Docusign EnvÈlope ID." F1CDgDc&012￿4A3C-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&012￿4A3C-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&012￿4A3C-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&012￿4A3C-BAFE-sED4D91lA3o2 FREEDOM FOOD LIMITED CHIEF EXECUTIVE AND TRUSTEES, REPORT The chief executive and trustees of Freedom Food Limited present th￿r ann￿al report and the audited financial statements for the yèar ended 31 De￿mber 2021 OBJECTS OF THE COMPANY Freedom Food Limited is a subsidiary charitable company of the Ro￿1 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 p￿ference for P￿duce 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 I1￿EREsT5 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 D1￿CtorS 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&012￿4A3C-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 A￿1VITIEs 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 meMbe￿hIP 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&012￿4A3C-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&012￿4A3C-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 Cha￿ed 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&012￿4A3C-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&012￿4A3C-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 con￿rn 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&012￿4A3C-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&012￿4A3C-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 req￿re for our audit. li Docusign EnvÈlope ID." F1CDgDc&012￿4A3C-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 M￿sstateMent 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 nonre activity and are UnIq￿e 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&012￿4A3C-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 l￿est0[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