Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 Company Registration No. 02723670 Re8lStered Chayity in England & Wales No. 1059879 e8iStered Charity in Scotland No. SC038199 FREEDOM FOOD LIMITEO Directors. and Trnstees, Report and Accounts 310ecember 2021
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD LIMITED REPORT AND ACCOUNTS 2021 CONTENTS Page Officer5 and professional advisers Chief Executive and Trustees, report Trustees. statement of responsibilities Independent Auditor's report 9-12 Statement of financial activities 13 Balance sheet 14 Cash flow statement 15 Noies io the accounts 16-23
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEt)OM FOOD LIMITED Cornpany ReElstratlon No. 02723670 Re8iStered Charity In England & Wales No. 1059879 Registered Charity in Scotland No. SC038199 OFFICERS AND PROFESSIONALADVISERS TRUSTEES Mi D Main IAppointed 17 June 20211 Mr P Baxter (Resigned l July 20211 Mr R Baylis (Resigned l July 20211 Mrs M Crawley Ms R layton Mr R Oliveri Mr D Smith Ichairrnanl CHIEF EXECUTIVE Mr C Br32iei IResigned 18 FebrLtary 20221 Mr M Baker IAppoFnted 14 M3rch 20221 SECRETARY Chalfen Secretaries Limited REGISTERED OFFICE Wilberforce Way Southwèter Horsham West Sussex RH13 9RS BANKERS National Westminster Bank plc 48 Carfax Horsham West SL5ssex RH12 IEJ INDEPENDENT AUDITORS DO LLP 55 Baker Street London WIU 7EU
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD LIMITED CHIEF EXECUTIVE AND TRUSTEES, REPORT The chief executive and trustees of Freedom Food Limited present thr annal report and the audited financial statements for the yèar ended 31 Dember 2021 OBJECTS OF THE COMPANY Freedom Food Limited is a subsidiary charitable company of the Ro1 Society for the Prevention of Cruelty to Animals IRSPCAI. The piimary object of the company is to prevent cruelty to animals by the promotion of humane la¥min& transportation. transfer and slaughter of farm animals by implernenting a set ol rearing and handling standards approved from tr'me to time by the RSPCA. Further, the company seeks to promote consumer pference for Pduce from livestock producers that conform to the RSPCA Welfare standard5 for farmed ènimals by identifying as many products a5 P055ible with a unique trademark and encouraginE retailers to market these products. There have been no major changes to these activitie5 during the year. ABOUT THE ORGANISATION Freedom Food Limited is a private company limited by shares (registered number 027236701 and the RSPCA is the sole member. The company rs 3150 a charity registered by the Charity Commission in England and Wales (registered numbei 10598791 and in Scotland1SC0381991. It is governed by a Memorandum and Articles of Association. the contents ol which have been approved by The Truslees of the RSPCA. The company was first incorporated in 1992 and began trading in 1994 and is in the beneficial ownership of the RSPCA. The company became a charity in Decefflber 1996 and has charitable tax Status with HMRC. THE CHIEF EXECUTIVE AND TRUSTEES AND THEIR I1EREsT5 Since Freedom Food Limlted is also a charitable company, the directors are also trustees of the charity. and are referred to as tfustees throughout the remainder olthe Chief Executive and Trustees, Report. The Memorandum requires that ihe trustees of the parent or8anisation, the RSPCA. nominate four of their number. as trustees of Freedom Food Lifflited. The Chairman and Vice Chairman of the Board of D1CtorS are given first option on two trustee places. The remaining three trustees have been appointed to the Board of Trustees of the company because of their particular expertence and are non-executive directors. There afe CLsffefitty five trustees and three vacancies for suitable candidates. The trustees meet a miniwnum of four times a year and are responslble for the finance, governance and overall obje£tives of Freedom Food Limited. The Board of Trust*s apFX)illts the Chief Executive, currenily Mike Baker. who leads the senior management team. Thefftanagement team is responsTble for the implementation of strategy and day-to4ay m8na8emeni of the operation and finances of the company. Training is provided to every trustee. Each prospective member is provided with inlormation about the company's constitution. policies and activities.
