PAUL SMITH'S FOUNDATION
Registered Charity No: 1065751 Company No: 03346635
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2024
Paul Smith's Foundation
Trustees' Report for the year ended 30th June 2024
The trustees present their report along with the financial statements of the Foundation for the year to 30th June 2024. The Foundation is a registered charity with the Charity Commission for England and Wales with registered charity number 1065751 and is a registered Company in England and Wales with Company number 03346635. The Foundation is constituted by its Memorandum and Articles of Association.
| Trustees | Sir Paul Smith |
|---|---|
| Ashley Long | |
| Sean Baker | |
| James Horsley | |
| Secretary | Ashley Long |
| Registered | 20 Kean Street |
| Office | London |
| England | |
| WC2B 4AS | |
| Bankers | Yorkshire Bank Plc |
| 11 Smithy Row | |
| Notthingham | |
| Accountants | Moore Kingston Smith LLP |
| Chartered Accountants | |
| 6th Floor | |
| 9 Appold Street | |
| London EC2A 2AP |
Objects, Activities and Public Benefit
The objects of the Charity are to advance the education of the public in all matters concerning design, fine arts and design movement.
The trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit including the guidance 'public benefit: running a charity (PB2).'
Appointment of new trustees
New trustees may be appointed by the trustees, to fill a vacancy or as an additional trustee. The Trust shall select appropriate trustees and provide them with an induction to acquaint them with the governance and policies of the Trust as well as what is expected of them in their new role. Additional training and/or information will be provided to the trustees on an ongoing basis.
Achievements, Performance and Financial Review
Grant-giving
The programme of grants and donations in support of and for the furtherance of the objects of the charity has continued throughout the year including a new London Living Grant for students studying at the Royal Drawing School. The Foundation now makes four grants annually to promising creative practitioners in visual arts and fashion design, though established partners including the Royal Academy Schools, RDS, and British Fashion Council in London, and Fashanne in Nottingham. At present there are no plans to further increase the grant making programme.
Under the guide of the Foundation’s Director, the Trust launched two flagship projects to support the business skills training creative people.
During the year, the charity made grant payments and donations of £44,436 (2023: £82,149). All grants were given in support of and for the furtherance of the objects of the charity.
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Paul Smith's Foundation
Trustees' Report for the year ended 30th June 2024
Achievements, Performance and Financial Review (continued)
The Fashion Residency
The Fashion Residency at Studio Smithfield, a pioneering business development programme for early career fashion designers, delivered in partnership by the Mayor of London, Projekt and Paul Smith’s Foundation and supported by British GQ.
The programme includes a free studio space for six designers in the heart of the City of London and an accelerator programme of bespoke business mentoring from industry experts on topics including common legal issues, finance, manufacturing, communications and more. Created and delivered by Paul Smith’s Foundation, the business accelerator is an intentional programme where the mentors create targets and objectives for the designers to fulfil between sessions. Each resident designer also has access to 10 hours of pro bono support from Osborne Clarke LLP, use of 2,500 sqft event space, dye room and reading room and bespoke support on event management, freelancer introductions, partnership and consultancy work and project management.
Each designer is also paired with a ‘Personal Mentor’ who acts as a confidant, guide and sounding board throughout the residency period. Through the generosity of the Mayor of London and Projekt, the designers also have free usage of a 2,500 sqft event space, dye room, reading room with books donated from Tate, Phaidon, Hauser & Wirth and more. The programme is designed for designers who are at the early stages of their career, have delivered 2-3 seasons and are at a pivotal moment of growth.
The designers in Cohort One are: Paolo Carzana, Pauline Dujancourt, Laura Pitharas, Paolina Russo, Karoline Vitto and YAKU.
