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2021-03-31-accounts

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

Registered No: 03227575 Charity No: 1059451

MILLENNIUM POINT TRUST (A company limited by guarantee)

CONSOLIDATED ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST (A company limited by guarantee)

CONTENTS

Page
Report of the Trustees 1
Report of the Independent Auditors 10
Consolidated Statement of Financial Activities 13
Consolidated Balance Sheet 14
Company Balance Sheet 15
Consolidated Statement of Cash Flows 16
Notes to the Financial Statements 17

1

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST (A company limited by guarantee)

REPORT OF THE TRUSTEES for the year ended 31 March 2021

The trustees are pleased to present their report and financial statements for the year ended 31 March 2021.

Reference and Administrative Information

Charity Name Millennium Point Trust Company Registration Number 03227575 Charity Registration Number 1059451 Registered Office Millennium Point Curzon Street Birmingham B4 7XG Company Secretary Gateley Plc One Eleven Edmund Street Birmingham B3 2HJ Auditors Cooper Parry Group Limited Park View One Central Boulevard Blythe Valley Park Solihull B90 8BG Solicitors Gateley Plc One Eleven Edmund Street Birmingham B3 2HJ Bankers Barclays Bank plc 15 Colmore Row Birmingham B3 2WN

1

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST (A company limited by guarantee)

REPORT OF THE TRUSTEES - continued for the year ended 31 March 2021

Board of Trustees

Members of the Board of Trustees, who are directors for the purpose of company law and trustees for the purpose of charity law, who served during the year and up to the date of this report are set out below:

SM Topman(Chairman)¹ M Kelly (Appointed on 18 March 2021)⁴
LSaunders¹ H Bates⁴
KCanty1 Councillor K McCarthy²
Councillor P Tilsley² Professor Hanifa Shah3
ProfessorJulian Beer3

1 - Appointed by Trustees and not eligible to vote at Annual General Meeting

3 - Appointed by Birmingham City University and eligible to vote at Annual General Meeting 4 - Appointed by Birmingham Chamber of Commerce and Industry and eligible to vote at Annual General Meeting

Executive Team

Abigail Vlahakis Chief Executive

JJ Mian Finance Director Linda Degg Facilities Director Rebecca Delmore Commercial Director Vanessa Currie Head of People, Learning and Development

Structure, Governance and Management

Company Structure

Millennium Point Trust is a company, limited by guarantee, having no share capital.

It was incorporated on 16 July 1996 and registered as a charity on 26 November 1996. The charitable company .was established under a Memorandum of Association which established its objects and powers, and it is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

Millennium Point Trust has a wholly owned subsidiary company - Millennium Point Property Limited, which is charged with the operation of the building as a commercial landlord and the operation of the wider facility in meeting the project purpose of the Trust and its component tenants and commercial tenants.

Governance and Management

Millennium Point is governed by a Board of Trustees made up of individuals nominated by the members of the charitable company as well as a number of independent trustees appointed by the trustee body.

Millennium Point’s subsidiary company, Millennium Point Property Limited, has its own Board with, for the year under review, an Independent Board director.

There is an Executive team in place which work across both Millennium Point Trust and Millennium Point Property Limited. A scheme of delegation is in place which governs the relationship between the Board and the Executive team. This scheme of delegation sets out, amongst other things, the level of financial delegation and authorisation processes regarding the sign-off of expenditure and the signing of contracts.

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DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST

(A company limited by guarantee)

REPORT OF THE TRUSTEES - continued for the year ended 31 March 2021

Governance and Management: continued

The Board of Trustees meets three times a year to review a pre-circulated agenda with supporting papers including the financial performance of the charitable company and its operating subsidiary. Actions are noted from these meetings for subsequent follow up.

The Executive attend all Board meetings and provide regular reports to the Board on financial performance, risk management and progress against the strategic plan. The Board retains responsibility for all matters of finance including the approval of the annual financial statements.

Audit and Finance Committee

The Audit and Finance Committee consists of the following members:

Councillor Paul Tilsley Chairman

Helen Bates Member

The Committee is authorised by the Board to investigate any activity within its terms of reference; seek any information that it requires from any employee of the Trust and/or Millennium Point Property Limited and all such employees are directed to co-operate with any request made by the Committee; obtain outside legal or independent professional advice and such advisors may attend meetings as necessary.

Remuneration Committee

Within the financial year 2015/16 the board elected to set up a remuneration committee which would discuss and decide upon salary related matters including (but not exclusive to) the pay increase for staff on an annual basis. The Head of People, Learning and Development would provide the committee with a report recommending a percentage uplift (if applicable) and the committee would then decide on its implementation. A 3% uplift for all staff members was included within the business budget for 2020/21. However, due to the COVID-19 pandemic, the decision was made by the Audit and Finance Committee in February 2020 to hold and delay any increase until we had a clearer picture of how the business would succeed within the pandemic. As a result, no increase was awarded to any employee in the financial year 2020/21.

Recruitment and Appointment to Board of Trustees

Trustees are currently nominated either directly by member organisations to represent them at meetings, or by existing trustees to augment the mix of skills represented on the Board.

Trustee Induction and Training

The Chief Executive undertakes the induction of new trustees. New trustees are introduced to the Executive team and are presented with background information about the Trust as part of this process.

Risk Management

The Trust maintains a risk register which considers potential risks both in terms of likely timing of events and their potential severity. The register outlines the actions being taken to mitigate against the risks identified, and to minimise or prevent their potential impact. The register is updated and discussed quarterly at trustee meetings.

In addition, the crisis management plan is kept up to date to ensure that there is adequate preparation for unlikely but significant events. The Trust is also in contact with the local police to ensure that it is aware of any potential threats to the City and can take any necessary action to safeguard the general public and Millennium Point staff.