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD LIMITED The policy for remuneration of all staff. Includir senior management. is decided by the RSPCA. The policy is a bespoke job evaluation Scheme to assess each role. New benchmarking inlormation was introduced to underpin a new framework in the year. The Board of Directors remuneration committee decides the salary ol the Chief Executive. The membership ofthe Board of Freedom Food Limited who held office during the year and to date 015igning'. Mr D Matn IAppointÈd 17June 20211 Mrs M Crawlev Ms R Laylon Mr R Olivieri Mr D Smith Ichairmanl Mr P Baxter (Resigned l July 20211 Mr R Baylis IRe518ned l July 20211 RESULTS AND A1VITIEs The results for 2021 show a surplus of £0.8 million12020- £0.2 milliwl. Income from charitable activities is made up of licence fees and meMbehIP fees. The product5 that are labelled RSPCA Assured increase the choice that the public can exercise when purchasing animal products. All Freedom Food labelling has now been completely replaced with the RSPCA Assured Label. Durlng 2021 a total of in excess of EA) million terrestrial animals and 623 Million fish benefited from the scheme12020.. 58 million terrestrial anima15 and 1.062 million f15hl. The charrly had a total of 3.956 members12020: 3,959 membersl. Total expendlture in 2021 was £3.7 million12020= £3.4 millionl. SCOTLAND In 2021 Ihere were 89 new members joining the scheme in Scotlandand 44 that left during the year, taking the membership total to 559 by the end 01202112020.. 5541. RESERVES The Charity now holds two types of reserve. free reserves and designaied funds. Designated fund5 have been set aside by the Trustee5 for 3 specific corporate projert.An analysis of designated funds is provided in note 13. The charity maintains free Teserves that represent sufficient fund5 to cover the standing costs of the assessment team in the event of serious animal related disease OLFtbreak restricting access to producers for up to twelve months, which could seriously alfect irbcrnie. The trLSStee5 review the level of free reserve5 to ensuie that they arè sufficient to maintain the stsnding cost5 of the assessmenl team. and this will remain at £l.I million12020.. £1.1 million). Free reserves are calculated as unrestiicted funds less fixed assets and were £2.3 million12020.. £1.5 million), and de5l8llated funds were £O.I million12020'. £0.1 million).
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD LIMITED PUBLIC BENEFIT In considering public benetht the trustees have had regard to the gLtKlance issued by the Charity Commission. It is not enough that Freedom Food Limited's work benefit5 anim315. Richard Martin, one of the RSPCA'S nineteenth century founder5, identified the Society's prime aim a5 being to alter the moral leelings of the country. He recognised that taking care of animals is an essential part of any civilisation. This Still resonates today. Preventing cruelty to anima15 promotes humane sentiments in humankind towards anima15 which involves moral benefit to the human community as a whole. Whi15t this public benefil is clear, it is difltcult to quantify and must be balanced against any detriment. The Results and Activities section ol this report demonstrates the athievements and perFormèn of Freedom Food Limited and the benefit provtded to the public. All our charitable activities focu5 on promoting kindness and preventing or suppressing cruelty to anima. and are undertaken to further these charitable purposes for the public benefit. RSPCA SUPPORT Freedom Food Limited is not dependent on the servi$ of volunteets in accomplishing it5 work. although RSPCA branch volunteers support the promotion of the scheme at a local level. Freedom Food Limited and RSPCA staff also work closely in managing the most effective irnplÈmentation of the RSPCA'5 objeclives for farm animals. PRINCIPAL RISKS AND UNCERTAINTIES The Board of Freedom Food Limited reviews the operations and potential for any risk that may impact the ability of Freedom Food Limited to mèet rts objectives. These risks are reviewed annually. The major iisk facing Freedom Food LÉmited is a possible dtsea5e outbreak which would lead to restricted farm access. This could comproffli5e our inspection regifflè and have a negative impact on brand integrity. The principal uncertainty currently facing thè Charity is the economt impact of rising price5 01 fertiliser. animal feed and fuel.. and labour shortages. This Lbncertainty is accentuated by the global political events in Russia and Ukraine. It is anticipated that the price of fertiliser will furthe¥ increase In response to the conflict as Ukraine and Russia are leading 8lobal producers of fertiliser. The effects of thi5 could be seen on a global scale, with the general public facing increased prices as farmers and supermarket5 respond to the higher costs they face. The Charity hasn't yet seen a reduction in licence income due to these issues. The Trustees and the executive team with be closely monitorinB this. While the evolving nature ol the situation mean5 It is not posstble to accurètely quantify the financial impact. the Charity 15 in a good financial position to help manage this fisk. Steps a being taken on an ongoing basis. to minimise the irnp3Ct on the charity's activities and the effect this this may have on the CharTrty's supporters and beneficiaries.
