OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-03-30-accounts

Registered number: 3395389 Charity number: 1064230

NIAB

Trustees' Report and Financial Statements

For the Year Ended 31 March 2023

NIAB

Contents

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1 ‐ 2
Trustees' Report 3 ‐ 10
Independent Auditors' Report on the Financial Statements 11 ‐ 14
Consolidated Statement of Financial Activities 15 ‐ 16
Consolidated Balance Sheet 17 ‐ 18
Charity Balance Sheet 19 ‐ 20
Consolidated Statement of Cash Flows 21
Notes to the Financial Statements 22 ‐ 61

NIAB

Reference and Administrative Details of the Charity, its Trustees and Advisers For the Year Ended 31 March 2023

Trustees Dr D J Buckeridge,Chair(appointed 21 June 2023)
S J Ellwood,BSc,Chair(from 17 November 2022 to 21 June 2023)
J E GodfreyOBE,Chair(resigned 17 November 2022)
Professor M J Caccamo,Chief Executive
Dr H Ferrier,BSc,MSc
Dr N Kerby,MBE,BSc
Dr C A Lang,BA(resigned 17 November 2022)
R C Lowson
Professor I J Puddephat,BSc,PhD
J P Regan
Professor A G Smith,BSc,MPhil,PhD
Dr G H Smith
K E Fidgeon,FCA(resigned 17 November 2022)
Company registered
number
3395389
Charity registered number
1064230
Registered office
93 Lawrence Weaver Road
Cambridge
CB3 0LE
Company secretary
Dr J McKee
Chief executive officer
Professor M Caccamo
Independent auditors
Moore Kingston Smith LLP
Statutory Auditors
9 Appold Street
London
EC2A 2AP
Bankers
Barclays Bank PLC
1 Churchill Place
Canary Wharf
London
E14 5HP

Page 1

NIAB

Reference and Administrative Details of the Charity, its Trustees and Advisers (continued) For the Year Ended 31 March 2023

Solicitors

Birketts LLP 22 Station Road Cambridge CB1 2JD Gowling WLG (UK) LLP 4 More, London Riverside London SE1 2AU

Page 2

TRUSTEES’ REPORT

INCORPORATING THE STRATEGIC REPORT

develop new sustainable farming and growing systems that produce low cost, high quality, safe, healthy foods and beverages with materially reduced impact on the environment and the climate.

Strategy

STRATEGIC REPORT

Background

NIAB is an internationally recognised leader in applied crop research and innovation, providing an integrated innovation and knowledge transfer hub addressing the global challenges of food production, climate change and environmental protection.

The National Institute of Agricultural Botany was founded by Deed of Trust in 1919. It was regulated by a scheme made by the UK Government until 1998, when a new structure was agreed which saw the formation of two charities which would operate in tandem. NIAB was formed to conduct the charitable operations. The National Institute of Agricultural Botany Trust (Charity No. 1144528) (The Trust) provides land, facilities and financial support to NIAB, which The Trust determines is the preferred vehicle to deliver its charitable activities. NIAB controls two other charities: The Arable Group Limited and NIAB EMR.

Building on a longstanding international reputation for expertise in plant varieties and seeds, NIAB’s scientific capabilities span the crop improvement pipeline; from underpinning research required to develop higher yielding more climate resilient crops and breeding new plant varieties, through to the extensive trials data, agronomy expertise and advice needed to ensure these advances are transferred effectively to the wider industry. From a position of independence NIAB supports the delivery of Government policies and strategies relevant to food production, protection of the environment and mitigation of climate change, as well as a knowledge-based economy.

A central objective of NIAB’s research activity is to bridge the gap between the basic understanding of plant science and the ability to apply that knowledge in practice to deliver profitable and sustainable crops.

NIAB has the specialist knowledge, skills and facilities required to support improved crop production, to evaluate variety performance and quality in the field, to design variety selection criteria aimed at performance in regenerative farming compared to conventional agronomy, to conduct agronomy research and to ensure the benefits of new knowledge and genetic potential are transferred on to farm and into the food industry which depends on productive agriculture and horticulture.

The integration of the latest advances in data science alongside expertise in crop (pre-)breeding, agronomy and farming systems is key to unlocking a significant improvement in UK crop production. NIAB’s intention is to be at the forefront of crop innovation and to lead a step change in crop productivity, whether through the increased application of bioinformatics and molecular tools in bringing new genetics to the marketplace, or through the combination of data science and agronomy to target onfarm production directly. Our leading understanding of soil biology, structure and crop nutrition are core to deliver improvements to the health, biodiversity, carbon sequestration and the productive capacity of soils in UK and across the world.

NIAB’s research activities are increasingly part of global partnerships as the science relevant to UK agriculture finds equal application in other countries.,

Mission and Vision

Public Benefit

Our mission is to provide independent, science-based research and information to support, develop and promote agriculture and horticulture; helping the industry to fulfil its potential in supplying food and renewable resources, while protecting and enhancing the natural environment.

Our vision is to be the UK Centre for crop innovation, providing an integrated research and knowledge transfer hub for the entire crop improvement pipeline. Our ambition is to provide world-class research, information and advice to support the sustainable intensification of crop production in the UK through improved genetics, precision agronomy and robust evidence-based decision support tools. We aim to

The need for innovation in plant breeding and agronomy has never been greater. With climate change and a growing population, food security issues are a global concern. Crop science and technology have a vital role to play in boosting productivity, conserving resources and coping with climate change.

NIAB seeks to:

3

delivering practical solutions, working with a network of scientific partnerships and collaborations with leading academic, research, policy and commercial organisations in the UK, Europe and the rest of the world.

The Trustees are satisfied they have complied with their duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. Based on this guidance, and as described in this Trustees’ report, the Trustees believe the activities of NIAB to be charitable in nature.

Performance

Performance against the 2022/23 objectives is highlighted in the table below:

Objectives Performance
Following the impact of the Covid 19 pandemic and
Global events, such as the war in Ukraine, carry out
a full review of the 5-year plan, which provides
financial agility to deliver an on-going operational
surplus.		 Roadmap to delivering a sustainable NIAB was reviewed and agreed
by the NIAB Board in March 2023. Much of the changes will be
delivered in the FY2023/24, including the now completed
restructuring of our plant genetics activities.
Agree and implement a new business model for
Strawberry Breeding and the promotion of current
varieties through the Malling Fruit Brand.		 In September 2023, NIAB announced the divestment of the
Strawberry Breeding program to Bayer. The transaction was signed in
September 2023 and is due to complete January 2024, subject to
conditions precedent. NIAB continues to deliver the activities to
further breeding programmes in Rubus, Ribes and Malus species.
Advance the field of Alternative Proteins through
research, breeding and collaboration with industry
leaders.		 NIAB led the development of key reports (for Defra and UKRI) on
underutilised crops including themes relevant to protein crops. We
are currently pursuing several funding opportunities to develop
research programmes.
Improve generation of commercial income,
particularly Barn4, and broader engagement with
the growing Agritech sector		 Pricing of commercial trials reviewed and revised. NIAB has sought
new income opportunities, such as seed bulking, that compliments
work cycles and reduces down time in facilities.
Explore further simplification of the NIAB subsidiary
structure		 The merger of NIAB EMR into NIAB was completed. The completion
of the last contract of NIAB EMR is expected to be completed in FY
2023-24.
Establish a presence in the Iberian Peninsula and
strengthen relationships with local growers		 NIAB continue to develop the relationship with Spanish growers via
the commercialisation of the raspberry variety Malling Bella. The
uncertainties surrounding the current economic environment limited
the progress of NIAB’s strategy in this region.
Successful transition to a new Board Chair, following
Mr Jim Godfrey’s retirement.		 Mr Stephen Ellwood was Chair from November 2022 until Dr David
Buckeridge was appointed Chair of Trustees in June 2023.

4

Objectives for 2023/24

NIAB is addressing the following objectives for the year to 31 March 2024:

FINANCIAL REVIEW

Income

The total incoming resources for the group were £29,709k (2022: £41,843k). A total of £12,869k related to Agricultural Services (2022: £13,564k) and £8,023k related to Laboratory and Research (2022: £19,542k which included £10,062k from capital grants). The income relating to commercial trading operations totalled £7,700k (2022: £7,505k). The group does not carry out fundraising activities.

Expenditure

The total outgoing expenditure was £32,381k (2022: £31,566k).

Capital Expenditure

The charity funded the capital purchases from both restricted grants and unrestricted income. The total group spend was £2,777k (2022: £10,110K).

FRS102 requires income from capital grants to be recognised when awarded and there are no conditions to be met that are outside of the control of NIAB, with depreciation charged when the asset concerned is brought into use. To distinguish operating activity from income and depreciation relating to capital grants, income and expenditure from operations is shown separately on the face of the SOFA.

Business Review and key performance indicators

NIAB continues to review the most appropriate Key Performance Indicators by which the development, performance or position of the various elements of its operations can be effectively measured.

