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2022-12-31-accounts

Annual Report & Accounts

For the year ended 31 December 2022

www.holstein-uk.org

Holstein National Show Championship - Champion Styche Armourhill Gonda, R. Champion Wilt Bailay, H. Mention 5Guys Blexy Black Raptor

Officers of the Society

President – Mr J Jamieson Chairman – Mr M Smale

Registered Office

Scope House, Hortonwood 33, Telford, Shropshire, TF1 7EX

Advisors to the Society

Auditors

WR Partners Chartered Accountants and Statutory Auditors Belmont House, Shrewsbury Business Park, Shrewsbury, Shropshire SY2 6LG

Bankers

Barclays Bank PLC 32 Clarendon Road, Watford, Hertfordshire WD1 1LO

Fund Managers

Close Brothers Asset Management 10 Exchange Square, Primrose Street, London EC2A 2BY

Contents

Contents
President’s Report 3
Chairman’s Report 4
Chief Executive’s Report 6
Report of the Trustees 8
Strategic Report 14
Report of the Independent Auditors 18
Consolidated Statement of Financial Activities 20
Consolidated and Charity Balance Sheets 21
Charity Statement of Financial Position 22
Consolidated Statement of Cash Flows 23
Notes to the Financial Statements 24

Annual Report & Accounts For the year ended 31 December 2022

2

PRESIDENT’S REPORT

John Jamieson

As we come to the end of another successful year for Holstein UK, it is a great opportunity to pause and take stock of the progress and successes that have been achieved.

I have thoroughly enjoyed the second year of my Presidency and it has been great to support events and activities without restrictions. Helen and I have covered many miles attending events, catching up with friends and reminiscing from my 40-year involvement with the breed. From shows and open days, to club dinners and competitions – the achievements and support for the breed bodes well for the future.

The highlight of my time as President was the Scottish Club hosting the Holstein Celebration and AGM in Dumfries and Galloway. It was an honour to welcome visitors to our area where they enjoyed herd visits and local attractions. The Celebration is always a great opportunity to come together with like-minded people, see great cows and share ideas.

The last year has seen our members excel in national competitions. The Gold Cup continues to be dominated by Holstein UK members and CIS customers, with the Logan’s of Holehouse in Ayrshire taking top honours and all five finalists being HUK members. The appeal and convenience of on-farm judging is evident in the support that these competitions attract, with Herds Competitions becoming ever more popular within our clubs. Thank you to all those that took the time to enter these competitions and showcase their herds.

UK Dairy Day is regarded as the showcase event for the UK dairy industry and is the venue for our National Holstein Show. It never fails to produce a great spectacle of outstanding animals.

At the Show, the presentations took place for the Premier Herd Awards to the seven regional finalists. Brian and Judith Moorhouse of the Aireburn herd were crowned the overall winners and we look forward to the open day on the 1st August in Yorkshire.

At this year’s event, we also saw Ian Leach from the CIS awarded the Howard Sneesby Award for his contribution to the success of UK Dairy Day. A well deserved accolade for his dedication to the show.

The HYB Weekend Rally is our opportunity to focus on, and promote, the young people within our breed. It was such an encouraging sight to see so many keen, enthusiastic young breeders. This year’s rally was hosted by the North East club in the Durham area, where we enjoyed super weather and great support from all the clubs. These events take a lot of time and organisation to stage which I think was evident for all to see - well done to the organisers for a successful weekend.

The All Breeds All Britain Calf Show is another event which showcases our youth, this was to be our last year at Peterborough. At this event, a number of prestigious awards were presented over the weekend. Congratulations to all these individuals for their achievements. The highlight of the weekend for our clubs is the team awards which are always keenly contested throughout the weekend. The pride they take in these awards is humbling and win or lose, it was clear to see that they all had a great time!

from Lancashire, with Alison Lawrie (Scotland) and Pippa Tudor (Shropshire) as very worthy joint runners up. All these young people are fantastic ambassadors for our breed and are a credit to themselves, their families, and their clubs. This year also saw the winner being presented with the Sue Cope Memorial Award. The untimely passing of Sue was a huge loss to our Society, a much respected colleague and friend to so many, and so it is a touching tribute for this model

cow to be presented annually in her name. Sue was a previous medal winner and big supporter of HYB and we thank the Cope family for this award.

We are continually impressed by the achievements of all our HYB members and are indebted to Semex for their continued support. These young people are the future of our breed and it is important that we continue to encourage them and give them opportunities to progress.

In the sales ring, we continue to see strong demand for pedigree cattle in both herd and collective sales. This justifies the importance of classification, milk recording and health testing to add value to our stock. Online buying and selling is now the norm and is a useful development to enable members to view and purchase at any sale in the country from the comfort of their home.

This year also saw the successful completion of the impressive new headquarters - Scope House. The staff and membership will all benefit from this investment for years to come and will enable the organisation to grow and fulfil the demands of our industry.

The recent appointments of Melanie Harmitt as our CEO and Michael Halliwell as Group Commercial Director will give tremendous strength and direction to the organisation and they will oversee the implementation of our five-year business strategy.

In conclusion, it gives me great pleasure to report that Holstein UK is in a strong position to promote the breed and take the Society forward and is a great credit to all involved. I would like to take this opportunity to thank the staff, especially Hannah and the events team, for all their help and guidance over the last two years. My sincere thanks to all the members and clubs for making Helen and I so welcome on our travels. Also, thank you to Helen for her support throughout the year and our son, Graham, who was in charge at home.

Finally, my congratulations go to Andrew Jones, our incoming President, who I am sure will enjoy sharing his experience and knowledge with the membership. Wishing Andrew and Jenny all the best for their busy year ahead.

John Jamieson

President

I was honoured, once again, to be involved in the judging of the prestigious Presidents Medal Award. Eight club nominees were interviewed and the successful three finalists were invited as guests to the Semex Conference. The overall winner being Natasha Kirby

Annual Report & Accounts For the year ended 31 December 2022

3

CHAIRMAN’S REPORT

MICHAEL SMALE

A year of change, is how I have described the last twelve months. The appointment of Melanie Harmitt as CEO from her previous role as Chief Finance Officer brings both experience and stability for the Holstein UK Group and our staff.

To complete the changes, Tom Corns has been appointed Head of Finance and as part of the forward development of Holstein UK, Michael Halliwell comes to the Society in the role of Group Development Officer, to work across Holstein UK, NBDC and CIS.

The development of our new property in Telford is now complete, bar the verification of the new CIS lab equipment which needs to be accredited before we are fully operational out of Scope House, named as a tribute to Sue Cope.

The past twelve months have seen events very well supported and both UK Dairy Day and Premier Herd Open Day at Davies’ Davlea Herd attracted large crowds. HYB is back in full swing, with both the HYB Weekend Rally and the ABAB Calf Show taking place and The All Britain Awards attracted 166 entries and together this highlights the importance and popularity of pedigree and the work that the Society does to promote it.

Across the Group, profits have eased slightly, due to the development of Scope House, a return to a full Holstein UK events

programme and rising costs. But as a Society, we remain assets rich with Scope House paid for, ownership of Spier House retained and the ongoing part sale of Scotsbridge House.

CIS has once again performed well, with an increased customer base and rising health testing. NBDC is benefiting from a steady rise in non-contracted genomic testing and classifying

has returned to pre Covid levels. But providing these quality services, at an affordable price, remains a challenge.

