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2023-12-31-accounts

Hestercombe Gardens Trust (A Charitable Company Limited by Guarantee)

Annual Report and Financial Statements

For the Year Ended 31 December 2023

Company Number: 03287766 Charity Registered in England and Wales Number: 1060000

Hestercombe Gardens Trust Contents For the Year Ended 31 December 2023

Page
Reference and Administrative Details 1
Trustee Directors’ Report 2 – 8
Independent Auditors’ Report 9 – 12
Consolidated Statement of Financial Activities 13
Balance Sheet and Consolidated Balance Sheet 14 – 15
Statement of Cash Flows and Consolidated Statement
of Cash Flows 16
Notes to Financial Statements 17 – 37

Hestercombe Gardens Trust Reference and Administrative Details For the Year Ended 31 December 2023

Trustee Directors John Abbott MSc
Dr Marion Harney, FHEA
Roger Lambert MA
Catherine O’Sullivan, MSc
Catherine Pease, MA (Cantab), AADip, RIBA
Josephine Waley-Cohen
Christopher Ormrod
John Williams
Charles Hind
Secretary Nicholas Francombe LLB
Chief Operating Officer Richard Mira
Charity Number 1060000
Company Number 03287766
Principal Address and Registered Office Hestercombe Gardens
Cheddon Fitzpaine
Taunton
Somerset
TA2 8LQ
Auditors Albert Goodman LLP
Goodwood House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX
Bankers Triodos Bank NV HSBC Bank Plc CAF Bank
Deanery Road 17 North Street 25 Kings Hill Avenue
Bristol Taunton Kings Hill
BS1 5AS Somerset West Malling
TA1 1NA Kent
ME19 4JQ
Solicitors Clarke Willmott LLP
Blackbrook Gate
Taunton
Somerset
TA1 2PG

Page | 1

Hestercombe Gardens Trust Trustee Directors’ Report For the Year Ended 31 December 2023

The Trustees, who are also directors for the purposes of the Companies Act, present their report and the financial statements of the charity for the year ended 31 December 2023, which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

References and Administrative Details

Administrative information is given in a separate section at the front of these accounts.

Directors and Trustees

The directors of the Company are the Charity’s trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees.

The Trustees serving during the year and since the year end are as follows:

John Abbot MSc (Chair) Roger Lambert MA Catherine O’Sullivan, MSc Catherine Pease, MA (Cantab), AADip, RIBA Josephine Waley-Cohen Christopher Ormrod (Appointed 1 December 2023) Charles Hind (Appointed 14 July 2023) Linda Phillips (Chair Designate) (Resigned 29 June 2023) Godfrey Davis, FCA (Resigned 21 April 2023) Cllr Marcia Hill (Resigned 27 January 2023) Jo Matthews, MSc (Resigned 21 April 2023) Rupert Taylor, BSc Hons, FCCA (Resigned 29 June 2023) Dr Marion Harney FHEA (Resigned 12 May 2024) John Williams (Resigned 1 July 2024)

None of the Trustees have any beneficial interest in the Company. All of the Trustees are members of the Company and guarantee to contribute £10 in the event of a winding up.

Structure Governance and Management

The articles of association currently provide that there must be between seven and ten trustees. The appointment of replacement trustees is at the discretion of the Company in general meeting.

It is the policy of the Trust to seek to appoint as trustees leaders in their field with a keen interest in the objectives of the Trust and to obtain a balance of skills. All appointments are made in line with Charity Commission guidelines. All newly appointed trustees follow an induction process and there is a programme of ongoing trustee training.

The Trustees have responsibility for setting the policy for achieving the objectives of the Trust; this is then carried out by the Chief Executive and the executive management team. The commercial activities, including the running of events, functions and weddings, catering and retail activities are carried out through a wholly owned subsidiary, Hestercombe Gardens Limited.

Hestercombe Gardens Trust

Page | 2

Trustee Directors’ Report For the Year Ended 31 December 2023

Structure Governance and Management (cont’d)

Philip White MBE retired as Chief Executive in March 2024 and in July 2024, John Williams was appointed as Executive Chair of the Trust on a part-time basis and oversees the executive team. Chief Operating Officer Richard Mira, who is a Director of Hestercombe Gardens Limited, oversees the day-to-day management of operations. The executive team, Warren Leavens, Estates Manager; Michael Matravers, Finance manager; Tim Martin, Creative Director (Resigned July 2024); Matthew Philpott, Head of Marketing (left the company February 2024 replaced by Jemma Gillard) and Claire Greenslade, Head Gardener, assist him. The profits arising from the trading activities are returned to the Trust in furtherance of its objectives.

The Risk Register is regularly reviewed and updated by both the Trustees and the executive management team in accordance with the trust's strategic plans and ambitions.

The Trustees are very conscious of their duty to promote public access to Hestercombe, to manage the heritage assets in a socially inclusive way and to continue to grow Hestercombe into a site of national and international importance and an economic and cultural driver of regional prosperity. Their policy is to remunerate all their staff fairly in accordance with good practice, observing appropriate legislation, e.g. regarding the minimum wage, diversity, etc., while at the same time ensuring the health, safety, and personal advancement of all staff while operating in a financially prudent and sustainable way.

All Trustees of Hestercombe Gardens Trust serve as volunteers and are unpaid; some claim travel expenses when attending meetings. A Governance and Organisational Structure Committee, composed of at least two Trustees, meets five times a year and considers senior executive pay and reports to Trustees at each full meeting of Trustees. Remuneration for the part time Executive Chair is set by the Committee with advice from the Trust’s financial advisor and is benchmarked against comparable roles as far as this is possible.

The remuneration of the four full-time (Chief Operating Officer, Finance Manager, Estates Manager, and Head Gardener) and one part-time (Creative Director) senior executive staff was set by the former Chief Executive in accordance with their individual contracts and reported to the Governance and Organisational Structure Committee.

Objectives and Activities

The Charity’s objects (the “Objects”) are for the education and benefit of the public to:

Attracting visitors and members to Hestercombe, giving them a positive and engaging experience and opportunities to explore, learn and relax, is central to our Visitor Experience and to our Engagement strategic objective in addition to financial sustainability.

Page | 3

Hestercombe Gardens Trust Trustee Directors’ Report For the Year Ended 31 December 2023

Objectives and Activities (cont’d)

Visitor numbers and membership targets are the driver for all of our trading activities, which, unfortunately did not meet expectation for 2023 (67,500 garden visitors vs target of 75,000; and 3,800 memberships vs target of 4,600). The lowest since we acquired the House in 2014.