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD LIMITED PLANS FOR THE FUTURE During the comin8 year Freedom Food Limited will continue to strive to achieve the RSPCA'S objettives for fafm animals through increased promotional activitie5 to raise the awareness of producers. retailer5. and consumers and Fncrease the numbers of anirnals benefiting from the scheme. However, the unfortunate 8lobal politic31 conflict5 and the resultant economic impact m8y affect much ol this and. whilst our intention is to carry on with this work as much as we can. plan5 are continually reviewed and Chaed as circumstances dictate. GOING CONCERN The trustees reviewed Freedown Food Limited's financial plans rrb Deomber 2021, a5 part tsf their normal annual leview. as well as our principal financial risks. At thattime. they were satisfied that Freedom Food Limited had sufficienl resources to continue operating lor the foreseeable future and the accounts have been prepafed in the knowledge that Freedom F¢)od Limited is a linancTrally viable Charity. The financial statetnents indicate a strong financial performance in 2021 la surplu5 of £0.8 million), and a healthy balance sheet at the end of the reporting pertod. A5 at 31 Oecember 2021, there were unTesiricied liquid lunds of around £2.3 millFon. representing circa seven months expenditure. There was a cash balaace on this date of £1.967 million, which t5 forecast lo remain healthy throughout 2022 and into 2023. With regards to the next accounting period, the yeai ending 31 December 2022. the trustees are satisfied that the level of projected income will be met even in the context of the challenging economic environment with c05t of living rises and anticipated stagflation. It is expected that expenditure will remain within budget. Budgeled expenditure includes expenditure designed to generate cost savings in the long run. buildin8 on the financial sustainability of the Ch8rrty. As a re5uIt, Tt is not expected that theiÈ will be the necessity lo cut into essential serv¢ces, and il necessary, additional significant C05t Savings could be made withoutirnpathing service delivery. The Charitvs executive team will continue to rewew the Charivs ongoing forecasts and projection5 on a monthly basis to ensure that the company MaInS financially w3ble amidst the challengin8 economic environrnent. The trustees will continue to review plans wth the Charivs execuiive team to make the necessary changes to remain within free reserves level over the life of the 2-year plan. as per the free reserves policy. With the above measures in place. the strong current financial positK•n ol the Charity, and the positive forecasts and projeclions, the trustees are ol the opinion that the charity will have sufficient resources to meet it5 liabilities as they fall due. While there is uncertainty. the Trustees do not consider there to be a material uncertainty around the ability of Freedom Food to continue as a going concern for the foreseeable future. FUNDRAISING Section 162a of the Charities Act 2011 require5 charilies to make a statement regarding fundralslng activities. Although Freedom Food Limited does not undertake widespread fundraising from the general public. the legislation defines fundraising 35"soliciting or otherwise PT¢Kuring money or other property for charitable purposes-. Such amounts receivable ispresented in our accounts as 'Donations"
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD LIMITEO In relation to the above the Trustees confirm that no fundraising approach has been taken by the ompany. or by anyone acting on its behalf. thai no fundraising standards or scheme lor fundraising regulation have been subscribed to by the company. or by anyone acting on its behalf, that no complaints in relation to fundraising activities have been received and that any solicitations a¥e managed internally. without involvement of commercial partiC4patots or profe55Èonal fundraisers. AUDITORS The report has been prepared in accordance with special provisionsof s419121 of the Companies Act 2006 referrin8 to FRS102 small entilies provision. All ol the current trustees have taken all the Steps to make themselves aware of any information needed by the CompBny's auditor5 for the purposes ol their audil and to establish that the audittsrs are aware of the information. The truslees are not aware of any relevant audit information ol which the auditors are unaware. Approved by the Trustees and Board of Directors of Freedom Food rnited and signed oll behalf of the Board Do¢u$wJn¢rtby. 781É39SPtaDD4Uts Mr D. Smith Chairman 1st september 2022
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD UMITED TRUSTEES, STATEMENT OF RESPONSIBILITIES The trustees are responsible for preparing the Chief Executive and Trustees, Report and the financial statements in accordance with applicable law and regulations. Company law requires the tru51ees to prepare financial statements loreach fillancial year in accordance with United Kingdom Generally Accepied Accounting Praaice Iunited Kingdom Accounting Standards and applicable lawl_ Under company law the trustees must not approve the financial statements unle55 they are satisfied that they give a trLFe and fair wew ol the state of aflalrs of the charity and of the incoming resources and application of resources. including the income and expenditure, of the charity for that period. In preparing these financial Statements. the trustees are required to.. select 5Ultable accounting policies and then apply them consistently., make judgements and accounting estimates that Bre reasonable and prudent- state whether applicable UK Accounting Standards have been followed. subjert to any 3terial departures disclosed and explained in the financial statements.