Holstein UK has streamlined its operations and financial position with improving efficiency, alongside registrations and membership holding stable. It leaves the Society in a strong position to develop the business going forward.

I would like to give my heartfelt thanks to our retiring president John and his wife Helen, for the remarkable commitment that they have put in over the last two years.

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Holstein UK Premier Herd Competition Regional Winners
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4 Annual Report & Accounts For the year ended 31 December 2022

Holstein National Calf Show Championship Champion Newbirks Chief Jazz 1970, Res. Champion Crossfell Thunderstorm Noel, HM Riverdane Lambda Rosabel

Representing Holstein UK at events, conferences and meetings to promote our members’ views and the Society.

I would also like to thank Peter Prior who is standing down as a Trustees after seven years and wish him well for the future.

We welcome our new president, Andrew Jones, and two new trustees, Dawn Coryn for the Far West and Wallace Patton for Northern Ireland as a second trustee to more accurately reflect the strength of our membership in that geographical area. We hope they enjoy their new roles.

To all our staff at the Holstein UK Group, I would like to thank them for their hard work and dedication. They have all been an absolute pleasure to work with.

Finally, I would like to thank the group of people in Cornwall and my family for their total support that has enabled me to hold the honor of Chairman. May I wish all the members and the staff all the very best for the future – cheers and gone!

Michael Smale

Chairman

As I finish my term, I would like to thank the Trustees past and present for their work and support over the last four years, in my time as Chairman.

Annual Report & Accounts For the year ended 31 December 2022 5

CHIEF EXECUTIVE’S REPORT

MELANIE HARMITT

2022 was a year of highs. The highest ever milk prices were joined by the highest inflation for more than 40 years which resulted in unprecedented cost pressure on farms through higher energy and supplies costs. Higher than average temperatures and extended dry spells caused significant variances in harvest leaving many farms with a challenging winter with lower homegrown stocks and the prospect of buying in feed adding even more cost. But our members rose to the challenge as usual. Unfortunately, heading into 2023, we have already seen milk prices start to fall without a corresponding reduction in costs so we proceed with yet more uncertainty.

For Holstein UK, 2022 involved significant change. The loss of our CEO, Sue Cope, in May 2022 after a short illness was a very difficult time. Sue was a great leader who worked tirelessly for the good of the Holstein UK Group and she is sorely missed. Sue was instrumental in the purchase of our new HQ at Hortonwood in June 2021 and following a complete renovation, we now have contemporary offices, conference facilities and CIS laboratory space which doubles the floorspace of Speir House and gives us capacity for future expansion. All of this has been achieved without the need for borrowing funds. HUK and NBDC office staff moved in in July 2022 and the Trustees agreed the HQ should be renamed Scope House in memory of Sue, with the permission of her family. The CIS laboratory and staff should move early in 2024.

To christen our bespoke conference facilities we held a Holstein UK Group staff day on 14th February 2023. This brought all staff together for the first time since 2019 and was a great opportunity for the teams to catch up with old friends and make new ones. We had a session on business development which was followed by an informal lunch and finally an award ceremony which saw 21 employees across the group receive Long Service Awards for service from 10 years to 35 years, a total of 378 years! It never ceases to amaze me how dedicated our staff are to our companies and I am immensely proud to lead such a hardworking team.

We are once again reporting positive financial results for the Group. Holstein UK continues to trade at a loss and whilst we continue to work hard to reduce the loss, the Charity remains viable through the support of Holstein UK’s investments and other companies within the Group. Throughout the year, the Board of Trustees updated the five year strategy of aspirations, objectives and actions which must be met in order to deliver our charitable objectives. The strategy covers 2023-27 and is available on our website.

Membership

Membership numbers in 2022 are slightly down compared to 2021. In line with industry trends, we unfortunately lost 225 members, however, 193 new members saw the value of pedigree and joined the Society.

Herd Book Management

After a 7% increase in total registrations in 2021, I am pleased to share that we have maintained a similar level with 209,132 new animals entering the Herd Book in 2022. We will continue to focus on ensuring our systems support members and meet relevant legislation. Animal movements continue to be a huge issue now we are classed as a third country breed society and we continue to push for greater ease of export for our members.

Approved Registered Cattle

Sales of Approved Registered Cattle eartags continue to be strong and prices are regularly reviewed to ensure this remains a valuable member benefit. Opportunities to sell to more coloured breeds are being investigated to benefit from further volume discounts.

Genomics

There were fewer genomic tests processed by NBDC in 2022 due to the AHDB Herd Advance Project winding down. The genomic testing contract was put out to tender to ensure we can offer the best value service to our members and customers with Neogen being awarded a new three-year contract.

Type Classification

With the removal of all Covid-19 restrictions, the classification team had a full year on the road for the first time since 2019. The team inspected 135,394 cattle during 2022, an increase of 8.1% on 2021 and the highest number since 2018. 3,799 farms invited the Classifiers onto their farms, an increase of 24% on 2021, and we are very grateful for the warm welcome they receive.

Milk Recording and Animal Health Testing

An additional 105 herds, bringing 26,447 cows, joined the Cattle Information Service (CIS) in 2022 adding to the growth seen in previous years. Of those new herds, 59 were new to milk recording and are reaping the benefits our services can provide. Unfortunately, we lost 70 herds in 2022, in line with the losses in 2021; 58 due to the farms ceasing production which is sadly a recurring theme each year. The CIS continues to prove a wise investment for the Society, gifting significant profits each year, and investment in new equipment for the new laboratory at Hortonwood will ensure we are well paced to manage future growth.

Charitable Objectives

Holstein UK continues in its commitment to promote and improve the breeds within the Herd Book by supporting and representing our members.

It has been fabulous to have a full year of events again. From DairyTech starting the show season in February to the Royal Ulster Winter Fair closing the shows in December via all of the fantastic venues in between, we have had the pleasure of meeting many of our members and seeing amazing pedigree cows.

Once again, our young members showed the future of the dairy industry is in safe hands with nominations for all three of this year’s Holstein Young Breeder (HYB) awards being as strong as ever. Congratulations to President’s Medal Award winner Natasha Kirby (Lancashire), Louise Hartley Award winner George Thomas (East Midlands) and Little Star Award winner Sioned Morris (Shropshire) who are all great ambassadors for HYB.

Annual Report & Accounts For the year ended 31 December 2022

6

The 2022 Lifetime Achievement Award winner was a recently retired Holstein UK employee who had a long history of working with dairy cattle around the world. Richard Beard was a worthy winner of this award due to his lifelong dedication to the breed. Richard wrote a column for 10 years in Holstein World magazine and also contributed numerous articles to The Journal during his 40 years working for Holstein UK.

The HYB Weekend Rally returned in August in its usual weekend format and was hosted by the North East Club in Durham and North Yorkshire. Farm visits, national stock judging and linear assessment competitions, inter-club games and the Field-2-Foto competition provided a fantastic chance to compete, socialise and relax with friends.

Brian and Judith Moorhouse of Aireburn Holsteins were the overall winners of the Premier Herd Competition, chosen from a shortlist of truly exceptional herds. We look forward to attending their Open Day at Hesper Farm on 1st August 2023.