Since the pandemic all businesses within our sector have struggled (as documented in the wider media) which has only worsened since the beginning of the war in Ukraine, which led to what was widely described as a ’cost of living’ crisis, accompanied with the energy price hike which contributed to reduced visitor numbers and members. This fall was compounded by reduced visitor spend as visitors continued to economise.

Planning permission for the restoration and development of Hestercombe House was finally granted in September 2023 with a number of conditions including the requirement to obtain a bat mitigation licence from Natural England. The restoration of the Holm Oak avenue within the formal garden and the Sweet Chestnut avenue within the landscape garden will be completed in early 2024 thanks to a successful sponsorship campaign. An agreement was finally reached with the Crown Estate to acquire 28 acres at Gotton, the only remaining part of the grade1 historic landscape not under the beneficial management of the trust, with funding from the National Heritage Memorial Fund and the generous support of private benefactors.

Achievements and Performance

2023 saw a number of refurbishment and redecoration projects completed around the estate including the plant sales area, and external redecoration of the Chauffeur’s Cottage and the Bampfylde Hall.

We also took the opportunity to complete some much needed maintenance work during the quieter visitor months. Roof, gutter and drain clearance work around Hestercombe House were completed and ongoing roof leaks were resolved. The rotten floors in the visitor toilets by the restaurant were replaced and repair work to the Orangery doors completed following storm damage. Repairs were also undertaken to the Chinese Seat and the Mausoleum.

We were delighted to install a fully accredited Changing Places Toilet within Hestercombe House, one of only three within Taunton, which enables more visitors with a disability and their carers to visit Hestercombe. This was fully funded by Somerset Community Fund and Reflect one of our tenants which support adults with Profound and Multiple Learning Difficulties.

In March the West of England Centre for Inclusive Living (WECIL) completed an access audit for Hestercombe House and Gardens. As an organisation wishing to be wholly committed to the principle and aims of the Equality Act this was a vital piece of work for us to undertake and has resulted in some very helpful recommendations in order to make Hestercombe truly inclusive. A full copy of the report is available upon request.

Following the success of the light show, Illuminate, in November/December for two consecutive years, an increased investment was made for 2023 to create an even more spectacular event which was extremely successful and saw ticketing revenue grow to £201k (from £135k in 2022) and £73.8 catering revenue driven by a new pre dining offer and increased footfall.

The trust appointed Croner Group to provide HR, employment law and health and safety services to the Trust. The contract replaced health and safety support from SSG Training and Consultancy which not only delivered a cost saving, but integrated these key services on one easily accessible platform for staff.

Page | 4

Hestercombe Gardens Trust Trustee Directors’ Report For the Year Ended 31 December 2023

Public Benefit and Engagement

As part of working towards becoming an accredited museum, after evaluating several collection management systems, the preferred option, Collection Space was commissioned and implemented.

On 11th February sculptor Sir Richard Long gave a talk about his work, together with photographer Jem Southam, curator Nicholas Alfrey and art historian and curator Joy Sleeman; the event was sold out with over 60 attendees. All talks were recorded and were broadcast through social media and on Vimeo.

Our contemporary art programme began in March with the ‘Design for Life: Art and Architecture’ exhibition, with lots of tours and schools’ engagement continuing.

Susan Derges’ exhibition ‘Many Moons’ opened in July, following a successful private view. It proved to be a very popular show with many visitors visiting Hestercombe specifically for the exhibition. Alongside this exhibition we published 3 new poetry books relating to the artist’s work, and held an event featuring the artist, poets and photography expert Mark Howard-Booth OBE.

The winter exhibition ‘Landscapes of Progress?’, which opened in November, featured work by Rebecca Chesney, Simon Hitchens, Marie-Louise Jones, Hugo Lami, Madinah Farhannah Thompson and Mirte van Duppen. Various exhibition tours were carried out for staff and visitors.

Two new ‘Ingram Collections’ artists in residence for this year, Eleanor Sanghara and Camilla Bliss, visited Hestercombe during the summer and we also welcomed Hannah Fletcher, from the Sustainable Darkroom, Madinah Farhannah Thompson and Rebecca Chesney on residences.

Hestercombe offers free admission to all state schools in Somerset and during 2023 we were pleased to welcome 559 children during fifteen school visits.

Our discussions with Gloucestershire University about joint creative projects looking at climate change and arts and heritage continued throughout the year, as did school sessions through SPAEDA and the Quantock Learning Partnership Scheme. Several visits from Priorswood Community Centre took place throughout the year as we continue to develop relationships with local groups.

Head Gardener, Claire Greenslade, attended a two day conference at Chatsworth for the Garden Masterclass event entitled 'Growth and change - managing a dynamic landscape into the future'. Claire and two other female head gardeners (Katy Merrington from the Hepworth and Lizzie Balmforth from the Mount St John estates in Thirsk) led a round table discussion about what the role of the head gardener is, how it might adapt, and if being female impacts the role.

Financial review

The Trust reported a net expenditure for the year of £396.8k (2022: net income of £6.75k). Total income fell from £2.65m in 2022 to £2.26m in 2023 reflecting the poor weather during the Summer of 2023.

Income from trading activities continued its recovery showing relative consistency in 2023. In 2021 trading income amounted to only £1.17m. It grew to £1.52m in 2022 and in the current year fell slightly to £1.49m. Hestercombe Gardens Limited paid rent to the Trust of £17.75k (2022: £46.25k) and in difficult trading conditions made a surplus of £16.7k (2022: £8.6k)

The Trust is greatly indebted to the givers of grants and donations which amounted to £149.7k in 2023 (2022: £489.5k); details of major donors can be found in the notes to the accounts.

Page | 5

Hestercombe Gardens Trust Trustee Directors’ Report For the Year Ended 31 December 2023

Hestercombe Gardens Trust

Trustee Directors’ Report For the Year Ended 31 December 2023

Financial review (cont’d)

As a result of the grants, donations trading activities and other Trust income the Trust was able to expend £1.529m on charitable activities during the year (2022: £1.484m). The deficit incurred decreased the Trust’s total assets to £10.885m (2022: £11.097m).

Reserves policy

The current reserves policy reflects the long term nature of the charity and the investment that has needed to be made to protect it. Long term aspirations and potential income generation has been put before the building up of unrestricted reserves in the short term. The result of this is that there is a deficit in freely available reserves (unrestricted reserves less fixed assets net of long term debt) of £229k (2021: £15k) at the year end.

