2021-09-30-accounts

Hinxton Hall Limited Annual Re ort and p Financial Statements For Year Ended 30 Se tember 2021 p

Hinxton Hall Limited Charity registration number 1048066 Company number 3062160

Hinxton Hall Limited Annual Report and Financial Statements Year ended 30 September 2021

Contents

Trustees eport (including strategic report) 2 esponsibilities 9 10 Statement of financial activities 13 Balance sheet 14 Notes to the financial statements 15

Charity registration number 1048066 Company number 3062160

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Trustees Report

The Directors of Hinxton Hall Limited ( Charitable Company ), who are also the Trustees of Hinxton Hall Limited, being a charity for the purposes of the Charities Act 2011, present their Annual Report and audited Financial Statements for the year ended 30 September 2021.

Independent Auditor

In accordance with Section 485 of the Companies Act 2006, a resolution dated 11 January 2022 was passed by the members reappointing Deloitte LLP as auditor of the Charitable Company.

Reference and administrative information

Company Status

The Company is a charity registered in England and Wales with the Charity Commission under the Charities Act 1993, as amended by the Charities Act 2011 (Charity registration number 1048066) and is a company limited by guarantee and registered in England and Wales (Company number 3062160).

Directors/Trustees

The trustees of the Charitable Company (who are also directors of the Company) who were in office during the year and up to the date of signing the financial statements were:

M Dougherty (Chair) M Payne

Principal Address Wellcome Genome Campus Hinxton Cambridgeshire CB10 1RQ

Company Secretary N Meliti

Registered Office

Gibbs Building 215 Euston Road London NW1 2BE

Bankers

National Westminster Bank plc

Cambridge CB2 3PU

Solicitors

CMS Cameron McKenna Cannon Place 78 Cannon Street London EC4N 6AF

Independent Auditor

Deloitte LLP Statutory Auditor 1 New Street Square London EC4A 3HQ

Charity registration number 1048066 Company number 3062160

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Hinxton Hall Limited For the year ended 30 September 2021

Structure, Governance and Management

Members

The Charitable Company has two members, The Wellcome Trust Limited, as Trustee of the Wellcome Trust l , and Genome Research Limited . The Charitable Company and GRL are both wholly-owned subsidiaries of the Wellcome Trust for accounting purposes. The liability to each member to contribute to the assets in the event of winding up is limited to £1.

Governance

The Charitable Company is governed in accordance with its memorandum and articles of association.

Board of Trustees

The Board of Trustees (who are also Directors and the key management personnel of the Charitable Company) is responsible for ensuring that the charitable objects of the Charitable Company are being met. It approves the management structure and operational budgets of the Charitable Company. During the financial year, the Board met on one occasion. The Trustees are also members of the GRL Executive Board which meets four times a year and has an overview of all activities on the Wellcome Genome Campus. The Trustees are appointed by the Members of the Charitable Company, The Wellcome Trust and Genome Research Limited. The performance of the Trustees is monitored by the members who will advise and manage any necessary development and training.

The Trustees are appointed from the executive management of fellow group charity Genome Research Ltd. The Trustees are selected to have substantial experience of managing and operating large charitable organisations and are familiar with the requirements of company law and the Charity Commission. An induction programme is provided, helping to put this into the context of the specific workings of the Charitable Company. Legal and regulatory updates are provided from our Legal and Facilities departments as and when required.

None of the Trustees has any beneficial interests in the Charitable Company. The Trustees do not receive any remuneration for acting as Trustees or Directors of the Charitable Company. All the Trustees are also paid employees of Genome Research Limited and none of their remuneration is recharged to the Charitable Company.

The Charitable Company has made qualifying third party indemnity provisions for the benefit of its trustees which were made during the year and remain in force to the date of this report.

The Charitable Company made no political or charitable donations during the current or previous year.

The Chair (page 2) has principal management responsibility for the business activities of the Charitable Company and acts as Chief Operating Officer with responsibility for activities on a day-to-day basis. Responsibility is delegated to senior management for Facilities Management, Construction Services and the Wellcome Genome Campus Conference Centre.

Objects

The objects for which the Charitable Company is established are to advance the education of the public, in particular, advancing scientific and medical education and research (and the publication of the useful results of research) with particular reference to the human genome by the provision of facilities for research, conferences, seminars and training at the Wellcome Genome Campus, which is situated at Hinxton, Cambridgeshire.

Charity registration number 1048066 Company number 3062160

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Hinxton Hall Limited

For the year ended 30 September 2021

Aims

The Trustees on public benefit when reviewing the Charitable Company ectives and in planning future activities. The Charitable Company continues to fulfil its charitable objects by undertaking three key charitable activities:

• Providing facilities management services to organisations based at the Wellcome Genome Campus, the major ones being Genome Research Limited, the European Bioinformatics Institute and the Wellcome Genome Campus Conference Centre. These services include utilities provision, building maintenance, security, cleaning and catering.