UK Dairy Day was once again a huge success with visitor and exhibitor numbers at pre-Covid-19 levels. The ongoing support from the industry and our members makes all the hard work which goes into hosting the event worthwhile. We took time at UK Dairy Day to remember Sue Cope, our previous CEO, who sadly passed away in May 2022 after a short illness. Sue was instrumental in making UK Dairy Day the hugely successful event it is today and at the 2021 event received the Howard Sneesby Award which is presented to the person who has made a significant difference to others through constant support and encouragement. UK Dairy Day saw the launch of our fundraising for Sue, with two exercise bikes covering the journey from Lands End to John O’Groats. With the support of Sue’s family, staff, exhibitors and visitors, the 874 mile journey was cycled twice and over £4,000 was raised for Brain Tumour Research.

National YMA Coordinator in the early days of her career with the Society. The £1,500 bursary is to support HYB members who have an interest in furthering their skillset within the dairy industry and can be used towards a training course, management programme or to gain a wider knowledge of international farming practices.

Congratulations must also go to RABDF Gold Cup winners, the Logans of Holehouse Farms, Ayrshire. The Logans are CIS customers using the Holstein Complete package to access registration and classification services which is a fantastic advertisement for Holstein UK Group services.

John Jamieson continued his presidency in 2022 and we were finally able to hold an in-person Holstein UK Celebration and AGM. John, his wife Helen, and the Scottish Holstein Club hosted a fabulous event in Dumfries with fantastic farm visits and local food and entertainment. John and Helen have travelled the length and breadth of the UK representing Holstein UK and have been a real asset to the Society during John’s two year tenure.

I am extremely grateful to have had the support of the Chairman, Michael Smale, whose wisdom has been invaluable during the last year. And since June 2022, I have also been supported by Wallace Gregg, Chairman Elect, who I will continue to work with when he becomes Chairman in June 2023. Being Chairman of the Society is a significant time commitment and I would like to extend my thanks to Michael’s and Wallace’s families for their support.

Finally, thank you to all of our members and customers of CIS and NBDC. Without our members, there would be no Society and I look forward to your continued support in 2023.

Melanie Harmitt

Chief Executive

The All Breeds All Britain (ABAB) Calf Show returned to Peterborough and our young members once again embraced the opportunity to showcase their claves and handling skills. The ABAB Calf Show was the appropriate place to launch The Sue Cope Bursary. Sue competed in YMA, was a President’s Medal Award winner and was Holstein UK’s

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Holstein UK Premier Herd Open Day
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Annual Report & Accounts For the year ended 31 December 2022

7

REPORT OF THE TRUSTEES

TRUSTEES’ REPORT

The Trustees present their Annual Report together with the audited financial statements of the Charitable Group for the year 1 January 2022 to 31 December 2022. The Annual Report serves the purposes of both a Trustees’ Report and a Directors’ Report under company law. The Trustees confirm that the Annual Report and financial statements of the Charitable Group comply with the current statutory requirements, the requirements of the Charitable Group’s governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

The audited consolidated financial statements comply with the Charities Act 2011, the Companies Act (2006) and the Charities (Accounts and Reports) Regulations 2008. The Trustees’ Report (including the strategic report) and financial statements are submitted to the Charity Commission following approval by the membership at the AGM.

The Charity (also referred to as the “Society”) was incorporated on 25 November 1998 and is governed by its Memorandum and Articles of Association.

The trustees who served during the period were:

Elected 2014 Michael Smale Far Western
Elected 2016 Peter Prior South East & Eastern
Elected 2017 Sandy Pirie Scotland
David Jones
retired 29.06.22		 West Midlands
Elected 2018 David Yates
retired 29.06.22		 Scotland
Wallace Gregg Northern Ireland
Elected 2019 Jane Whittaker North Western
John Hartley Lancashire
Matthew Winter East Midlands
Stephen Hill North Midlands
Elected 2020 William Williams North Wales
Andrew Williamson Northern
Elected 2021 Richard Thomas South Wales
Ben Yates Southern
David Lawson Yorkshire
Elected 2022 James Baillie
From 30.06.22		 Scotland
Claire Jones
From 30.06.22		 West Midlands

8 Annual Report & Accounts For the year ended 31 December 2022

OBJECTIVES AND ACTIVITIES

a. Policies and objectives

The objectives of the Charity are to support the development of the UK dairy industry by focusing on breeding pedigree Holstein and British Friesian cattle in the United Kingdom. The Society also supports other charities working in the dairy industry through the provision of services in support of their objectives. As a member organisation, Holstein UK represents the views of its members to those with influence or interest in dairying for the further interest of the industry.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance ‘Public Benefit: running a charity (PB2)’.

b. Strategies for achieving objectives

The Charity aims to increase the efficiency of dairy cattle, specifically Holstein and British Friesian breeds, in a sustainable manner consistent with the advancement of animal welfare and environmental protection.

c. Activities undertaken to achieve objectives

At the AGM in June 2018, the Charity launched its first 5-year Strategy for the period 2018-22 which incorporated feedback from Members. The strategy document was updated by the Trustees during 2022 and the strategy for 2023-27 can be found on the Holstein UK website, however, in summary, the strategy covers the following:

BREED DEVELOPMENT ASPIRATION

To have the ideal cow within the Holstein UK Herd Book for the UK and international markets.

OBJECTIVE ACTION

  1. Develop the Society breeds to meet the demands of dairy producers.

  2. Encourage and educate producers about the benefits of genetic gain.

  3. Become farmers’ first choice for genomic testing, being a national leader for the service.

  4. Provide tools and services to aid • Promote the benefits of using independent mating services.

improvement in the financial value of the Society breeds. • Measure the financial impact of type improvement and promote the benefits.

RESEARCH & DEVELOPMENT ASPIRATION

The UK Holstein and British Friesian breeds to be the best placed breed choices for all UK farming systems and be recognised internationally.

OBJECTIVE ACTION

  1. Ensure UK dairy farmers recognise • Introduce research to determine the relationship between conformation and profitability. evidence and understand the benefits.

  2. Investigate correlation of type traits against production, health and fertility.

  3. Ensure international dairy cattle breeders understand the strengths of UK genetics.

  4. Analyse production and type data to establish longevity and profitability trends for comparisons with other breeds and crossbreeds.

  5. Share data to prove the relationship • Partner with research establishments to investigate issues regarding sustainability, between the use of Holstein UK services robustness and environmental issues. and herd profitability.

  6. Work with type evaluation teams to track progress and direction.

  7. Communicate research findings with members and promote benefits to a wider audience.

  8. Keep up to date with external research and communicate findings to members.

  9. Recommend changes to services and products following research projects.

Annual Report & Accounts For the year ended 31 December 2022

9

PROMOTION ASPIRATION

Every UK dairy breeder recognises the benefits of Holstein UK services and wishes to become a member.

OBJECTIVE

  1. Ensure all UK dairy farmers understand the benefits of registered cattle.

  2. Increase the use of Holstein UK services amongst UK producers.

  3. Ensure international dairy cattle breeders recognise the type, performance and longevity of Holstein UK breed genetics.

  4. Decrease the average age of the membership by encouraging youth members.

  5. Partner with key agricultural education centres.

  6. Ensure industry bodies understand the importance of registered cattle and the related benefits.

ACTION

SERVICES ASPIRATION

Society members use and benefit from all Holstein UK Group Services.

OBJECTIVE ACTION

  1. Ensure services make use of the latest technology and innovation.

  2. Ensure members understand the portfolio of services and their benefits.

  3. Attract new members to the Society using the benefits of its services.

  4. Eradicate, wherever possible, duplication of data entry, streamlining services where possible and working with other on-farm organisations.

  5. Ensure services meet the requirements of Holstein UK members and appeal to all dairy producers.

  6. Assess the relevance of current services and structure a development plan, where necessary, to become more efficient at the lowest possible cost.