Auditors

The auditors, Albert Goodman LLP, are deemed to be re-appointed under Section 487(2) of the Companies Act 2006.

Small company provisions

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

Page | 6

Hestercombe Gardens Trust Trustee Directors’ Report For the Year Ended 31 December 2023

Statement of trustees’ responsibilities

The Trustees (who are directors of the Hestercombe Gardens Trust Limited for the purposes of company law) are responsible for preparing the Trustee Directors’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland (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.

Statement as to disclosure to our auditors

In so far as the Trustees are aware at the time of approving our Trustees’ annual report:

By order of the Trustees.

…………………………………… John Abbott MSc Trustee Hestercombe Gardens Trust

…………………………………….

Page 8

Hestercombe Gardens Trust Independent Auditors' Report to the Trustees and Members For the Year Ended 31 December 2023

Opinion

We have audited the financial statements of Hestercombe Gardens Trust (the 'parent charitable company') and its subsidiary (the ‘group’) for the year ended 31 December 2023, which comprise the consolidated Statement of Financial Activities, the consolidated and parent charitable company Balance Sheets, the consolidated and parent charitable company 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 Generally Accepted Accounting Practice, 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.

Material uncertainty related to going concern

We draw attention to Note 1.1 in the financial statements, which indicates that the group incurred a net loss of £211,792 during the year ended 31 December 2023 and, as of that date, the group’s current liabilities exceeded its current assets by £618,919. As stated in Note 1.1, these events or conditions, along with other matters as set forth in Note 1.1, indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern.

Our opinion is not modified in respect of this matter.

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

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

Key audit matters

Except for as described in the Material uncertainty related to going concern section, we have determined that there are no other key audit matters to be communicated in our report.

Page 9

Hestercombe Gardens Trust Independent Auditors' Report to the Trustees and Members For the Year Ended 31 December 2023

Other information

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

Opinion 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 the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees’ 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:

Page 10

Hestercombe Gardens Trust Independent Auditors' Report to the Trustees and Members For the Year Ended 31 December 2023

Responsibilities of trustees

As explained more fully in the Statement of Trustees Responsibilities (set out on page 8), the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

Page 11

Hestercombe Gardens Trust Independent Auditors' Report to the Trustees and Members For the Year Ended 31 December 2023

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Use of our report

This report is made solely to the group and parent 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 group and parent charitable company’s members and trustees 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 group and parent charitable company and the group and parent charitable company’s members as a body and the parent charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

…………………………………………………………. Robert Oram BFP FCA (Senior Statutory Auditor) for and on behalf of Albert Goodman LLP, Statutory Auditor

Goodwood House Blackbrook Park Avenue Taunton TA1 2PX

…………………………………………

Page 12

Consolidated Statement of Financial Activities (including an Income & Expenditure account) For the Year Ended 31 December 2023

Hestercombe Gardens Trust

----- Start of picture text -----
2023 2022
Unres- Res- Total Unres- Res- Total
tricted tricted tricted tricted
Notes £ £ £ £ £ £
Income from:
Grants, donations and 2 13,580 136,077 149,657 365,012 124,527 489,539
legacies
- -
Charitable activities 3 620,892 620,892 636,435 636,435
Other trading activities 4 1,486,817 - 1,486,817 1,520,734 - 1,520,734
Investments 5 4 - 4 72 - 72
Total income 2,121,293 136,077 2,257,370 2,522,253 124,527 2,646,780
Expenditure on:
- -
Trading costs 6 1,125,632 1,125,632 1,155,984 1,155,984
Charitable activities 6 1,459,560 68,970 1,528,530 1,424,457 59,591 1,484,048
Total expenditure 2,585,192 68,970 2,654,162 2,580,441 59,591 2,640,032
Net income/(expenditure) (463,899) 67,107 (396,792) (58,188) 64,936 6,748
for the year
Gain on revaluation of
investment property 13 185,000 - 185,000 -
- -
Transfer between funds 19 40,921 (40,921) 87,611 (87,611)
Net movement in
funds for the year (237,978) 26,186 (211,792) 29,423 (22,675) 6,748
Reconciliation of funds
Total funds brought forward 11,091,545 5,025 11,096,570 11,062,122 27,700 11,089,822
Total funds carried forward 10,853,567 31,211 10,884,778 11,091,545 5,025 11,096,570
----- End of picture text -----

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

Page 13

Hestercombe Gardens Trust – Company Registration Number: 03287766 Balance Sheet and Consolidated Balance Sheet As at 31 December 2023

Notes
Fixed assets
Tangible fixed assets
11
Heritage assets
12
Investment property
13
Investments
14
Current assets
Stock
15
Debtors
16
Cash at bank and in hand
Liabilities:
Creditors: amounts falling due within
17
one year
Net current liabilities
Amounts falling due after more
than one year
18
Total net assets
The funds of the charity:
Unrestricted funds:
General funds
19
Restricted funds
19
Total charity funds		 £
£
Group
Charity
527,387
527,387
10,792,172
10,792,172
1,235,000
1,235,000
-
1
12,554,559
12,554,560
30,974
-
78,328
71,117
85,947
33,699
195,249
104,816
(814,168)
(722,921)
(618,919)
(618,105)
(1,050,862)
(1,050,862)
10,884,778
10,885,593
10,853,567
10,854,382
31,211
31,211
10,884,778
10,885,593
2023		 £
£
Group
Charity
569,917
569,917
10,791,626
10,791,626
1,050,000
1,050,000
-
1
12,411,543
12,411,544
30,702
-
121,169
123,341
88,027
68,298
239,898
191,639
(464,144)
(398,356)
(224,246)
(206,717)
(1,090,727)
(1,090,727)
11,096,570
11,114,100
11,091,545
11,109,075
5,025
5,025
11,096,570
11,114,100
2022		 £
£
Group
Charity
569,917
569,917
10,791,626
10,791,626
1,050,000
1,050,000
-
1
12,411,543
12,411,544
30,702
-
121,169
123,341
88,027
68,298
239,898
191,639
(464,144)
(398,356)
(224,246)
(206,717)
(1,090,727)
(1,090,727)
11,096,570
11,114,100
11,091,545
11,109,075
5,025
5,025
11,096,570
11,114,100
2022
12,411,544
-
123,341
68,298
191,639
(398,356)
(206,717)
(1,090,727)
11,114,100
11,109,075
5,025
11,114,100

Page 14

Hestercombe Gardens Trust – Company Registration Number: 03287766 Balance Sheet and Consolidated Balance Sheet As at 31 December 2023

The trustees have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared and delivered in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

The notes on pages 17 – 37 form part of these accounts.

