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2022-09-30-accounts

DocuSign Envelope ID: 119A8BB3-56C6-42CD-95BD-330B320D61CC

Hinxton Hall Limited Annual Report and Financial Statements For Year Ended 30 September 2022

Hinxton Hall Limited Charity registration number 1048066 Company number 3062160

DocuSign Envelope ID: 119A8BB3-56C6-42CD-95BD-330B320D61CC

Hinxton Hall Limited Annual Report and Financial Statements Year ended 30 September 2022

Contents

Trustees’ report 2 Strategic Report 5 Statement of trustees’ responsibilities 9 Independent auditor’s report 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 (“the Company” or “the 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 2022.

Independent Auditor

In accordance with Section 485 of the Companies Act 2006, a resolution dated 30 January 2023 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

Bank

National Westminster Bank plc King’s Parade Branch Bene’t Street 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 2022

Structure, Governance and Management

Members

The Charitable Company has two members, The Wellcome Trust Limited, as Trustee of the Wellcome Trust (‘Wellcome’), and Genome Research Limited (‘GRL’). 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.

Structure, Governance and Management

The Charitable Company is governed in accordance with its memorandum and articles of association. Board members are appointed by the Charitable Company’s parent company, GRL, and may also be appointed by the Wellcome Trust. All Board members are employees of GRL.

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.

Charitable 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 2022

Aims

The Trustees confirm that they have had regard to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charitable Company’s aims and in planning future activities. The Charitable Company continues to fulfil its charitable objects by undertaking three key charitable activities:

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, in order to support the aims of the Charitable Company and its parent Company, Genome Research Limited.

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Hinxton Hall Limited For the year ended 30 September 2022

Strategic Report

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. Activity on the Wellcome Genome Campus was curtailed in 2020 as a result of the COVID-19 pandemic, impacting the scale and nature of the work performed in the previous two financial periods. All activities have now been resumed, including the Conference Centre, which reopened for conferences in April 2022.

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, as a result of the COVID-19 pandemic. Staff levels on Campus have continued to be significantly lower since the lockdown period at around 850-1,000 a day, compared to 2,500 before the lockdown. The conference Centre closed on 20[th] March 2020 and remained closed for conferences through to April 2022. Conference centre 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 £0.9 million (2021: £0.2 million). 395 events have been run during the year, hosting 15,531 delegates (including approximately 5,000 virtually) (2021: no events held). The conference centre also received grant income of £2.0 million (2021: £2.6 million) to cover its trading deficits.

Facilities management services generating income of £19.3 million (2021: £20.3 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 £0.3 million (2021: £0.6 million), including initial design and materials cost for the building to be constructed on the Southfield site, for use by Genome Research Limited. In December 2021 a decision was made to terminate the construction of the new building.

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. The ISO 14001 & ISO 50001 management systems successfully completed surveillance audits and demonstrated they are designed to support the strategic direction and deliver the intended results.

As part of our aspiration to achieve Net Zero by 2030, we have developed an energy & decarbonisation strategy, which outlines the interventions and actions required to reduce demand in line with the target. As part of that, accelerated by the volatility of the market and current energy prices, we are considering a number of renewable energy generation options for security of supply.

Following the approval of the Campus Environmental Sustainability Strategy, staff engagement has increased around the twelve themes and a number of initiatives have already been introduced. Working groups have been established for each theme and individual strategies are being developed to outline the actions and investment required to meet the individual and overarching targets.

Charity registration number 1048066 Company number 3062160

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Hinxton Hall Limited For the year ended 30 September 2022

Health and Safety

The Company is wholly owned by Genome Research Limited (GRL) and occupies space within the Wellcome Genome Campus, which is managed by GRL. The Company adheres to the policies of the Wellcome Genome Campus, and receives support from the GRL Health and Safety team with regard to company specific health and safety procedures.

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 2022 was the first 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 £2.3 million (2021: £2.5 million) and restricted building funds of £33.5 million (2021: £34.5 million).

The 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 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 9 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, all of the assets have been in use since restrictions have been lifted. Conferences resumed in April 2022. The Trustees do not consider any asset values to be impaired.

Employment

The Charitable Company has no employees (2021: 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 £0.8 million (2021: £0.9 million).