  7. Introduce new services as the market/industry requires.

  8. Forge partnerships with third party companies to eradicate duplication of data entry.

  9. Introduce robust project planning.

  10. Develop response and completion targets for all services.

  11. Inform members of benefits of services through marketing.

  12. Ensure UK Dairy Day becomes an avenue to promote services to existing and potential members.

  13. With the use of IT, extend the access to tools and services to be available 24/7.

  14. Introduce, wherever possible, new technology to aid the use of services.

  15. Develop help guides for all services.

Annual Report & Accounts For the year ended 31 December 2022

10

FINANCE ASPIRATION

Holstein UK to have a secure long term future and remain the largest independent breed Society in Europe.

VOICE ASPIRATION

Holstein UK members to have a voice at industry and Government level.

OBJECTIVE ACTION

  1. Ensure Holstein UK understands member • Develop a process to collect member opinion and disseminate feedback. opinion. • Develop a united message regarding the future of the dairy industry, which represents the

  2. Have a unified message as a point of membership. reference for all members. • Forge partnerships with current industry lobbying parties.

  3. Have an established avenue of • Promote the benefits of registered cattle to milk buyers and retailers. communication to industry and • Work with industry partners to support consumer engagement and promotion of dairy

Government. products.

  1. Have robust facts and figures to support • Share industry news, education and developments with members.

communication. • Establish key data that will support communication.

  1. Become a source of data for the industry.

  2. Track trends within the Herd Book genetics and develop predictions based on past data.

  3. Address legislation matters that directly impact members. • Compile a communication document highlighting the forward planning required by members to meet future milk contracts.

  4. • Respond to Government consultations on behalf of members. • Develop direct communication with serving MP’s.

COMMUNICATION ASPIRATION

All members are fully informed and educated on the Society and relevant industry activities.

Annual Report & Accounts For the year ended 31 December 2022 11

RECOGNITION ASPIRATION

Holstein UK awards to be held with high regard within the domestic and international industries.

GOVERNANCE ASPIRATION

• Ensure Trustee procedures follow the Articles of Association, which will be reviewed annually prior to the AGM. • Revise the strategic plan and amend, where necessary, every three years.

OPERATIONS ASPIRATION

12 Annual Report & Accounts For the year ended 31 December 2022

QUALITY ASPIRATION

Holstein UK Group data is proven, independent and recognised as first class.

OBJECTIVE ACTION

MEMBER DEVELOPMENT ASPIRATION

Leaders within the dairy industry have benefited from being members of Holstein Young Breeders (HYB).

OBJECTIVE ACTION

  1. Ensure HYB is seen as an educational • Form partnerships with agricultural colleges to create opportunities to speak to dairy organisation. students.

  2. Ensure HYB members experience a range • Widen areas of interest within HYB to attract non Holstein UK family members. of dairy related operations. • Create awards in partnership with external bodies.

  3. Use competitions to improve knowledge • Encourage exchange programs nationally and internationally. whilst encouraging new participation. • Review and, if necessary, introduce competitions that encourage all skill levels to participate.

  4. Include a networking element in events • Expand awards available to incorporate all elements of the dairy industry.

which builds individual connections. • Introduce public speaking training and opportunities.

  1. Ensure HYB activities broaden knowledge and skills that prove useful in career • Promote the benefits of Dairy Pro training to HYB members. development. • Register Holstein UK and HYB events and activities with Dairy Pro to add value for members.

  2. Review and, if necessary, introduce competitions that encourage all skill levels to participate.

  3. Structure mentoring schemes between senior and HYB members.

  4. Introduce online competitions and awards to give maximum return on investment.

d. Volunteers

Holstein UK does not use volunteers to achieve its objectives.

e. Main activities undertaken to further the Charity’s purposes for the public benefit

In setting out our aims and objectives, the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance on the advancement of animal welfare, the advancement of environmental protection or improvement and the advancement of education, and fee charging. The Charity aims to increase the efficiency of dairy cattle, specifically Holstein and British Friesian breeds, in a sustainable manner consistent with the advancement of animal welfare and environmental protection.

Membership of the Charity is available not only to those whose interests are in the husbandry of Holstein and British Friesian cattle but the wider public. Within the categories of membership there is a junior section for those aged up to 27 years of age with similar interests to those above and again this section is not restricted. The Charity also offers a reduced associate membership for those who wish to maintain a communication with the Charity. The Trustees do not consider the membership fees for the above categories restrictive. Trustees are levied with the same fees for services as those incurred by other members of the Charity.

Annual Report & Accounts For the year ended 31 December 2022 13

STRATEGIC REPORT

ACHIEVEMENTS AND PERFORMANCE

a. Main achievements of the Charity

The principal activity of the Charity is that of the promotion of the Holstein and British Friesian breeds and the recording and maintenance of pedigree records for the benefit of Charity members.

The Charity has continued to undertake registrations of animals, registering 196,048 full pedigree females during the full year January to December 2022 (2021: 197,221). The Charity has established processes for its members, one of which authenticates parentage via DNA samples. The Charity continues to explore technological advances in the collection and analysis of genetic, genomic and phenotypic data and is working with other industry bodies to further improve the accuracy of such measurements. The Charity has an on going project to monitor the total number of tests undertaken to ensure acceptable compliance levels.

During the full year January to December 2022, the Charity undertook 117,891 (2021: 109,951) inspections of Holstein and British Friesian cattle which were assessed on 27 varying traits. The results of these assessments were published in the Charity’s Journal and are freely available to view on the Charity’s website. The traits collected are also used for research purposes. The assessments are acknowledged by the industry for independent use in the valuation of animals.

The Charity’s trading subsidiaries are actively involved in disease testing and record a number of on farm events both on a compulsory and optional basis. During the reporting period significant investment has again been made to enhance the capabilities for widening the number and variety of tests available, and UKAS accreditation has been obtained for a number of these tests. The Charity encourages, wherever possible, the inclusion of regular health and welfare programme for monitoring of the herd.

The Charity is committed to hosting events that share knowledge throughout the dairy industry. UK Dairy Day, Premier Herd Open Day, HYB Weekend Rally and The All Breeds All Britain Calf Show were held in 2022 and there was the first in-person Holstein UK Celebration & AGM in Scotland since 2019. The Group also continued to facilitate online events in 2022 which enabled us to continue engaging with members to provide educational, networking and marketing opportunities.

The Charity has made representations and responded on a number of matters relating to the dairy industry within national and devolved Governments and other bodies. Information is available to the wider community via the Charity’s website www.holstein-uk.org and via its trading subsidiaries www.thecis.co.uk and www.nbdc.uk.

The Charity ensures that performance is managed against appropriate benchmarks. The income from investments for the year was £44,593 (2021: £31,793) but unfortunately due to global economic challenges investment losses totalled £179,688 (2021: £172,670 gain). Across the asset classes, returns were generally in line with benchmarks. A review of the policy is conducted every year.

FINANCIAL REVIEW

a. Going concern

The Trustees have considered the ongoing financial viability of the Charity and the appropriateness of preparing the accounts on a going concern basis. With the positive trading results delivered, ongoing provision of services, positive year end cash balances and banking support in place, the trustees are confident that the Charity can continue to operate in the future.

b. Reserves policy

Our reserves policy is set to ensure our work is protected from the risk of disruption at short notice due to a lack of funds, whilst at the same time ensuring we do not retain income for longer than required.