The following Key Performance Indicators (KPIs) have been reviewed for the group: -

eviewed for the group: -
2023 2022
Charitable and trading Income £29,309k £31,781k
(excluding capital grants £400k –
2022: £10,062k)
Staff Costs (before pension past £16,224k £15,535k
service cost adjustment)
Average Staff Numbers 369 366
Turnover per head (excluding £79.4k £86.8k
capital grants)

The Charitable and trading Income is a measure of the charity’s ability to secure sufficient income to maintain a sustainable research facility. The staff costs and average staff numbers are also an important measure.

Going Concern

The Trustees have acknowledged the guidance on going concern and financial reporting published by the Financial Reporting Council in 2016.

The Group’s operating activities are diverse. Research and development in Crop Genetics, Computational Biology, Plant Breeding and Plant Characterisation are supported by longterm contracts and competitively won research grants which, historically, have been largely unaffected by changes in the general economy. Crop Agronomy, Membership, Training and Seed Certification activities are generally contracted on an annual basis and are supported by a diverse customer base. All of that income has been stable over a number of years. More recently the Group has been successful in being awarded large capital grants.

The Group balance sheet shows a surplus of £113k (2022: deficit £588k). Taking out the Restricted and Endowment funds leaves an Unrestricted deficit of £12,398k (2022: £13,972k). Stripping out the pension scheme deficit of £13,741k (2022: £17,405k) (discussed in more detail below), the long-term debt to The Trust of £1,500k and Fixed Assets (Tangible plus Intangible) plus Trade investments in total within Unrestricted funds of £4,692k (2022: £4,313k) leaves an underlying unrestricted reserve deficit of £1,849k (2022: surplus £620k) as described in the Reserves policy in this report.

Given the nature of its income, and with the changes in the current economy, particularly higher inflation, NIAB has undertaken an exercise of reviewing income and direct expenditure, to identify areas of the organisation that are most sensitive to changes and under-performing financially. The results have been used as a basis from which to formulate a model for strategic planning over the coming years. A key component of the revised plan is to create surpluses through improved margins on services and products.

The Trust was established with similar charitable objects to NIAB and fulfils its charitable objects through the provision of support to NIAB. A key component of the review of going concern, given other uncertainties, has historically been support from The Trust.

In September 2023, NIAB announced the divestment of commercial Strawberry Breeding activities and associated income to Bayer AG. The transaction is due to complete in January 2024, subject to conditions precedent, and will result in a near term inflow of free cash to NIAB which will reduce the reliance on the Trust for the period of 12 months from the date of these financial statements.

At the time of writing this report, the forecast for 2023/24 is for an operational surplus.

6

A component of the financial risk to NIAB is the pension scheme. The NIAB (1996) Pension Scheme (‘Scheme’) was established in 1996 following NIAB’s separation from Government and establishment as a not-for-profit entity. The Board have taken steps to manage the Scheme deficit, closing the Scheme to new members in 2001 and to future accrual in 2007.

The Trust is a participating employer in the Scheme with NIAB. This means that the entire deficit liability of the pension scheme is shared with The Trust, and the assets of The Trust support NIAB’s balance sheet in providing the employer covenant and the payments agreed under the recovery plan. A new recovery plan, based on the triennial valuation at 31 March 2021 has been agreed with the Pension Scheme Trustees and submitted to The Pensions Regulator for approval.

The Trust has a balance sheet value of in excess of £55m. It has confirmed that it will continue to support NIAB and provide funding and lending sufficient to ensure NIAB remains a going concern, should this be required. The funding includes ongoing funding for research and facilities and contributions to the pension scheme recovery payments. The lending is in the form of an ‘overdraft’ facility which can be used by NIAB to manage working capital fluctuations in year of up to £2m. NIAB has historically relied on this facility during the summer months, given the highly seasonal nature of some of NIAB’s operations.

The Trustees have considered the following in arriving at their conclusions on going concern:

  1. The cash flow forecast and latest management accounts, which give confidence that NIAB can continue to pay its debts as they fall due.

  2. The likely inflow of the upfront payment for the Strawberry Breeding divestment will return NIAB to a cash surplus in 2023/24. Additional actions will be required to maintain this surplus into future periods.

  3. Should it be required, the Trust’s continued support to NIAB through the provision of facilities and funding and borrowing support can be called upon.

  4. The Trust being a participating employer alongside NIAB in the Pension Scheme.

After making enquiries and considering the uncertainties described above, the Trustees have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being at least twelve months from the date of approval of these financial statements. For this reason, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Subsidiaries and related parties

NIAB has three wholly owned subsidiaries, NIAB Trading Ltd, East Malling Services Ltd. and TAG Consulting Limited, which gift aid their profit to NIAB. NIAB EMR and The Arable Group Limited are charitable companies limited by guarantee. In both cases NIAB, as the sole voting member, has the power to appoint the Trustee Board of NIAB EMR and The Arable Group Limited and they are therefore considered to be subsidiary undertakings during 2022/23 by virtue of control.

As outlined above, NIAB has an important relationship with the Trust, which has an object to support NIAB in pursuit of its objects. This includes the provision of land and facilities.

Reserves Policy

The Trustees have reviewed the reserves of the group. The review encompassed the nature and reliability of the income and nature and level of commitment of expenditure streams. They have also considered the financial risks, the need to match variable income with fixed commitments, and the nature of the current reserves.

On a risk-based analysis the Trustees have concluded that their aim is to achieve a general reserve equivalent to between two and four and a half months’ worth of unrestricted fund expenditure. At the current annual spend, the reserves target is therefore between £5m and £10m.

At 31 March 2023 group unrestricted reserves excluding fixed assets and pensions liability and the long-term loan from the NIAB Trust, were negative £1,849k (2022: positive £620k). The Trustees have agreed a new business plan, a key component of which will be to create surpluses through improved margins on services and products, thereby increasing the general reserves position. At the time of writing this report, the forecast for 2023/24 is for an operational surplus.

The Trustees continue to monitor closely the financial position of the group, including forecasts and cash flow projections, to ensure they can demonstrate the ongoing ability of the group to be able to pay its debts as they fall due.

Accounting Period

The Trustees present their report and the financial statements for the year ended 31 March 2023. The company’s year-end (Accounting Reference Date) is 28 March, although the financial statements continue to be prepared to 31 March as permitted by section 390(3) of the Companies Act 2006.

7

RISK ASSESSMENT AND MANAGEMENT

The Board of Trustees is responsible for ensuring there are effective and adequate risk management and internal control systems in place to manage the major risks to which the Charity is exposed. The Board reviews the risk register at each meeting.

Principal Risks and Uncertainties

Risk Area Risk Management
Strategy / Process Failure to deliver the business plan The CEO and Executive team remain focused on the actions
required to deliver the Business Strategy and Annual Business
Plan, whilst ensuring the short-term focus on the Business
Continuity plan.
Strategy / Process Business disruption caused by instrument/system failure NIAB are merging Building Management Systems (BMS)
across the Cambridge Campus to a cloud-based system which
will allow warning messages to be sent to key personnel.
Strategy / Process Loss of Trials Land and farm relocation NIAB is beginning a full review of land resource requirements
to ensure continued, cost-effective delivery of Trials activity.
Customer Loss of higher margin revenue streams NIAB is maintaining conversations with key emerging
growers’ groups (e.g., Potatoes GB) to ensure retention of
funding to support on-farm research following loss of AHDB
levy funding. NIAB has secured some alternate financial
support to mitigate some of the lost income. Funding across
many customers has remained stable for a number of years.
Customer Loss of key personnel leading to loss of confidence by
customers and inability to deliver key services.		 Performance related pay structure and quarterly Pay &
Reward reviews are in place to reward key staff. Talent
management program continues to be developed.
Environmental/External Commodity price increases Increasing energy and commodity prices have impacted on
business finances. Reviewing pricing structure for both
commercial and research projects to absorb higher costs. Our
commercial farming activities are especially sensitive to this
risk.
Environmental/External Site infrastructure and resources are unsuitable NIAB are working with our landlord at the East Malling site to
update the irrigation system and seek to replace land
earmarked for development. NIAB are reviewing land holding
and usage in and around Cambridge, to ensure it meets
future needs and operating model.
Financial NIAB Trust are unable to generate value from their asset
base and service liabilities recognised on the Balance Sheet		 The Trust continues to work closely with a consortium of
landowners to seek planning permission for a new
development site and are assessing additional development
opportunities.
Financial Transition to new accounting system from April 2023 After an extensive, company-wide roll out and training
program, the transition to the new system has not resulted
in any significant downtime and operations. We are close to
Business as Usual.
Financial Pension Scheme deficit 2021 Triennial valuation has been agreed.
The Trust is now a participating employer in the scheme,
improving the employers covenant and the ability to fund the
required annual deficit contributions.

8

STRUCTURE, GOVERNANCE and MANAGEMENT

Members and Board of Trustees

The Board of Trustees comprises the Chair and up to eleven additional Trustee directors. The Trustees are also the members of the organisation.