Personal Mentors on The Fashion Residency include Adam Andrascik, Charlie Casely-Hayford, Henry Holland, Phoebe Briggs, Mandi Lennard, and Olya Kuryshchuk. Business skills workshop leaders include Alice Bouleau, Sterling International; Catherine Sutton, Sutton Communications; Helen McGowan, Jason Leung & Vince To at The Alphabet Showroom; Laura Holmes, Founder of Holmes Productions; Laura Weir, incoming BFC CEO; Matthew Mumford, Head of Creative at Paul Smith; Murray Clark, Senior Style Editor at British GQ; Neha-Tamara Patel, Director of Audience Development, Analytics & Social at British GQ; Orsola de Castro and Tamsin Blanchard, Estethica, Osborne Clarke LLP, Patrick Atkinson, Head of Buying & Merchandising at Paul Smith; Philipp Raheem, Photographer and Editorial Director of Vingt Sept Magazine; Vikram Menon, Financial Advisor and Founder Fashionex.
The Fashion Residency is funded through the generosity of the Mayor of London and Projekt. Paul Smith’s Foundation contributes £0 to the core costs but manages the ideation and implementation of the programme.
Launch Press
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Paul Smith's Foundation Trustees' Report for the year ended 30th June 2024
Achievements, Performance and Financial Review (continued)
The International Art Prize
In May 2024 the Foundation launched its second flagship project, the International Art Prize, delivered in partnership with heritage artists materials company Winsor & Newton. The International Art Prize is a new opportunity for artists working in painting and drawing which identified a winning artist in Tokyo, Hong Kong, London, Paris, New York, and Los Angeles simultaneously. This prize was designed to: develop the artists professional skills like building networks, exhibition management and production; grow their audience both locally and internationally and align them with local figures of industry whilst also providing an opportunity to freely create. Judges on The Art Prize were Ekow Eshun, Curator, writer and broadcaster and Chair of the Fourth Plinth in London; Aaina Bhargava , Arts and Culture Editor of Tatler Asia; Jeanne Greenberg Rohatyn, Founder of Salon 94 and Salon 94 Design, art advisor and collector; Kyoko Hattori, Vice President of Pace, Japan; Fabien Vallerian, International Director of Arts & Culture chez Ruinart and César García-Alvarez, Co-founding executive and artistic director of The Mistake Room.
Launch Press
Communications
The Trust changed the website URL and email system to end .org rather than .com. The dedicated website (paulsmithsfoundation.org) continues to be a platform of helpful advice for young creatives, and the Foundation’s Instagram (@paulsmithsfoundation) has been further developed with engaging content specifically designed to further the public’s education and provide inspiration in the fields of fine arts, design and business development. The Foundation’s Instagram following continues to steadily grow under new leadership and a more strategic and partnership-based approach to the content.
Work continued in the archive by means of cataloguing, itemising, and relocating an extraordinary sample of the history of Paul Smith. The Archive forms a central part of the Foundation’s plans to create an educational resource which is accessible to the general public with a view to inspire, educate and develop skills of designers through open- access and teacher-led sessions. As the archive is based in Nottingham, Paul Smith’s Foundation intends has begun plans to involve local universities to ensure that the opportunity is made widely accessible.
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Paul Smith's Foundation
Trustees' Report for the year ended 30th June 2024
Investments Policy
The majority of investments are shares held in a range of private companies as analysed in Note 15 to the financial statements. The trustees have wide powers of investment in respect of the Foundation's assets.
The Foundation will invest in and hold assets that will:
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i. Directly promote of the Objects of the charity, and or;
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ii. Provide a long term investment return to maintain the reserves of the Charity.
The trustees ensure the Programme Related Investment (PRI) strategy is aligned with the charitable mission and objectives of the Foundation.
Grant Policy
The trustees review grant requests on a case-by-case basis in the light of the requested purpose of the grant. All grants are awarded in accordance with the objects which are to advance the education of the public in all matters concerning design, fine arts and design management.
Reserves Policy
The trustees aim to provide sufficient funds to cover the existing level of grants committed as well as provide a long term fund from which its charitable activities can be increased in the future. Total unrestricted funds at the year-end totalled £19,239,227 (2023 : £20,159,496). During the year a loss on investments of £780,496 (2023: gain of £2,035,183) was recognised in respect of its investments in Paul Smith Group Holdings Limited and Floral Street Property Partners Limited.