• Providing meeting and conference facilities and residential accommodation at the Wellcome Conference Centre. Providing design and construction services for the Wellcome Genome Campus.

The provision of these services provides public benefit through supporting organisations on the Wellcome Genome Campus which undertake scientific and medical research and education.

The Charitable Company earns income from facilities management charges, construction services and conference centre sales and is also funded by grants from Wellcome.

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Hinxton Hall Limited For the year ended 30 September 2021

Strate ic Re ort g p

Achievements and Performance

During the year the Charitable Company provided facilities management, construction and conferencing services as required to meet the needs of tenants on the Wellcome Genome Campus, consistent with its ongoing charitable objectives. The Charitable Company aims to maintain and improve it services delivered each year across the campus. As explained below this target could not be wholly achieved in the current year due to the restrictions enforced during the COVID-19 pandemic. Activity on the Wellcome Genome Campus was curtailed in 2020 as a result, however the majority of these services have now been resumed, with the exception of the Conference Centre, which has remained closed throughout the financial year.

The following summarises the achievements of the Charitable Company during the year and the KPIs used to measure performance:

On 20[th] March 2020 the campus partially shut down to all but essential activities relating to animal welfare and scientific studies into the virus. A phased re-opening began in July 2020 with around 200 staff working on campus, increasing to around 850 by the end of the prior financial year. All staff are now able to work on Campus as they choose, but the continuation of social distancing restrictions, along with a new hybrid working model, has meant numbers on site at any one time have continued to be significantly lower. In normal operating times capacity on campus is around 2,500 staff.

Facilities management services generating income of £22.1 million (2020: £16.1 million) were provided to support the ongoing essential operations on the Wellcome Genome Campus undertaking scientific research and to maintain and enhance the infrastructure of the Wellcome Genome Campus. The Charitable Company also provided design and construction services to Wellcome Genome Campus generating income of £0.6 million (2020: £1.0 million), including initial design and materials cost for the building to be constructed on the Southfield site, for use by Genome Research Limited. During the previous year the Charitable Company completed the renovation of the West Pavilion laboratories for use by Genome Research Limited.

The conference centre closed on 20[th] March 2020 and remained shut throughout the prior and current financial year. The facilities have been used throughout the year, by Campus tenants, as meeting facilities and private offices. Sales income received from users of the conference facilities amounted to £0.2 million (2020: £1.3 million). No events have been run during the year (2020: 254, hosting 11,571 delegates). The conference centre also received grant income of £2.6 million (2020: £1.3 million) to cover its trading deficits.

Environment

The Environment Manager (an employee of fellow group charity Genome Research Ltd) is responsible for the strategic direction and management of the environmental impacts of the Campus. These include the Campus Environmental Management System ISO 14001:2015 and Campus Environmental Sustainability Strategy as well as operational areas in conjunction with key colleagues who manage direct environmental impacts. During the current year this included continued management and diversion of hazardous waste to offensive waste to ensure the best disposal route for laboratories.

In March 2021 the Campus successfully re-Certified its ISO 14001:2015 and ISO 50001:2018 for a further three years to 2024.

In May 2021 the Campus Environmental Sustainability Strategy was approved by Sanger Operations Board and is now being developed into actions. This ten year strategy has targets set across 12 themes; Biodiversity, Energy, Carbon and Offsetting, Waste and Recycling, Water and Effluent, Sustainable Construction, Sustainable Work Practices, Sustainable Lab Practices, Sustainable Food, Culture Change, Travel, Procurement and Supply Chains. This document can be found on the Wellcome Genome Campus website.

Charity registration number 1048066 Company number 3062160

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Hinxton Hall Limited

For the year ended 30 September 2021

Health and Safety

The Wellcome Genome Campus management recognise that proactive, well-managed health and safety is directly linked to its growth and success.

The last 12 months have been a time of supporting teams who have continued to work on campus, individual team workers have been provided with suitable furniture for their home offices and supported to set it up correctly to minimise poor working postures. As teams have returned to campus, we have continued to support our COVID-secure measures, including a GRL track and trace helpdesk responding to questions from employees and supporting positive cases and their close contacts from our internal COVID-19 testing programme. We have also recommenced our internal assurance programme of laboratory and facility inspections to ensure our high standards are maintained.

As well as dealing with COVID-19, the past year has had its share of additional challenges, including two fires occurring in outbuildings, resulting in property damage only, one in an emergency generator room and more recently in a chemical waste store. Both fires were extinguished quickly by the Cambridgeshire Fire & Rescue Services. With both incidents we have been keen to understand and apply lessons learned to all our operations.

In addition we have launched a new health and safety management tool, SHE Assure, which will bring together multiple standalone databases for risk assessment, audit / inspection and incident reporting. The main outward facing aspects are the hazard and near miss reporting tools, making it much easier to report issues as they occur, helping us understand areas or activities that may require maintenance / repair or processes requiring further control measures.