- Prepare the financial 5tètements on the 80ing conrn basis unle55 It is inappropriate to presume that the charity will continue in business. The trustees are responsible for keepin8 adequate accounting records that are sufficient to show and explain the charitls transactions and disclose with reasonable ac(uracy at any time the financial position of the charity and enable them to ensure that the financial 5tatement5 compfy with the Companies Act 2CX16. They are also responsible for safeguarding the assets of the charity and hen for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD LIMITED INDEPENOEIIT AUOtTORSREPOftTTOThE MEMBERSAN07RV5TEESOF FREEDOM FOOD LwifED Opinion on the financial statements In our opinion. the financial statements.. give a true and fair view of the state of the Charitable Compan(5 affarrs as at 31 December 2021 and of its incoming resources and application of resources for the year then ended; have been property prepared in accordance with United Kingdom Generally Accepted Accountin8 Practice,. and have been prepared in accordance with the requirement5 of thecompanies Act 2006. the Charities and Trustee Investment (Scotlandl Act 21KJ5 and regulètion 8 of the Charities Accounts (Scotlandl Regulations 2, a5 amended in 2010. We have audited the financial Statements of Freedom Food Limited 1.the Chèritable Companyl for the year ended 31 Detember 2021 which comprise the Statement ol Finanaal Actiwties. Balance Sheet, Cash Flow Statement and notes to the financial statements, including è summary of significant accounting polities. The financial reporting framework that has been applied in their prepafation is applicable law and United Kingdom Accountin8 Standards. iniluding Financial Reporting Standard 102 The Finonciul Reporting 5tondurd opplicablein the UKond Republic of Irelond (United Kingdom Geneially Accepted Accounting Practice). Basis for opinlon We conducted our audit in accordance with International Standardson Auditrng IUKI IISAS IUKII and applicable law. O(tr responsibilities under those standards are further described in the Auditorfs responsibilities loi the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to pfcwide a basis for our opinion. Independence We remain independent of the Charitable Company in accordance with the ethical requiremènts relevant to our audit of the financial st3tÈments in the UK includin8 ihe FRC'S Ethical Standard, and we have fulfilled our other ethical responsibblitie5 in accordan with these requirements. Contluslons related 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 hève perfom)ed, we have not identified any material uncertainties Telating to events or conditions that. ind*vidually or collectively, may cast significant doubt on the CharitaL71e Company's ability to continue as a goin8 concein for a peiiod of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with rested to going concern are described in the relevant sections of this report. io
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD LIMITED Other information The Tiustees are responsible for the othei it)formation. The oiher information compri5e5 the information inclvded in the Oirectors. and TfUStees' Report and Accounts Other than the finan£ial statements and our attdstorf5 report thereon. The other information comprises.. Chief Executive and Trustees. Report. Our opinion on the linancial $13tements (5oe5 not cover the other information and, except to the extent ottrkerwise explicitly slated 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 finan£ial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent malerial misstatements. we are reouiied to determine whether there is a material misst3temeni in the financial statements or a material misstatement of the othe¥ information. If, based on ihe work we have performed. we conclude that there is a material misstatement of this othef information, we ale required to report that fact. We have nothing to report in this regard. Other Companie5 Act 2(A16 reportin8 In our opinion. based on the work undertaken in the course of the audtt= the information given in the Trustees. Report, which includes the Drrectors. Report and the Strategic report prepared for the purposes of Company Law. for the financial year for which the flnancial statements are prepared is con515tent with the financial siaternents,. and the Strategic reptsrt and the Director5. Report. which are included in the Trustees. Report, have been prepared in accordance with applicable legal requirements. In the light of the knowledge and understanding of the Charitsble CompanyaTrd its environment obtained in the course ol the audit. we have not identified material misststement in the Strategic report orthe Trustee's report. We have nothing to report it) respert ol the followin8 matters in relation to which the Companies Act 2006 and the Charities and Trustee Investment Iscotlandl Att 2(05 require5 115 to TÈPOrt to you if, in our opinion.. proper and adequate accounting records have not been kept orreiums adequate for our audit have not been received from branches not visited by us.. or the financial statements are not in agreement with the accountingrÈcords and returns,. or certain disclosures of Directors, remunefation specified by law are not made,. or we have not received all the information and explanations we reqre for our audit. li
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD LIMITED ResponsSbilities of Trustees As explained more fully in the Tru5tees' Slatement of Responsibilities the Trustees (who are a150 the directors of the charitable company for the purposes of company lawl are responsible for the preparation of ihe financial statements and for being satisfied thèt they give a true and fair view, and for such intemal control as the Tnjstees determines 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 lor assessing the Companvs ability to tontinue as a going concein. disclosin& as applicable. matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Chaiitable Company or to ceasè operntions. or have no realistic alternative bLrt to do so. Audltorfs responsibblities for the audit of the finandal statements We have been appointed as auditor under section 44llllcl of the Charities and Trustee Investment (Scotlandl Act 2005 and undei the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the finanaal statements as a whole are free from material misstatement. whether due to