On a quarterly basis throughout the year the risk register is monitored internally, the risk register is also discussed at both Audit and Finance meetings and periodic Board meetings.

3

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST

(A company limited by guarantee)

REPORT OF THE TRUSTEES - continued for the year ended 31 March 2021

Risk Management: continued

Below is a summary of the risk register:

----- Start of picture text -----
Net Risk
Risk Net Risk
Category Gross Risk (after
Category Category
controls)
1. Governance 24 High 7 Low
2. Profitable Property Company 19 High 14 Medium
3. Ability to meet obligations 13 Medium 7 Low
4. Operational 14 Medium 8 Low
5. Fraud 6 Low 4 Low
6. Theft 5 Low 4 Low
7. Environmental or External Factors 12 Medium 8 Low
8. GDPR 12 Medium 7 Low
9. COVID-19 14 High 8 Medium
----- End of picture text -----

Co-operation with Other Organisations

Operationally, the trust's trading arm Millennium Point Property Limited ("MPPL") runs and operates the Millennium Point building, it services and employs I contracts all staff on behalf of the trust as the parent organisation. One of the Trustees of Millennium Point Trust also serve as a Director of MPPL.

Related parties include Birmingham City Council, Birmingham City University, Greater Birmingham Chambers of Commerce, Thinktank - the city's science museum and Jones Lang LaSalle.

Birmingham City Council provides long term loan finance to the project and planning consents through the usual planning process. Birmingham City University and Thinktank are tenants of the building paying rent and service charge.

Both Thinktank and Birmingham City University were delivery partners during the year and Thinktank (through its parent organisation Birmingham Museum Trust) was a recipient of a donation from the Trust.

Jones Lang LaSalle (JLL) were instructed to help guide us through the service charge process to ensure our service charge accounts were up to RICS code of practise. Ian Cornock who is a director for Millennium Point Property Limited is also a partner for JLL.

Any conflicts of interest involving trustees from these organisations are declared where appropriate.

4

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST (A company limited by guarantee)

REPORT OF THE TRUSTEES - continued for the year ended 31 March 2021

Objectives and Public Benefit

Charitable Objects

The objects of the charity, as set out in the Memorandum and Articles of Association, are to advance education for the public benefit in particular, but not exclusively, in the industrial and technological processes which have shaped the modern world and will shape the future world. The charity operates from Millennium Point in Curzon Street, Birmingham.

Public Benefit

General

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charitable company's aims and objectives and in planning future activities. In particular, the trustees have considered how planned activities contributes to the aims and objectives set.

Whilst not limited to, the trust's primary outputs centre around the Millennium Point building including the need to fulfil its objective that 40% of space within the building must be used for the purposes of education.

The trust continues to be well placed to deliver long term benefit allied to its project purpose. The trust has been a catalyst for the development of Birmingham Eastside District and the Millennium Point building remains both an established and important anchor for further developments around it (including the Birmingham Conservatoire, Birmingham City University campus and more longer term, the benefits brought by High Speed 2 and the construction of its new city centre station). This is further enhanced via the visibility and profile of the trust as a key player in regional affairs.

During the period, the work of the trust focused on providing favourable rents to a minimum of 40% of its tenants fulfilling an educational purpose, supporting a number of organisations aligned to its charitable outputs in the delivery of projects via the trust's small grants process, the Millennium Point Scholarship and using the public spaces of the Millennium Point building for a range of activities centred around the promotion of science, technology, design, innovation and skills.

Outputs

In delivering its charitable objectives, the trust and its subsidiary provide favourably-priced accommodation for its component charitable tenants. This continued during the period with Birmingham Museums Trust and Birmingham City University's Faculty of Computing, Engineering and the Built Environment benefitting. During the year ended 31 March 2020, these tenancies accounted for 78% of the total lettings business of the Trust.

In delivering its charitable objectives, the trust and its subsidiary provide favourably priced accommodation for its component charitable tenants. This continued during the period with Birmingham Museums Trust and Birmingham City University's Faculty of Computing, Engineering and the Built Environment benefitting. During the year ended 31 March 2021, these tenancies accounted for 78% of the total lettings business of the Trust.

The trust has approved charitable donations of £360k during 2020/21 to several organisations aligned to its objectives and priorities.

The Trust continues to be a patron of the Greater Birmingham Chambers of Commerce.

Once again, we saw the successful delivery of another Millennium Point Scholarship. This will be the seventh year of the Millennium Point Scholarship. Delivered in partnership with Birmingham City University’s (BCU) faculty of Computing , Engineering, and the Built Environment; the prize is awarded to one young person studying a STEM themed course. Designed to encourage inclusivity and diversity of thought and opinion across science, technology, and associated sectors; the prize pays for the winner's tuition fees for three years of undergraduate study.

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DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST (A company limited by guarantee)

REPORT OF THE TRUSTEES - continued for the year ended 31 March 2021

Achievements and Performance

The Millennium Point building is 100% occupied.

Over the last seven years, MPPL has developed an events and engagement offer to both bring in additional revenue and to support MPT charitable objectives. The Events and Engagement offer within the building operates across the building's public spaces and provides an opportunity for further collaboration with tenants and partners.

Over the years, several high-profile events and activities have taken place at Millennium Point including conferences, exhibitions, fairs, open days, receptions, gala dinners, Royal visits, and Birmingham Tech Week. Unfortunately, due to the COVID-19 pandemic which forced the UK into a full lockdown on 23 March 2020, the events business at MPPL has been seriously impacted, along with the whole events industry across the UK. In line with restrictions MPPL has reopened as a cinema and for small meetings throughout the year and in December 2020, allowed its event spaces to be used for the first Mass Vaccination Centre in Birmingham.

