphill Village Trust
Carers Trust
Centre for Reproductive and Genetic Health
Compassion in World Farming
Cure Parkinson’s Trust
Dancing for Wellbeing
Derbyshire Wildlife Trust
Demelza House Children’s Hospice
Doctor Graham’s Homes
Douglas Bader Foundation
Earth Trust
EP Youth
Exmoor Search and Rescue
Farplace Animal Rescue
Franconi Anaemia Leukaemia – Children with Cancer UK
Freshfields Animal Rescue
Green End Fundraisers
Greyhound Compassion
Harpenden Lions Club
Headway Thames Valley
Carried forward|2020
£
-
-
-
-
-
-
-
-
-
-
-
,-
-
-
-
4,500
-
-
-
-
-
-
-
-
-
-
-
4,500|2019
£
10,000
1,000
2,500
20,000
5,000
2,500
2,500
10,000
2,500
2,300
2,500
5,000
5,000
2,000
5,000
-
2,500
5,000
4,500
2,500
6,000
2,250
2,500
5,300
1,750
2,500
2,500|
|---|---|---|---|
||||115,100|
8
## THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
|3|CHARITABLE ACTIVITIES– Grants and Donations
Brought forward
Hertford Choral Society
Hertfordshire and Middlesex Wildlife Trust
Horniman Museum and Gardens
Interactive Stroke Support
International Otter Survival Fund
Jewish Care
Jordainian YMCA
Juvenile Diabetes Research Trust
London Air Ambulance
London Wildlife Trust
Lord Whisky Sanctuary
Marine Conservation Society
Mayhew Animal Home
Mexico - Red Balloon Foundation and Amore Ministries
Michael Roberts Charitable Trust
MIND
National Animal Welfare Trust
Nowzad UK
Pekinese Rescue
Pepper Foundation
PETA
Prickles Hedgehog Rescue
React
Re-Cycle
Redwings Horse Sanctuary
Respite Association
Carried forward|2020
£
4,500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,000
-
-
-
-
-
-
-
5,500|2019
£
115,100
2,500
2,500
2,500
2,500
2,500
10,000
2,000
2,500
2,500
2,000
1,000
2,500
2,500
2,000
2,500
1,000
2,500
2,500
2,500
2,500
2,500
2,500
2,500
5,000
5,000
2,500|
|---|---|---|---|
||||188,100|
9
## THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
|3|CHARITABLE ACTIVITIES– Grants and Donations
Brought forward
Royal National Orthopaedic Hospital
Royal Osteoporosis Society
Royal Philatelic Society London
Salvation Army
Scottish Seabird Centre
Sense
Sick Children’s Trust
Something to Look Forward To
Soil Association
SPANA
Stamp Active Network
St Francis Children’s Society
St Helena’s Hospice
St John’s Ambulance
St Luke’s Hospice
St Mary’s Church
St Mungo’s
St Thomas of Canterbury School
Suffolk Owl Sanctuary
Support Dogs
Surrey Wildlife Trust
Toynbee Hall
Tree Aid
Vier Pfoten
West London Synagogue
Wheel Power
Carried forward|2020
£
5,500
-
-
750,000
2,500
-
-
-
-
-
-
1,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
759,000|2019
£
188,100
2,500
2,500
20,000
4,500
2,500
2,500
2,500
2,500
75,000
2,500
-
2,000
10,000
2,500
1,000
1,000
5,000
13,600
5,000
2,500
2,000
2,500
2,500
1,000
5,000
3,000|
|---|---|---|---|
||||363,700|
10
## THE SPEAR CHARITABLE TRUST
## NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
|3
4|CHARITABLE ACTIVITIES– Grants and Donations
Brought forward
Woman’s Trust
Wood Green Animal Shelter
Woodland Trust
Zoological Society of London
ZSV Trust – Food Lifeline
Donations for the charitable assistance of former employees
of JW Spear & Sons plc and the family and dependants of
such former employees: 6 (2019: 10)
Sundry donations: none (2019: 2)
OTHER
Independent examination
Accountancy (4a)
Professional fees (4a)
Office costs (4b)
Irrecoverable VAT|2020
£
759,000
-
-
-
-
-
24,079
-
783,079
£
535
3,530
4,250
72
850
9,237|2019
£
363,700
5,000
2,500
10,000
2,500
5,000
25,432
1,150|
|---|---|---|---|
||||415,282|
||||£
525
5,880
19,295
83
3,859|
||||29,642|
(a) Two trustees are practitioners in professional firms who provide services to the trust in the normal course of business.
(b) No trustee has received any direct remuneration. No trustee received reimbursement of expenses during the year (2019: £nil).