fraud or error. and to 155ue an auditorfs report th31 includes our opinion. Reasonable assurance is a high level of assurance, but is nol a guarantee that an audit conducted in accor(lance with ISAS IUKI will atways detert a material MsstateMent when it exists. Misstatement5 can arise from fraud or error and are considered material il, 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. Extent to which th• audit was capable of detecling irrngularities, iDcludlng fraud Irregularities, includin8 fraud, are Trnstances of non-compliance with laws and regulations. We design procedures in line with our responsibilitie5, Outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detectin8 irregularities, including fraud is detabled below: Performing analytical procedures to identify unusual or unexpected relationship5 that may indicate risks of material misstatement due to fraud. Areas of identilied iisk are then tested substanlively- Oi5CUSSlOllS Wlth vnanagement, including consideration of any performance inientives and remuneration arrangements. known gr suspected irLStancesof non-complian with laws nd regulathons and fraud- Assessing the design and implementation of the control enwronrnent to identify areas of material weakness to focus the design of our aijdit testinE.' Reading minute5 of meetin8s ol these charged with governan and reviewing correspondence with regulatory bodie$ and from legal advisofs to identify indit3tions of non<ompliance with laws and regulations.. Reviewing ftnancial statement disclosures and testing to Sur18d0euMentatIOn to asse55 Compliance with applicable laws and regulations,. Enquiries as to wheihef there have been any 5e¥ious incident report5 or correspondence with the Charity Regulators and reviewing and assessing the irnpact of any reports or correspondence,. 12
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD LIMITED Challenging assumptions made by management in their signiftant accounting estimates in particula¥ in relation io estimating and 6ccouniing for accfuJls- In addressing the risk of fraud through management override of controls, testin8 the appropriateness of journal enlries and other adjustments.. and Carrying out det3iled testin& on a sample basis. of transactKJns and balances agreeing to appropriate documentary evidence to verify the tompleteness, exisience and accuracy of the reported financial statements. Our audit procedures were dèsigned to respond to risks ol material mi55tatement in the financial statements, recognising that the rrsk ol not detecting a material misstateent due to fraud is higher than the risk ol not deterting one resulting from effor. as fraud may involve dellberate concealment by. Iof example, forgery, mi5repre5ent3tions or throLFgh collusion. There are inherent limitations in the audit procedure5 perlormed and the fvrther removed non-com?lianie with laws and regulation5 is from the events and transactions reflected in the financial staternents, the less likely we are lo become aware of it. A further description of our SponSIbl11t4eS for the audit of the financial statements is located 31 the Financial Reporting Councll's I-FRUS-I webstte at: htt www.frc.o audttoisres onsibllities. This description foms part of our aijditorfs report. Use of our report This report is made solely to the Charitable Compan$ member5. asa body. in accordance with Chapter 3 of Part 16 of the Companies Act 21))6. and to the CharitaUe Company's trustees, a5 a body. in accordance with the Charities and Trustee Investment (Scotlandl Act 2005. Our audit work has been undertaken 50 that we might state to the Charitable Company's members and trustees those matters we are required to stsie to them in an auditorf5 report and for no other purpose. To the ILsllest extent permitted by law. we do not acpt or assume responsibility to anyone other than the Charitable Company, the Charitable CompanVs members 35 a body and the Charitable Company's trustees as a body, for our audit worl for this report, orfor the opinions we have formed. Do¢uS*Mdty'. 73D8818FE9AC4C9 Jill Halford (Senior Statutory Auditor) For and on behalf of BDO LIP, statutory audiior London, UK 02 September 2022 BOO LLP is a limited liability Partnership registered in England and Wales Iwth registered number OC3051271. 13
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD LIMITEO STATEMENT OF FINANCIALAcllviTIE5 IlncorporatlnB income and expenditure coUntI Year ended 31 December2021 2021 2020 Income from= Chari(able 3rtiviti*s 4.517.553 3,627.008 Other trading a£tNltie5 7.1)03 11.970 Investments 182 992 Total income 4.524,73B 3,639,970 Expenditure 00: Charitable activitie5 3.710.3tKI 3,409.500 Net In¢ome/ Net movemeni In funds 814.398 230.470 Reconciliation of fvnd5'. Funds brought forward at l January 2021 1.623,261 1,392,791 Funds carrled fon¥ard at 31 Oecember 2021 ZA37,659 1.623,261 All amount5 relate tocontlAuin8 operations. All gains and losses recognised inthe current and pre¢edin8 financi31 year are included in the statement OF financial artivitiÈs. This tncorporatesthe income and exppnditure account. The net income and net movement of hjnds are £814.398. amounts relate to vnrestritted fund5. 14
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD LIMITED The notes on pages 16 to 23 form part of these fillancial statements. COMPANY NO.027Z3670 BALANCE SHEET As at 31 December 2021 Ne 2021 2020 FIXED ASSErs Tangible Fixed A55ets 16.760 CURRENT ASSETS Debtors 1,305.076 i.otKI.629 Cash at bank and ift hand 1.967.191 1,704.138 3,272.267 1704.767 CREDITORS: amounts folling duewSthin oneyear 1851J681 11.081.506) NET CURRENT ASSETS 2.420A99 1,623.261 TOTAL ASSETS LESS CURRENT LIABIUTIES 2,437.659 1,623,261 CAPITAL AND RESERVES Called up share capital io Unrestricted funds 2.337.657 1,523.259 Designated funds IooA ioJ.000 TOTAL FiINDS 2,437fi59 1.623.261 These fiftancial Statements have been prepared in accordarKe with the prthisions applicable to cornpanie5 Subject to the small companies. regime. SiKned on behaw (Ff the 8oard of DIttOr$ by Mr D Srnlth Chairman Doru*wdbr. 1st september 2022 15 7s1E3FeDl..