Further investment into the AUDITORIUM has begun which will allow MPPL to accommodate a wide variety of events in the heart of the city centre. Millennium Point is a short walk from the iconic building, which is home to Selfridges, a ten-minute walk from New Street Station and a stone throw away from the new HS2 station development placing us in an exciting part of the city.

The intention is to continue to identify opportunities within the building to generate income as well as to improve the building for our tenants and visitors.

The financial impact during the period for organisations benefitting from the trust's work (including discounted rents, donations, and other support) equated to £4,981,394.

Future Plans

Over the next 12 months, the trust will be working with its trading company to drive income, enhance the building and deliver an excellent customer service in order to recover from the effects of the 2020/21 COVID-19 pandemic, as well as continuing with its long term strategy of expanding its work to increase the impact of the trust. For example, MPPL is excited about welcoming back existing customers and attracting new customers to its events spaces and launching its newly refurbished Auditorium which includes new technology (both AV and sound), refurbished toilets and new staging. The newly refurbished Auditorium will create versatility and flexibility within the Auditorium to enable it to be used for different revenue streams as well as a streaming facility to allow our customers to host hybrid events.

Financial Review

The Trust is in a strong financial position, with sufficient cash resources to meet its current and future liabilities.

The trading subsidiary, Millennium Point Property Limited, continues to focus on improving its profitability through its rent and service charge income. . Prior to the COVID-19 pandemic, the MPT Group had been on an upward trajectory in terms of profit. However, despite the pandemic MPT Group has still made a profit of £1.263 million (an increase on 2019/20 by £806k) which has allowed MPT to fulfil its charitable objectives. However, due to a downward revaluation of the investment property by (£1/436 million), the financial statements show an accounting loss of (£173,000). Please note, this is an accounting loss and not a real cash loss for the Group.

Millennium Point Property Limited made a gift-aid donation of £649,000 (2020: £1,354,000) to its parent charitable company. Of this total, some will be used to meet liabilities of the Trust company and the trustees will set aside the remainder in a designated fund out of which future charitable donations will be made.

6

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST (A company limited by guarantee)

REPORT OF THE TRUSTEES - continued for the year ended 31 March 2021

Principal Funding Sources

The principal funding sources of the year are shown in the table below:

2021 2020
£’000 £’000
Commercial lettings and other income 5,962 6,489
Investment income 8 23
Concessionary lettings to charities 1,488 1,452

Investment policy

The Group maintains bank accounts with Barclays Bank plc and seeks to maintain all current accounts in credit.

Where surplus funds are available these are placed on overnight treasury deposit or on longer term call deposit with Barclays Bank plc and with Nationwide.

Reserves policy

The trustees have considered and agreed reserves policies for the companies within the Millennium Point Group, so as to ensure that funds are available to support the charitable objects of the Trust and the future development of Millennium Point. In considering an appropriate level for reserves the trustees have taken into account the future anticipated income and expenditure for the companies and the risks associated with those.

The Board has agreed that annual gift aid donations from Millennium Point Property Limited, taking into account the past property valuations, will be subject to board approval and will be capped at a maximum of 50% of profits. These donations will be subject to long term cash flow projections.

The Memorandum and Articles of Association do not permit the payment of a dividend.

Response to Coronavirus Pandemic

On 20 March 2020, the Boards of Millennium Point Trust and its subsidiary company Millennium Point Property Limited, working alongside its tenants, took the decision to close the building to the public in light of the COVID - 19 pandemic. The building has remained open to tenants throughout to enable them to access their space e.g. to carry out essential maintenance, safety checks etc. Government guidance was followed, and all events scheduled to be held at Millennium Point were postponed to later in the year or cancelled. To ensure the safety of all Millennium Point employees and to guarantee business continuity, all employees were asked to work remotely from home and support was given to the team to ensure this was done safely. Given that income from the events business ceased during the lockdown, the decision was made to take advantage of the Government's Job Retention Scheme and furlough 9 members of the events team to control costs and preserve jobs in the long term. The uncertainty during the early stages of lockdown, also compelled the business to take advantage of the ability to defer the payment of VAT to July 2020. However, the events business represented only 5% of the annual turnover with the remainder relating to rent from 6 tenants. Rental payments and service charge continued to be paid throughout lockdown and there is no indication from our tenants that this will not continue. However, if MPPL face difficulties in collecting rental/service charge income, MPPL has sufficient cash reserves to cover any shortfall for a modest period.

During lockdown, the building continued to be maintained in line with the regulations set by the Health and Safety Executive (HSE) and a team of engineers, cleaners and security have remained onsite, whilst adhering to strict social distancing rules. Extensive work was undertaken to introduce measures to safely reopen the building which included enhanced cleaning and hygiene regimes, the availability of PPE, one-way systems, and clear signage to encourage social distancing. On 23 June 2020, Millennium Point reopened its doors and many of its tenants returned soon after. Thinktank took the decision to remain closed throughout with plans to reopen on 29 May 2021.

7

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST (A company limited by guarantee)

REPORT OF THE TRUSTEES - continued for the year ended 31 March 2021

Response to Coronavirus Pandemic – continued

Throughout the year MPPL worked within the restrictions of the various tier systems to host small meetings and cinema nights and took customer safety incredibly seriously, launching its Customer Protection Plan https://www.millenniumpoint.org.uk/millennium-point-events-announce-covid-19-client-protection-plan/ to give events organisers and delegates the confidence that their safety was being prioritised.