Reserves and Expenditure Policy

The Charitable Company does not consider it necessary to hold a minimum level of reserves due to the structure of its funding from Wellcome, directly from grants and indirectly via funding awarded to GRL to cover its facilities costs. Although, due to the timing of construction and facilities work undertaken, reserves will fluctuate from year to year. Wellcome provides sufficient funding to enable the Charitable Company and GRL to finance its general activities and meet any of its obligations as they fall due. This funding structure is reviewed every five years. The year ended 30 September 2021 was the fifth and final year of the current quinquennial funding period. In the event of a change in funding approach the reserves policy would be reviewed. The Charitable Company aims to limit expenditure to that budgeted each year to maintain facilities on the Wellcome Genome Campus and undertake construction projects only once funding is committed. The Charitable Company does not undertake public fundraising activities.

At the end of the financial year the Charitable Company held unrestricted general funds of £2.5 million (2020: £2.5 million) and restricted building funds of £34.5 million (2020: £35.5 million).

All Building Fund represents fixed assets, which are funded by grants received from Wellcome. The funds will be utilised in future periods as depreciation is charged to the funds over the life of the assets.

The Building Fund is a restricted fund and is held for the buildings on the land leased by the Charitable Company from Genome Research Limited. These include Hinxton Hall, a Grade II listed building, the Conference Centre, the Residential Accommodation and the new Shared Services and car park facility. The fund is adjusted each year for building additions and depreciation. The General Fund is an unrestricted fund and represents the net operational assets of the Charitable Company. It is adjusted each year for additions and depreciation.

Unrestricted funds generally remain consistent year to year as costs are only incurred where they can be recovered by grants from Wellcome or recharges to tenants on the Wellcome Genome Campus. Residual unrestricted funds represent grants received to purchase fixed assets (other than buildings), which is utilised in future periods as depreciation is charged to the funds over the life of the assets.

For planning purposes an annual budget is agreed with Wellcome and tenants on the Wellcome Genome Campus, including Genome Research Ltd and the European Bioinformatics Institute. The Trustees monitor the expenditure of the Charitable Company and provide an oversight of the internal budgetary and financial control mechanisms. The

Charity registration number 1048066 Company number 3062160

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Hinxton Hall Limited

For the year ended 30 September 2021

Charitable Company agrees funding for capital projects and recovery of costs from Wellcome and Genome Research Limited and other customers such that all expenditure is only committed once it is covered by income.

Fixed Assets

The tangible fixed assets of the Charitable Company, as set out in note 8 to the Financial Statements, represent the costs, less accumulated depreciation, incurred at the Wellcome Genome Campus. During the COVID-19 pandemic the campus was partially closed and buildings and facilities owned by the Charitable Company, including the Wellcome Genome conference centre temporarily ceased operations. However, the assets are expected to be used again once the restrictions are lifted and to return to normal operations. Conferences are expected to resume from early 2022. Therefore the Trustees do not consider any asset values to be impaired.

Employment

The Charitable Company has no employees (2020: no employees), with services provided being sub-contracted from third parties. The management and administration of the Charitable Company is undertaken by staff employed by Genome Research Limited. The charge for these services in the current year was £0.9 million (2020: £1.0 million).

Financial Review

The Charitable Company initial design and materials costs for the new Southfield building and the construction of the West Pavilion laboratories for Genome Research Ltd. In the previous year construction work was undertaken, relating to the renovation of the West Pavilion laboratories for Genome Research Limited. Income from facilities management services increased from £16.1 million in 2020 to £20.3 million in 2021 due to efforts to increase building repair and renovation work while there were fewer people on Campus. Income from conference centre sales decreased from £1.3 million to £0.2 million as the facility was closed throughout the year, to all but meeting and office facilities for Campus tenants. Total income relating to the conference centre increased from £2.7 million to £2.8 million due to an increase in maintenance work carried out in the year.

The Charitable Company reported net expenditure for the year of £1.1 million (2020: £1.5 million). The net movement on funds has been recorded in the Restricted Building and Unrestricted General Funds as appropriate. The Charitable Company held net assets at 30 September 2021 of £37.0 million (2020: £38.1 million) represented by restricted building funds of £34.5 million (2020: £35.5 million) and unrestricted funds of £2.5 million (2020: £2.5 million).

Future Plans

During the year ending 30 September 2022, facilities management services are expected to increase in support of the strategy for the Wellcome Genome Campus. Significant construction projects initiated at 30 September 2021 include the construction of a new building on the Southfield site to build further lab and sequencing capacity, for Genome Research Ltd. Facilities management activities are expected to continue at their current levels, to support the strategy for the Wellcome Genome Campus. The conference centre is expected to reopen in early 2022 and restart its activities, aiming to build up to normal sales levels by the end of the 2022 financial year.