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD LIMITED The note5 On ke$ 16 to 23 form part of Ehese financial statements. CASH FLOW STATEMENT Year pnded 31 December 2021 Note 2021 2020 Cash flows from operating artivilie5-. Net cash provided by operating attNittes 283.417 465.327 Cash Ilows from investing arli¥lties: Dividend5, interest and fents 182 992 Puriha* of equipment 120.5461 Net cash proded by investinKartivitie5 1203641 992 ChanBe In ¢ash and cash equivalent5 in the reportlng pwiod 263,053 466.319 Cash and £a5h eqLtivalerits at the beginning of the reporting period L704138 1,237.819 Cash and cash equlvolents at the end of the reportln8 perlod lJ67.191 1.704.138 NotÈs io the consolldated cash Ilow ement Al Reconciliation of nrt Income to net fiow from operating actitIES Net income for the reporting perio B14.398 230,470 Depreclation charge5 3.786 Dividends. interest and rents from frnvestments 118ZI 19921 Ilncreaselldecrease in debtors 1304A471 1238.8211 Increaselldecreasel in creditors 1230,1381 474,670 Net cash pro¥lded by operating actiwilles 283.417 465,327 Loan5 and overdrafts 16
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD UMITED The Charity does not have any external boriowing5 and as such a net debt reconcili*ioft is rt prepared. The notes on pages 16 to 23 form part ol these financial statements. I ACCOUNTING POUCIES Yhe account¢Thg policies adopted are described below. The account5 Iftnancial statetnentsl have been prepared in accwdance with knountink ané Reporting by Charities: Statetnent of Reiomfflended Pfactice applicable to Iharitie5 preparing theiractounts in accordance with the FinBncial Reporting Standèrd applicable in the UK and Rep4Jblic of Ireland IFRS1021 (Charitie5 SORP IFR510211, thÈ Financial Reporting standard applicable in the UK and Repu1( of Irdand IFRS1021. the Charities Act 2011, th@ Charities and Trustee Inve5trnent IS(otlandl Art ?5. the ChartbesAccounts Ikotlandl Regulations 2(XY6, and the CompaniesAct 2006. Accounting convention The accounting statements are prepared unLlei the historical cost Convent. Golng concem The trustee5 a55es5 the reasonableness of the assurnptn ol the Charity tecontinue a5 a going concern fora period of at least 12 months from Ehe date the finaffttFal statemenis are si8ned. Despite the challenges of ihe current e(ortomic and poliiical climate. with tiSi4g Costs. the threat of stagnation. and the conflict between Rv55ia and Ukraine. the Trustees do not considerthereto be a mateiial uncertaiftty around the abllty of Freedom F(#)d to continve a5 a 8oin8 concern lor theforeseeable future. There was strong linancial perforfflano in 2021 with the Charity rnaking a svrpltss ol £0.8 million. The Charity has a strong balance Sheet with a healthy cash balallie and a high level of unrestrided reserve5. Unrestritted reserves totalled £2.3 million as èt 31 December 2021, iepresent¢ng circa Seven months expenditure. The Charity held ? cash bBlan£e of £1.967 rnillion at thÈ balance sheet date andthe t3sh flow forecasts indicate that the Charity is likely to retaln a healthy (ash balance throughout 2022 and into 2023. The Tru5tee5 consider thai Ehe level of ongoing support from chaTltable attNltiÈs, combined with the Ie re5erve5. 5ecurÈ Freedom Food brnited for the foreseeable future, thai whilst there 15 uncertainty the Tru5tee5 do not conslder there to be matefial uncertainty. On thF5 basis. Charity is considered to be a going concein. T2n8lble flxed assets Fixed a55ets are capitalised at cost. Prow75ion is made lor deprKiation on astr3ight-line ba515 over the usÈful economic life ol each Èsset. Assets le55 than £l.OQK) are expensed in the year. The useful economK live5 hav been estimated as follows.. offi and computer eq1pMent 3 years Intome Income from charitable Jttlvitle5 is recogniserf when there is entiilement. anyperftymance conditions have been met. receipt 15 probable. and measvrernÈnt reliable. Membership incomÈ Isre£o8nised on an acciuals basis over the temi of the membership. GiFt5 in kind are included at fair ¥alet0the Chaiity. Expenditure 17