In December 2020, MPPL welcomed the Birmingham Universities NHS Foundation Trust to the building to operate the first Mass Vaccination Centre in Birmingham which has been a great success. The NHS Mass Vaccination Centre is scheduled to remain at Millennium Point until September 2021.

Going forward, MPPL is looking forward to the return of live events from 17 May 2021 and already have several bookings. The newly refurbished Auditorium with new lighting, sound and staging has increased the number of audiences MPPL can reach enabling it to launch into the leisure sector as well as maintain its successful corporate conferencing business. MPPL has also invested in streaming technology to be able to offer hybrid events (live and virtual) which will increase the opportunities available to it as a business.

Despite the pandemic, MPT and MPPL cash reserves remain strong.

Statement of trustees’ responsibilities

The trustees (who are also the directors of Millennium Point Trust for the purposes of company law) are responsible for preparing the Report of the Trustees (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

8

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST (A company limited by guarantee)

REPORT OF THE TRUSTEES - continued for the year ended 31 March 2021

Statement of trustees' responsibilities – continued

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.

This report was approved by the board on 22 July 2021 and signed on its behalf.

S M Topman Chairman

9

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST (A company limited by guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF MILLENNIUM POINT TRUST

Opinion

We have audited the financial statements of Millennium Point Trust (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charitable Company Balance Sheet, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 group’s or parent charitable company’s ability to continue as a going concern for a period of at least 12 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 trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

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DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST (A company limited by guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF MILLENNIUM POINT TRUST - continued

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 8 and 9, the trustees 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 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 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.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

Our assessment focussed on key laws and regulations the group and the parent charitable company has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006, Charities Act 2011, Charities (Protection and Social Investment) Act 2016, taxation legislation, data protection, anti-bribery and employment legislation.

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DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST

(A company limited by guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF MILLENNIUM POINT TRUST - continued

Auditor’s responsibilities for the audit of the financial statements

We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:

Whilst considering how our audit work addressed the detection of irregularities, we also considered the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

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.

Nicholas Simkins FCA

Senior Statutory Auditor for and on behalf of:

COOPER PARRY GROUP LIMITED

Date:

Chartered Accountants Statutory Auditors Park View One Central Boulevard Blythe Valley Park Solihull West Midlands B90 8BG

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DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

(A company limited by guarantee)

MILLENNIUM POINT TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (incorporating an Income and Expenditure Account) for the year ended 31 March 2021

Note
Income from:
Donations and legacies
4a
Investments
Interest
4
Commercial lettings and other income
6
Charitable activities
Concessionary lettings
6
Total income
Expenditure on:
Raising funds
Interest and other finance costs
5,10
Commercial lettings and other expenditure
10
Charitable activities
Costs of concessionary lettings
10
Grants and donations
7,10
Governance costs
10
Total expenditure
(Loss)/gain on revaluation of Investment
Property
13
Net movement in funds for the year
Reconciliation of funds
Fund balances at the start of the year
Fund balances at the end of the year
17a		 2021
2020
Unrestricted
Restricted
Total
Total
Funds
Funds
Funds
Funds
£’000
£’000
£’000
£’000
85
-
85
-
8
-
8
23
5,902
-
5,902
6,489
1,488
-
1,488
1,452
7,483
-
7,483
7,964
371
-
371
371
2,365
-
2,365
2,637
2,952
-
2,952
3,374
360
-
360
945
172
-
172
180
6,220
-
6,220
7,507
(1,436)
-
(1,436)
550
(173)
-
(173)
1,007
41,410
-
41,410
40,403
41,237
-
41,237
41,410

There were no recognised gains or losses for 2021 or 2020 other than those included in the Statement of Financial Activities.

All income and expenditure relates to continuing activities and there is no difference between the reported result and that on a historical cost basis.

The notes on pages 17 to 34 form an integral part of these accounts.

13

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

(A company limited by guarantee)

MILLENNIUM POINT TRUST

REGISTERED NUMBER - 03227575 CONSOLIDATED BALANCE SHEET as at 31 March 2021

Note
Fixed assets
Tangible fixed assets
11
Investment property
13
Current assets
Stock
Debtors due within one year
14
Cash at bank and in hand
Creditors: amounts falling due within one year
15
Net current assets
Total assets less current liabilities
Creditors:amounts falling due after more than one
year
16
Net assets
Funds
Unrestricted income funds:
General income funds
17(a)
Non-charitable trading funds
17(a)
Total unrestricted income funds
Total charitable funds		 2021
£’000
£’000
464
48,549
49,013
3
734
6,829
7,566
(3,760)
3,806
52,819
(11,582)
41,237
222
41,015
41,237
41,237		 2020
£’000
£’000
238
50,069
50,307
7
1,209
5,721
6,937
(4,252)
2,685
52,992
(11,582)
41,410
166
41,244
41,410
41,410		 2020
£’000
£’000
238
50,069
50,307
7
1,209
5,721
6,937
(4,252)
2,685
52,992
(11,582)
41,410
166
41,244
41,410
41,410
50,307
2,685
7,566
(3,760)		 6,937
(4,252)
222
41,015		 166
41,244
52,992
(11,582)
41,410
41,410
41,410

The consolidated financial statements were approved and authorised for issue by the Board and were signed on its behalf on 22 July 2021.

S M Topman Chairman

The notes on pages 17 to 34 form an integral part of these accounts.

14

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST (A company limited by guarantee)

REGISTERED NUMBER – 03227575 COMPANY BALANCE SHEET as at 31 March 2021

Note
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due
within one year
15
Net current assets
Net assets
Funds
Unrestricted income funds:
General income funds
17(b)
Total charitable funds		 2021
£’000
£’000
7
643
650
(428)
222
222
222
222		 2020
£’000
£’000
4
762
766
(600)
166
166
166
166		 2020
£’000
£’000
4
762
766
(600)
166
166
166
166
650
(428)		 766
(600)
166
166
166

The financial statements were approved and authorised for issue by the Board of Trustees and were signed on its behalf on 22 July 2021.