Charity registration number 1048066 Company number 3062160

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Hinxton Hall Limited For the year ended 30 September 2022

Financial Review

The Charitable Company’s income from construction services related primarily to initial design and materials costs for the new Southfield building. In December 2021 a decision was taken to terminate the construction of the building. Income from facilities management services decreased from £20.3 million in 2021 to £19.4 million in 2022 due to efforts to increase building repair and renovation work while there were fewer people on Campus during the winter 2021 lockdown. Income from Conference Centre sales increased from £0.2 million to £0.9 million as the facility was closed throughout the year ended 30 September 2021, to all but meeting and office facilities for Campus tenants. The Conference Centre reopened in April 2022. Total income relating to the conference centre increased from £2.8 million to £2.9 million due to income from conferences, offset by a decrease in maintenance work carried out in the year.

The Charitable Company reported net expenditure for the year of £1.2 million (2021 £1.1 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 2022 of £35.8 million (2021: £37 million) represented by restricted building funds of £33.5 million (2021: £34.5 million) and unrestricted funds of £2.3 million (2021: £2.5 million).

Future Plans

During the year ending 30 September 2023 facilities management activities are expected to continue at their current levels, to support the strategy for the Wellcome Genome Campus. There are no significant construction activities planned through Hinxton Hall Limited; however the construction of a new building by another group company on behalf of one of the Campus tenants will result in increased demand for the Charitable Company’s services. The Conference Centre is expected to return to pre-pandemic levels during the year ended 30 September 2023. We aim to achieve this by building on our existing customer base and proactive marketing.

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’s principal funder (directly through grants and indirectly through funding awarded to GRL to cover its facilities and construction services) has committed to provide grant funding of £560.0 million for the five years ended 30 September 2026, with an additional allowance for power inflation of £15.0 million. This is expected to meet the requirements for facilities in that period, including committed capital expenditure (see note 12), and to cover existing liabilities as they fall due, despite the extraordinary inflationary pressures arising as a result of wider economic conditions. Other services will be undertaken only where funding is committed at the outset.

Charity registration number 1048066 Company number 3062160

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Hinxton Hall Limited For the year ended 30 September 2022

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 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, and take up since the Conference Centre reopened, indicates that demand for live conferences will return to prepandemic levels.

There is a risk that extraordinary inflationary pressure, as a result of wider economic conditions, including Brexit and the war in Ukraine, particularly within the construction industry and in relation to energy costs, may increase the costs providing services to Campus tenants to the extent that they cannot maintain the same level of services. This is mitigated by working closely with Campus tenants and monitoring the cost of comparable services.

The Charitable Company is supported by a five year award from the Wellcome Trust, awarded jointly to Hinxton Hall Limited and its parent Genome Research Limited. This is a fixed award for the period October 2021 – September 2026. The impact of inflation may restrict the level of activity carried out directly by the Charitable Company and work required by GRL. As this is the first year of a five year award, management have sufficient discretion over the spend to ensure expenditure remains within budget over the five year period. Cost saving opportunities have been identified to achieve this, including the delay of construction projects.

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 has demonstrated its commitment to the support the Charitable Company financially in the provision of facilities management and as a conference centre through the award of a five year grant through to September 2026. The Charitable Company does not use reverse factoring.

The Trustees’ Report, which includes the Strategic Report, was approved by the Board of Directors on 16 December 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 2022

Statement of Trustees’ Responsibilities

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:

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:

.

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

In our opinion the financial statements of Hinxton Hall Limited (the ‘charitable company’):

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

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 of the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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

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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

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable 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.

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

Auditor’s responsibilities for the audit of the financial statements

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

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

Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We 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.

We considered the nature of the charitable company’s industry and its control environment, and reviewed the charitable company’s documentation of their policies 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:

We discussed among the audit engagement team, including relevant internal specialists such as tax and 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:

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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.

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:

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified any material misstatements in the directors’ report included within the trustees’ 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:

We have nothing to report in respect of these matters.