Going Concern

The Trustees are satisfied that it is appropriate to adopt the going concern basis in preparing the financial statements. Wellcome, the Charitable Company funder (directly through grants and indirectly through funding awarded to GRL to cover its facilities and construction services) has previously committed to provide grant funding of £232.8 million shared between the Charitable Company and fellow group charity Genome Research Ltd for the two years ended 30 September 2023. This is expected to meet the requirements for facilities in that period, including committed capital expenditure (see note 11), and to cover existing liabilities as they fall due. Other services will be undertaken only where funding is committed at the outset.

Charity registration number 1048066 Company number 3062160

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For the year ended 30 September 2021

Hinxton Hall Limited

Risks and uncertainties

Risks to which the Charitable Company is exposed have been identified and reviewed by the trustees. The principal risks include:

The campus shutdown due to the COVID-19 pandemic resulted in a significant delay to ongoing construction projects and disruption to services, including the closure of the conference centre. There is a risk of further disruption should the spread of the virus result in additional lockdowns or curtailing of activities. This could lead to increased costs of services and a higher risk of asset failures as normal lifecycle programmes are delayed. Campus management, under the guidance of the Campus Incident Management Team continuously assess the impact of the lockdowns and our response to ensure operations continue as far as possible while maintaining staff welfare.

The Campus shutdown also resulted in the closure of the Wellcome Genome conference centre. Although socialdistancing restrictions have been lifted in the wider community, they remain in place on Campus. There is a risk that conference customers will migrate to online or virtual alternatives resulting in a longer-term reduction to conference centre sales. The conference centre marketing team is maintaining close contact with regular customers to sustain relationships and ensure bookings are retained or deferred where possible. Feedback from customers indicates that demand for live conferences will return once social-distancing restrictions are lifted.

The provision of construction services and operational facilities management exposes personnel to a health and safety risk. The health and safety management system established on the Wellcome Genome Campus is discussed in the Health and Safety section above.

The Charitable Company contracts with suppliers (sub-contractors) to provide facilities management and other related work. The risks arising from the work undertaken by sub-contractors are mitigated by selection of reputable subcontractors who adopt industry safety guidelines and by regular monitoring of site health and safety by the Trustees of the Charitable Company.

Credit risk is minimised by careful management of amounts due from external third parties. Wellcome is committed to the financial support of the Charitable Company in the provision of facilities management and as a conference centre.

The Strategic Report, was approved by the Board of Directors on 11 January 2022 and signed on its behalf by:

M Dougherty (Chair)

Charity registration number 1048066 Company number 3062160

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Hinxton Hall Limited For the year ended 30 September 2021

Statement of Trustees

The trustees (who are also directors of Hinxton Hall Limited for the purposes of company law) are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Company law 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 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:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgments and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping adequate accounting records that 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. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

• there is no relevant audit information of which the charitable company's auditor is unaware; and

• the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

.

Charity registration number 1048066 Company number 3062160

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Independent Auditor s Report

To the members of Hinxton Hall Limited

Report on the audit of the financial statements

Opinion

• resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including and

• have been prepared in accordance with the requirements of the Companies Act 2006.

• We have audited the financial statements which comprise:

• the statement of financial activities;

• the balance sheet; and

• the related notes 1 to 17

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom

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 charitable company in accordance with the ethical requirements that are relevant to our audit 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

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 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.

Other information

The other information comprises the information included in the annual report, other than the financial statements and 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 course of 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

Charity registration number 1048066 Company number 3062160

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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.

Responsibilities of trustees

le

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

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.

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.

t:

www.frc.org.uk/auditorsresponsibilities

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 design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

cies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management, trustees and internal audit about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the charitable company operates in, and identified the key laws and regulations that:

• had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Charities Act and UK Companies Act; and

• do not have a direct effect on the financial statements but compliance with which may be fundamental to the England and Wales (Charity Commission) regulations.

We discussed among the audit engagement team, including relevant internal specialists such as IT, regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for fraud or non-compliance with laws and regulations in the following areas, and our specific procedures performed to address them are described below: Risk of fraud in income recognition.

• This is a presumed risk under International Auditing Standards. We have pinpointed our fraud risks on the construction income and expenditure.

• For income, we consider the risk to be related to the completeness of income. Since income is earned based on recharging expenditure incurred, we have tested a sample of expenditure for validity and reperformed the recharge calculation.

• For expenditure, we consider the risk to be related to the validity of expenditure. We have tested a sample of expenditure to supporting documentation, payment and project allocation.

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In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

• reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• enquiring of management, internal audit and in-house legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and

• reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing any correspondence with the Charity Commission.

Report on other legal and regulatory requirements

Opinions on other matters prescribed by the Companies Act 2006

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

• for the purposes of company law for the financial year for which the financial statements are prepared is consistent with the financial statements; and

been prepared in accordance with applicable legal

• requirements.