S M Topman Chairman

The notes on pages 17 to 34 form an integral part of these accounts.

15

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASHFLOWS for the year ended 31 March 2021

Reconciliation of net(outgoing)/incoming resources to net cash
inflow from operative activities
Note
Net (outgoing)/incoming resources (per statement of financial activities)
Depreciation and other write offs
11
(Loss)/gain on revaluation of investment property
13
Interest receivable
4
Interest payable
5
Decrease/(increase) in debtors
14
(Increase)/decrease in creditors
15
Increase/(decrease) in stock
Net cash inflow from operating activities
Cash flow from operating activities
Interest paid
5
Interest received
4
Net cash flow from operating activities
Payments to acquire tangible fixed assets
11
Net cash flow from investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at 31 March 2020
Cash and cash equivalents at 31 March 2021
Cash and cash equivalents consists of:
Cash at bank and in hand		 2021
£'000
(173)
86
1,436
(8)
371
475
(495)
4
1,696
2021
£’000
1,696
(371)
8
1,333
(225)
(225)
1,108
5,721
6,829
6,829		 2020
£’000
1,007
57
(550)
(23)
371
(251)
647
(3)
1,255
2020
£’000
1,255
(371)
23
907
(326)
(326)
581
5,140
5,721
5,721

16

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

1 Summary of significant accounting policies

(a) General information and basis of preparation

Millennium Point Trust is a private charitable company incorporated and domiciled in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are to advance education for the public benefit in particular, but not exclusively, in the industrial and technological processes which have shaped the modern world and will shape the future world.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest thousand pounds.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

17

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

1 Summary of significant accounting policies - continued

(c) Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102).

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Investment income is earned through holding assets for investment purposes such as bank deposits and property. It includes interest and rent. Interest income is recognised using the effective interest method and rent income is recognised as the charity’s right to receive payment is established.

Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

(d) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

(e) Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs and legal and professional costs. They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

The analysis of these costs is included in note 10.

18

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

1 Summary of significant accounting policies - continued

(f) Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

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

Assets under construction - not depreciated Fixtures and fittings - 5-10 years Computer equipment - 3 years

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

(g) Investment properties

Investment properties for which fair value can be measured reliably without undue cost or effort are measured at fair value at each reporting date with changes in fair value recognised in the statement of financial activities.

The group engaged independent valuation specialists to determine fair value at 31 March 2021. The valuation was made as at 31 March 2021. The valuation has been carried out in accordance with the RICS Valuation Global Standards effective from 31 January 2020 (“Red Book”). The valuation practice statement 4 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Further detail is disclosed at note 13.

(h) Investments

Investments in subsidiaries are measured at cost less impairment.

(i) Debtors receivable / creditors payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

(j) Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

19

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

1 Summary of significant accounting policies - continued

(k) Stock

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

(l) Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

(m) Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

(n) Leases

Rentals payable and receivable under operating leases are charged to the SoFA on a straight-line basis over the period of the lease.

(o) Employee benefits

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

(p) Tax

The charitable company is a charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

(q) Going concern

The trustees believe the group is well placed to trade through these uncertain times caused by the Coronavirus pandemic due to the quality and diversity of its tenants and income streams and its strong cash balance at the year end.

Going forward, we are looking forward to the return of live events and already have several bookings. The newly refurbished Auditorium with new lighting, sound and staging has increased the number of audiences we can reach, enabling us to launch into the leisure sector as well as maintain our successful corporate conferencing business. We have also invested in streaming technology to be able to offer hybrid events (live and virtual) which will increase the opportunities available to us as a business.

On this basis the trustees are confident that the group has adequate resources to continue in operation and have adopted the going concern basis in preparing these financial statements.

20

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

1 Summary of significant accounting policies - continued

(r) Gift aid payments receivable

The parent charity receives income from its trading subsidiary under the gift aid scheme, which are recognised as distributions to owners in equity within retained earnings of that company.

At the reporting date there was no legal obligation in place for the charity to receive this gift aid payment, although prior to the reporting date the trading subsidiary board had indicated its intention to pay the taxable profits to the parent charity in respect of the reporting date.

There is no tax charge in the year due to the exception under 29.14A of FRS 102. Relief is allowed as the gift aid payment will be made by the trading subsidiary to the parent company within 9 months of the year end.

2 Judgements in applying accounting policies and key sources of estimation uncertainty

The charitable company and its subsidiary makes estimates and assumptions concerning the future. Management are also required to exercise judgement in the process of applying the company’s accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

In preparing these financial statements, the trustees and directors have made the following judgements:

(a) Leases

Determine whether leases entered into by the group either as a lessor or a lessee are operating leases or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis based on an evaluation of the terms and conditions of the arrangements, and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position.

(b) Impairment of non-current assets

The company assesses the impairment of property, plant and equipment subject to amortisation or depreciation whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered important that could trigger an impairment review include the following:

(c) Impairment of investment property

The company reviews the carrying value of the investment property for indications of impairment at each period end. If indicators of impairment exist, the carrying value of the asset is subject to further testing to determine whether its carrying value exceeds its recoverable amount. This process will usually involve the estimation of future cash flows which are likely to be generated by the asset.

The following are the group’s key sources of estimation uncertainty:

21

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

2 Judgements in applying accounting policies and key sources of estimation uncertainty (continued)

(d) Recoverability of trade debtors

Trade and other receivables are recognised to the extent that they are judged recoverable. Management reviews are performed to estimate the level of reserves required for irrecoverable debt. Provisions are made specifically against invoices where recoverability is uncertain.