It is the policy of the Charity to maintain unrestricted funds, which are free reserves of the Charity. The purpose of maintaining unrestricted funds is to cover:

The Group’s reserves at the end of 2022 were £17,839,839 (2021: £16,767,093). A substantial proportion of the reserves are held in property and assets other than ‘managed cash and investments’.

At the reporting date, assets represented by Net Current Assets were £1,424,470 (2021: £2,587,342), representing on average 7 (2021: 13) weeks running costs. Assets which could be reasonably realised were £6,699,371 (2021: £8,732,021), representing 61% (2021: 83%) of annual running costs. The Trustees consider it prudent that unrestricted reserves should be sufficient:

The reserves policy is kept under periodic review and reserves levels will be adjusted as perceptions of risk and other factors change.

c. Principal risks and uncertainties

b. Fundraising activities and income generation

Holstein UK does not undertake fundraising activities.

c. Investment policy and performance

Under the Memorandum and Articles of Association, the Charity has wide powers to invest at the discretion of the trustees. The investment policy is designed to support the reserves policy. The Charity seeks to adopt a cautious, prudent and well diversified investment stance to balance potential returns with appropriate levels of risk.

The Charity’s aim is to ensure that reserves maintain a real value across an investment cycle. Close Brothers Asset Management managed the reserves on a discretionary basis. The portfolio was invested in a range of securities in line with levels agreed by the Charity.

The Board have examined the major strategic, business and operational risks which the Charity faces and confirm that systems have been established to enable regular reports to be produced so that necessary recommendations can be made to reduce these risks. The Board also considers non financial risks arising from fire, and health and safety aspects of the employment of its staff. The finance committee regularly reviews the risk register, discussing the risks faced by the Charity and the mitigating actions taken to manage these risks. The risk management approach is reviewed annually by the Board.

Annual Report & Accounts For the year ended 31 December 2022

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Holstein UK Celebration
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The main risk to the Charity’s financial position would be CIS ceasing to gift aid sufficient profits to enable Holstein UK to achieve its charitable objectives. This is a risk which is reviewed by the Trustees at the quarterly board meetings. The services delivered by CIS are constantly reviewed with new products developed to meet changing needs and protect market share where appropriate. Spend within Holstein UK is also under constant review to ensure maximum return is received for each pound expended.

d. Principal funding

The annual accounts presented are the report on the year to December 2022.

The Charity’s principal funding sources are: voluntary income (membership, registration and classification income contribute mainly to this), investment income (through properties held by the Charity for rent and return on shares via dividends) and profit from trading subsidiaries which undertake various activities including health testing, milk recording, genomic testing, type classification and other farm events.

Group consolidated income for the year totalled £11,956,458 (2021: £11,747,182). On a like for like comparative basis, income is up 1.8%.

The budget set for 2023 will enable the Society to operate within its resources whilst still delivering the high quality services members deserve.

National Bovine Data Centre Ltd was set up and began trading in 2017. In 2022 a loss of £141,408 was recorded (£70,910 profit in

2021). NBDC did not receive any Government support in 2022 (2021: £70,987, Job Retention Scheme). The Trustees implemented a price increase for Type Classification Service visits from 1st November 2022 to reduce losses going forward.

The Cattle Information Service Ltd (CIS) continued to contribute to the Holstein UK Group with surpluses of £1,080,535 (2021: £1,332,889). The surpluses are Gift Aided to the Charity in the subsequent year.

STRUCTURE, GOVERNANCE AND MANAGEMENT

a. Constitution

Holstein UK (the “Charity”) is a Company limited by guarantee (not having a share capital) and is a registered Charity. It is governed by a Board of Trustees (the Board). The Board sets strategic direction and ensures the Charity achieves its objectives. It oversees governance and is responsible for upholding the Charity’s values. It is supported by four committees (Finance (incl. Scotsbridge House Sale), Science, Show & Sale and Operations) to which it delegates certain authorities. The day to day running of the Charity is the responsibility of the Executive Team.

b. Members

The Charity’s constitution allows for the appointment of members and has no restriction on member numbers. They are entitled to attend all general meetings, including the AGM, where they receive the Annual Report and accounts and elect or re-elect Trustees. Regular contact is maintained with members, through The Journal which is produced four times a year.

Annual Report & Accounts For the year ended 31 December 2022 15

There are currently 5,533 members, of which 15 are Trustees. Each member guarantees to contribute up to one pound sterling (£1) to the charity’s debts, liabilities and costs in the event of the Charity being wound up and for one year after ceasing to be a member.

c. Organisational structure and decision-making policies

The Board

The Board oversees a robust governance framework. The Charity’s governance complies with the Code for the Voluntary and Community Sector endorsed by the Charity Commission, and with other best practice guidelines. It has agreed a schedule of matters reserved to the Board which includes approval of annual budgets. It delegates operational responsibility for the charity’s activities to the Chief Executive and Executive Team and provides advice, guidance and support on an on-going basis. Fifteen Trustees comprised the Board at 04 May 2023. All Trustees are members of the Charity and Directors of the Charitable Company. During the reporting period there were 6 (2021: 4) Trustees’ meetings, 5 of which were held in person, which achieved a 90.2% (2021: 88.4%) attendance; this excludes the Annual General Meeting. The individual Trustees’ percentage attendance for the reporting period was as follows: J Baillie 100%, W Gregg 83.3%, J Hartley 83.3%, S Hill 100%, C Jones 100%, D Jones 100%, D Lawson 100%, S Pirie 100%, P Prior 33.3%, M Smale 100%, R Thomas 100%, M Winter 83.3%, J Whittaker 100%, W Williams 83.3%, A Williamson 100%, B Yates 100%, D Yates 66.7%. The amount of expenses reimbursed to trustees during the reporting period was £16,511 (2021: £10,358).

Committees

All Trustees serve on at least one committee. The committees are delegated specific responsibilities by the Trustees. They provide counsel, expertise and support to the Executive Team. Committees undertake an evaluation of their own performance on a periodic basis and use any feedback to support improvements in the overall governance of the Charity.

Executive Team

The Executive Team is responsible for the day to day running of the Charity under authority delegated by the Board. It proposes to the Board where the Charity should invest its time, money and expertise. It reviews with the Board any changes to strategy on an annual basis. It proposes an annual operating budget to the finance committee and the Board for approval and monitors financial performance accordingly. It recommends any changes to budget in light of performance to date. The Executive Team comprises of the following key employees: Chief Executive Officer, Chief Finance Officer (Head of Finance from January 2023), Head of Events & Marketing, Head of IT, Head of Product Development (resigned 25.11.2023) and Head of NBDC & Breed Development, and for CIS, Head of Field Services and Head of Laboratory Operations.

d. Policies adopted for the induction and training of Trustees

The Trustees offer a wide range of skills and experience essential to the good governance of the Charity. New Trustees undergo an orientation day to brief them on their legal obligations under Charity and Company law, the content of the Memorandum and Articles of Association, the committees and decision making process, the business plan and recent financial performance of the charity. During the induction day, Trustees meet key employees of the Charity.