The Board has established the following sub-committees:

The financial statements have been prepared in accordance with the Charities Act 2011, the Companies Act 2006 and 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 (FRS102).

The following Trustees have served during the period:

J E Godfrey, OBE (retired 17 November 1, 2 Chair 2022) Professor M J Caccamo BSc PhD S J Ellwood, BSc 1, 2 Chair (from November 2022 to June 2023) J P Regan 1 Dr H Ferrier BSc, MSc K E Fidgeon, FCA (retired 17 November 1 2022) Dr N Kerby, MBE, BSc 1 Dr C A Lang, BA (retired 17 November 2 2022) R C Lowson Professor I J Puddephat, BSc PhD Dr G H Smith Professor A G Smith BSc, MPhil, PhD 2

Dr David Buckeridge was appointed the new Chair of Trustees effective from June 2023.

Recruitment, induction and training of Trustees

NIAB recruits Trustees with the relevant skillset to support the charity’s activities. An induction programme has been put in place for newly appointed Trustees and is kept under review and updated where appropriate. In addition, Trustees are in regular contact with the Chief Executive and executive team and receive updates on key areas of activity.

Organisation and governance

The Trustees have used the UK Charity Governance Code to measure the performance of the board and its structure. The Trustees, through its Nominations and Remuneration Committee, regularly review the skills matrix of the board and make annual recommendations to the full board prior to the AGM in respect of membership and performance of the board. Improving governance is an ongoing work and the Trustees will continue to develop the group’s governance structure.

NIAB is incorporated in England and Wales and is a company limited by guarantee (registered number 03395389) and a registered charity (number 1064230). It is governed by its Memorandum and Articles of Association which were last amended 6 May 2021.

Trustee Remuneration

NIAB provides an ex-gratia payment for the Chair of the Board, and the Chair of the Finance Committee. In addition to this, a per diem fee is payable to qualifying Trustees.

Decision making and key management

The Board of Directors (Trustees) administer the company and meet quarterly. A Chief Executive Officer is appointed by the Trustees to manage the day-to-day operations of the company. To facilitate effective operations the Chief Executive and Executive Team have delegated authority, within the terms of delegation approved by the board, for all operational matters.

The key management personnel are appointed by NIAB’s Chief Executive; they have authority and responsibility for planning, directing and controlling the activities of the NIAB Group. The Nominations and Remuneration Committee consider the pay for key management personnel in the context of the overall company pay review, and the benchmarking of similar roles within BBSRC institutes and industry.

Employees

The average number of employees for the period was 369 (2022: 366). A policy of equal opportunity is pursued throughout, including the treatment of applications for employment from people who may be disabled, taking account only of the qualifications and abilities of each individual. Should any employee become disabled during the course of employment every effort would be made to retain that person's services and to provide necessary re-training.

NIAB engages with its employees through regular meetings and consultations with the representatives from the Prospect and Unite unions.

Continuing education and training are regarded as vital for the continuance of the charity's work, and assistance to this end is provided to a significant number of employees.

Liability Insurance

The Trustees have affected liability insurance as permitted by the company’s Articles. This insurance does not provide cover in the event that a Trustee is proved to have acted fraudulently or dishonestly.

9

STATEMENT OF TRUSTEES RESPONSIBILITIES IN RESPECT OF THE ANNUAL REPORT AND FINANCIAL STATEMENTS The Trustees (who are also directors of NIAB for the purposes of company lawl are responsible for preparing the Trustees, Report, incorporating the Strategic Report, and the financial statement5 in accordance with applicable law and regulations. The Trustee5 are responsible for keeping proper accounting records that disclose with re850nable accuracy at 3ny time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the 355ets of the charit3ble group and hence for taking reasonable 5tep5 forthe prevention and detection ol fraud and other irregularities. Company law requires the Trustees to prepare financial statoments lor each financial year. Under that law the Trustee5 have elected to prepare the financial statements in 3ccordance with United Kingdorn General Accepted Accounting Pract15e (United Kingdom accounting standards and applicable lawl, including FR5102, the financial reporting standard applicable in the UK and Republic ol Ireland. Under company law the Trustee5 must not approve the financial statements unless that they are sat151ied thattheygive a true and fair view ol the State of affairs of the charitable group and of the incoming resources and application of resources, including the income and expenditure, ol the charitable group for that period. In preparing these financial statements, the Trustees are required to.. The Trustees confirm that.. so far as each Trustee is 8ware, there 15 no relevantaudit information of which the auditors are unaware,. and the Trustees have taken all the steps that they ought to have taken as Trustees in order to make thernselves aw3r& of any relevant audit information and to establish that the charitable group's auditor 15 aware of that information. The Trustees are responsible for the maintenance and integrity of the corporate financial information included on the charitable group's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from leglslation in other jurisdictions. select 5Ultable accounting policies and then apply them consist&ntly. observe the methods and principles in the Charities SORP IFRS1021. The Trustees approve the Tru5tee5' Report, incorporating th& Strategic Report, and financial stat&ments which are sign on behalf of the Board of Trustees of NIAB. make judgrnent5 and accounting estimates that are reasonable and prudent. State whether appllcable UK Accounting Stand3rds have been followed. subject to any material departures disclosed and exp13ined in the financial statements.. and Dr D Buckeridge, Chairman Date.. 22 November 2023 prepare the financial statements on the going conc&rn basis unless It is inappropriate to presume that the charity will continue in busines5. io

NIAB

Independent Auditors' Report to the Members of NIAB

Opinion

We have audited the financial statements of NIAB (the ‘parent charitable company’) and its subsidiaries (the ’group’) for the year ended 31 March 2023 which comprise Group Statement of Financial Activities (incorporating the Group Summary Income and Expenditure Account), the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained in the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. 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.

Page 11

NIAB

Independent Auditors' Report to the Members of NIAB (continued)

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of 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 strategic report or the trustees’ annual report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 10, the trustees (who are also the directors of the 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 group or 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Page 12

NIAB

Independent Auditors' Report to the Members of NIAB (continued)

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

Page 13

NIAB

Independent Auditors' Report to the Members of NIAB (continued)

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non‐ compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters which 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Stickland (Senior statutory auditor)

for and on behalf of

Moore Kingston Smith LLP

Statutory Auditors

9 Appold Street London EC2A 2AP

December 2023

Page 14

Total funds 2022 £000 500 600‐ 62 33,120 7,505 56 41,843 10,339 21,227 31,566 10,277 (10) 10,267
Total funds 2023 £000 650 ‐ 297 20,999 7,700 63 29,709 9,942 22,439 32,381 (2,672) (110) (2,782)
Unrestricted
Restricted
Endowment
Total
Restricted		 funds
funds
funds
operating
capital		 Notes
funds
grant funds		 2023
2023
2023
2023
2023		 £000
£000
£000
£000
£000		 Income and endowments from: Donations to NIAB
3		 Funding towards pension deficit
‐
650
‐
650
‐		 Provision of facilities
‐
‐
‐
‐
‐		 Other donations
247
50
‐
297
‐		 Charitable activities
4
13,586
7,013
‐
20,599
400		 Other trading activities
5
7,700
‐
‐
7,700
‐		 Investments
6
63
‐
‐
63
‐		 Total income and endowments
21,596
7,713
‐
29,309
400		 Expenditure on: Trading activities
9,942
‐
‐
9,942
‐		 Charitable activities
7
13,453
7,713
‐
21,166
1,273		 Total expenditure
23,395
7,713
‐
31,108
1,273		 Net (loss)/income before net losses on investments
(1,799)
‐
‐
(1,799)
(873)		 Net losses on investments
(110)
‐
‐
(110)
‐		 Net (loss)/income (carried forward)
(1,909)
‐
‐
(1,509)
(873)		 The notes on pages 28 to 62 form part of these financial statements.

Total funds 2022 £000 10,267 ‐ 10,267 1,619 11,886 (12,474) (588)
Total funds 2023 £000 (2,782) ‐ (2,782) 3,483 701 (588) 113
Unrestricted
Restricted
Endowment
Total
Restricted		 funds
funds
funds
operating
capital		 Notes
funds
grant funds		 2023
2023
2023
2023
2023		 £000
£000
£000
£000
£000		 Net (loss)/income (brought forward)
(1,909)
‐
‐
(1,509)
(873)		 Transfers between funds
22
‐
‐
‐
‐
‐		 Net movement in funds before other recognised gains/(losses)
(1,909
‐
‐
(1,509)
(873)		 Other recognised gains/(losses) Actuarial gains/(losses) on defined benefit pension schemes
3,483
‐
‐
3,483
‐		 Net movement in funds
1,574
‐
‐
1,574
(873)		 Reconciliation of funds Total funds brought forward
(13,972)
‐
750
(13,222)
12,634		 Total funds carried forward
(12,398)
‐
750
(11,648)
11,761		 The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 28 to 62 form part of these financial statements.