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course report.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

• adequate accounting records have not been kept by the charitable company, or returns adequate for our audit have not been received from branches not visited by us; or

• the charitable company financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

We have nothing to report in respect of these matters.

Use of our report

he

permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the

Terri Fielding ACA (Senior statutory auditor) For and on behalf of Deloitte LLP Statutory Auditor London, UK

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Hinxton Hall Limited

Statement of Financial Activities (incorporating income and expenditure account) For the year ended 30 September 2021

----- Start of picture text -----
Restricted Unrestricted
Building General 2021 2020
Fund Fund Total Total
Note £000s £000s £000s £000s
INCOME
Income from charitable activities
Construction services 4 - 653 653 986
Facilities management services 4 - 20,258 20,258 16,090
Conference centre 4 - 2,827 2,827 2,675
-
23,738 23,738 19,751
Income from investments
Interest - - - 4
Total income - 23,738 23,738 19,755
EXPENDITURE
Charitable activities
Construction services - 653 653 986
Facilities management services 470 20,603 21,073 17,117
Conference centre 538 2,542 3,080 3,144
Total expenditure 5 1,008 23,798 24,806 21,247
Net expenditure for the year (1,008) (60) (1,068) (1,492)
Fund balances brought forward at 1 October 12 35,538 2,532 38,070 39,562
Fund balances carried forward at 30 September 34,530 2,472 37,002 38,070
----- End of picture text -----

*An analysis of income and expenditure by fund for the year ended 30 September 2020 is shown in notes 4, 5 and 14.

All gains and losses recognised in the year are included in the Statement of Financial Activities.

All activities are continuing.

The notes to the financial statements are on pages 15 to 21.

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Hinxton Hall Limited Balance Sheet As at 30 September 2021

----- Start of picture text -----
2021 2020
Note £000s £000s
Tangible fixed assets 8 36,903 37,908
Current assets
Stock 3 2
Debtors 9 4,120 1,990
Cash at bank and in hand 280 2,663
Total current assets 4,403 4,655
Creditors: amounts falling due within one year 10 4,304 4,493
Net current assets 99 162
Total assets less current liabilities, being net assets 37,002 38,070
Funds
Restricted building fund 12 34,530 35,538
Unrestricted general fund 12 2,472 2,532
Total funds 37,002 38,070
----- End of picture text -----

The Financial Statements were approved and authorised for issue by the Board of Trustees on 11 January 2022 and signed on its behalf by:

M Dougherty Chair

The notes to the financial statements are on pages 15 to 21.

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Hinxton Hall Limited For the year ended 30 September 2021

Notes to the Financial Statements

1. ACCOUNTING POLICIES

General information

Hinxton Hall Limited is a company limited by guarantee registered in England and Wales (Company number 3062160). Its registered office is Gibbs Building, 215 Euston Road, London, NW1 2BE. It is also a charity registered in England and Wales with the Charity Commission (Charity registration number 1048066).

a) Basis of Preparation

The financial statements have been prepared on a going concern basis and in compliance with applicable UK Financial Reporting Standard applicable in th they comply with the Charities Act 2011, and the Charities FRS 102 as published in 2019 ( SORP 2019 ).

The Charitable Company meets the definition of public benefit entity under FRS 102. The Financial Statements have been prepared under the historical cost convention and on a basis consistent with prior years.

The Charitable Company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it. Exemptions have been taken in relation to financial instruments and presentation of a cash flow statement. The Charitable Company has also taken advantage of the exemption contained in FRS 102, paragraph 33.1A, which exempts it from disclosing details of related party transactions with Wellcome and its subsidiaries.

b) Income

Income is recognised in the Statement of Financial Activities in the period in which the Charitable Company is entitled to receipt, any conditions are met, where the amount can be quantified and receipt is considered reasonably probable.

Grant income is recognised to the extent the Charitable Company is entitled to the funds, has fulfilled the conditions set out by the grant funder, where the amount can be quantified and receipt is considered reasonably probable. The Charitable Company assesses each grant on an ongoing basis to evaluate progress against grant conditions.

Income from facilities management and construction services is recognised when the related expenditure on services is incurred. Income from conference centre sales is recognised when the associated conference event takes place. Grant income is recognised when the related expenditure on revenue or capital items is incurred.

• c) Fund Accounting

The Building Fund represents grants received from Wellcome specifically for the construction of buildings on the Genome Campus. It is a restricted fund under the terms of the grants.

The General Fund is an unrestricted fund and represents any funds acquired for the general use of the Charitable Company. Income and costs relating to the provision of site services and conference facilities are reflected in this fund.

• d) Tangible Fixed Assets and Depreciation

Fixed assets are stated at historic cost less accumulated depreciation.