Management makes allowance for doubtful debts based on an assessment of the recoverability of debtors. Allowances are applied to debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. Management specifically analyse historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the provision for doubtful debts. Where the expectation is different from the original estimate, such difference will impact the carrying value of debtors and the charge in the statement of financial activities.

(e) Depreciation and residual values

The trustees and directors have reviewed the asset lives and associated residual values of all fixed asset classes, and in particular, the useful economic life and residual values of fixtures and fittings, and have concluded that asset lives and residual values are appropriate.

The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

(f) Investment properties

The Group engaged independent valuation specialists to determine fair value at 31 March 2021. The valuation was made as at 31 March 2021. The valuation has been carried out in accordance with the RICS Valuation Global Standards effective from 31 January 2020 (“Red Book”). The valuation practice statement 4 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Further detail is disclosed at note 13.

3 Related party transactions

Millennium Point Trust is the parent company of a group that prepares consolidated financial statements. The company has taken advantage of the exemption from disclosing transactions with group entities. All other related party transactions are disclosed in note 22.

4a Donations and legacies

onations and legacies
2021 2020
£’000 £’000
Grants receivable 85 -

Included within government grants receivable is £60k claimed under the Coronavirus Job Retention Scheme and £25 claimed under the Retail, Hospitality and Leisure Grant Fund.

22

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

4 Investment income

5

Bank interest
Interest payable and other finance costs
Other loan interest		 2021
£’000
2020
£’000
8
23
2021
£’000
2020
£’000
371
371

6 Net income of non-charitable trading subsidiary

The charity has a wholly owned trading subsidiary, which is incorporated in the UK. Millennium Point Property Limited is charged with developing and operating the site of Millennium Point to enable Millennium Point Trust to fulfil its charitable objectives. The company gift aids a portion of its taxable profit to Millennium Point Trust. A summary of its trading result is shown below for the twelve months to 31 March 2021. Audited accounts will be filed with the Registrar of Companies.

Millennium Point Property Limited
2021 2020
Profit and loss account £’000 £’000
Turnover 7,390 7,941
Administrative expenses (5,256) (5,996)
Other operating income 85 -
Operating Profit 2,219 1,945
Investment property fair value movement (1,436) 550
Interest receivable 8 23
Interest payable and other finance costs (371) (371)
Profit after tax 420 2,147
£’000 £’000
Retained earnings at the start of the year
41,244		 40,451
Profit for the year 420 2,147
Gift aid payment
(649)		 (1,354)
Retained earnings at the end of the year 41,015 41,244
Income is generated as follows: £'000 £’000
Rental income - floor space 2,871 2,808
Rental income - service charges 2,917 2,777
Car park income 504 533
Events and other income 266 664
Utilities and other recharges 832 1,159
7,390 7,941

23

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST (A company limited by guarantee)

6 Net income of non-charitable trading subsidiary – continued

7

Analysed
Commercial lettings and other income
Concessionary lettings to charities
The aggregate of the subsidiary’s assets and liabilities was:
Assets
Liabilities
Shareholders’ fund
rants and donations
he group has approved charitable donations during the year as follows:
Donations approved in the year		 2021
£’000
5,902
1,488
7,390
2021
£’000
55,928
(14,913)
41,015
2021
£’000
360		 2020
£’000
6,489
1,452
7,941
2020
£’000
56,484
(15,240)
41,244
2020
£’000
945

Grants and donations

The group has approved charitable donations during the year as follows:

Donations were provided to the following institutions:

Beneficiary £
Thinktank 1 50,000
Thinktank 2 45,000
Droitwich Spa High School 20,000
Dorothy Parkes Centre 20,000
Ahead Partnership Limited 20,000
STEM High Fliers 19,700
Kidderminster College 19,600
Haberdashers Abraham Darby 19,000
St James Catholic Primary School 17,200
Wheelers Lane Technology College 17,100
Wolves Play Cafe Community Interest Company 12,800
Kings Rise Academy 12,400
Trinity High School 10,000
Heathfield Primary School 8,800
Sutton Coldfield Grammar School for Girls 8,300
Bloodhound Education Limited 6,600
Watermill School 6,200
Holywell Primary and Nursery School 5,900
Western Springs Primary School 5,300
Lyng Hall School 4,200
Elms Farm Primary School 3,300
Sandwell Academy 2,000
Smithswood Academy 1,600
Birmingham Womens Hospital Magic Maker 1,200
Stemettes 7,976
Ark Tindall Primary School 8,000
Trinity High School 8,000
Total 360,176

24

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

8 Employee numbers and cost

Average number of persons employed
Permanent
Finance and administration
Operational
Management
Employees’ costs during the year amounted to:
Wages and salaries
Social security costs
Pension costs		 2021
No.
3
16
5
24
2021
£’000
799
83
21
903		 2020
No.
6
15
5
26
2020
£’000
930
90
23
1,043

The aggregate remuneration (including employers national insurance and employers pension contributions) paid to key management during the year ended 31 March 2021 was £422k (2020: £391k).

During the year £Nil (2020: £Nil) was paid to trustees as remuneration and other benefits from employment directly or through related entity. During the year £Nil (2020: £Nil) was paid to trustees for expenses.

The number of employees whose remuneration (excluding employer pension contributions) exceeded £60,000 was:

£70,000 - £80,000
£80,001 - £90,000
9
Net incoming/(outgoing) resources
Net incoming/(outgoing) resources are stated after
charging/(crediting) the following:
Depreciation and other amounts written off fixed assets
- owned
Auditors’ remuneration
- audit fees
- non-audit
Operating lease rentals receivable		 2021
2020
3
2
1
1
2021
£’000
2020
£’000
86
57
18
18
7
8
(2,871) (2,808)

The group paid £14,538 (2020: £9,605) in respect of Trustees and Officers Liability insurance.