Use of our report

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

Jessica Hodges ACA (Senior statutory auditor) For and on behalf of Deloitte LLP Statutory Auditor London, UK 30 January 2023

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Hinxton Hall Limited

Statement of Financial Activities (incorporating income and expenditure account) For the year ended 30 September 2022

----- Start of picture text -----
Restricted Unrestricted 2022 2021
Building Fund General Fund Total Total
Note £000s £000s £000s £000s
INCOME
Income from charitable activities
Construction services 4 - 342 342 653
Facilities management services 4 - 19,316 19,316 20,258
Conference centre 4 - 2,918 2,918 2,827
-
22,576 22,576 23,738
Income from investments
Interest - 1 1 -
Total income - 22,577 22,577 23,738
EXPENDITURE
Charitable activities
Construction services - 342 342 653
Facilities management services 470 19,542 20,012 21,073
Conference centre 539 2,865 3,404 3,080
Total expenditure 5 1,009 22,749 23,758 24,806
Net expenditure for the year (1,009) (172) (1,181) (1,068)
Fund balances brought forward at 1 October 13 34,530 2,472 37,002 38,070
Fund balances carried forward at 30 September 33,521 2,300 35,821 37,002
----- End of picture text -----

*An analysis of income and expenditure by fund for the year ended 30 September 2021 is shown in notes 4, 5 and 15.

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 22.

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Hinxton Hall Limited Balance Sheet As at 30 September 2022

2022 2021
Note £000s £000s
Tangible fixed assets 9 35,760 36,903
Current assets
Stock 8 4 3
Debtors 10 5,357 4,120
Cash at bank and in hand 1,170 280
Total current assets 6,531 4,403
Creditors: amounts falling due within one year 11 6,470 4,304
Net current assets 61 99
Total assets less current liabilities, being net assets 35,821 37,002
Funds
Restricted building fund 13 33,521 34,530
Unrestricted general fund 13 2,300 2,472
Total funds 35,821 37,002

The Financial Statements were approved and authorised for issue by the Board of Trustees on 30 December 2023 and signed on its behalf by:

M Dougherty Chair

The notes to the financial statements are on pages 15 to 22.

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For the year ended 30 September 2022

Hinxton Hall Limited

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 accounting standards (UK Generally Accepted Accounting Practice), including Financial Reporting Standard 102, “The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland” (“FRS 102”). In particular, they comply with the Charities Act 2011, and the Statement of Recommended Practice ‘Accounting and Reporting by 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. All construction services are subcontracted. 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.

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.

Fixed assets are stated at historic cost less accumulated depreciation.

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

Leasehold Buildings Over lease term
Plant and equipment 4 to 15 years
Furniture and fittings 5 to 10 years
Office equipment and computers 3 years

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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) Stock

Stock is valued at the lower of cost and net realisable value on a first-in-first-out basis. A provision is made to writedown the value of stock which is no longer considered saleable, no such provision has been made in the current or previous reporting period.

f) 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.

g) Financial assets and liabilities

Basic financial assets including trade and other receivables, cash and bank balances, and intercompany loans are initially measured at transaction price (including transaction costs).

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 impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

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’s best understanding of 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.

h) 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.

For costs relating to construction services, suppliers and services providers are instructed to invoice the full costs of work performed in any given period, and provide evidence for this valuation where necessary.

Charity registration number 1048066 Company number 3062160

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DocuSign Envelope ID: 119A8BB3-56C6-42CD-95BD-330B320D61CC

The Charitable Company’s activities include the construction of new facilities as well as refurbishment and 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.

i) 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.

j) 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 is able to recover the majority of Value Added Tax (“VAT”) incurred on expenditure. Any amounts of VAT that cannot be recovered is included within the underlying cost to which it relates.

k) Going concern

Wellcome, the Charitable Company’s principal funder (directly through grants and indirectly through funding awarded to GRL to cover its facilities and construction services) has committed to provide grant funding of £560.0 million, shared between the Charitable Company and fellow group charity Genome Research Ltd for the five years ended 30 September 2026, with an additional allowance for power inflation of £15.0 million. This is expected to meet the requirements for facilities in that period, including committed capital expenditure (see note 12), and to cover existing liabilities as they fall due, despite the extraordinary inflationary pressures arising as a result of wider economic conditions. 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’s accounting policies which are described 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.

Charity registration number 1048066 Company number 3062160

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DocuSign Envelope ID: 119A8BB3-56C6-42CD-95BD-330B320D61CC

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.