NIAB

Consolidated Balance Sheet As at 31 March 2023

Note
Fixed assets
Intangible assets
13
Tangible assets
14
Investments
15
Current assets
Stocks
17
Debtors
18
Cash at bank and in hand
25
Creditors: amounts falling due within one year
19
Net current assets/(liabilities)
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
20
Net assets excluding pension liability
Defined benefit pension scheme liability
Total net assets/(liabilities)		 2023
£000
475
7,864
1,749
10,088
(10,992)		 2023
£000
794
15,624
35
16,453
(904)
15,549
(1,695)
13,854
(13,741)
113		 2022
£000
330
10,574
2,005
12,909
(11,322)		 2022
£000
887
15,915
145
16,947
1,587
18,534
(1,717)
16,817
(17,405)
(588)

Page 17

NIAB Consolidated Balance Sheet Icontinuedl As at 31 March 2023 2023 £000 2023 £000 2022 £000 2022 £000 Not@ Charity funds Endowment funds 22 750 750 Restricted capital grant funds Unrestricted funds 22 11,761 12.634 General funds 22 1,343 113,7411 3,433 (17,405) Pension reserve 22 Total unrestricted fund5 22 112,3981 113.972J Total funds 113 15881 The Trustees acknowledge their responsibilities for cornplyin8 With the requirements of the Act with respect to accounting records and prep3ration of financial statements. The financial st3tements were approved and authorised for issue by the Trustees on 22 Novernber 2023 and signed on their behalf by: Dr D J Buckeridge Ichair ol Trustees) P3ge 18

NIAB

Charity Statement of financial position As at 31 March 2023

Note
Fixed assets
Intangible assets
13
Tangible assets
14
Investments
15
Current assets
Stocks
17
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within one year
19
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
20
Net assets excluding pension liability
Defined benefit pension scheme liability
Total net assets		 359
6,253
1,571
8,183
(11,359)		 2023
£000
794
15,560
35
16,389
(3,176)
13,213
(1,653)
11,560
(13,741)
(2,181)		 255
7,594
1,419
9,268
(10,452)		 2022
£000
887
15,842
145
16,874
(1,184)
15,690
(1,675)
14,015
(17,405)
(3,390)

Page 19

NIAB Charity Statement of financial position Icontinuedl As at 31 March 2023 2023 £000 2022 £000 Note Charlty funds Endowment funds 22 750 75D Restricted funds 22 10,636 10,636 Unrestricted funds General funds 22 174 2,629 117,405) Pension Reserve 22 113,7411 Total unrestricted funds 22 113,S671 114,776) Total funds 12,1811 13.3901 The Charity's net movement in funds for the year was £1,20912022- £11,635). The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financi81 statements were approved and 3Uthorised for issue by the Trustee5 on 22 November 2023 and signed on their ehalf bv.. Dr D J Buckeridge (Chair of Trusteesl Th& notes on pages 22 to 61 form part of these financial statements. P8ge 20

NIAB

Consolidated Statement of Cash Flows For the Year Ended 31 March 2023

Note
Cash flows from operating activities
Net cash used in operating activities
24
Cash flows from investing activities
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Purchase of investments
Net cash used in investing activities
Cash flows from financing activities
Repayments of borrowing
New finance leases
Interest paid
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
25		 2023
£000
2,017
606
(2,777)
‐
(2,171)
(192)
154
(64)
(102)
(256)
2,005
1,749		 2022
£000
8,157
431
(10,110)
(14)
(9,693)
(227)
146
(33)
(114)
(1,650)
3,655
2,005

The notes on pages 22 to 61 form part of these financial statements

Page 21

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

1. General information

NIAB is a company limited by guarantee incorporated in England and Wales and a registered charity. The registered office of the charity is 93 Lawrence Weaver Road, Cambridge, CB3 0LE.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) ‐ 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

NIAB 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.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance sheet consolidate the financial statements of the Charity and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.

The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

2.2 Fund accounting

General unrestricted funds represent income which is expendable at the discretion of the Board in the furtherance of the objects of the charity. Such funds may be held in order to finance both working capital and capital investment.

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

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for a particular purpose.

Endowment funds relate to gifts to NIAB, the terms of which stipulate that the capital may not be spent, and the income is to be utilised towards a specific restriction imposed by the donor.

Investment income, gains and losses are allocated to the appropriate fund.

Page 22

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

2. Accounting policies (continued)

2.3 Incoming resources

Income has been analysed in accordance with the service provided.

Income from charitable activities:

Incoming resources from charitable activities are accounted for in the year in which the service is provided.

Trading activities:

Commercial trading operations represent the income from the charitable company’s trading subsidiaries – TAG Consulting Limited, NIAB Trading Ltd and East Malling Services Limited – which is included in incoming resources as the service is provided.

Investment income:

Interest is included when receivable by the group.

Income Tax recoverable:

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Capital grant income:

Some grant income is received for the restricted purpose of acquiring fixed assets. Income is accounted for in the year in which the grant is awarded and there are no other conditions to be met that are outside of the control of NIAB.

2.4 Accrued and deferred income

Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions. This income is recognised as earned when the related services are provided which may mean accruing for invoices not yet raised or deferring payments received in advance of work done.

Page 23

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

2. Accounting policies (continued)

2.5 Expenditure

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the group to the expenditure. Expenditure is allocated as follows:

Charitable Activities:

Expenditure incurred directly in the fulfillment of the objects of the charity including allocated overheads.

Support costs:

Support costs which include central office functions such as general management, finance, information technology, human resources and governance costs are allocated across categories of expenditure. The basis of the cost allocation has been explained in note 8 to the accounts.

All expenditure is inclusive of irrecoverable VAT.

2.6 Intangible assets and amortisation

IT platform

IT platforms are recognised at cost, which is then amortised evenly over a three year period once the platform has been released for use.

Purchased goodwill

Goodwill representing the excess of the purchase price compared with the fair value of net assets acquired is capitalised and amortised evenly over a period of between 5 and 10 years as, in the opinion of the Trustees, this represents the period over which the goodwill is expected to give rise to economic benefit. Goodwill is reviewed for impairment at the end of the first financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Plant variety rights

Plant variety rights are recognised at their fair value at acquisition and are amortised evenly in the period over which the rights expire as, in the opinion of the Trustees, this represents the period over which the rights are expected to give rise to economic benefit. Plant variety rights are reviewed for impairment if events or changes in circumstances indicate that the carrying value may not be recoverable.

2.7 Tangible fixed assets and depreciation

All tangible fixed assets are stated at historical cost.

Page 24

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

2. Accounting policies (continued)

2.7 Tangible fixed assets and depreciation (continued)

Depreciation is provided on cost over the estimated lives of the assets which are considered to be: .

Leasehold improvements ‐ over the term of the lease ‐ Apparatus and equipment 3 ‐10 years straight line ‐ Agricultural and motor vehicles 3 ‐10 years straight line ‐ Apparatus and equipment ** 33% reducing balance ‐ Computer equipment ** 25% reducing balance Vehicles ** ‐ 10% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Assets in the course of construction are stated at cost and are not depreciated until brought into use.

** assets transferred from The Arable Group.

2.8 Financial instruments

The group only enters into financial assets and financial liabilities which qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.9 Stocks

The financial statements include stocks of chemicals, fertilisers and sprays held by the group, together with a valuation of growing crops for resale. These stocks are stated at the lower of cost and net realisable value. Cost is calculated as follows:

Net realisable value is based on estimated selling price less further costs expected to be incurred for completion and disposal. Provision is made for slow moving items.

Page 25

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

2. Accounting policies (continued)

2.10 Finance leases and hire purchase

Where assets are financed by leasing agreements that give rights approximating to ownership (“finance leases”), the assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable during the lease term.

The corresponding leasing commitments are shown as obligations to the lessor. Lease payments are treated as consisting of capital and interest elements, and the interest is charged to the Statement of Financial Activities in proportion to the remaining balance outstanding.

All other leases are “operating leases” and the annual rentals are charged to Statement of Financial Activities on a straight line basis over the lease term.

2.11 Termination and redundancy payments

Termination and redundancy payments are recognised as a liability and an expense only when the event is demonstrably committed to by either:

2.12 Foreign currencies

Assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the Statement of Financial Activities.

The Charity’s functional and presentational currency is GBP.

2.13 Research and development

All research and development costs are written off as incurred.

2.14 Investments

Investments in subsidiaries are stated at cost. To the extent that the carrying value exceeds the recoverable amount, an impairment loss is recognised.

2.15 Programme related investments

NIAB holds programme related investments in four commercial companies which it is working with to further its charitable objects. These are carried at fair value when this can be measured reliably or, if it can't, at cost less impairment.

Page 26

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

2. Accounting policies (continued)

2.16 Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.

2.17 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.

2.18 Cash and cash equivalents

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

Page 27

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

2. Accounting policies (continued)

2.19 Pensions

NIAB Defined Benefit Pension Scheme

For the defined benefit retirement plan, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at each balance sheet date.

Actuarial gains and losses arising are recognised immediately in the Statement of Financial Activities.