Trustees are encouraged to attend appropriate external training events where these will facilitate the performance of their role.

e. Pay policy for key management personnel

Key management staff do not have annual salary reviews, however, annual cost of living pay increases are given to key management staff at the same inflationary rate as for all other staff. The salaries awarded to new key management staff are benchmarked against the market to ensure appropriately qualified staff are attracted to the organisation.

f. Related party relationships

The Charity works with other organisations to further its objectives. In 2019, the Group won two contracts from AHDB to increase testing with delivery continuing during 2022.

g. Financial risk management

The Trustees have assessed the major risks to which the Group and the Charity are exposed, in particular those related to the operations and finances of the group and the charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Plans for future periods

The Charity will continue to promote and encourage the breeding of Holstein and British Friesian cattle within the UK dairy herd. Where appropriate, links with other industry bodies will continue to achieve the Charity’s objectives. Centralising information and data for the beneficial improvement of the dairy breeds and the promotion of holistic management systems for dairy cattle will be a key objective.

The expansion of health and welfare testing within the UK and collection of on farm data for research purposes to improve the Charity’s services to its members remains a key feature of the Trustees’ plans.

The Charity will undertake research into future trends in dairy cattle breeding and management and will disseminate these results to its members and the wider industry. The Charity will maintain its position as the pre-eminent source of independent dairy cattle breeding information in Europe.

The Charity is very aware of the issues facing the dairy industry and the need to develop the next generation of pedigree farmers, fully equipped to be successful in a rapidly changing industry. The Charity

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will continue to invest in its Holstein Young Breeders scheme to ensure that future dairy farmers will continue to enjoy success.

At the AGM in June 2018, the Charity launched its 2018-2022 Strategy which incorporated feedback from members. The strategy was updated during 2022 with a new strategy for the period 2023-27 developed.

Members’ liability

The Members of the Charity guarantee to contribute an amount not exceeding £1 to the assets of the Charity in the event of winding up.

Engagement with employees and employment of the disabled

Employees have been consulted on issues of concern to them by means of regular consultative committee and staff meetings and have been kept informed on specific matters directly by management. The Group and the Charity carries out exit interviews for all staff leaving the organisation and has adopted a procedure of upward feedback for senior management and the Trustees.

The Group and the Charity has implemented a number of detailed policies in relation to all aspects of personnel matters including:

In accordance with the Group and the Charity’s equal opportunities policy, the Group and the Charity has long-established fair employment practices in the recruitment, selection, retention and training of disabled staff.

Full details of these policies are available from the Charity’s offices.

Statement of Trustees’ responsibilities

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees’ Report including the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial period. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are the trustees at the time when this Trustees’ Report is approved has confirmed that:

AUDITORS

The auditors, WR Partners, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Michael Smale (Chairman)

Date: 04 May 2023

Annual Report & Accounts For the year ended 31 December 2022 17

REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF HOLSTEIN UK

OPINION

We have audited the financial statements of Holstein UK (the ‘parent charitable company’) and its subsidiaries (the ‘Group’) for the year ended 31 December 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of 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 Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’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 or the 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 Auditors’ Report thereon. The Trustees are responsible for the other information contained within 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 this gives rise to 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.

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

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

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report including the Strategic Report.

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We have nothing to report in respect of the following matters in relation to which 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, 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’s and the 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 the parent charitable company or to cease operations, or have no realistic alternative but to do so.

AUDITORS’ 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 Auditors’ Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

relevant to the Charity and its environment and identify any instances of non-compliance.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors’ Report.

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 we are required to state to them in an Auditors’ Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Malpass (Senior Statutory Auditor) Date: 25 May 2022 for and on behalf of

WR Partners

Chartered Accountants and Statutory Auditors Belmont House

Shrewsbury Business Park Shrewsbury Shropshire SY2 6LG

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:

Annual Report & Accounts For the year ended 31 December 2022

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CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

(incorporating an income and expenditure account)

FOR THE YEAR ENDED 31 DECEMBER 2022

Unrestricted Total Total
funds funds funds
2022 2022 2021
Note £ £ £
INCOME FROM:
Donations 4 26,103 26,103 98,535
Charitable activities 5 2,852,130 2,852,130 2,704,692
Other trading activities 6 8,942,832 8,942,832 8,829,129
Investments 7 135,393 135,393 114,826
Total income 11,956,458 11,956,458 11,747,182
EXPENDITURE ON:
Raising funds 8 7,797,755 7,797,755 7,539,500
Charitable activities 9 3,188,890 3,188,890 3,038,710
Total expenditure 10,986,645 10,986,645 10,578,210
Net (losses)/gains on investments (179,688) (179,688) 172,670
Net income before taxation 790,125 790,125 1,341,642
Taxation (42,379) (42,379) 42,379
Net movement in funds before other recognised gains 747,746 747,746 1,384,022
OTHER RECOGNISED GAINS:
Gains on revaluation of fxed assets 325,000 325,000 -
Net movement in funds 1,072,746 1,072,746 1,384,022
RECONCILIATION OF FUNDS:
Total funds brought forward 16,767,092 16,767,092 15,383,071
Net movement in funds 1,072,746 1,072,746 1,384,021
Total funds carried forward 17,839,838 17,839,838 16,767,093

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 24 to 38 form part of these financial statements.

Annual Report & Accounts For the year ended 31 December 2022

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CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2022

2022 2021
Note £ £
FIXED ASSETS
Intangible assets 14 68,908 158,077
Tangible assets 15 12,379,309 10,224,831
Investments 17 1,642,152 1,796,843
Investment property 16 2,325,000 2,000,000
16,415,369 14,179,751
CURRENT ASSETS
Stocks 19 107,382 136,775
Debtors 20 1,753,138 2,496,878
Cash at bank and in hand 871,699 2,301,525
2,732,219 4,935,178
Creditors: amounts falling due within one year 21 (1,307,749) (2,347,836)
Net current assets 1,424,470 2,587,342
Total net assets 17,839,839 16,767,093
CHARITY FUNDS
Restricted funds 22 - -
Unrestricted funds 22 17,839,839 16,767,093
Total funds 17,839,839 16,767,093

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Michael Smale (Chairman)

Date: 04 May 2023

The notes on pages 24 to 38 form part of these financial statements.

Annual Report & Accounts For the year ended 31 December 2022 21

CHARITY BALANCE SHEET

AS AT 31 DECEMBER 2022

As restated
2022 2021
Note £ £
FIXED ASSETS
Intangible assets 14 68,908 158,077
Tangible assets 15 10,676,647 9,740,183
Investments 17 2,408,137 2,562,828
Investment property 16 2,325,000 2,000,000
15,478,692 14,461,088
CURRENT ASSETS
Debtors 20 2,285,166 1,292,716
Cash at bank and in hand 329,875 1,522,536
2,615,041 2,815,252
Creditors: amounts falling due within one year 21 (1,182,251) (1,361,827)
Net current assets 1,432,790 1,453,425
Total net assets 16,911,482 15,914,513
CHARITY FUNDS
Restricted funds 22 - -
Unrestricted funds 22 16,911,482 15,914,513
Total funds 16,911,482 15,914,513

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Michael Smale (Chairman)

Date: 04 May 2023

The notes on pages 24 to 38 form part of these financial statements.

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CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2022

2022 2021
Note £ £
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash used in operating activities 24 767,513 1,936,496
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends, interests and rents from investments 135,393 114,826
Proceeds from the sale of tangible fxed assets 45,000 -
Purchase of tangible fxed assets (2,349,091) (1,771,775)
Disposal of investments 156,390 126,422
Purchase of investments (185,031) (131,214)
Net cash (used in)/provided by investing activities (2,197,339) (1,661,741)
Change in cash and cash equivalents in the year (1,429,826) 274,755
Cash and cash equivalents at the beginning of the year 2,301,525 2,026,770
Cash and cash equivalents at the end of the year 25 871,699 2,301,525

The notes on pages 34 to 60 form part of these financial statements

Annual Report & Accounts For the year ended 31 December 2022 23

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

1. GENERAL INFORMATION

Holstein UK is a charitable company limited by guarantee and is incorporated in the United Kingdom. The registered office and operating address is Scope House, Hotonwood 33, Telford, Shropshire TF1 7EX. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.