Approved by the Board on …………………………….. and signed on their behalf by:

……………………………………………… John Abbott MSc Trustee

Page 15

Hestercombe Gardens Trust Statement of Cash Flows and Consolidated Statement of Cash Flows For the Year Ended 31 December 2023

Notes
Cash flows from operating activities
Net income/(expenditure) for the year
Adjustments to cash flows from non-cash items:
Depreciation and amortisation
11
Finance Income
5
Finance expense
Loan forgiven
Revaluation of investment property
Working capital adjustments
Decrease/(increase) in stocks
13
(Increase)/decrease in debtors
14
Increase in creditors
15
Net cash flow from operations
Cash flows from investing activities
Purchase of tangible fixed assets
11
Purchase of heritage assets
12
Purchase of investment property
13
Interest received
5
Cash flows from financing activities
Interest paid
7
Receipt from drawdown of loan
18
Repayment of loans and hire purchase
18
Net decrease in cash and cash equivalents
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
Cash & Cash equivalents reconciliation:
Cash at bank
Total cash & cash equivalents at the
end of the reporting period
Analysis of cash and cash Equivalents
Cash in hand
Overdraft facility repayable on demand
Total cash & cash equivalents at the
end of the reporting period		 £
£
Group
Charity
(211,792)
(228,507)
113,342
113,342
(4)
(4)
74,564
74,564
(94,817)
(94,817)
(185,000)
(185,000)
(303,707)
(320,422)
(271)
-
42,841
52,224
80,979
55,521
(180,158)
(212,677)
(70,811)
(70,811)
(546)
(546)
-
-
4
4
(71,353)
(71,353)
(74,564)
(74,564)
-
-
74,613
74,613
49
49
(251,462)
(283,981)
88,027
68,298
(163,435)
(215,683)
(163,435)
(215,683)
(163,435)
(215,683)
85,947
33,699
(249,382)
(249,382)
(163,435)
(215,683)
2023		 £
£
Group
Charity
6,748
(1,836)
118,414
118,414
(72)
(72)
36,738
36,738
(325,276)
(325,276)
-
-
(163,448)
(172,032)
3,376
-
174,179
262,393
(242,213)
(29,421)
(228,106)
60,940
(273,937)
(273,937)
(18,200)
(18,200)
-
-
72
72
(292,065)
(292,065)
(36,738)
(36,738)
200,000
200,000
(49,338)
(49,338)
113,924
113,924
(406,247)
(117,201)
494,274
185,499
88,027
68,298
88,027
68,298
88,027
68,298
88,027
68,298
-
-
88,027
68,298
2022

Page 16

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

1 Accounting Policies

The principal accounting policies adopted in the preparation of the financial statements are as follows:

1.1 Basis of accounting

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) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Hestercombe Gardens Trust Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s) and all amounts are presented in £ sterling.

These financial statements consolidate the results of the Charity and its wholly owned subsidiary, Hestercombe Gardens Limited, on a line by line basis. The “Group” heading within the balance sheet refers to the consolidated accounts of the Hestercombe Gardens Trust Limited and Hestercombe Gardens Limited.

In the parent company financial statements the investment in the trading subsidiary is accounted for at cost less impairment.

A separate Statement of Financial Activities or income and expenditure account, for the Charity itself has not been presented because the Charity has taken advantage of the exemptions afforded by Section 408 of the Companies Act 2006.

Going Concern

The group incurred a net loss of £211,792 during the year ended 31 December 2023 and, as of that date, the group’s current liabilities exceeded its current assets by £618,919.

In 2018 the Charity obtained and provided significant amounts of funding to purchase the freehold of the estate with a view to protect its future. Once the freehold has been purchased it was planned to start building reserves. Unfortunately since then there have been a number of challenges with the outbreak of Covid-19, cost of living crises and poor weather at critical points of the year. This has had a significant impact upon reserves with additional facilities being required to boost liquid resources. Management have also been monitoring costs closely and reducing them wherever possible during this time, however, current cashflow projections show that the facilities currently in place would not be sufficient to cover expected cash requirements over the next twelve months and therefore if additional actions are not taken the Charity would not be able to pay debts as they fall due.

Management are planning to sell a property and reorganise facilities in place so that liquid resources will be sufficient to cover future cash requirements. Current negotiations with the bank have been positive and they are willing to support the Charity until the property is sold. They will look at current facilities with the Charity after this point and will continue their support for the foreseeable future as long as forecasts are met. The Charity has prepared detailed forecasts that show it will have sufficient funds to meet its liabilities as they fall due for twelve months based on current plans. Post year end trading has been slightly below expectations, but up on last year, with cashflows tracking with forecasts which gives management confidence over the future outlook.

On the basis of the above and offers already being received for the property the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements are prepared on going concern basis.

Page 17

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

1.2 Legal status of the Trust

The Trust is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.

The company is incorporated in England and Wales and the company registered office is detailed on page 1, reference and administration details.

1.3 Income

Income from grants and donations is recognised in the year in which they are receivable when there is evidence of entitlement, receipt is probable and the amount can be reliably measured. Where income has not been received for gift aid claims relating to donations received in the year, income is accrued.

Income from grants and government grants, where ‘capital’ or ‘revenue’, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Where no conditions are attached to grant income they are recognised within grants, donations and legacies and where conditions relating to performance of services are attached, grant income is recognised income from charitable activities within the Statement of Financial Activities.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Income from charitable activities includes membership and admissions income. Membership income is accounted for in full in the year that the membership commences. Admission income is recognised on a cash basis, in the year the income is physically received.

Income from other trading activities is included in the period in which the group is entitled to receipt, it is probable that economic benefits will flow to the entity and the amount can be reliably measured.

1.4

Investment income

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

1.5

Expenditure

Resources expended are recognised on the accruals basis to match the period in which the expenditure was incurred.

Raising funds is expenditure incurred in generating the trading subsidiary funds and from trading activities carried out by the trust relating to Hestercombe House activities.

Charitable activity expenditure comprises costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and costs of an indirect nature necessary to support them. Support costs include finance, administration, governance and CEO costs and are allocated to the trust charitable services equally.

Page | 17

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

1.6 Operating leases

The Trust classifies the lease of property as operating leases as title remains with the lessor. Rental charges are charged on a straight line basis over the term of the lease.

1.7 Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the Trust.

Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Trust’s work or for specific artistic projects being undertaken by the Trust.

1.8 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Tangible fixed assets are normally capitalised where the value of an asset or group of related assets exceeds £500. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life as follows:

Plant and equipment 3, 5, 10, 20 or 25 years straight line

1.9 Heritage assets

Heritage assets are held in pursuit of overall objectives in relation to the enjoyment and preservation of heritage. Land, buildings and artwork are recognised at cost or, where donated, at the prevailing current market value at the time of donation. In the opinion of the Trustees the heritage assets have a residual value in excess of cost and therefore no depreciation is charged in the accounts, however they are reviewed annually for impairment with any such impairment passing through the SOFA. Expenditure that is required to preserve or prevent further deterioration of heritage assets is recognised in the SOFA as it is incurred.

1.10 Investment properties

Investment properties are initially measured at cost and subsequently at fair value at the reporting date, with all gains and losses passing through the SOFA.

1.11 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.12 Stock

Stock consists of shop stock for resale, ingredients for the tea room and publication stocks. Stock is valued at the lower of cost and net realisable value, after making allowances for obsolete and slow moving stock.

1.13 Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.14 Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

Page 19

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

1.15 Defined contribution pension

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as staff pension expense through the profit and loss when they are due.

1.16 Taxation

As a registered charity, the company is not liable to corporation tax or capital gains tax to the extent that its income and gains are applicable to charitable purposes only. Value Added Tax is recoverable by the company, and is therefore excluded within the relevant costs in the Statement of Financial Activities. The charity subsidiary is also able to recover Value Added Tax and is therefore excluded within the relevant costs in the Statement of Financial Activities

1.17 Financial instruments

The charity only holds basic financial instruments as defined by FRS 102. The financial assets and financial liabilities of the charitable company are as follows;

Financial assets – trade and other debtors, accrued income, amounts owed by group undertakings and other debtors are basic financial instruments, and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank – classified as a basic financial instrument and is measured at face value.

Financial liabilities – trade creditors, amounts owed to group undertakings, bank loans, accrued expenses and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.

1.18 Concessionary loan

The Trust obtained a concessionary loan in a previous year to further its charitable aims free of interest. The loan was initially recognised at transactions value and subsequently measured to reflect the repayments and if necessary, any impairments. The loan has been formally forgiven in the current year and has therefore been recognised in the statement of financial activities within donations and legacies.

1.19 Finance lease

The Trust classifies the lease of equipment as a finance lease as substantially all the risks and rewards are retained by the Trust. The equipment is recognised as an asset and the finance loan recognised as a liability in the balance sheet. Payments made under finance leases are charged to the liability in the balance sheet.

Page 20

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

2 Grants, donations and legacies

----- Start of picture text -----
Unres- Res- Unres- Res-
tricted tricted 2023 tricted tricted 2022
funds funds Total funds funds Total
£ £ £ £ £ £
Grants
National Lottery - 279 279 169 - 169
Heritage Fund
Arts Council - 43,544 43,544 - 29,430 29,430
- - -
Countryside Stewardship 72,701 72,701
-
Other grants 32,000 32,000 4,361 14,785 19,146
-
75,823 75,823 4,530 116,916 121,446
Donations and legacies 13,580 60,254 73,834 360,482 7,611 368,093
13,580 136,077 149,657 365,012 124,527 489,539
----- End of picture text -----

Page 21

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

3 Charitable activities

----- Start of picture text -----
Unres- Res- Unres- Res-
2023 2022
tricted tricted tricted tricted
funds funds Total funds funds Total
£ £ £ £ £ £
Members of Hestercombe
- -
subscriptions 294,806 294,806 307,767 307,767
Admissions 326,086 - 326,086 328,668 - 328,668
- -
620,892 620,892 636,435 636,435
4 Other trading activities
Unres- Res- Unres- Res-
2023 2022
tricted tricted tricted tricted
funds funds Total funds funds Total
£ £ £ £ £ £
- -
Shop sales 101,522 101,522 89,387 89,387
Café sales 501,750 - 501,750 522,023 - 522,023
Column room sales - - - - - -
Function and events
income 646,622 - 646,622 669,319 - 669,319
- -
Property income 42,000 42,000 41,071 41,071
Education income 37,250 - 37,250 36,289 - 36,289
Other income 51,374 - 51,374 60,115 - 60,115
Rental income 13,500 - 13,500 12,625 - 12,625
Hestercombe House
income 92,799 - 92,799 89,905 - 89,905
- -
1,486,817 1,486,817 1,520,734 1,520,734
----- End of picture text -----

Page 22

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

5 Investment income

Bank interest Unres-
tricted
funds
£
4		 Res-
tricted
funds
£
-		 2023
Total
£
4		 Unres-
tricted
funds
£
72		 Res-
tricted
2022
funds
Total
£
£
-
72

6 Expenditure

Expenditure on raising funds
Staff
costs
£
Trading costs
582,742
582,742		 Expenditure on raising funds
Staff
costs
£
Trading costs
582,742
582,742		 Other
direct
2023
costs
Total
£
£
542,890 1,125,632
542,890 1,125,632		 Staff
Other
direct
2022
costs
costs
Total
£
£
£
660,725
495,259 1,155,984
582,742 660,725
495,259 1,155,984

Charitable activities

Staff
costs
£
Visitor centre management
& marketing
145,528
Restoration / maintenance
of Gardens
259,984
Support costs
292,965
Hestercombe House
expenses
45,578
744,055		 Staff
costs
£
Visitor centre management
& marketing
145,528
Restoration / maintenance
of Gardens
259,984
Support costs
292,965
Hestercombe House
expenses
45,578
744,055		 Other
direct
2023
costs
Total
£
£
278,556
424,084
152,394
412,378
231,625
524,590
121,900
167,478
784,475 1,528,530		 Staff
Other
direct
2022
costs
costs
Total
£
£
£
108,945
297,706
406,651
261,610
193,326
454,936
243,170
210,548
453,718
43,446
125,297
168,743
744,055 657,171
826,877 1,484,048

Page 23

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

7 Net income/(expenditure) for the year

This is stated after charging:

----- Start of picture text -----
Charity Subsidiary Total
2023 2022 2023 2022 2023 2022
£ £ £ £ £ £
Depreciation of
owned assets
- Plant and equipment 113,342 116,948 113,342 116,948
Interest payable 74,564 36,738 74,564 36,738
Auditors’ remuneration for:
Audit services 4,000 5,500 2,800 2,000 6,800 7,500
Accounting services 3,963 4,113 513 513 4,476 4,626
----- End of picture text -----

8 Trustee directors

The charity trustees were not paid or received any other benefits from employment with the Trust or its subsidiary in the year (2022: £nil). There were no reimbursed expenses paid (2022: £nil). No charity trustee received payment for professional or other services supplied to the charity (2022: £nil).