4. INCOME FROM CHARITABLE ACTIVITIES

4.INCOME FROM CHARITABLE ACTIVITI ES
Restricted Unrestricted 2022 Building Unrestricted 2021
Building Fund General Fund Total Fund General Fund Total
£000s £000s £000s £000s £000s £000s
Construction services - 342 342 - 653 653
Facilities management services
Services charges - 18,939 18,939 - 19,817 19,817
Grants from Wellcome - allocated as capital - 221 221 - 109 109
Grants from Wellcome - allocated as revenue - 156 156 - 332 332
- 19,316 19,316 - 20,258 20,258
Conference centre
Conference centre sales - 885 885 - 188 188
Grants from Wellcome - allocated as capital - 53 53 - 287 287
Grants from Wellcome - allocated as revenue - 1,980 1,980 - 2,352 2,352
- 2,918 2,918 - 2,827 2,827
- 22,576 22,576 - 23,738 23,738

5. NET EXPENDITURE

Net expenditure is stated after charging:

Restricted Unrestricted Restricted
Building General
2022		 Building Unrestricted 2021
Fund Fund Total Fund General Fund Total
£000s £000s £000s £000s £000s £000s
Total expenditure includes
Operating lease costs - 150 150 - 150 150
Feespayable to the Charity's auditor for audit services - 24 24 - 27 27
- 174 174 - 177 177
Depreciation
Facilities management services 470 342 812 470 346 816
Conference centre 539 66 605 538 49 587
1,009 408 1,417 1,008 395 1,403

Included within facilities management services is governance costs, consisting entirely of audit fees payable to the Charitable Company’s statutory auditor for the external audit of these financial statements of £27,000 (2021: £27,000).

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

Costs are either charged directly to activities where possible, or apportioned based on floor area or headcount, dependant on the nature of the expense.

Charity registration number 1048066 Company number 3062160

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DocuSign Envelope ID: 119A8BB3-56C6-42CD-95BD-330B320D61CC

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:

2022 2021
Property Property
£000s £000s
Due in less than one year 150 150
Due between two and five years 600 600
Due after 5years 4,115 4,265
4,865 5,015

7. STAFF COSTS

The Charitable Company has no employees (2021: 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 £0.8 million in the year (2021: £0.9 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.

8. STOCK

As at 30 September 2022, the Company held stock of £4,000 (2021: £3,000) in relation to consumables used in facilities management. In the opinion of the Directors, the carrying value of the stock does not differ materially from their replacement cost. No stock is pledged as security for liabilities.

9. TANGIBLE FIXED ASSETS

Office
Leasehold Plant equipment Assets in the
land and equipment and
Furniture and		 course of
buildings and vehicles computers fittings construction Total
£000s £000s £000s £000s £000s £000s
Costs as at 1 October 2021 49,219 6,319 102 920 1,019 57,579
Additions 53 221 - - - 274
Disposals - (60) - - - (60)
Transfers - - - - - -
As at 30 September 2022 49,272 6,480 102 920 1,019 57,793
Depreciation as at 1 October 2021 (15,611) (4,133) (102) (830) - (20,676)
Charge for the year (1,008) (388) - (21) - (1,417)
Eliminated on disposal - 60 - - - 60
As at 30 September 2022 (16,619) (4,461) (102) (851) - (22,033)
Net book value as at 30 September 2022 32,653 2,019 - 69 1,019 35,760
Net book value as at 30 September 2021 33,608 2,186 - 90 1,019 36,903

All leasehold land buildings are short leaseholds.

Charity registration number 1048066 Company number 3062160

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DocuSign Envelope ID: 119A8BB3-56C6-42CD-95BD-330B320D61CC

10. DEBTORS

10. DEBTORS
2022 2021
£000s £000s
Trade debtors 963 670
Amounts owed by other group entities 204 126
Amounts owed by Genome Research Limited 3,471 3,290
Other debtors 228 1
Prepayments 32 31
Accrued income 459 2
5,357 4,120

The amounts owed by Genome Research Limited and other group entities are unsecured, incur no interest and are receivable on request. Amounts owed by other group entities include £151,000 (2021: £72,000) from Genome Research Trading Limited and £54,000 (2021: £54,000) from GRL Construction Limited. All amounts related to the provision of facilities management services. No debtors are due after more than one year.