2. ACCOUNTING POLICIES

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the second edition 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) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Holstein UK 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 undertaking. The results of the subsidiary 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 Basis of consolidation

The consolidated financial statements present the results of the company and its own subsidiaries (“The Group”) as if they form a single entity. Intercompany transactions and balances between Group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree’s identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the charity and its subsidiary undertaking. The results of the subsidiary 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. The net movement in funds for the charity was a surplus of £996,969 (2021: surplus of £1,046,905).

2.3 Going concern

After making enquires, the Trustees have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its financial statements.

2.4 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Consolidated Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

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

2.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central

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staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group’s objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.6 Research and development

Development costs are capitalised within intangible assets where they can be identified with a specific product or project anticipated to produce future benefits, and are amortised on the straight line basis over the anticipated life of the benefits arising from the completed product or project.

Deferred research and development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance of any related research and development is written off to the Consolidated Statement of Financial Activities.

2.7 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.8 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Consolidated Statement of Financial Activities.

2.9 Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.10 Intangible assets and amortisation

Intangible assets of a capital nature are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.

Amortisation is provided on the following basis:

Development expenditure -20%

2.11 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the revaluation model, tangible fixed assets whose fair value can be measured reliably shall be carried at a revalued amount, being their fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting date.

Fair values are determined from market-based evidence by appraisal that is normally undertaken by professionally qualified valuers. If there is no market-based evidence of fair value because of the specialised nature of the tangible fixed asset and it is rarely sold, except as part of a contributing business, a Charity may need to estimate fair value using an income or depreciated replacement cost approach.

Gains and losses on revaluation are recognised in the Consolidated Statement of Financial Activities, with a separate revaluation reserve being shown in the Statement of funds note.

Investment property rented to other group entities and accounted for under the cost model is stated at historic cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

2.12 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated Statement of Financial Activities.

Annual Report & Accounts For the year ended 31 December 2022

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Investments in subsidiaries are valued at cost less provision for impairment.

2.13 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

certain staff into a pension scheme and contribute towards it. This is called automatic enrolment. To comply with automatic enrolment laws, the Group signed a participation agreement with a pension provider by which staff become members on an independently administered pension plan. The Group and staff make contributions as specified in the plan.

At the reporting date contributions outstanding amounted to £Nil (2021: £Nil).

2.14 Debtors

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

2.15 Cash at bank and in hand

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

2.16 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost.

2.17 Financial instruments

The Group only has financial assets and financial liabilities of a kind that 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.

2.18 Operating leases

Rentals paid under operating leases are charged to the Consolidated Statement of Financial Activities on a straight line basis over the lease term.

2.19 Pensions

The Group operates an occupational pension scheme providing money purchase benefits on a defined contribution basis. Employees who joined the money purchase pension scheme contract directly with the pension company, Now Pensions Ltd. Contributions by the Group and employees are determined by the scheme rules. The Group acts as an agent in collecting and paying over employee pension contributions. Once the contributions have been paid, the Group, as employer, has no further obligations.

2.20 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Investment income, gains and losses are allocated to unrestricted funds.

3.CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGMENT

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.

Critical accounting estimates and assumptions

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results.

Fixed asset properties are included at valuation. Formal revaluations for all properties except Scotsbridge House took place in the year. Scotsbridge House is included at Trustee’s valuation, informed by the negotiations in relation to its planned sale.

4. INCOME FROM DONATIONS AND LEGACIES

Unrestricted Total Total
funds 2022 funds 2022 funds 2021
£ £ £
Gift Aid 26,103 26,103 26,745
Grants - - 71,790
Total 2022 26,103 26,103 98,535
Total 2021 98,535 98,535

From April 2015, under the Pensions Act 2008, the Group must put

Annual Report & Accounts For the year ended 31 December 2022

26

5. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted Total Total
funds funds funds
2022 2022 2021
£ £ £
INCOME FROM:
Member subscription fees 290,275 290,275 294,401
Herd Book entry fees 1,710,398 1,710,398 1,635,633
Herd Book services and sundry income 263,871 263,871 275,750
Journal advertising 23,527 23,527 29,451
Livestock events 425,140 425,140 291,957
Other Society services 1,290 1,290 5,629
Catalogue and herd brochure services 1,610 1,610 579
Breeder awards 92,723 92,723 117,457
Re-issue, transfer fees and fnes 43,296 43,296 53,835
Total 2022 2,852,130 2,852,130 2,704,692
Total 2021 2,704,692 2,704,692

6. INCOME FROM OTHER TRADING ACTIVITIES

Unrestricted Total Total
funds funds funds
INCOME FROM NON CHARITABLE TRADING ACTIVITIES 2022 2022 2021
£ £ £
The Cattle Information Service Limited 7,549,889 7,549,889 7,445,220
National Bovine Data Centre Limited 1,392,943 1,392,943 1,383,909
Total 2022 8,942,832 8,942,832 8,829,129
Total 2021 8,829,129 8,829,129

7. INVESTMENT INCOME

7. INVESTMENT INCOME
Unrestricted Total Total
funds funds funds
2022 2022 2021
£ £ £
Rents receivable 90,800 90,800 8_3,033_
Dividends from listed investments 44,593 44,593 31,793
Total 2022 135,393 135,393 114,826
Total 2021 114,826 114,826

Annual Report & Accounts For the year ended 31 December 2022

27

8. EXPENDITURE ON RAISING FUNDS

Cattle Information Services Limited and National Bovine Data Centre

Unrestricted Total Total
funds funds funds
2022 2022 2021
£ £ £
Cost of sales 3,798,695 3,798,695 3,678,649
Admin expenses 840,958 840,958 904,499
Admin staf costs 3,008,211 3,008,211 2,782,808
Depreciation 149,891 149,891 173,544
Total 2022 7,797,755 7,797,755 7,539,500
Total 2021 7,539,500 7,539,500

9. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Summary by fund type

Unrestricted Total Total
funds funds funds
2022 2022 2021
£ £ £
Holstein Society Services 3,188,890 3,188,890 3,038,710
Total 2022 3,188,890 3,188,890 3,038,710
Total 2021 3,038,710 3,038,710

10. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Summary by fund type

Summary by fund type
Activities
undertaken Total Total
directly funds funds
2022 2022 2021
£ £ £
Holstein Society Services 3,188,890 3,188,890 3,038,710
Total 2021 3,188,890 3,188,890 3,038,710

Analysis of direct costs

Analysis of direct costs
Total Total
funds funds
2022 2022 2021
£ £ £
Staf costs 1,090,734 1,090,734 1,199,660
Depreciation 101,641 101,641 156,494
Research and business development 64,610 64,610 43,809
Testing parentage 206,522 206,522 191,116
Livestock shows 646,972 646,972 531,262
Journal printing and circulation 117,756 117,756 117,175

Annual Report & Accounts For the year ended 31 December 2022

28

10. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)