9 Employees

Number of employees

The average monthly number of employees during the year was:

----- Start of picture text -----
2023 2022
Management 2 2
Finance and admin 11 13
Gardens 11 9
Shop and ticket office 11 11
Catering 30 30
65 65
----- End of picture text -----

Page 24

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

----- Start of picture text -----
Employment costs 2023 2022
£ £
Wages and salaries 1,177,945 1,190,186
Social security costs 97,285 96,482
Other pension costs 29,149 31,228
1,304,379 1,317,896
----- End of picture text -----

During the year, there were no costs paid in respect of employee redundancies (2022: £nil). The number of employees whose annual emoluments were £60,000 or more were:

----- Start of picture text -----
2023 2022
number number
£60,000 - £70,000 1 1
£90,000 - £100,000 1 1
----- End of picture text -----

The key management personnel of the group comprise those of the Trust and the key management personnel of its wholly owned subsidiary Hestercombe Gardens Limited. The key management personnel of the group comprise the directors and the Chief Executive Officer. The total employee benefits, including employer NI and employer pension contribution, of the key management personnel of the Trust were £162,081 (2022: £170,932).

10 Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £19,458 (2022 - £14,071).

Contributions totalling £1,286 (2022 - £2,581) were payable to the scheme at the end of the year and are included in other creditors.

Page 25

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

11
Tangible fixed assets
Group
Cost
At 1 January 2022
Additions
Disposals
Transfers
At 31 December 2023
Depreciation
At 1 January 2022
Charge for the year
Disposals
Transfer
At 31 December 2023
Net book value
At 31 December 2023
At 1 January 2022
The above assets are all held by the charity.
Plant &
Total
Equipment
£
£
1,319,254
1,319,254
70,811
70,811
-
-
-
-
1,390,065
1,390,065
749,337
749,337
113,342
113,342
-
-
-
862,679
862,679
527,387
527,387
569,917
569,917

Page 26

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

12 Heritage assets

----- Start of picture text -----
Freehold
Artwork Land and Total
Buildings
£ £ £
Cost
At 1 January 2023 94,130 10,697,496 10,791,626
Additions 546 - 546
At 31 December 2023 94,676 10,697,496 10,792,172
Summary of heritage asset transactions 2023 2022 2021
Purchases and transfers
Artwork 546 18,200 9,387
- -
Freehold land and buildings 105,516
Total additions 546 18,200 114,903
Tranfers out
Artwork - - -
- - -
Freehold land and buildings
----- End of picture text -----

Land and buildings relate to the Hestercombe estate which consists of the formal gardens and properties as well as a farm. The properties and gardens are managed and maintained by the estate manager with a team of gardeners and maintenance staff and volunteers. Under the guidance of the management team, they perform work that ensures the gardens are true to the original vision.

Artwork consists of paintings that are linked to the estate and are held for public display. The paintings are assessed when purchased and any required restoration work performed at that time.

Page 27

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

13 Investment property

----- Start of picture text -----
Investment
property
As at 1 January 2023 1,050,000
Revaluation 185,000
At 31 December 2023 1,235,000
----- End of picture text -----

The Trustees consider the value in the accounts represents the open market value of the properties at the year end. The investment properties were purchased and are held for their historical importance as they are considered an integral part of the estate.

14 Investments

----- Start of picture text -----
Charity
Total Total
2023 2022
£ £
Hestercombe Gardens Limited
Ordinary shares of £1 each 1 1
----- End of picture text -----

Hestercombe Gardens Limited (company no 04732755) was incorporated on 13 April 2003 as a wholly owned trading subsidiary of Hestercombe Gardens Trust. The parent charity holds 100% of the issued share capital and 100% of the voting rights of the subsidiary trading company.

The principal activities of the company are the operation of a retail outlet and a café at Hestercombe Gardens and the hosting of events, private functions and conferences.

The registered office is the same as that of the Trust, detailed on page 1.

The subsidiary donates any taxable profits to Hestercombe Gardens Trust, and files audited accounts with the Registrar of Companies.

Page 28

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

A summary of the trading results is shown below:

----- Start of picture text -----
2023 2022
£ £
Turnover 1,263,394 1,298,354
Cost of sales (1,008,431) (1,054,355)
Gross profit 254,963 243,999
Administrative expenses (238,248) (235,415)
- -
Other operating income
Operating profit and profit before tax 16,715 8,584
Retained in subsidiary 16,715 8,584
The assets and liabilities were:
Current assets 288,576 227,282
Current liabilities (289,390) (244,811)
Total net assets (814) (17,529)
Called up share capital 1 1
Profit and loss account (815) (17,530)
(814) (17,529)
----- End of picture text -----

15 Stocks

----- Start of picture text -----
2023 2022
Group Charity Group Charity
£ £ £ £
Goods for resale 30,974 - 30,702 -
16 Debtors
2023 2022
Group Charity Group Charity
£ £ £ £
Trade debtors 3,475 3,095 6,822 1,650
- - - -
Amounts owed from group undertakings
Prepayments and accrued income 74,853 68,022 114,347 108,108
VAT - - - 13,583
78,328 71,117 121,169 123,341
----- End of picture text -----

Page 29

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

17 Creditors: Amounts falling due within one year

Trade creditors
Other creditors and deferred income
Accruals
Bank loans
Bank overdrafts
Taxation and social security
Amounts owed to group undertakings
Other loans
Hire Purchase
Deferred Income
Deferred income at 1 January 2023
Released from previous years
Resources deferred in the year
Deferred Income at 31 December 2023		 Group
£
167,924
117,373
118,815
28,123
249,382
105,177
-
25,311
2,063
814,168
Group
£
104,011
(90,668)
92,035
105,378		 2023
Charity
£
81,551
42,977
79,209
28,123
249,382
16,162
198,143
25,311
2,063
722,921
2023
Charity
£
34,786
(34,786)
22,010
22,010		 2022
Group
Charity
£
£
142,338
77,492
113,394
43,855
93,066
62,520
24,136
24,136
-
-
79,507
13,213
-
165,440
10,099
10,099
1,601
1,601
464,141
398,356
2022
Group
Charity
£
£
199,145
45,902
(175,802)
(35,902)
80,668
24,786
104,011
34,786

At the balance sheet date the trust was holding funds received in advance from venue hire and rental and memberships received in advance.