Past service costs are recognised as an expense on a straight‐line basis over the average period until the benefits become vested. To the extent that the benefits have already vested, the cost is recognised immediately in the Statement of Financial Activities.

The amount recognised in the balance sheet represents the present value of the defined benefit obligation, adjusted for unrecognised past service costs and reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to the lower of the asset and any unrecognised past service cost plus the present value of available refunds or reductions in future contributions to the plan.

The rate used to discount the benefit obligations is based on market yields for high quality corporate bonds with terms and currencies consistent with those of the benefit obligations.

Gains and losses on curtailments/settlements are recognised when the curtailment/settlement occurs.

Universities Superannuation Scheme

The Arable Group Limited participates in the Universities Superannuation Scheme, a defined benefit scheme which is externally funded and contracted out of the State Second Pension (S2P). The liabilities are valued every three years by a professionally qualified independent actuary using the projected unit method, the rates of contribution payable being determined by the trustee on the advice of the actuary. In the intervening years, the actuary reviews the progress of the scheme. Pension costs are assessed in accordance with the advice of the actuary, based on the latest actuarial valuation of the scheme.

The assets of the scheme are held in a separate trustee‐administered fund. The company is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis.

Under FRS102, the company has accounted for the present value of the contributions payable as identified in the most recent funding agreement.

NIAB, East Malling Services Limited and The Arable Group Limited also operate group money purchase schemes. For these, the pension costs charged in the financial statements represent the contributions payable by the companies during the year.

Page 28

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

2. Accounting policies (continued)

2.20 Going concern

The Trustees have acknowledged the guidance on going concern and financial reporting published by the Financial Reporting Council in 2016.

The Group's operating activities are diverse. Research and development in Crop Genetics, Computational Biology, Plant Breeding and Plant Characterisation are supported by long‐term contracts and competitively won research grants which, historically, have been largely unaffected by changes in the general economy. Crop Agronomy, Membership, Training and Seed Certification activities are generally contracted on an annual basis and are supported by a divers customer base.All of that income has been stable over a number of years. More recently the Group has been successful in being awarded large capital grants.

The Group balance sheet shows a surplus of £113k (2022: deficit £588k). Taking out the Restricted and Endowment funds leaves an Unrestricted deficit of £12,398k (2022: £13,972k). Stripping out the pension scheme deficit of £13,741k (2022: £17,405k) (discussed in more detail below), the long‐term debt to The Trust of £1,500k and Fixed Assets (Tangible plus Intangible) plus Trade investments in total within Unrestricted funds of £4,692k (2022: £4,313k) leaves an underlying unrestricted reserve deficit of £1,849k (2022: negative £620k) as described in the Reserves policy in this report.

Given the nature of its income, and with the changes in the current economy, particularly higher inflation, NIAB has undertaken an exercise of reviewing income and direct expenditure to identify areas of the organisation that are most sensitive to changes and under‐performing financially. The results have been used as a basis from which to formulate a model for strategic planning over the coming years. A key component of the revised plan is to create surpluses through improved margins on services and products.

The National Institute of Agricultural Botany Trust ('The Trust' ‐ Charity No. 1144528) was established with similar charitable objects to NIAB and fulfils its charitable objects through the provision of support to NIAB. A key component of the review of going concern, given other uncertainties, is the support from The Trust.

In September 2023 NIAB announced the divestment of commercial Strawberry Breeding activities and associated to Bayer AG. The transaction is due to complete in January 2024, subject to conditions precedent, and will result in a near term inflow of free cash to NIAB which will reduce he reliance on the Trust for a period of 12 months from the date of these financial statements.

At the time of writing this report, the forecast for 2023/24 is for an operational surplus.

A component of the financial risk to NIAB is the pension scheme. The NIAB (1996) Pension Scheme ('Scheme') was established in 1996 following NIAB's separation from Government and establishment as a not‐for‐profit entity. The Board have taken steps to manage the Scheme deficit, closing the Scheme to new members in 2001 and to future accrual in 2007.

The Trust is a participating employer in the Scheme with NIAB. This means that the entire deficit liability of the pension scheme is shared with The Trust, and the assets of The Trust support NIAB’s balance sheet in providing the employer covenant and the payments agreed under the recovery plan. A new recovery plan, based on the triennial valuation at 31 March 2021 has been agreed with the Pension Scheme Trustees and submitted to The Pensions Regulator for approval.

Page 29

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

2. Accounting policies (continued)

2.20 Going concern (continued)

The Trust has a balance sheet value of in excess of £54m. It has confirmed that it will continue to support NIAB and provide funding and lending sufficient to ensure NIAB remains a going concern. The funding includes ongoing funding for research and facilities and contributions to the pension scheme recovery payments. The lending is in the form of an 'overdraft' facility which can be used by NIAB to manage working capital fluctuations in year of up to £2m. NIAB has historically relied on this facility during the summer months, given the highly seasonal nature of some of NIAB's operations.

The Trustees have considered the following in arriving at their conclusions on going concern:

  1. The cash flow forecast and latest management accounts, which give confidence that NIAB can continue to pay its debts as they fall due.

  2. The likely inflow of the upfront payment for the Strawberry Breeding divestment will return NIAB to a cash surplus in 2023/24. Additional actions will be required to maintain this surplus into future periods.

  3. Should it be required, The Trust's continued support to NIAB through the provision of facilities and funding and borrowing support can be called upon.

  4. The Trust being a participating employer alongside NIAB in the Pension Scheme.

After making enquiries and considering the uncertainties described above, the Trustees have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being at least twelve months from the date of approval of these financial statements. For this reason, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

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

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

Page 30

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

3. Income from donations

Donations
National Institute of Agricultural Botany Trust
East Malling Trust
Donations
National Institute of Agricultural Botany Trust		 Unrestricted
funds
2023
£000
‐
247
247
Unrestricted
funds
2022
£000
662		 Restricted
funds
2023
£000
700
‐
700
Restricted
funds
2022
£000
500		 Total
funds
2023
£000
700
247
947
Total
funds
2022
£000
1,162

Page 31

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

4. Income from charitable activities

Agricultural services
Laboratory and research
Other activities
Total 2023
Agricultural services
Laboratory and research
Other activities
Total 2022		 Unrestricted
funds
2023
£000
10,558
2,921
107
13,586
Unrestricted
funds
2022
£000
11,014
4,813
14
15,841		 Restricted
funds
2023
£000
2,311
5,102
‐
7,413
Restricted
funds
2022
£000
2,550
14,729
‐
17,279		 Total
funds
2023
£000
12,869
8,023
107
20,999
Total
funds
2022
£000
13,564
19,542
14
33,120

Page 32

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

5. Income from subsidiary trading activities

Agricultural services
Agronomy consultancy
Agricultural services
Agronomy consultancy
Investment income
Rental income
Rental income		 Unrestricted
funds
2023
£000
6,393
1,307
7,700
Unrestricted
funds
2022
£000
6,232
1,273
7,505
Unrestricted
funds
2023
£000
63
Unrestricted
funds
2022
£000
56		 Total
funds
2023
£000
6,393
1,307
7,700
Total
funds
2022
£000
6,232
1,273
7,505
Total
funds
2023
£000
63
Total
funds
2022
£000
56

6. Investment income

Page 33

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

7. Analysis of expenditure on charitable activities

Summary by fund type

Agricultural services
Laboratory and research
Agricultural services
Laboratory and research		 Unrestricted
funds
2023
£000
11,109
2,344
13,453
Unrestricted
funds
2022
£000
10,173
3,227
13,400		 Restricted
funds
2023
£000
8,979
7
8,986
Restricted
funds
2022
£000
7,587
240
7,827		 Total
2023
£000
20,088
2,351
22,439
Total
2022
£000
17,760
3,467
21,227

The Trustees consider that all expenditure is classified as Research and Development expenditure.

Page 34

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

8. Analysis of expenditure by activities

Agricultural services
Laboratory and research
Agricultural services
Laboratory and research		 Activities
undertaken
directly
2023
£000
15,911
34
15,945
Activities
undertaken
directly
2022
£000
14,348
615
14,963		 Support costs
2023
£000
4,177
2,317
6,494
Support costs
2022
£000
3,412
2,852
6,264		 Total
funds
2023
£000
20,088
2,351
22,439
Total
funds
2022
£000
17,760
3,467
21,227

Analysis of support costs

Management
Finance
Information Technology
Human resources
Governance		 Agricultural
services
2023
£000
2,041
692
961
384
99
4,177		 Laboratory
and research
2023
£000
1,139
378
535
214
51
2,317		 Total
funds
2023
£000
3,180
1,070
1,496
598
150
6,494

Page 35

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

8. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Management
Finance
Information Technology
Human resources
Governance		 Agricultural
services
2022
£000
1,629
593
780
322
88
3,412		 Laboratory
and research
2022
£000
1,376
497
649
270
60
2,852		 Total
funds
2022
£000
3,005
1,090
1,429
592
148
6,264

Support costs have been allocated to activity cost categories on a basis consistent with the use of resources.