Free reserves are described as those reserves, excluding fixed assets which are readily available for use in the operations of the charity. At year end, unrestricted free reserves totalled £201,202 (2023: £397,422). The trustees consider the level of free reserves sufficient to fund its grant programme and cover any unplanned expenditure.
Key management and remuneration policy
The trustees are not remunerated and the Trust has no employees. The trustees are considered to be the key management personnel.
The Trust has no employees of its own but since October 2023 a Director has been in place to oversee the operations, programme, strategy and implementation of work. The Director is employed by Paul Smith Limited with costs recharged to the Foundation and works closely with and reports to the Trustees.
Principle risks and uncertainties
The trustees have assessed the major risks to which the charity is exposed, in particular those related to the investments, operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate the exposure to the major risks.
The principal risk for the Foundation is not meeting the objects of the charity. The trustees are confident that this is now being actively managed following the recruitment of our charity director in October 2023, and the significant progress in charitable activities since.
Future Plans
Having established the reserves of the Foundation with the initial income from donations received from the Paul Smith Discretionary Trust, the trustees continue to increase the visibility and activites of the charity with a modest level of growth in grant and donation activity whilst focussing on generating income from its investments for longer term allocation to causes that further its objectives.
The Trustees will continue to develop the charity through an internal funding review and active outreach for external funding through the launch of a patron programme and corporate sponsorships.
The Director and Foundation trustees intend to launch further flagship projects which address the Foundation’s objectives – developing the business skills training of creative people.
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Paul Smith's Foundation Trustees, Report for the year ended 30th June 2024 Statement of Trustees. Responsibilities The trustèes (who are è150 directors of the Paul Smith Foundation) are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and regulations. Company law requires the trustees to prepare financial Statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice Iunited Kingdom Accounting Standards and applicable lawl. The financial statements are required by law to give a true and fair view of the state of affairs of the charitable company and of the income a nd expenditure of the Trust for that period. In preparing these financia5 statements, the trustees are required to.. select suitable accountinE policies and then apply them consistently,. observe the method5 and principles in the Charities SORP,. make judgments and estimates that are reasonable and prudent,. state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.. and prepare the financial statement5 on the going concern ba515 unless It Is inappropriate to presume that the Trust will continue in business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Company Act 2006. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Small Company Provislons This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006. On behalf of the Trustees Ashley Long Date: 12 March 2025
Independent Examiner's Report to the Trustees' of Paul Smith's Foundation
I report to the charity trustees on my examination of the accounts of the Company for the year ended 30th June 2024.
Responsibilities and basis of report
As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner’s statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Adam Fullerton, FCA, DChA For and on behalf of Moore Kingston Smith LLP
6th Floor 9 Appold Street London, EC2A 2AP
Date: 12 March 2025
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Paul Smith's Foundation Statement of Financial Activities For the year ended 30 June 2024
| Note Income from: Investment income 2 Total Expenditure on: Charitable Activities: 3 Grants and donations payable in furtherance of objects 4 Insurance 5 Website expenses 6 Archive costs 7 Legal & Professional 8 Advertising costs 9 Total Net (loss)/gain on investments 15 Net movement in funds Total funds brought forward Total funds carried forward |
Unrestricted £ 159,641 159,641 44,436 5,566 - 229,926 14,032 5,453 299,413 (780,496) (920,268) 20,159,496 19,239,228 2024 |
Unrestricted £ 200,950 200,950 82,149 5,270 97,656 287,425 13,272 5,109 490,881 2,035,183 1,745,252 18,414,244 20,159,496 2023 |
|---|---|---|
The notes on pages 9 to 15 form part of the financial statements.