25

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

10 Total resources expended

Costs directly allocated
to activities:
Interest
Staff costs
Publicity
Utility costs
Security
Cleaning
Maintenance costs
Insurance
Depreciation
Donations
Support costs allocated
to activities:
Legal and professional
Administration costs
Telecoms		 Other/
Finance
Costs
£'000
Concessionary
Lettings
£'000
Commercial
Lettings
£'000
Governance
£'000
2021
Total
£'000
2020
Total
£'000
371
-
-
-
371
371
-
421
332
150
903
989
-
88
69
-
157
179
-
523
405
-
928
1,254
-
263
203
-
466
571
-
137
106
-
243
271
-
900
697
-
1,597
1,295
-
106
83
-
189
211
-
48
38
-
86
57
360
-
-
-
360
945
-
-
67
22
89
62
-
393
309
-
702
1,185
-
73
56
-
129
117
731
2,952
2,365
172
6,220
7,507

Total expenditure for both 2021 and 2020 was charged to unrestricted funds.

Basis of allocation of support costs:

Where applicable costs, including the legal and professional costs of securing additional commercial lettings, are allocated on a specific basis to the related activity. Office expenses are similarly allocated where possible, and the remaining costs are allocated on the basis of square footage occupied.

26

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

11 Tangible fixed assets - group

Cost
At 1 April 2020
Additions
Transfer from investment
property
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net Book Value
At 31 March 2021
At 31 March 2020		 Computer
Equipment
£’000
Fixtures
and
fittings
£’000
Assets under
construction
£’000
Total
£’000
49
270
-
319
10
9
206
225
-
84
-
84
59
363
206
628
17
63
-
80
20
66
-
86
37
129
-
166
22
234
206
462
32
206
-
238

All of the assets of the group and the company are used for charitable purposes.

27

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

12 Investments

nvestments
Class of Investment
shares Principle At cost
Held % held Activities £
Millennium Point Property Limited Ordinary 100% Property 2
management

13 Investment properties

Freehold
Freehold investment
investment property Total Total
property improvements 2021 2020
£’000 £’000 £’000 £’000
Valuation
At 1 April 2020 49,950 119 50,069 49,400
Additions at cost - - - 108
(Loss)/gain on revaluation (1,436) - (1,436) 550
Transfers to fixed assets - (84) (84) 11
31 March 2021 48,514 35 48,549 50,069

The majority of the land on which the project is constructed is currently owned by Birmingham City Council. A long lease has been granted to the company at a peppercorn rent.

The investment property was revalued in the year on 31 March 2021.

The 2021 valuations were made by F J Mellor BSc MRICS RICS of Harris Lamb Property Consultancy, on an open market value for existing use basis.

Currently the company occupies 0.3% of the total square footage of the investment property. Applying this percentage to the fair value at year end would amount to £149,850. The occupancy and estimated fair value is not material and therefore no amount is to be recognised within Freehold Land and Buildings.

The historical cost of the investment property is:
Historical cost
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net historical book value
At 31 March 2021
At 31 March 2020		 2021
£’000
69,568
9,046
464
9,510
60,058
61,450		 2020
£’000
69,568
8,118
464
8,582
60,986
61,450

28

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

(A company limited by guarantee)

MILLENNIUM POINT TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

14 Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued inc8ome
15
Creditors: amounts due within one year
Trade creditors
Accruals and deferred income
Other taxes and social security		 2021
Group
£’000
Company
£’000
613
-
6
6
115
1
734
7
2021
Group
£’000
Company
£’000
401
15
3,197
413
162
-
3,760
428		 2020
Group
£’000
Company
£’000
960
-
41
4
208
-
1,209
4
2020
Group
£’000
Company
£’000
695
-
3,414
600
143
-
4,252
600		 2020
Group
£’000
Company
£’000
960
-
41
4
208
-
1,209
4
2020
Group
£’000
Company
£’000
695
-
3,414
600
143
-
4,252
600
600

Included within deferred income is rents invoiced in advance.

16 Creditors: amounts due after more than one year

Other loans 2021
Group
£’000
Company
£’000
11,582
-
11,582
-		 2020
Group
£’000
Company
£’000
11,582
-
11,582
-		 2020
Group
£’000
Company
£’000
11,582
-
11,582
-
-

29

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

16 Creditors: amounts due after more than one year (continued)

Other loans
Included within the above are amounts falling due for repayment
as follows:
In 2- 5 years
More than 5 years		 2021
£’000
1,000
10,582
11,582		 2020
£’000
-
11,582
11,582

Other loans comprises a loan from Birmingham City Council, which was amended on 19 March 2018. The loan bears interest at 3.2% per annum and is repayable over 10 years, commencing 1 April 2018. Under the new agreement only interest payments are payable until 1 April 2025, thereafter capital repayments of £1m per annum are payable until the final capital balance which is due on 1 April 2028.

It is secured by way of a fixed and floating charge over the assets of the company ranking pari passu with the debenture granted to Millennium Commission referred to below.

Debenture

The Trust, and its subsidiary Millennium Point Property Limited, has granted a debenture over its assets to the Millennium Commission to secure all monies owing to the Commission by the Trust and its subsidiary Millennium Point Property Limited under the terms of a grant agreement dated 30 June 1997.

Total secured liabilities at 31 March 2021 are £11,582k (2020: £11,582k).