Depreciation is charged on assets in use on a straight-line basis as follows:

Major plant and equipment 15 years Furniture and fittings 5 to 10 years Standard plant and equipment 5 to 10 years

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Motor vehicles 4 years Office equipment and computers 3 years

All expenditure on the acquisition, creation or enhancement of fixed assets is capitalised on an accruals basis, subject to a de minimis threshold of £5,000. Depreciation is charged on assets in use from the commencement of the month in which they are brought into use. Leasehold Land and Buildings are held under leases from the Wellcome Trust at £nil cost per year and are amortised over the life of the lease which expires on 6 February 2055. Assets in the course of construction are recorded at the value of costs incurred and are not depreciated. Depreciation begins when the assets are ready for use at which point they are transferred to the relevant asset category.

Impairment reviews are undertaken when, in the opinion of the Trustees, events or circumstances have arisen which indicate that the carrying value of an asset is impaired. The Charitable Company holds substantial fixed assets, including buildings, related infrastructure and ongoing construction on the Wellcome Genome Campus. At each reporting date the trustees assess whether these assets will continue to derive value for the organisation through use by Genome Research Ltd and other campus tenants in line with its charitable aims. If indicators of impairment are identified, impairment reviews are performed to test the continuing value of the assets. No indications of impairment were identified in the current or previous year.

• e) Cash at bank and in hand

Cash at bank and in hand is held to meet short-term cash commitments as they fall due rather than for investment purposes and includes all cash equivalents held in the form of short-term highly liquid investments that are readily convertible to known amounts of cash, with a short maturity of three months or less from the date of acquisition.

• f) Financial assets and liabilities

Financial assets and financial liabilities are recognised when the Charitable Company becomes a party to the contractual provision of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. All financial assets and liabilities are initially measured at transaction price (including transaction costs).

For financial assets carried at amortised cost, the amount of any effective interest rate.

l

Amounts payable to Wellcome group entities are considered to be current liabilities, repayable on demand. Therefore no discounting of the liabilities for the timing of cashflows has been applied. However, there is no formal agreement for repayment terms, so this conclusion has been reached based on the Charitable Company the arrangements in discussion with the relevant group entities.

The Charitable Company is exposed to credit risk from its customer base. Credit risk is minimised by careful management of amounts due from external third parties. The Charitable Company records a provision against debtors where it is considered more likely than not that the cash will not be received from the customer.

g) Expenditure

The costs of charitable expenditure are all direct costs and are allocated according to the area of the Charitable Company's activities to which the expenditure relates.

The cost of providing conference centre facilities for conferences falling outside the primary purpose of the Charitable Company is charged to Genome Research Trading Limited based on sales activity. Governance costs, consisting of audit fees, are allocated to expenditure for the provision of facilities management, since they principally relate to these activities.

The Charitable Company maintenance of existing infrastructure. The Charitable Company evaluates the nature of this spend to assess which relates to new and enhanced assets and therefore capitalised, and which is maintenance of existing assets and therefore expensed. The Charitable Company consults with suppliers and service providers to assist in this assessment.

All expenditure is included in the Statement of Financial Activities in accordance with the accruals concept.

Charity registration number 1048066 Company number 3062160

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h) Operating leases

The company holds leases for the use of property and facilities on the Wellcome Genome Campus. These are classified as operating leases as the term is substantially less than the useful life of the assets. Rental costs under operating leases are recognised as an expense on a straight-line basis over the lease term, even if the payments are not made on such a basis.

i) Taxation

Hinxton Hall Limited is a charity registered under the Charities Act 1993 (as amended by the Charities Act 2011) and is therefore exempt from taxation on their income and gains falling within Part 11 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to their charitable purposes.

The Charitable Company amounts of VAT that cannot be recovered is included within the underlying cost to which it relates.

• j) Going concern

Wellcome, the Charitable Company of £232.8 million shared between the Charitable Company and fellow group charity Genome Research Ltd for the two years to 30 September 2023. This is expected to meet the requirements for facilities in that period, and to cover existing liabilities as they fall due. Other services will be undertaken only where funding is committed at the outset. Therefore the Trustees are satisfied that it is appropriate to apply the going concern basis in preparing these financial statements.

2. SIGNIFICANT ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Charitable Company escribed in note 1, the trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from estimates.

The estimates and judgements are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

Judgement is required to determine the date at which assets under construction become ready for use and therefore transferred to the relevant fixed assets class and depreciation commences. For construction projects, this is generally the point at which practical completion certification is issued by the managing contractor and accepted by the project governance board. The Charitable Company uses construction industry experts, employed by Genome Research Ltd and externally contracted to help make this determination.

The trustees do not consider there are any other critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed above.

3. DIRECTORS' EMOLUMENTS AND EXPENSES

The Directors of the Company (who are also Trustees of the Charitable Company and the key management personnel of the Company) received no remuneration or expenses payments from the Company for their services nor were any expenses paid on their behalf. The Directors are also employees of fellow Group company Genome Research Ltd and are paid by that company. Staff costs disclosed in Note 7 do not include any remuneration in respect of the key management personnel. There were no Directors for whom retirement benefits are accruing under a money purchase or defined benefit scheme. The Company does not issue share options or offer any long-term incentive schemes. There are no other related party transactions.