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Paul Smith's Foundation Balance Sheet as at 30 June 2024 2024 2024 2023 2022 Note Fixed Assets Investment5 15 19,156,308 19,936,804 Current Assets Cash at bank Debtors 201,202 19,106 397,422 139.020 16 220,308 536,442 Creditors- Amounts falling due within one year 17 1137,3881 1313,7501 1137,3881 1313,7501 Net Current Asset5 82,920 222,692 Total Assets les5 current liabilities 19,239,228 20,159,496 Total Net Assets 19,239,228 20,159,496 Fund5 Unrestricted Funds 19,239,228 20,159,496 The notes on pages 9 to 15 form part of the financial statements. The directors state.. lal For the year ended 30th June 2024 the charitable company was entitled to exemption under Section 477 of the Companies Act 2006. Ibl No notice from Trustees requiring an audit ha5 been deposited under Section 476 of the Companies Act 2006. Icl The directors acknowledge their responsibilitie5 for.. lil ensuring that the charitable company keeps accounting records which comply with Section 386 of the Companies Art 2006, and lill preparing financial statements which give a true and fair view of the state of affair5 of the charitable compa ny as at the end of the financial year, and of its income and expenditure for the financial year, in accordance with the requirement5 of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, 50 far a5 applicable to the charitable company. Idl The account5 have been prepared in accordance with the special provisions relating to small companie5 Wlthin Part 15 of the Compariie5 Act 2006 and in accordance with the provision5 of the Financial Reporting Standard 102. The accounts were approved by the board and authorised for issue on 12 March 2025 and signed on Its behalf by.. Trustee- Ashley Long Company number.. 03346635
Paul Smith's Foundation Notes to the Accounts
For the year ended 30 June 2024
1 Accounting policies
Basis of accounting
These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the revaluation of investments being measured at fair value through income and expenditure within the Statement of Financial Activities.
The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charitable company is a public benefit entity for the purposes of FRS 102 and therefore the charitable company also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound.
The principal accounting policies adopted in the preparation of the financial statements are set out below.
Going Concern Basis
The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity’s forecasts and projections and have taken account of pressures on donation income, dividend income and the valuation of the investment portfolio and income generation from the fund. After making enquiries the trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
Income
Income is credited to the Statement of Financial Activities on an accruals basis when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably. Donated investments are valued at their market value on the date of transaction. Investment income and bank interest are accounted for on a receivable basis.
Expenditure
Expenditure is charged on an accruals basis. Grants payable are included in the Statement of Financial Activities when approved by trustees and offered to the grantee. Support costs have been apportioned across expenditure relating to charitable acitivies.
Investments
In valuing investments the trustees have had due regard to Section 11 Paragraph 17 of the SORP. Investments are accounted at their fair value. Those unlisted investments for where fair value cannot be established using a valuation technique are accounted at cost. Investments are reviewed each year for impairment with any write off included in the Statement of Financial Activities. Realised and unrealised gains and losses on investments are included within the funds.
Creditors
Contractual arrangements are recognised as goods and services are supplied. Other grant payments are recognised when a constructive obligation arises.
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Paul Smith's Foundation Notes to the Accounts
For the year ended 30 June 2024
1 Accounting policies (continued)
Governance costs
This expenditure includes the independent examination fee, services provided by the charity’s legal advisors and any other expenditure related to governance or the strategic direction of the charity.
Unrestricted funds
These resources arise from unrestricted purposes and from accumulated surpluses and deficits in the operations for charitable purposes and are expendable at the discretion of the Trustees.
Intangible fixed assets
The amortisation policy is as follows: Website 5 years straight line
Cash and Cash Equivalents
Cash and cash equivalents include cash at bank and in hand and short term deposits with a maturity date of three months or less.
Financial instruments
The Foundation has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102.
Critical accounting estimates and areas of judgement
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
a. Impairment and Valuation of Fixed Asset Investments
The trustees have reviewed the appropriateness of methods used in valuing the unlisted shares of the Company's investments. The trustees believe the investment value is supported by the underlying assets held in the companies of those shares.
Investments are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the SOFA.
b. Amortisation of Intangible Assets
The intangible assets held are all in repsect of website development costs. Therefore the trustees consider an amortisation policy of 5 years straight line to be reasonable where it meets the criteria for capitalisation under FRS102.