9. Auditors' remuneration

2023 2022
£000 £000
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts 43 30
Fees payable to the Charity's auditor in respect of:
The auditing of accounts of subsidiaries of the Charity 27 21
Additional fees in respect of audit previous year 7 ‐
Taxation compliance services 6 8

Page 36

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

10. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes
Operating costs of defined benefit pension
schemes		 Group
2023
£000
13,766
1,283
1,004
171
16,224		 Group
2022
£000
13,220
1,197
965
153
15,535		 Charity
2023
£000
12,267
1,138
912
150
14,467		 Charity
2022
£000
11,622
1,055
855
129
13,661

During the year £50,208 in total (2022: £2,420) was paid to 5 employees (2022: 2 employees) for redundancy payments. No ex gratia payments were made (2022: £35,289 to 2 employees).

The average number of persons employed by the Charity during the year was as follows:

Technical and Scientific
Support staff
Agricultural staff and casuals		 Group
2023
No.
218
52
99
369		 Group
2022
No.
219
54
93
366

Page 37

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

10. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2023 2022
No. No.
In the band £60,001 ‐ £70,000 14 10
In the band £70,001 ‐ £80,000 6 3
In the band £80,001 ‐ £90,000 1 3
In the band £90,001 ‐ £100,000 ‐ 3
In the band £100,001 ‐ £110,000 1 ‐
In the band £110,001 ‐ £120,000 2 2
In the band £120,001 ‐ £130,000 ‐ 1
In the band £130,001 ‐ £140,000 1 ‐
In the band £150,001 ‐ £160,000 1 1
The key management personnel during the year were:
Professor M Caccamo ‐ CEO
S M Knight
Dr W Orme ‐ CFO
M Leaman
N Watson
Dr J McKee
Dr R Harrison
Professor X Xu

The total costs relating to key management personnel (including wages and salaries, employer’s national insurance, pension costs and fees) during the year were £786k (2022: £1,010k).

Page 38

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

11. Trustees' remuneration and expenses

The Chairman of the Board of Trustees and the Chairman of the Board’s Finance Committee received honoraria, totalling £6,700 (2022: £9,600). Meeting fees totalling £9,800 were paid to six trustees (2022:£5,000 for six trustees). Charity Commission approval has been obtained prior to these payments.

As provided for in the charity’s Articles of Association, since November 2017 the Chief Executive of the charity is also a member of the board. The payments to Professor M J Caccamo (during the period of being both a Trustee and an employee) is as follows:

2023 2022
£000 £000
Remuneration 155 77
Pension contributionspaid 14 6
Other benefits 1 ‐
170 83

12. Taxation

NIAB is a registered charity and is exempt from tax on income and capital gains falling within section 505 of the Income and Corporation Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objectives. No tax charges have arisen in the Charitable Company. Any charges arising in the subsidiary companies are disclosed in Note 16.

There is no provision for deferred tax on fair value adjustments because any chargeable gains are applied to charitable objectives so no tax liability arises.

Page 39

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

13. Intangible assets

Group

Cost
At 1 April 2022
At 31 March 2023
Amortisation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Plant Variety
Rights
£000
1,350
1,350
463
93
556
794
887		 IT Platform
£000
93
93
93
‐
93
‐
‐		 Purchased
Goodwill
£000
318
318
318
‐
318
‐
‐		 Total
£000
1,761
1,761
874
93
967
794
887

Page 40

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

13. Intangible assets (continued)

Charity

Cost
At 1 April 2022
At 31 March 2023
Amortisation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Plant Variety
Rights
£000
1,350
1,350
463
93
556
794
887		 IT Platform
£000
93
93
93
‐
93
‐
‐		 Total
£000
1,443
1,443
556
93
649
794
887

Page 41

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

14. Tangible fixed assets

Group

Cost or valuation
At 1 April 2022
Additions
Disposals
Transfers between
classes
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
On disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Short‐term
leasehold
property
£000
1,499
‐
‐
11,096
12,595
504
1,296
‐
1,800
10,795
995		 Plant,
machinery &
vehicles
£000
9,112
451
(160)
30
9,433
6,527
537
(1)
7,063
2,370
2,585		 Office &
Computer
equipment
£000
3,091
248
(1,768)
‐
1,571
2,671
270
(1,573)
1,368
203
420		 Scientific
equipment
£000
3,967
717
(556)
129
4,257
2,809
411
(356)
2,864
1,393
1,158		 Assets under
construction
£000
10,757
1,361
‐
(11,255)
863
‐
‐
‐
‐
863
10,757		 Total
£000
28,426
2,777
(2,484)
‐
28,719
12,511
2,514
(1,930)
13,095
15,624
15,915

Page 42

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

14. Tangible fixed assets (continued)

Charity

Cost or valuation
At 1 April 2022
Additions
Disposals
Transfers between
classes
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
On disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Short‐term
leasehold
property
£000
1,499
‐
‐
11,096
12,595
504
1,296
‐
1,800
10,795
995		 Plant,
machinery &
vehicles
£000
8,968
451
(158)
30
9,291
6,456
529
‐
6,985
2,306
2,512		 Office &
Computer
equipment
£000
3,091
248
(1,768)
‐
1,571
2,671
270
(1,573)
1,368
203
420		 Scientific
equipment
£000
3,967
717
(556)
129
4,257
2,809
411
(356)
2,864
1,393
1,158		 Assets under
construction
£000
10,757
1,361
‐
(11,255)
863
‐
‐
‐
‐
863
10,757		 Total
£000
28,282
2,777
(2,482)
‐
28,577
12,440
2,506
(1,929)
13,017
15,560
15,842

The net book value of the group’s and charity's assets includes £506,402 (2022: £302,748) in respect of assets held under finance leases and hire purchase contracts. Depreciation charged in the year on those assets totalled £96,473 (2022: £79,780).

Page 43

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

15.
Fixed asset investments
Group and Charity
Cost or valuation
At 1 April 2022
Additions
Amounts written off
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Programme
related
investments
£000
145
‐
(110)
35
35
145

Page 44

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

16. Principal subsidiaries

The following were subsidiary undertakings of the Charity:

Names Company Charity Principal activity Class of
number registration shares
number
The Arable Group Limited 00192460 212059 Agriculture
TAG Consulting Limited 05110993 Agriculture Ordinary
NIAB Trading Ltd 07390289 Agriculture Ordinary
NIAB EMR 09894859 1165055 Horticulture
East Malling Services Ltd. 02335037 Horticulture Ordinary

The financial results of the subsidiaries for the year were:

Names Income Expenditure Profit/ Net assets/
£000 £000 Surplus for (liabilities)
the year £000
£000
The Arable Group Limited 314 223 91 66
TAG Consulting Limited 1,241 1,294 (53) (180)
NIAB Trading Ltd 4,869 4,852 17 11
NIAB EMR 50 52 (2) 1,621
East Malling Services Ltd. 4,871 4,629 242 798

The registered office of all of the subsidiaries is 93 Lawrence Weaver Road, Cambridge CB3 0LE.

The Arable Group Limited and NIAB EMR are charitable companies limited by guarantee, considered to be subsidiary undertakings by virtue of control, as NIAB is the sole voting member with the power to appoint the board. NIAB holds all of the issued share capital of TAG Consulting Limited, NIAB Trading Ltd and East Malling Services Ltd.

All of the subsidiaries carry out activities in furtherance of NIAB's charitable objectives.

Page 45

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

17. Stocks

Raw materials and consumables
Finished goods and goods for resale		 Group
2023
£000
192
283
475		 Group
2022
£000
150
180
330		 Charity
2023
£000
192
167
359		 Charity
2022
£000
150
105
255

18. Debtors

Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments
Accrued income		 Group
2023
£000
2,815
‐
304
840
3,905
7,864		 Group
2022
£000
3,990
‐
461
860
5,263
10,574		 Charity
2023
£000
1,397
2,078
295
817
1,666
6,253		 Charity
2022
£000
2,277
1,721
458
838
2,300
7,594

Page 46

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

19. Creditors: Amounts falling due within one year

National Institute of Agricultural Botany Trust
Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Obligations under finance lease and hire purchase
contracts
Other creditors
Accruals and deferred income
Deferred income at 1 April 2022
Resources deferred during the year
Amounts released from previous periods		 Group
2023
£000
980
1,570
‐
849
179
1,132
6,282
10,992
Group
2023
£000
3,582
3,004
(3,582)
3,004		 Group
2022
£000
148
2,085
‐
374
195
1,431
7,089
11,322
Group
2022
£000
4,225
3,582
(4,225)
3,582		 Charity
2023
£000
980
1,479
3,337
660
179
693
4,031
11,359
Charity
2023
£000
2,902
2,396
(2,902)
2,396		 Charity
2022
£000
148
2,000
2,570
283
195
918
4,338
10,452
Charity
2022
£000
3,347
2,902
(3,347)
2,902

Deferred income for the group relates to annual membership subscriptions paid in advance, key renewal dates being 30 September and 31 December, together with pre‐financing payments for EU contracts and payments received in advance for contracted services.