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD LIMITED Included in the expenditure relalinB tts Charitable activit4e5 are the diiect costs of the Assessors and the support costs of the Administfatiot) and Marketing departments. Governance c05t5 tonsist of the auditorfs rernuneraiion and the TrustÈes exp@nses. Ourin8 the year nocost5 were incurred in raisift8funds. Operating Leases Rentèl cost5 uTrder operatrng leases are included in total expenditu in annual instalments overthe period of the leases. Funds There were no restrirted tsr endowment fund5 during the year. All fvnds ai the balan sheet datÈ are unrestricied. Designated funds are part of thÈ General Fund set aside for a Specific purpose tsythe trustees. Det3lls of de5igTrated funds are set out in noie 13. Penslon costs Pension costs in respect of RSPCA employee5 ale recharged to Freedom Mited in the year of incurring the liabillty Isee note 41. Crltical arcountingludgements and keysour(e5 Ot e5timatlon uncertalnty In the application of the charitTrls accounting politles. Ifustees are requiredtornake judgement5, estimates and 855umptions about thE carying v3lue5 of assets and liabilitiÈS that areThot ieadily apparent from other 50urce5. The estimates and underlying a55UfflPtions are based on hisrorscalexperience and other fa£tors that are consldered to be relevant. Actual results may differfrom these estimates. The key areas of (oUnting estimation lor the Chaftty include.. Incorne reco nition The Chariiy recogni5es income on a re£*Nable basis where ihe amount is measurable avd tkne is adequate probability of receipt. Fixed assets The charge in respect of periodsc depreciation Is derrved after deterrnininganestimate of an asset's expected Useful life. The useful economlc lile of an asset Is detertnined at the tifflÈ thè asset i4 acquired or brought into Use and reylewed annuallyfor appropriateness. The Iryes are based on hi#oricalexperience together with Bnticipation of fvture evenis. Accruals rovision5 and contin enCS Expenditure incurred in the reportiriE perh)d where there is uThcertainty asto the final amount to be paid is accounted for on the basis of an estimate where this treaimeni is considerÈd to be appropriate. Afi accfua1 15 recognised when it 15 probable that an oblFgation e51SfOr which a reliableertimèEe can be made. Ta¥ on ordlnary activities The company 15 a chariry Wtthin the meaning of Para I Schedule 6 FinarKeAct 2010. Accordingly, the companv 15 Potentially exempt from taxation in respect of income 01 tapital gaiTh5 Vrithin iategories covered by Chapter 3 or Part 11 ol the CorporatK)n Tax Act 2010 or Sectson 256 of ihe Taxatioll ofChar8eable Gains kt 1992. to the exteftt that such income or gains are applied excluSerY to charitable purposes. No tax charge arose in the period. Mnancial Instruments 18
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD LIMITED The linanclal instruments are financial a55ets. which ciHnpri5e tash and debtors.-and financial liabilitie5 which comprise group creditor5, trade creditor5 and other creditors, measured atamortised c05t. 2 INCOME Incomt from chatltable activitie5 20ZI 2020 Membership scheme 1,086,597 1.034,529 Llcence fees 3A30,956 2.592,479 4.517.553 3.627,tJ18 Other trading artivities 1021 2020 Sale of good5 and other tncome 7.003 IL970 Investments 2021 2020 Interest received 992 3 EXPENDITURE Charitable a¢tlvltle5 2021 2021 2021 Oirect Support Total Farrp animal welfare 1.179.985 2.516.155 3,696.140 19
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD LIMITED Governance costs 14.2CKI 14.200 1.179.985 I530J55 3,710.340 Charitable Actlvltles 2020 2020 2020 Dire¢t 5uppon Toial Farm anirn31 welfare 1.102,415 2.293.274 3.395,689 Go¥ernance cosis 13.811 13.811 1.102.415 2.307.085 3.409,5(XI Included irt expenditure are fee5 payable in respect of.. 20Zi 2020 Audr£orfs remuneratiofi 14,200 13.811 Hire of motor vehicles under operating lease5 98?99 94,683 Travel and subsistence payments to the dirwors and trustee5totalled £n412020= Énill. 4 INFORMATION REGARDING EMPLOYEESAND DIREORs Freedom Food Lirnited's staff are employed bythe RSPCA arid the full empbyfftent C05t5 Of these staff members 3fe recharEed to Freedom Food limited bythe RspfA 2021 2020 Averoge number of persohs Èmployed Assessments. marketing and publicity 25 20