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Paul Smith's Foundation Notes to the Accounts
For the year ended 30 June 2024
2 Investment income
==> picture [436 x 113] intentionally omitted <==
----- Start of picture text -----
Investment income 2024 2023
£ £
Investment Income-Dividends Rec'd - FSPP Ltd - 165,854
Investment Income-Dividends Rec'd - FS 1979 Ltd 133,206 -
Investment Income-9 St Thomas Street 21,129 31,864
Bank interest 5,306 811
Loan interest - 2,421
159,641 200,950
----- End of picture text -----
| 3 Charitable activities Direct charitable expenditure Direct charitable expenditure Allocation of support costs - note 10 Allocation of support costs - note 10 |
Grants & donations - note 4 Insurance- note 5 Website costs - note 6 Archive costs - note 7 Legal & Professional - note 8 Advertising costs- note 9 Total £ £ £ £ £ £ £ 38,000 4,760 - 196,626 12,000 4,663 256,049 6,436 806 - 33,300 2,032 790 43,364 44,436 5,566 - 229,926 14,032 5,453 299,413 Grants & donations - note 4 Insurance- note 5 Website costs - note 6 Archive costs - note 7 Legal & Professional - note 8 Advertising costs- note 9 Total as restated £ £ £ £ £ £ £ 76,027 4,877 90,379 266,006 12,283 4,728 454,300 6,122 393 7,277 21,419 989 381 36,581 82,149 5,270 97,656 287,425 13,272 5,109 490,881 2023 2024 |
|---|---|
In 2024 and 2023, support costs have been allocated across the charitable expenditure streams based on total costs.
4 Grants & donations
| Grants & donations British Fashion Council Royal Academy of Arts CFDA Fashanne Commission Studios Maggie's The Royal Drawing School |
2024 £ 10,000 25,000 - - - - 3,000 38,000 |
2023 £ 10,000 15,000 19,937 5,000 21,090 5,000 - 76,027 |
|---|---|---|
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Paul Smith's Foundation Notes to the Accounts
For the year ended 30 June 2024
| 5 Insurance Insurance 6 Website expenditure Website expenditure 7 Archive costs 8 Legal & Professional Legal Services 9 Advertising costs Digital advertising costs 10 Support costs Governance costs - note 11 Bank charges 11 Governance costs Independent examiner fees- current year Independent examiner fees- prior year under accrual Accounting services Costs incurred organising and auditing Paul Smith's archive for use by the foundation |
2024 £ 4,760 4,760 - - 196,626 12,000 4,663 43,351 13 43,364 8,356 3,252 31,756 43,364 |
2023 £ 4,877 4,877 90,379 90,379 266,006 12,283 4,728 36,563 18 36,581 6,316 - 30,247 36,563 |
|---|---|---|
12 Transactions with Trustees
No trustee received any remuneration for services as a trustee (2023: £Nil), nor any reimbursement of expenditure (2023: £Nil).
Key management personnel are the trustees.
13 Employees
The Foundation has no employees.
14 Taxation
The Foundation has suffered no tax charge, as it is not subject to UK corporation tax on its charitable activities.
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Paul Smith's Foundation Notes to the Accounts For the year ended 30 June 2024
| Investments Fair value at 1st July 2023 Additions/(disposals) in the year (Loss)/gain on investments Fair value at 30th June 2024 |
Unlisted 2024 £ 19,936,804 - (780,496) 19,156,308 |
Unlisted 2023 £ 17,966,621 (65,000) 2,035,183 19,936,804 |
|---|---|---|
15 Investments
Historical cost as at 30th June 2024: All investments were gifted to the Foundation so had no cost.