Page 47

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

20. Creditors: Amounts falling due after more than one year

Other loans
Net obligations under finance lease and hire
purchase contracts
Other creditors
Obligations under finance leases and hire
purchase contracts
Within one year
Within two to five years		 Group
2023
£000
1,500
129
66		 Group
2022
£000
1,500
151
66		 Charity
2023
£000
1,500
129
24		 Charity
2022
£000
1,500
151
24
1,695 1,717 1,653 1,675
Group
2023
£000
195
151
346		 Group
2022
£000
214
213
427		 Company
2023
£000
195
151
346		 Company
2022
£000
214
213
427

The obligations under finance leases and hire purchase contracts are secured by a charge over the assets financed.

The loan of £1,500,000 is from the National Institute of Agricultural Botany Trust, a related party. Further details of this loan are disclosed in note 32.

21. Financial instruments

Group Group Charity Charity
2023 2022 2023 2022
£000 £000 £000 £000
Financial assets
Financial assets measured at fair value through
income and expenditure 1,749 2,005 1,571 1,419

Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by NIAB Trust and other debtors.

Page 48

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

22. Statement of funds

Statement of funds ‐ current year

Unrestricted funds
General funds
Pension fund
Endowment funds
John Oldacre Foundation
Restricted operating funds
Restricted grant income
Restricted property funds
Hasse Fen capital fund
Restricted Capital Grant Funds
Total Restricted funds
Total of funds		 Balance at 1
April 2022
£000
3,433
(17,405)		 Income
£000
21,596
‐
21,596
‐
7,713
‐
400
400
8,113
29,709		 Expenditure
£000
(23,576)
181
(23,395)
‐
(7,713)
(60)
(1,213)
(1,273)
(8,986)
(32,381)		 Gains/
(Losses)
£000
(110)
3,483
3,373
‐
‐
‐
‐
‐
‐
3,373		 Balance at 31
March 2023
£000
1,343
(13,741)
(12,398)
750
‐
128
11,633
11,761
11,761
113
(13,972)
750
‐
188
12,446
12,634
12,634
(588)

Page 49

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

22. Statement of funds (continued)

Statement of funds ‐ prior year

Unrestricted
funds
General funds
Pension fund
Endowment
funds
John Oldacre
Foundation
Restricted
operating funds
Other revenue
grants
Restricted grant
income
Restricted
property funds
Restricted Capital
Grant Funds
Total Restricted
funds
Total of funds		 Balance at
1 April 2021
£000
5,753
(19,225)
(13,472)
750
‐
‐
‐
248
248
(12,474)		 Income
£000
24,064
‐
24,064
‐
500
7,217
7,717
10,062
17,779
41,843		 Expenditure
£000
(23,739)
‐
(23,739)
‐
(500)
(7,217)
(7,717)
(110)
(7,827)
(31,566)		 Transfers
in/(out)
£000
(2,434)
‐
(2,434)
‐
‐
‐
‐
2,434
2,434
‐		 Gains/
(Losses)
£000
(10)
1,619
1,609
‐
‐
‐
‐
‐
‐
1,609		 Balance at
31 March
2022
£000
3,634
(17,606)
(13,972)
750
‐
‐
‐
12,634
12,634
(588)

Page 50

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

The John Oldacre Foundation fund is an amount held as capital where only income can be spent. The expenditure is restricted to funding post‐graduate studentships of young innovators.

The Hasse Fen capital fund was a grant received to build at NIAB's Hasse Fen site. The expenditure represents annual depreciation of the asset.

The Restricted Capital Grants Fund represents amounts received to buy or build tangible fixed assets. They have all been fully utilised and the relevant assets are in use. The expenditure in the period relates to the depreciation of the assets concerned.

The transfer of £2,434k in 2022 relates to Capital Grant monies received in the previous year and treated as unrestricted. These have now been reallocated and disclosed as Restricted Capital Grant Funds.

23. Analysis of net assets between funds

Analysis of net assets between funds ‐ current year

Tangible fixed assets
Intangible fixed assets
Trade investments
Current assets
Creditors due within one year
Creditors due in more than one year
Defined benefit pension scheme liability
Total		 Unrestricted
funds
2023
£000
3,863
794
36
9,337
(10,993)
(1,694)
(13,741)
(12,398)		 Restricted
capital grant
funds
2023
£000
11,761
‐
‐
‐
‐
‐
‐
11,761		 Endowment
funds
2023
£000
‐
‐
‐
750
‐
‐
‐
750		 Total
funds
2023
£000
15,624
794
36
10,087
(10,993)
(1,694)
(13,741)
113

Page 51

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

23. Analysis of net assets between funds (continued)

Analysis of net assets between funds ‐ prior year

Tangible fixed assets
Intangible fixed assets
Trade investments
Current assets
Creditors due within one year
Creditors due in more than one year
Defined benefit pension scheme liability
Total		 Unrestricted
funds
2022
£000
3,281
887
145
12,159
(11,322)
(1,717)
(17,405)
(13,972)		 Restricted
capital grant
funds
2022
£000
12,634
‐
‐
‐
‐
‐
‐
12,634		 Endowment
funds
2022
£000
‐
‐
‐
750
‐
‐
‐
750		 Total
funds
2022
£000
15,915
887
145
12,909
(11,322)
(1,717)
(17,405)
(588)

24. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Amortisation charges
Investments written off
Profit on the sale of fixed assets
Increase in stocks
Decrease/(increase) in debtors
Decrease in creditors
Interest payable
Pension scheme adjustments
Net cash provided by operating activities		 Group
2023
£000
(2,782)
2,514
93
110
(52)
(145)
2,710
(314)
64
(181)
2,017		 Group
2022
£000
10,267
1,235
93
10
(6)
(32)
(2,509)
(733)
33
(201)
8,157

Page 52

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

25. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 Group
2023
£000
1,749
1,749		 Group
2022
£000
2,005
2,005

26. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year
Finance leases		 At 1 April
2022
£000
2,005
(148)
(1,500)
(346)
11		 Cash flows
£000
(256)
(832)
‐
38
(1,050)		 At 31 March
2023
£000
1,749
(980)
(1,500)
(308)
(1,039)

Page 53

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

27. Pension commitments: Defined Benefit schemes

(A) NIAB Defined Benefit Pension Scheme

NIAB operates a defined benefit pension scheme which was established on 1 April 1996. The assets of this scheme are held in a separate fund controlled by trustees. The scheme was closed to future benefit accrual on 31 July 2007.

The most recent actuarial valuation of the Scheme was carried out as at 31 March 2021. The valuation has been updated to 31 March 2023 by a qualified independent actuary.

NIAB expects to contribute £1,000,400 to its defined benefit pension scheme in 2023/24 (2022/23: £1,000,000).

The amounts recognised in the balance sheet are as follows:

Present value of funded obligations
Fair value of plan assets
Deficit		 2023
£000
(36,208)
22,467
(13,741)		 2022
£000
(48,403)
30,998
(17,405)

Included in the deficit is £Nil (2022‐ £Nil) which is a provision for Guaranteed Minimum Pension equalisation.

The Pension Fund Trustees and the charity agreed as part of the 31 March 2018 valuation that, from 1 April 2020 onwards, pensions in payment will increase in line with CPI rather than RPI. Increases will continue to be capped at 5% pa for pensions accrued pre 1 April 2006 and 2.5% pa for pensions accrued thereafter. That change has resulted in a reduction in the present value of the defined benefit obligation. The amounts recognised in the net income and expenditure are as follows:

Administration costs incurred during the period
Net interest cost
Past service cost
Total pension expense		 2023
£000
150
478
‐
628		 2022
£000
130
378
‐
606

Page 54

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

27. Pension commitments: Defined Benefit schemes (continued)

The amounts in the statement of other movements in funds are:

Actuarial gain/(loss) on plan assets
Actuarial gain/(loss) on defined
benefit obligation
of which due to experience
of which due to demographic
assumptions
of which due to financial
assumptions
Total gain/(loss) in other movements
in funds		 2023
£000
(1,880)
‐
13,839		 2023
£000
(8,476)
11,959
3,483		 2022
£000
(546)
22
1,696
‐		 2022
£000
447
1,172
1,619

Changes in the present value of the defined benefit obligations are:

Liabilities at the start of the period
Interest cost
Actuarial gain
Benefits paid
Liabilities at the end of the period
Changes in the fair value of plan assets are:
Fair value of plan assets at start of the period
Interest income
Actuarial (loss)/gain
Contributions by the employer
Benefits paid
Non‐investment expenses
Fair value of plan assets at end of the period
Interest income
Actuarial (loss)/gain on plan assets
Return on plan assets		 2023
£000
(48,403)
(1,333)
11,959
1,569
(36,208)
2023
£000
30,998
855
(8,476)
809
(1,569)
(150)
22,467
2023
£000
855
(8,476)
(7,621)		 2022
£000
(50,033)
(986)
1,172
1,444
(48,403)
2022
£000
30,808
608
447
709
(1,444)
(130)
30,998
2022
£000
608
447
1,055