17(a) Group funds

CURRENT YEAR

Unrestricted
Funds
General funds
Non-charitable
trading		 At
1 April
2020
£’000
166
41,244
41,410		 Incoming
resources
£’000

-

7,483

7,483		 Outgoing
resources
£’000

(593)

(5,627)

(6,220)		 Gift aid
£’000

649

(649)

-		 Transfers/
revaluation
adjustment
£’000

-

(1,436)

(1,436)		 At 31
March
2021
£’000

222
42,015
41,237

The restricted funds comprise grants received to construct the building and which are represented by the long leasehold land and buildings and investment property. These must be held permanently by the charity and its subsidiary in the furtherance of the objects of the charity.

30

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

17(a) Group funds (Continued)

PRIOR YEAR

Unrestricted
Funds
General funds
Non-charitable
trading		 At
1 April
2019
£’000
(48)
40,451
40,403		 Gift aid
adjustment
£’000

(480)

480

-		 Incoming
resources
£’000

-

7,964

7,964		 Outgoing
resources
£’000

(1,140)

(6,367)

(7,507)		 Gift aid
£’000

1,354
(1,354)

-		 Transfers/
revaluation
adjustment
£’000

-

550

550		 At
31
March
2020
£’000

166
41,244
41,410

17(b) Company funds – CURRENT YEAR

At 1 April 2020
Incoming resources
Outgoing resources
At 31 March 2021
Company funds - PRIOR YEAR
At 1 April 2019
Incoming resources
Outgoing resources
At 31 March 2020		 Unrestricted
funds
£’000
166
649
(593)
222
Unrestricted
funds
£’000
(48)
1,355
(1,141)
166		 Total
£’000
166
649
(593)
222
Total
£’000
(48)
1,355
(1,141)
166

31

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

18 Analysis of group net assets between funds – CURRENT YEAR

Unrestricted Funds
General funds
Non-charitable trading		 Fixed
assets
£’000
-
464
464		 Investment
property
£’000
-
48,549
48,549		 Net current
assets
£’000
222
3,584
3,806		 Long term
liabilities
£’000
-
(11,582)
(11,582)		 Total
£’000
222
(41,015)
41,237

Analysis of group net assets between funds – PRIOR YEAR

Unrestricted Funds
General funds
Non-charitable trading		 Fixed
assets
£’000
-
238
238		 Investment
property
£’000
-
50,069
50,069		 Net current
assets
£’000
166
2,519
2,685		 Long term
liabilities
£’000
-
(11,582)
(11,582)		 Total
£’000
166
41,244
41,410

19 Taxation

As a charitable company, Millennium Point Trust is exempt from tax on income and gains falling within Section 478 of the Taxes Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen within the charitable company.

20 Financial commitments

Value Added Tax

As a result of group registration arrangements for value added tax (VAT), the charitable company is jointly and severally liable together with other members of the group, for any VAT due by the representative member of the group.

32

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

21 Commitments under operating leases

Operating leases as a lessee

At 31 March 2021 the group had future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2021
£’000
14
5
19		 2020
£’000
19
7
26

Operating leases as a lessor

At 31 March 2021 the group had future minimum lease receipts under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 2021
£’000
2,801
8,865
809,662
821,328		 2020
£’000
2,571
7,386
804,373
814,330

22 Transactions with related parties

A number of the directors of Millennium Point Property Limited and members of its parent company Millennium Point Trust have interests in organisations which have provided services to the company in the period. The directors of Millennium Point Property Limited have considered the disclosure requirements of Financial Reporting Standard 102, section 33, and consider that the transactions requiring disclosure are as follows:

Birmingham City Council, a member of Millennium Point Trust, made loans to the company during 2005/06 of £16,375,000. Capital repayments in the year amounted to £Nil (2020: £Nil) and at the year end the capital balance outstanding on this loan was £11,582,248 (2020: £11,582,248). During the year interest of £370,632 (2020: £370,628) was charged of which £nil (2020: £nil) remains outstanding at the year end. During the year the company also received income of £455,127 (2020: £448,967) as compensation for loss of car park income, £Nil (2019: £3,313) as events income, an amount of £Nil (2020: £903) was due from Birmingham City council at the year end.

Birmingham City University is a member of Millennium Point Trust. During the year, charges totalling £3,495,188 (2020: £5,107,260) were made by the company in respect of rent, service charges and other rechargeable costs on an arm’s length basis. At the year-end an amount of £90,323 (2020: £201,255) was due from Birmingham City University.

Greater Birmingham Chambers of Commerce is a member of Millennium Point Trust. During the year, Millennium Point Property Limited paid £13,650 (2020: £16,200) to Greater Birmingham Chambers of Commerce in respect of patronage and membership fees, sponsorship and advertising fees.

33

DocuSign Envelope ID: E3B70442-BDEF-4CEC-AD6D-F620ABE95242

MILLENNIUM POINT TRUST (A company limited by guarantee)

22 Transactions with related parties – continued

During the year the group paid £9k to JLL in professional fees. This organisation is related as D Cornock is a partner in JLL.

23 Members

The charity is incorporated as a company limited by guarantee having no share capital and, in accordance with the Memorandum of Association, every member is liable to contribute a sum of £1 in the event of the company being wound up. At 31 March 2021, there were 3 members (2020: 3 members).

24 Service charge activities

Included within the Group’s cash at bank and in hand of £6,186k (2020: £4,959k) are balances of £1,231k (2020: £1,145k) in respect of service charge accounts. These balances are held on trust by the group for the tenants of Millennium Point.

25 Pension Commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £23k (2020: £27k). Contributions totalling £4k (2020: £4k) were payable to the fund at the balance sheet date.

26 Capital Commitments

As at the year end, the Company had capital commitments totalling £75k (2020: £41k)

34