Page 30

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

18 Creditors: Amounts falling due in more than one year

----- Start of picture text -----
2023 2022
Group Charity Group Charity
£ £ £ £
Bank loans 116,175 116,175 119,658 119,658
Other loans 81,871 81,871 43,288 43,288
Accruals 94,442 94,442
- -
Hire purchase 8,971 8,971
Bank loans > 5 years 797,403 797,403 814,593 814,593
Other loans > 5 years 46,442 46,442 18,746 18,746
1,050,862 1,050,862 1,090,727 1,090,727
----- End of picture text -----

There are three bank loans due in more than 5 years. One is repayable over a 25 year term ending in July 2043, another loan is repayable over a 20 year term ending in September 2039, and the final loan is repayable over a 22 year term ending in September 2044. Interest on these loans are variable at the Bank of England base rate + 3.0%.

The Trust has created a fixed legal charge over the freehold properties of Hestercombe Gardens Trust and a debenture has been created in favour of the bank to secure bank borrowings of £941,693 at the year end (2022 - £958,387).

The other loan due in more than 5 years is a loan, taken out in 2018, to repaid over 10 years with a fixed rate of interest of 2.75%.

Included in other loans is an unsecured an interest free loan to be repaid over 8 years.

Page 31

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

19 Summary of movement in funds

2023
Opening
balance
£
Unrestricted funds - Group
General
11,091,545
11,091,545
Opening
balance
£
Restricted funds - Group
Commemorative Trees
-
Bird Box
-
Buy a Brick
-
The Pilgrim Trust
-
The Clark Foundation
The Leche Trust
-
Leahy - West Path stone
seat donation
-
Fundraising Strategy
2,600
Michael Farrington
-
propagating house
2,425
Stanley Smith Horticultural Tru
-
Harriet Hopkins - bench donati
-
Gallery
-
Somerset Community Founda
-
Futures Taunton
-
The Headley Trust
-
Futures Taunton
-
Baily Thomas Charitable Trust
-
Other grants
-
The Ripple Trust
-
5,025		 Opening
balance
£

11,091,545		 Incoming
resources
£
2,121,293		 Resources
expended
£
(2,585,192)		 Transfers &
Closing
revaluations
balance
£
£
225,921
10,853,567
225,921
10,853,567
Closing
Transfers
balance
£
£
(6,512)
-
-
-
-
-
-
-
-
-
-
-
-
(10,909)
-
-
2,600
-
-
-
2,425
(3,000)
-
(3,500)
-
-
-
(10,000)
-
(5,000)
-
-
11,883
(1,000)
-
(1,000)
-
-
279
-
14,024
(40,921)
31,211
11,091,545 2,121,293 (2,585,192)
Incoming
resources
£
16,145
100
700
2,300
1,000
2,600
10,909
-
-
-
3,000
3,500
43,544
10,000
5,000
15,000
1,000
1,000
279
20,000		 Resources
expended
£
(9,633)
(100)
(700)
(2,300)
(1,000)
(2,600)
-
-
-
-
-
-
(43,544)
-
-
(3,117)
-
-
-
(5,976)
5,025 136,077 (68,970)

Page 33

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

19 Summary of movement in funds (cont’d)

Opening
balance
£
Unrestricted funds - Charity
General
11,109,075
11,109,075
Opening
balance
£
Restricted funds - Charity
Commemorative Trees
-
Bird Box
-
Buy a Brick
-
The Pilgrim Trust
-
The Clark Foundation
-
The Leche Trust
-
Leahy - West Path stone
-
seat donation
-
Fundraising Strategy
2,600
Michael Farrington
propagating house
2,425
Stanley Smith Horticultural Tru
-
Harriet Hopkins - bench donati
-
Gallery
-
Somerset Community Founda
-
Futures Taunton
-
The Headley Trust
-
Futures Taunton
-
Baily Thomas Charitable Trust
-
Other grants
-
The Ripple Trust
-
5,025		 Opening
balance
£
Unrestricted funds - Charity
General
11,109,075
11,109,075
Opening
balance
£
Restricted funds - Charity
Commemorative Trees
-
Bird Box
-
Buy a Brick
-
The Pilgrim Trust
-
The Clark Foundation
-
The Leche Trust
-
Leahy - West Path stone
-
seat donation
-
Fundraising Strategy
2,600
Michael Farrington
propagating house
2,425
Stanley Smith Horticultural Tru
-
Harriet Hopkins - bench donati
-
Gallery
-
Somerset Community Founda
-
Futures Taunton
-
The Headley Trust
-
Futures Taunton
-
Baily Thomas Charitable Trust
-
Other grants
-
The Ripple Trust
-
5,025		 Incoming
resources
£
875,649		 Resources
expended
£
(1,356,263)		 Transfers &
Closing
revaluations
balance
£
£
225,921
10,854,382
225,921
10,854,382
Closing
Transfers
balance
£
£
(6,512)
-
-
-
-
-
-
-
-
-
-
-
-
-
(10,909)
-
-
2,600
-
2,425
(3,000)
-
(3,500)
-
-
-
(10,000)
-
(5,000)
-
-
11,883
(1,000)
-
(1,000)
-
-
279
-
14,024
-
(40,921)
31,211
11,109,075 875,649 (1,356,263)
Incoming
resources
£
16,145
100
700
2,300
1,000
2,600
-
10,909
-
-
3,000
3,500
43,544
10,000
5,000
15,000
1,000
1,000
279
20,000		 Resources
expended
£
(9,633)
(100)
(700)
(2,300)
(1,000)
(2,600)
-
-
-
-
-
-
(43,544)
-
-
(3,117)
-
-
-
(5,976)
5,025 136,077 (68,970)

Page 29

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

19 Summary of movement in funds (cont’d)

Prior year - 2022

----- Start of picture text -----
Opening Incoming Resources Closing
balance resources expended Transfers balance
£ £ £ £ £
Unrestricted funds - Group
General 11,062,122 2,522,253 (2,580,441) 87,661 11,091,545
11,062,122 2,522,253 (2,580,441) 87,661 11,091,545
Opening Incoming Resources Closing
balance resources expended Transfers balance
£ £ £ £ £
Restricted funds - Group
- - -
Gallery 42,830 (42,830)
Bird Box - 460 (460) - -
Buy a Brick - 876 (876) - -
Terrace Seat - 1,000 - (1,000) -
Boshier-Hinton Foundation - 1,410 - (1,410) -
Bench Donation - 2,500 - (2,500) -
- - -
Water Garden Project 72,701 (72,701)
-
Fundraising Strategy 5,275 2,500 (5,175) 2,600
Michael Farrington
- - -
propagating house 2,425 2,425
The Medlock Charitable Trust 20,000 - (10,000) (10,000) -
Portrait Restoration - 250 (250) - -
27,700 124,527 (59,591) (87,611) 5,025
----- End of picture text -----