Charity registration number 1048066 Company number 3062160

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4. INCOME FROM CHARITABLE ACTIVITIES

----- Start of picture text -----
Restricted Unrestricted 2021 Restricted Unrestricted 2020
Building General Total Building General Fund Total
Fund Fund £000s Fund £000s £000s
Construction services - 653 653 - 986 986
Facilities management services
Services charges - 19,817 19,817 - 15,892 15,892
Grants from Wellcome - allocated as capital - 109 109 - 15 15
Grants from Wellcome - allocated as revenue - 332 332 - 183 183
- 20,258 20,258 - 16,090 16,090
Conference centre
Conference centre sales - 188 188 - 1,284 1,284
Grants from Wellcome - allocated as capital - 287 287 - 70 70
Grants from Wellcome - allocated as revenue - 2,352 2,352 - 1,321 1,321
- 2,827 2,827 - 2,675 2,675
----- End of picture text -----

5. NET EXPENDITURE

Net expenditure is stated after charging:

Net expenditure is stated after charging:
			Restricted
Restricted	Unrestricted	2021	Building	Unrestricted	2020
Building Fund	General Fund	Total	Fund	General Fund	Total
£000s	£000s	£000s	£000s	£000s	£000s
Total expenditure includes Operating lease costs - Fees payable to the Charity's auditor for audit services -	150 27	150 27	- -	150 17	150 17
-	177	177	-	167	167
Depreciation Facilities management services 470 Conference centre 538	346 49	816 587	470 538	369 56	839 594
1,008	395	1,403	1,008	425	1,433

Included within facilities management services is governance costs, consisting entirely of audit fees payable to the Charitable Company for the external audit of the Charitable Company of £27,000 (2020: £17,000).

All of the costs of the Charitable Company are direct costs.

6. OPERATING LEASE COMMITMENTS

The Charitable Company is committed to the following minimum lease payments in respect of a non-cancellable operating lease due to expire in February 2055:

operating lease due to expire in February 2055:
	2021	2020
	Property	Property
	£000s	£000s
Due in less than one year	150	150
Due between two and five years	600	600
Due after 5 years	4,265	4,415
	5,015	5,165

7. STAFF COSTS

The Charitable Company has no employees (2020: no employees), as services provided are sub-contracted from third parties. The management and administration of the Charitable Company is undertaken by staff employed by Genome Research Limited. Staff costs recharged to the Charitable Company amounted to £0.9 million in the year (2020: £1.0 million). These costs along with governance costs referred to in note 5 comprise all support costs, and are allocated to the direct expenditure of each activity for which the staff perform services.

Charity registration number 1048066 Company number 3062160

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8. TANGIBLE FIXED ASSETS

8. TANGIBLE FIXED ASSETS
			Office
	Leasehold	Plant	equipment		Assets in the
	land and	equipment	and	Furniture	course of
	buildings	and vehicles	computers	and fittings	construction	Total
	£000s	£000s	£000s	£000s	£000s	£000s
Costs as at 1 October 2020	49,219	6,046	168	905	923	57,261
Additions	-	286	-	15	96	397
Disposals	-	(13)	(66)	-	-	(79)
Transfers	-	-	-	-	-	-
As at 30 September 2021	49,219	6,319	102	920	1,019	57,579
Depreciation as at 1 October 2020 Charge for the year Eliminated on disposal	(14,604) (1,007) -	(3,771) (375) 13	(168) - 66	(810) (20) -	- - -	(19,353) (1,402) 79
As at 30 September 2021	(15,611)	(4,133)	(102)	(830)	-	(20,676)
Net book value as at 30 September 2021	33,608	2,186	-	90	1,019	36,903
Net book value as at 30 September 2020	34,615	2,275	-	95	923	37,908

9. DEBTORS

----- Start of picture text -----
2021 2020
£000s £000s
Trade debtors 670 23
- -
Amounts owed by parent undertaking
Amounts owed by other group entities 3,416 1,319
Other debtors 1 1
VAT receivable - 13
Prepayments 31 35
Accrued income 2 599
4,120 1,990
----- End of picture text -----

The amounts owed from parent and other group undertakings and other group entities are unsecured, incur no interest and are receivable on request.

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

	2021	2020
	£000s	£000s
Trade creditors	860	765
Amounts owed to parent undertaking	373	1,876
Accruals	2,809	1,839
Deferred income	-	13
VAT payable	262	-
	4,304	4,493

The amounts owed to group undertakings are unsecured, incur no interest and are repayable on request.