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022 2021
£000s £000s
Trade creditors 1,454 860
Amounts owed to the Wellcome Trust 2,918 373
Accruals 1,787 2,809
Deferred income 90 -
VATpayable 221 262
6,470 4,304

The amounts owed to the Wellcome Trust are unsecured, incur no interest and are repayable on request.

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

2022 2021
£000s £000s
At 1 October - 13
Amounts billed in advance to customers 180 24
Released to income (90) (37)
At 30 September 90 -

12. COMMITMENTS

As at 30 September 2022 there were £1.3 million capital commitments contracted but not accrued including £1.2 million relating to the redevelopment of the Research Science Facility (2021: £3.0 million relating to the installation of new chillers across our Campus buildings and a new modular building for sequencing).

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

Charity registration number 1048066 Company number 3062160

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DocuSign Envelope ID: 119A8BB3-56C6-42CD-95BD-330B320D61CC

13. FUND MOVEMENTS

13. FUND MOVEMENTS
Restricted
Unrestricted
Building Fund General Fund Total
£000s £000s £000s
Balance at 1 October 2020 35,538 2,532 38,070
Income - 23,738 23,738
Expenditure (1,008) (23,798) (24,806)
Balance at 30 September 2021 34,530 2,472 37,002
Income - 22,577 22,577
Expenditure (1,009) (22,749) (23,758)
Balance at 30 September 2022 33,521 2,300 35,821

14. ANALYSIS OF NET ASSETS BY FUND

Restricted Restricted
Building Unrestricted Building Unrestricted
Fund General Fund Total Fund General Fund Total
2022 2022 2022 2021 2021 2021
£000s £000s £000s £000s £000s £000s
Tangible fixed assets 33,521 2,239 35,760 34,530 2,373 36,903
Stock - 4 4 - 3 3
Debtors - 5,357 5,357 - 4,120 4,120
Cash - 1,170 1,170 - 280 280
Creditors - (6,470) (6,470) - (4,304) (4,304)
33,521 2,300 35,821 34,530 2,472 37,002

15. ANALYSIS OF INCOME AND EXPENDITURE BY FUND

Restricted
Restricted Unrestricted Total Building Unrestricted Total
Building Fund General Fund 2022 Fund General Fund 2021
£000s £000s £000s £000s £000s £000s
INCOME
Income from charitable activities
Construction services - 342 342 - 653 653
Facilities management services - 19,316 19,316 - 20,258 20,258
Conference centre - 2,918 2,918 - 2,827 2,827
- 22,576 22,576 - 23,738 23,738
Income from Investments
Interest - 1 1 - - -
Total income - 22,577 22,577 - 23,738 23,738
EXPENDITURE
Charitable activities
Construction services - 342 342 - 653 653
Facilities management services 470 19,542 20,012 470 20,603 21,073
Conference centre 539 2,865 3,404 538 2,542 3,080
Total expenditure 1,009 22,749 23,758 1,008 23,798 24,806
Net expenditure for the year (1,009) (172) (1,181) (1,008) (60) (1,068)
Fund balances brought forward at 1 October 34,530 2,472 37,002 35,538 2,532 38,070
Fund balances carried forward at 30 September 33,521 2,300 35,821 34,530 2,472 37,002

Charity registration number 1048066 Company number 3062160

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DocuSign Envelope ID: 119A8BB3-56C6-42CD-95BD-330B320D61CC

16. 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. As stated in the trustees’ report the trustees are paid 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.

17. 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 is a company limited by guarantee registered in in the England and Wales, number 10058101. Its principal address is Wellcome Genome Campus, Hinxton, Cambridgeshire, CB10 1RQ. Its key activities are undertaking scientific research and education in the field of genomics.

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 2022 are available from Wellcome's website (www.wellcome.ac.uk/about-us) or, without charge, from the Company Secretary.

18. POST BALANCE SHEET EVENTS

There were no post balance sheet events requiring disclosure in or adjustment to the financial statements at the date of signing.

Charity registration number 1048066 Company number 3062160

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