11
## THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
|5
6|DEBTORS
Accrued income
Funds held by stockbroker
CREDITORS: Amounts falling due within one year
Grants Committed
Accruals
Other creditors
INVESTMENTS
Fixed Interest Stocks
£110,000
Treasury 2% 2025
Ordinary Shares and Unit Trusts
5,000
Aberforth Smaller Cos Ord 1p
890
Ashstead Group Ord 10p
900
AstraZeneca Ord US$0.25
10,000
Bailee Gifford American W1 Dis
1,300
Bailee Gifford Japan Sml Cos B Nav Inc
2,400
BHP Group Ord US$0.50
70,000
Blackrock FM Contl Eurp Inc D Unts Inc
13,000
BP Ord US$0.25
2,000
British American Tobacco Ord 25p
12,000
BT Group Ord 5p
3,700
Compass Group Ord 11.05p
Carried forward|2020
£
699
52,242
52,941
25,000
12,092
6
37,098
Market value
£
120,747
62,400
30,598
65,916
177,700
75,764
46,200
123,235
33,124
54,160
15,870
50,431
856,145|2019
£
2,650
31,002|
|---|---|---|---|
||||33,652|
||||55,000
24,590
6|
||||79,596|
||||Cost
£
115,971
64,421
14,198
14,665
54,821
60,455
38,738
111,601
59,428
69,055
40,699
22,099|
||||666,151|
12
## THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
|7|INVESTMENTS
Brought forward
Ordinary Shares and Unit Trusts
3,500
Coupland Cardiff F CC Jpn I & G £ Uhdg
1,650
Diageo Ord 28.935185p
1,150
Experian Ord US$0.10
45,000
FILInv Svcs UK Emg Mkts R £ Acc
80,653
FILInv Svcs UK Money Builder Income I £
1,850
Finlay Park Funds American $ Dis
36,000
First Sentier Inv Stewart Inv Asia Pac Ldrs
4,000
GlaxoSmithKline Ord 25p
120,000
Henderson Investme Pref & Bond G £ Dis
30,318
HICL Infrastructure Ord 0.01p
51,647
Hipgnosis Songs Fu Ord NPV
9,000
HSBC Holdings Ord US$0.50 (UK Reg)
2,300
IMI Ord 0.28571428p
400
Ishares £ Corp Bond 0-5 Yr Ucits ETF G
11,200
JP Morgan Mid Cap IT Ord 25p
150,000
JP Morgan Fds US Equity Inc K £ Net Inc
129,981
Jupiter UT Mngrs Stategic Bond Z Inc
12,000
Legal and General Ord 2.5p
115,000
Lloyds Banking Group Ord 10p
15,000
M & G Ord 5p
76,516
Mayfair Cap Inv Prop Inc Tst for Charities
2,500
MSIM Fung Mgt Asia Opps J $ Acc
5,000
National Grid Ord 12.431289p
50,000
Ninety One Fd Mgrs Diversified Inc J 2
60,000
North American Inc Ord 5p
Carried forward||Market value
£
856,145
55,745
47,487
31,936
63,180
85,492
213,590
106,132
53,680
73,848
52,753
63,784
34,097
26,795
43,222
127,960
178,650
88,062
31,944
41,906
29,693
62,407
88,024
43,250
50,695
146,700
2,697,177|Cost
£
666,151
48,008
6,580
4,609
49,903
80,750
113,956
78,996
37,169
70,235
45,792
57,019
57,085
23,614
41,364
46,481
132,173
87,444
23,825
149,653
26,271
66,000
50,116
22,616
50,354
85,699|
|---|---|---|---|---|
|||||2,121,863|
13
## THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
|7|INVESTMENTS
Brought forward
Ordinary Shares and Unit Trusts
1,100
Persimmon Ord 10p
7,000
Pimco Glbl Advis UK Corp Bd Fd Inst Inc £
3,000
Polar Capital Tech Tst Ord 25p
8,000
Princess Private Equity Ord EUR0.001
3,400
Prudential Ord 5p
600
Reckitt Benckiser Group Ord 10p
1,050
Rio Tinto Ord 10p
5,200
Royal Dutch Shell B Ord EUR0.07
30,000
Schroder Oriental Ord 1p
2,000
Smiths Group Ord 37.5p
20,000
Syncona Ord NPV
60,000
Threadneedle Inv Euro Select Z £ Inc
40,000
Tritax Big Box REIT Ord 1p
1,000
Unilever Ord 3.1111p
5,000
Vanguard Funds S&P 500 Ucits ETF $ Dis
30,000
Vodafone Group Ord US$0.2095238
3,100
WPP Ord 10p||Market value
2,697,177
30,437
77,280
69,150
84,139
45,798
39,252
57,435
65,489
78,450
30,090
52,200
121,758
67,160
43,920
259,144
36,282
24,800
3,879,961|Cost
2,121,863
4,314
74,428
29,917
41,506
11,991
18,064
11,002
54,475
70,488
16,350
20,412
102,252
45,271
21,425
141,557
67,705
38,306|
|---|---|---|---|---|
|||||2,891,326|
14
## THE SPEAR CHARITABLE TRUST
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
## 8 INVESTMENTS
## MOVEMENT IN MARKET VALUE
|Market value at 1 January
Additions at cost
Disposal proceeds
Net investment gains/(losses)
Market value at 31 December
Historical cost at 31 December|2020
£
4,604,000
306,816
(1,110,477)
79,622
3,879,961
2,891,326|2019
£
4,385,874
484,816
(841,520)
574,830|
|---|---|---|
|||4,604,000|
|||3,489,375|
15