Page 55

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

Principal actuarial assumptions at the balance sheet date:

2023 2022
Discount rate 4.8% 2.8%
Rate of increase in salaries 2.8% 3.4%
Rate of increase in pensions 2.8% 3.3%
Rate of inflation RPI 3.4% 4.0%
Rate of inflation CPI 2.8% 3.4%
Life expectancies:
Current pensioners age 65 ‐ males 21.9 21.8
Current pensioners age 65 ‐ females 24.2 24.2
Future pensioners age 65 (currently age 45) ‐ males 22.8 22.8
Future pensioners age 65 (currently age 45) ‐ females 25.4 25.3

Experience of gains and losses

Liabilities at the end of the year
Assets at the end of the year
Deficit at the end of the year
Asset gain
% of scheme assets
Liability gain/(loss)
% of scheme assets		 2023
£000
(36,208)
22,469
(13,741)
(8,476)
‐37.7%
11,959
33.0%		 2022
£000
(48,403)
30,998
(17,405)
‐
1.4%
1,172
2.4%		 2021
£000
(50,033)
30,808
(19,225)
‐
4.5%
(6,750)
‐13.5%		 2020
£000
(43,939)
29,952
(13,987)
(116)
‐.4%
(239)
‐.5%		 2019
£000
(48,637)
29,864
(18,773)
852
2.9%
(2,117)
‐4.4%

Page 56

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

27. Pension commitments: Defined Benefit schemes (continued)

(B) Universities Superannuation Scheme

Liability less than 1 year
Liability more than 1 year
Total		 2023
£'000
3
42
45		 2022
£'000
3
42
45

Since the The Arable Group Limited cannot identify its share of the assets and liabilities of the USS scheme, the following disclosures have been provided by the pension scheme to reflect those relevant for the scheme as a whole.

Universities Superannuation Scheme (USS )

Following changes to the USS, this scheme now comprises two parts, USS Retirement Income Builder which is a defined benefit arrangement and USS Investment Builder which is a defined contribution arrangement. The latest formal actuarial valuation of the USS defined benefit liabilities has been carried out as at 31 March 2020 to meet the requirements of the Pensions Act 2004 and was published in March 2022. This actuarial valuation shows a shortfall of £14.1bn in the USS with the scheme assets being sufficient to cover 83% of its ‘technical provisions’ liabilities.

Based on this valuation the actuary has determined that the Employers deficit contributions will be 6.2% of salary until 31 March 2024 and 6.3% thereafter.

The past service deficit contributions are expected to correct the deficit by 30 April 2038. To reflect the liability for these contributions the charity has used a financial modeller to calculate the provision it needs to recognise in the financial statements. The calculated amount is recognised in the balance sheet and any changes in the value of the deficit liability each year are shown on the Statement of Financial Activities. The assumptions used as part of this modelled for the year ended 31 March 2023 are shown below.

Further details on, and a copy of, the 2020 Actuarial Valuation of the USS can be found on the USS website.

Page 57

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

27. Pension commitments: Defined Benefit schemes (continued)

Further information on the 2020 actuarial valuation of the USS Scheme is included below.

Of The Arable Group Limited's 4 employees at 31 March 2023 (2022:4), 2 were members of USS (2022:2).

The Arable Group Limited’s calculated share of the USS defined benefit pension liability amounts to £45k (2022: £45k) and the total cost charged to the Statement of Financial Activities in respect of USS amounts to £NIL (2022: £15k).

The liability has been re‐calculated using the USS model provided with reference to the remaining deficit recovery period of 18 years from 2020 to 2038. Since the group cannot identify its share of the assets and liabilities of the USS scheme, the following disclosures have been provided by the pension scheme to reflect those relevant for the scheme as a whole.

The following assumptions were used to calculate the group’s share of the USS liability:

2023 2022
Discount rate 5.5% 2.22%
Projected salary inflation 3.0% 2.7%

Salary inflation assumptions take into account the level of annual pay increases set in the April before the relevant year‐end, prevailing CPI rates, and the Bank of England long‐term inflation target of 2%. The calculation reflects an assumption that there would be some reduction in member numbers in the forward years. The assumptions underpinning the calculation reflect a prudent assessment of the available information and options but represents a key area of estimation uncertainty in the financial statements.

Analysis of the charge to the income and expenditure statement is set out below:

Employer contributions
Contributions allocated to deficit provision
Change in contributions from past expectations
Contribution costs total
Interest payable		 2023
£'000
21
(6)
(16)
(1)
1
‐		 2022
£'000
8
‐
7
15
1
16

Defined benefit liability numbers for the scheme have been produced using the following assumptions:

2023 2022
Discount rate 5.5% 2.22%
Pension increases (CPI) 2.7% 2.7%

Page 58

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

27. Pension commitments: Defined Benefit schemes (continued)

The main demographic assumption used relates to the mortality assumptions. These assumptions are based on analysis of the Scheme’s experience carried out as part of the 2020 actuarial valuation. The mortality assumptions are based on the following mortality tables:

2020 2018
Male members mortality 101% of S2PMA 71% of AMC00
light (duration 0)
Female members mortality 95% of S3PFA 112% of AMFG00
(duration 0)

Future improvements to mortality are based on the Continuous Mortality Investigation’s (CMI) 2019 projections with smoothing parameter of 7.5, an initial addition of 0.5% and a long‐term improvement rate of 1.8% for males and 1.6% for females.

The current life expectancies on retirement at age 65 are:

2023 2022
Males currently aged 65 years 24.0 23.9
Females currently aged 65 years 25.6 25.5
Males currently aged 45 years 26.0 25.9
Females currently aged 45 years 27.4 27.3

Summary of the Scheme position as at 31 March is set out below:

2023 2022 2021
Scheme assets £129.3bn £124.4bn £80.6bn
Total scheme liabilities £82.9bn £77.1bn £95.8bn
FRS102 Total scheme deficit £46.4bn £47.3bn £15.2bn
FRS102 Total funding level 111% 83% 84%

Page 59

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

28. Operating lease commitments

At 31 March 2023 the Group and the Charity had commitments to make future minimum lease payments under non‐cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 Group
2023
£000
676
841
47
1,564		 Group
2022
£000
729
1,275
‐
2,004		 Charity
2023
£000
675
841
47
1,563		 Charity
2022
£000
728
1,275
‐
2,003

The following lease payments and changes in lease payments have been recognised in the Statement of Financial Activities:

Land and Buildings
Motor vehicles		 Group
2023
£000
666
113
779		 Group
2022
£000
665
155
820		 Charity
2023
£000
666
107
773		 Charity
2022
£000
665
155
820

29. Post balance sheet events

In September 2023, NIAB announced the divestment of commercial Strawberry Breeding activities and associated income to Bayer AG. The transaction is due to complete in January 2024, subject to conditions precedent.

On 1 April 2023 all of the employees of East Malling Services Ltd., a subsidiary, were transferred to this company under TUPE regulations.

30. Capital commitments

There are no capital commitments to report.

31. Members' liability

The charitable company is incorporated as a company limited by guarantee having no share capital and, in accordance with the Memorandum of Association, every member is liable to contribute a sum of £1 in the event of the company being wound up. At 31 March 2023 there were eleven members, comprising the Trustees.

Page 60

NIAB

Notes to the Financial Statements For the Year Ended 31 March 2023

32. Related party transactions

In the ordinary course of business the company entered into transactions with National Institute of Agricultural Botany Trust. The company has a close relationship with National Institute of Agricultural Botany Trust, which has an object to support NIAB.

During the course of the year NIAB is charged a facilities charge for the occupation of the land and buildings owned by the Trust, and the Trust receives a charge from NIAB relating to the Research Funding Agreement between the two parties. These transactions will be represented by both cash and non‐cash, due to accruals made for activities at the end of the financial year.

These transactions are summarised below:

2023 2022
£000 £000
Closing (creditor) (980) (148)
Annual support 1,125 1,125
Support towards pension costs 650 500
Contribution towards other costs 50 662
Premises expenditure (500) (500)

In 2017 NIAB EMR, a subsidiary company, obtained a loan of £1,500,000 from National Institute of Agricultural Botany Trust. The loan was transferred to NIAB on 1 April 2021 when the business, assets and liabilities of NIAB EMR were merged into NIAB. This loan is secured by a first fixed and floating charge on the assets of NIAB EMR and, while there is is no fixed repayment timetable, the loan is repayable in full by 8 February 2026. Interest is charged at 2% above the Bank of England base rate, which is considered to be a market value.

The charitable company has taken advantage of the exemptions contained within FRS102, section 33, not to disclose intra‐group transactions on the basis that the subsidiaries are wholly owned and the accounts are publicly available.

33. Parent charity result

The parent charity result for the year before other recognised gains and losses and before charges or credits to the pension fund cost was a deficit of £2,363k (2023: surplus £9,815k).

Page 61