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD IIMITED Support, rnana8ement and adminislratioTr 17 19 47 2021 2020 Staff tosts dufln8the year Wages and 5alarie5 IN62,951 1.400,693 Social seturity costs 132.878 127.248 Penslon cost5 161,495 150,559 1,757,324 1.678.500 In 2021 one employee earned between £90,(KXJ and £99.99912020.' one empbyee between £80,OtKI and E89,9991. Contribution to the peftsion xhÈmÈ loi this highest paid member was EIO.56712020-. £9,600). Freedorn Food considers it5 key management personnel comprise the direttors and the chief Èxecutive officer. The total employment benefits intluding employer petbsion contributi0r15 to management personnel were £116,41012020.. £104.3341. The trustees all give their time aThd e¥pert15e wf(hout 3ny forrn of remuneration or other benefii In cash or kind12020.. £nill- S TANGIBLE FIXEO ASSETS Offi£e and complrter eq¥lpment Totsl Cosi At l janary 2021 118.254 118.254 Additions 20.546 20.546 At 310ecember 2021 i38.0 138.800 Depreciation At l January 2021 118.254 118,254 Charge for the yeor 3.786 3.786 At 31 December 2021 112,040 122,040 Net Book Value At 31 December 2021 At 31 December 2020 16.760 16.760 21
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOO LIMITED 6 DEBTORS 2021 2020 Trade debiors 171.535 225.336 Other debtors I434 4,000 Prepayment5 and accrued income 986.937 739.681 Arnounts owed by the RSPCA 125.770 31,612 1,305.076 l.(M)0,629 7 CREDITORS: AMOUNTS FAUING DUÉ WITHIN ONE YEAR 2011 2020 Trade creditors 227.553 225.676 Value added tax 87.257 124.026 Accruals and defeTred income 206.576 731,804 Amounts owed to the RSPCA 329,981 851,368 1.081,506 8 DEFERRED INCOME The deferred incoffle £omprise5 membership xheme income receip15 reCeQd prior to the year end that relates to the future rÈpDfisn8 period. The deferied incorne is released to thestatement of financial activities in the followinE year. 2021 2020 Delerred membership scheme In¢ome At l January 2021 96A21 46,173 Additions l(Q,563 96.421 Released 196A211 146,1731 At 31 December 2021 l(K).563 96,421 22
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD LIMITED 9 OPERATING LEASE COMMITMENTS The Company h35 total cornmitmÈnts at the year end under opÈrating leasesexpiringasfollow5- Motor Motor vehicles vehlde5 2021 2020 Less than one year SS,615 49.016 One to five years 42.783 45,666 98.398 94.682 10 CAUED UP SHARE CAPITAL 2011 2020 Authorised= 100 Ordinary Shares of £1 each 100 IOD Called up, allotted and fully pald.. 2 Ordinary Shares of £1 each 11 ULTIMATE PARENT Emrrry AND CONTIIOLU14G ENTITY The company's ultimate parent entity and contiolling entity is ihe Royal Society forthe Prevention of Cruelty to Animals I'RSPCA'I, a registered Iharity in Great Britain Iregistered Iharity M.2190991. The primary objective of the RSPCA is the pre¥ention of cruelty to anirna15. at the core of which 1st Tnspector3te who provide a wide range of rescue services for the most abL¢5ed and vulnerable animals. These rescue services include rhe Inspectorate's pre¥Èntaiive and Èducational work. enforcing the law, fehabilitation, rehoming wildlife rescue. Yhe fange of Inspectorate workand its relatÈd support services ale ihE ts>re activity and are UnIqe to the RSPCA. Copie5 of consolidated accounts are avaiEable from The RSPC& Wilberforce Way. Southwatei, Horsham. West Sussex, RH13 9RS. 23
Docusign EnvÈlope ID." F1CDgDc&0124A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD LIMITED There ère no Intermediate parent companie5. IZ RELATED PARTYTRANSAcfioNS Related party transactions are the managernent fees charged in the year by RSPCA of £210,28112020.. £230,954) and payfoll and e¥pense5 of £1.788.02012020.. £1.665.0741 pai(Son behalf of FrÈedom Food by the RSPCA. The costs of the RSPCA lest0[k offices. services were £350.CKK)12020.. £309.(1. During the year payment of £2,946 was receNed by Countryside paid by David Main who isa trustee. This was for the annual membership fee. At the year end Freedom Fc#)d Limited owed £204,( io ihe RSPCA. At the 2020 yearend, Freedom Food Limited wa5 owed £32,( Irom rhe RSPCA. 13 DESIGNATEO FUND MOVEMENTS 2021 2020 The Translormatlon Prolo¢1 At l January 2021 Iw,ooo Addition5 i(MJ,wo 100,(M)O Disposals (loo,0) At 31 December 2021 I.000 100,fyJo 24