At 30th June 2024 the following investment holdings represent 5% or more of the fair value of the total portfolio:
| portfolio: | ||
|---|---|---|
| Floral Street 1979 Limited | 140 Ordinary C shares Share class |
14.00% England & Wales Country of incorporation Shareholding |
| Paul Smith Group Holdings Ltd | 5,043 Ordinary A shares | 13.72% England & Wales |
| Partnership - 9 St Thomas Street | Not applicable | 11.24% Unincorporated |
Detailed breakdown of investments
| Floral Street 1979 Ltd Paul Smith Group Holdings Ltd Partnership - 9 St Thomas Street |
Fair Value Total 2024 £ 8,578,846 9,396,484 1,180,978 19,156,308 |
Fair Value Total 2023 £ 8,578,577 10,177,249 1,180,978 19,936,804 |
|---|---|---|
Market risks
The Foundation’s exposure to market risks is restricted to the specific markets of the companies that the Foundation invests in; there is no direct exposure to general market risks. The specific markets include Paul Smith Group Holdings Limited who operate in the luxury fashion retail and wholesale markets, and Floral Street 1979 Limited in property investment. The fashion wholesale and retail and market has continued to face significant challenges since Covid, but not to the extent that it would challenge the carrying value of the investment in the accounts. The property company is well funded and generally maintains a consistent dividend policy. As with risks, the Foundation’s portfolio has a limited direct exposure to general market performance and instead is impacted by specific market performance.
The Foundation’s exposure ties to its investment objectives as the investments either continue to directly promote the objects and profile of the charity or provide a long-term investment return for the charity. Sir Paul Smith, as a Trustee and Ambassador for the charity, has direct interest and influence in managing the risk of the investments. The charity is also currently recruiting new independent trustees.
The Foundation acquired its shares in Paul Smith Group Holdings Limited and Floral Street 1979 Limited by way of a gift to the Foundation from Sir Paul Smith’s Trust. The charity co-funded alongside Sir Paul Smith, the purchase and restoration of the 9 St Thomas Street building as a long-term investment.
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Paul Smith's Foundation Notes to the Accounts
For the year ended 30 June 2024
15 Investments (continued)
Market risks (continued)
The Foundation's investments are considered reasonably liquid as Itochu Corporation or Sir Paul Smith could acquire the shares in Paul Smith Group Holdings Limited at any time if required.
The long-term aim of the Foundation involving the investments is to gain dividend income and capital growth from Paul Smith Group Holdings Limited, Floral Street 1979 Limited and St Thomas Street.
Currency risks
All of the Foundation’s investments are held in GBP and therefore the Foundation is not exposed to currency risk.
Credit risks
The carrying amounts stated above represent the Foundation’s maximum exposure to credit risk. Management is not aware of any further credit risks and therefore further disclosure is not required.
16 Debtors
| Prepayments and other debtors Accrued Investment Income - 9 St Thomas Street |
2024 £ 9,977 9,129 19,106 |
2023 £ 1,977 137,043 139,020 |
|---|---|---|
17 Creditors: amounts falling due within one year
| Accruals Other creditors |
2024 £ 137,388 - 137,388 |
2023 £ 279,839 33,911 313,750 |
|---|---|---|
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Paul Smith's Foundation Notes to the Accounts For the year ended 30 June 2024
18 Financial and capital commitments
The Foundation has no outstanding financial or capital commitments.
19 Related parties
The charity held the following investments at year end in which Paul Smith (and his wife), a trustee of Paul Smith's Foundation has an interest; Floral Street 1979 Limited, 9 St Thomas Street Partnership & Paul Smith Group Holdings Limited.
During the year the Foundation received dividend income of £133,206 from Floral Street 1979 Limited (2023: £nil), £nil (2023: 165,854) from Floral Street Property Partners Limited and £21,129 (2023: £31,864) from 9 St Thomas Street partnership.
Included within other creditors is a balance of £140 (2023: £140) due to Paul Smith Limited in which a number of trustees of the Paul Smith's Foundation are also directors of Paul Smith Limited.
Included in other creditors is a balance of £600 (2023: £600) owed to Paul Smith, a trustee of Paul Smith's Foundation.
20 Statement of movement on reserves
| Reserves brought forward (Deficit)/surplus for the year Reserves carried forward |
2024 £ 20,159,496 (920,268) 19,239,228 |
2023 £ 18,414,244 1,745,252 20,159,496 |
|---|---|---|
The charity's reserves consists of unrestricted general reserves only.
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