Page 34

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

19 Summary of movement in funds (cont’d)

Prior year – 2022 Prior year – 2022

Opening
balance
£
Unrestricted funds - Charity
General
11,088,236
11,088,236
Opening
balance
£
Restricted funds - Charity
Gallery
-
Bird Box
-
Buy a Brick
-
Terrace seat
-
Boshier-Hinton Foundation
-
Bench donation
-
Water Garden Project
-
Fundraising Strategy
5,275
Michael Farrington
propagating house
2,425
The Medlock Charitable Trust
20,000
Portrait Restoration
-
27,700		 Incoming
resources
£
1,223,899		 Resources
expended
£
(1,290,671)		 Closing
Transfers
balance
£
£
87,611
11,109,075
87,611
11,109,075
Closing
Transfers
balance
£
£
-
-
-
-
-
-
(1,000)
-
(1,410)
-
(2,500)
-
(72,701)
-
-
2,600
-
2,425
(10,000)
-
-
-
(87,611)
5,025
11,088,236 1,223,899 (1,290,671)
Opening
balance
£
-
-
-
-
-
-
-
5,275
2,425
20,000
-		 Incoming
resources
£
42,830
460
876
1,000
1,410
2,500
72,701
2,500
-
-
250		 Resources
expended
£
(42,830)
(460)
(876)
-
-
-
-
(5,175)
-
(10,000)
(250)
27,700 124,527 (59,591)

General unrestricted funds are available to spend on activities that further the purposes of the charity.

The gallery funding was provided by the Arts Council and Taunton Deane Borough Council to develop the Gallery within Hestercombe House.

The Buy a Brick and Commemorative Trees funds are remembrance funds that were fully spent in the year.

Page 35

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

19 Summary of movement in funds (cont’d)

The Michael and Madeleine Farrington donations are towards the propagating house project which did not commence before the year end.

Donations received for Bird Boxes were fully spent during the year.

The Headley Trust donation relates to contribution to costs for a new curator.

The Ripple Trust donation was received from a former trustee and is to be split between the cost of legal work on the Development Strategy and the cost of the ecological survey work.

Donations received towards capital costs such as the Bench (Harriet Hopkins), the West Path Stone Seat (Leahy), Changing places WC project (Somerset Community Foundation and Futures Taunton), Access Audit (Bailey Thomas Charitable Trust and Futures Taunton) were fully spent during the year and transferred to unrestricted reserves.

20 Analysis of assets between funds – Group

Cash at bank
Fixed assets and in hand
£
£
Unrestricted funds
12,554,559
54,736
Restricted funds
-
31,211
As At
31 December 2023
12,554,559
85,947
Analysis of assets between funds – Charity
Cash at bank
Fixed assets and in hand
£
£
Unrestricted funds
12,554,560
2,488
Restricted funds
-
31,211
As At
31 December 2023
12,554,560
33,699		 Cash at bank
Fixed assets and in hand
£
£
Unrestricted funds
12,554,559
54,736
Restricted funds
-
31,211
As At
31 December 2023
12,554,559
85,947
Analysis of assets between funds – Charity
Cash at bank
Fixed assets and in hand
£
£
Unrestricted funds
12,554,560
2,488
Restricted funds
-
31,211
As At
31 December 2023
12,554,560
33,699		 Cash at bank
Fixed assets and in hand
£
£
12,554,559
54,736
-
31,211		 Cash at bank
Fixed assets and in hand
£
£
12,554,559
54,736
-
31,211		 Cash at bank
Fixed assets and in hand
£
£
12,554,559
54,736
-
31,211		 Cash at bank
Fixed assets and in hand
£
£
12,554,559
54,736
-
31,211		 Other
net current
liabilities
£
(704,866)
-		 Other
net current
liabilities
£
(704,866)
-		 Creditors
more than
one year
Total
£
£
(1,050,861)
10,853,568
-
31,211
(1,050,861)
10,884,779
12,554,559 85,947 (704,866)

Cash at bank
Fixed assets and in hand
£
£
12,554,560
2,488
-
31,211		 Other
net current
liabilities
£
(651,804)
-		 Creditors
more than
one year
Total
£
£
(1,050,861)
10,854,383
-
31,211
(1,050,861)
10,885,594
12,554,560 33,699 (651,804)

Page 36

Hestercombe Gardens Trust Notes to the Financial Statements For the Year Ended 31 December 2023

Prior year – 2022 – Group and Charity

----- Start of picture text -----
Other Creditors
Cash at bank net current more than
Fixed assets and in hand liabilities one year Total
£ £ £ £ £
Unrestricted funds 12,237,820 466,574 (481,050) (1,161,222) 11,062,122
Restricted funds - 27,700 - - 27,700
As At
31 December 2022 12,237,820 494,274 (481,050) (1,161,222) 11,089,822
----- End of picture text -----

The analysis for the Trust is identical to the Group in 2022 with the exception of the unrestricted funds, where investments represent £1, cash at bank £68,298 and other net current liabilities £275,015.

21 Income and expenditure account of the Trust

The company has taken advantage of Section 408 of the Companies Act and has not included its own Income and Expenditure Account or separate Statement of Financial Activities.

Prior to gift aid amounts received from the subsidiary, Hestercombe Gardens Trust has net outgoing resources for the year of £313,433 (2022: outgoing £1,836) based on income of £993,972 (2022: £1,348,426).

22 Related party transactions

The charity has taken advantage of the exemption in FRS 102 “Related Party Disclosures” from disclosing transactions with other members of the group.

During the year Hestercombe Gardens purchased an asset from the CEO Philip White for the value of £nil (2022: £18,200).

23 Contingent liabilities

Grants received from the National Heritage Memorial Fund amounting to £5,931,000 as at 31 December 2018 may become subject to partial repayment in the event grant aided assets are sold. The amounts potentially repayable are secured by a legal charge in favour of the National Heritage Memorial Fund.

Page 37