Charity registration number 1048066 Company number 3062160

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Deferred income consists of conference centre fees billed in advance to customers and advance rental charges to campus tenants. The movements in the year were as follows:

enants. The movements in the year were as follows:
	2021	2020
	£000s	£000s
At 1 October	13	145
Amounts billed in advance to customers	24	253
Released to income	(37)	(385)
At 30 September	-	13

11. COMMITMENTS

As at 30 September 2021 there were £3.0 million capital commitments contracted but not accrued relating to the installation of new chillers across our campus buildings and a new modular building for sequencing (2020: £0.8 million relating to the West Pavilion redevelopment.

Costs are accrued only where services have been performed under the contract before the end of the reporting period.

12. FUND MOVEMENTS

FUND MOVEMENTS
Restricted	Unrestricted
Building	General
Fund	Fund	Total
£000s	£000s	£000s
Balance at 1 October 2019 36,546 Income - Expenditure (1,008)	3,016 19,755 (20,239)	39,562 19,755 (21,247)
Balance at 30 September 2020 35,538 Income - Expenditure (1,008)	2,532 23,738 (23,798)	38,070 23,738 (24,806)
Balance at 30 September 2021 34,530	2,472	37,002

13. ANALYSIS OF NET ASSETS BY FUND

Building	General		Building	Unrestricted
Fund	Fund	Total	Fund	General Fund	Total
2021	2021	2021	2020	2020	2020
£000s	£000s	£000s	£000s	£000s	£000s
Tangible fixed assets 34,530 Stock - Debtors - Cash - Creditors -	2,373 3 4,120 280 (4,304)	36,903 3 4,120 280 (4,304)	35,538 - - - -	2,370 2 1,990 2,663 (4,493)	37,908 2 1,990 2,663 (4,493)
34,530	2,472	37,002	35,538	2,532	38,070

Charity registration number 1048066 Company number 3062160

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14. ANALYSIS OF INCOME AND EXPENDITURE BY FUND

----- Start of picture text -----
Building General Total Building Unrestricted Total
Fund Fund 2021 Fund General Fund 2020
£000s £000s £000s £000s £000s £000s
INCOME
Income from charitable activities
Construction services - 653 653 - 986 986
Facilities management services - 20,258 20,258 - 16,090 16,090
Conference centre - 2,827 2,827 - 2,675 2,675
- 23,738 23,738 - 19,751 19,751
Income from Investments
Interest - - - - 4 4
Total income - 23,738 23,738 - 19,755 19,755
EXPENDITURE
Charitable activities
Construction services - 653 653 - 986 986
Facilities management services 470 20,603 21,073 470 16,647 17,117
Conference centre 538 2,542 3,080 538 2,606 3,144
Total expenditure 1,008 23,798 24,806 1,008 20,239 21,247
Net expenditure for the year (1,008) (60) (1,068) (1,008) (484) (1,492)
Fund balances brought forward at 1 October 35,538 2,532 38,070 36,546 3,016 39,562
Fund balances carried forward at 30 September 34,530 2,472 37,002 35,538 2,532 38,070
----- End of picture text -----

15. RELATED PARTY TRANSACTIONS

The Charitable Company has taken advantage of the exemption contained in in FRS 102, paragraph 33.1A, which exempts it from disclosing details of transactions with Wellcome and its subsidiaries, as the Company is a wholly-owned subsidiary of The Wellcome Trust Limited, as Trustee of the Wellcome Trust. employees of GRL. The trustees received no remuneration or expenses in the current or prior year for their services as trustees, or had any other related party transactions.

16. CONTROLLING ENTITY

The members of the Charitable Company are The Wellcome Trust Limited (as Trustee of the Wellcome Trust) and Genome Research Limited. The Charitable Company is considered to be a wholly-owned subsidiary of the Wellcome Trust for accounting purposes. The Wellcome Trust is the largest and smallest group of which the Charitable Company is a member and which prepares consolidated financial statements. In the event of the Charitable Company being wound up, the liability in respect of the guarantee is limited to £1 per member.

Genome Research Limited is a charity registered in England and Wales, number 1021457, and a company registered in in the England and Wales, number 10058101. Its principal address is Wellcome Genome Campus, Hinxton, Cambridgeshire, CB10 1RQ.

The Trustees regard the Wellcome Trust as the ultimate parent undertaking and controlling party. The Wellcome Trust is a charity registered in England and Wales, number 210183. Its registered address is Gibbs Building, 215 Euston Road, London, NW1 2BE. Its key activities are dedicated to improving health.

Copies of Wellcome Annual Report and Financial Statements 2021 are available from Wellcome's website (www.wellcome.ac.uk/about-us) or, without charge, from the Company Secretary.

17. POST BALANCE SHEET EVENTS

On 1 December 2021, a decision was made by the project steering board to terminate the planned construction of the new modular building for sequencing. As at 30 September 2021, all costs had been recharged in full to the Charitable ed costs in relation to this project of £2.2 million, which will also be recharged to Genome Research Limited as incurred.

Charity registration number 1048066 Company number 3062160

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