Analysis of direct costs

Analysis of direct costs
Facilities management and utilities 178,747 178,747 161,426
Telephone 32,663 32,663 39,238
Postage and stationery 88,448 88,448 82,525
Computer maintenance 202,050 202,050 186,041
Field staf 43,013 43,013 28,751
Audit fees 16,050 16,050 16,050
Governance costs 38,130 38,130 21,369
Bank charges 12,581 12,581 14,924
Marketing and publicity 45,517 45,517 18,045
Professional fees and charges 285,293 285,293 210,842
Hire of equipment and vehicles 18,163 18,163 19,983
Total 2022 3,188,890 3,188,890 3,038,710
Total 2021 3,038,710 3,038,710

11. AUDITORS’ REMUNERATION

2022 2021
£ £
Fees payable to the Charity’s auditor for the audit of the Charity’s annual 17,200 16,050
accounts
Fees payable to the Charity’s auditor in respect of:
Audit of subsidiary accounts 15,150 13,950

12. STAFF COSTS

12. STAFF COSTS
Group Group Charity Charity
2022 2021 2022 2021
£ £ £ £
Wages and salaries 3,448,728 3,348,813 880,897 970,528
Social security costs 397,304 370,066 126,678 131,872
Pension costs 252,913 263,589 83,159 97,260
4,098,945 3,982,468 1,090,734 1,199,660

Annual Report & Accounts For the year ended 31 December 2022 29

12. STAFF COSTS (CONTINUED)

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

Group Group Charity Charity
2022 2021 2022 2021
No. No. No. No.
Employees (including casual and part-time staf) 117 115 36 38

Included in the average number of employees are 8 (2021: 10) employees who were not employed on a full time basis throughout the reporting period.

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

Group Group
2022 2021
No. No.
In the band £60,001 - £70,000 1 -
In the band £80,001 - £90,000 - 1
In the band £100,001 - £110,000 1 -
In the band £110,001 - £120,000 - 1

The key management personnel of the Charitable Company comprise of the Chief Executive Officer and the Chief Financial Officer. The total employee benefits (including pension contributions and employers national insurance) amounted to £183,466 (2021: £230,011).

The key management personnel of the Group comprise of those listed on page 16. The total employee benefits of those listed on page 1 amounted to £562,726 (2021: £580,296).

13. TRUSTEES’ REMUNERATION AND EXPENSES

During the year ended 31 December 2022, expenses totalling £16,511 were reimbursed or paid directly to 11 Trustees (2021 - £10,358 to 12 Trustees). These expenses relate to the payment or reimbursement of travel and subsistence in relation to attendance at meetings of the Trustees, at meetings of Trustees of subsidiary companies and other management activities.

Holstein UK trustees do not receive remuneration for their time.

14. INTANGIBLE ASSETS

Group and Charity Website /
application
development.
costs £
Cost
At 1 January 2022 1,080,827
At 31 December 2022 1,080,827
Amortisation
At 1 January 2022 922,750
Charge for the year 89,169
At 31 December 2022 1,011,919
Net book value
At 31 December 2022 68,908
At 31 December 2021 158,077

Annual Report & Accounts For the year ended 31 December 2022

30

15. TANGIBLE FIXED ASSETS

Group Freehold Plant and Promotional
property machinery equipment Total
£ £ £ £
Cost or valuation
_A_t 1 January 2022 9,683,033 3,334,474 16,783 13,034,290
Additions 855,058 1,494,033 - 2,349,091
Disposals - (215,000) - (215,000)
At 31 December 2022 10,538,091 4,613,507 16,783 15,168,381
Depreciation
At 1 January 2022 30,494 2,769,840 9,125 2,809,459
Charge for the year - 162,363 - 162,363
On disposals - (182,750) - (182,750)
At 31 December 2022 30,494 2,749,453 9,125 2,789,872
Net book value
At 31 December 2022 10,507,597 1,864,054 7,658 12,379,309
At 31 December 2021 9,652,539 564,634 7,658 10,224,831
Charity Freehold Ofce Computer Promotional
property equipment equipment equipment Total
£ £ £ £ £
Cost or valuation
At 1 January 2022 9,683,033 502,416 137,067 16,783 10,339,299
Additions 855,058 84,882 8,996 -
948,936
At 31 December 2022 10,538,091 587,298 146,063 16,783 11,288,235
Depreciation
At 1 January 2022 30,494 430,429 129,068 9,125 599,116
Charge for the year - 6,853 5,619 - 12,472
At 31 December 2022 30,494 437,282 134,687 9,125 611,588
Net book value
At 31 December 2022 10,507,597 150,016 11,376 7,658 10,676,647
At 31 December 2021 9,652,539 71,987 7,999 7,658 9,740,183

The Group and Charity

The freehold land and buildings at Scotsbridge House and Speir House were revalued at £7,565,000 and £725,000 respectively. The Scotsbridge House valuation is based on Trustees’ valuation, informed by negotiations in relation to its planned sale. Speir House valuation was undertaken by Andrew Dixon and Company, Chartered Surveyors, in August 2022. The historical cost of the properties were £352,948 and £762,386 respectively. Additions made after the revaluation have been included at cost. The Trustees have agreed to sell Scotsbridge House and a sale is anticipated in 2023.

Charity

The Charity has a legal charge in place with Barclays Bank PLC, secured against the land and buildings held at Scotsbridge House, Rickmansworth, Hertfordshire.

Annual Report & Accounts For the year ended 31 December 2022

31

16. INVESTMENT PROPERTY

16. INVESTMENT PROPERTY
Group Freehold
investment
property
£
Valuation
At 1 January 2022 2,000,000
Surplus on revaluation 325,000
At 31 December 2022 2,325,000
Charity Freehold
investment
property
£
Valuation
At 1 January 2022 2,000,000
Surplus on revaluation 325,000
At 31 December 2022 2,325,000

The Group and Charity

The investment properties residing at the Scotsbridge House site were revalued at £2,325,000 based upon valuations produced by Gibbs Gillespie Estate Agents, Surveyors and Valuers on 16 January 2019 and updated at 1 March 2023. The historical cost of the properties was £411,295 (2021: £411,295).

17. FIXED ASSET INVESTMENTS

17. FIXED ASSET INVESTMENTS
Listed
Group investments
£
Cost or valuation
At 1 January 2022 1,796,843
Additions 185,031
Disposals (156,390)
Revaluations (183,332)
At 31 December 2022 1,642,152
Net book value
At 31 December 2022 1,642,152
At 31 December 2021 1,796,843

Annual Report & Accounts For the year ended 31 December 2022

32

17. FIXED ASSET INVESTMENTS (CONTINUED)

Investments
in subsidiary Listed
Charity companies investments Total
£ £ £
Cost or valuation
At 1 January 2022 765,985 1,796,843 2,562,828
Additions - 185,031 185,031
Disposals - (156,390) (156,390)
Revaluations - (183,332) (183,332)
At 31 December 2022 765,985 1,642,152 2,408,137
Net book value
At 31 December 2022 765,985 1,642,152 2,408,137
At 31 December 2021 765,985 1,796,843 2,562,828

18. ANALYSIS OF LISTED INVESTMENTS

18. ANALYSIS OF LISTED INVESTMENTS
2022 2021
£ £
Corporate bonds - fxed interest 121,777 177,251
Equities - listed UK 420,265 435,009
Equities - listed international 672,346 755,064
Property and alternatives 427,764 429,519
1,642,152 1,796,843

19. STOCKS

19. STOCKS
Group Group
2022 2021
£ £
Laboratoryconsumables 107,382 136,775

20. DEBTORS

Group Group Charity Charity
2022 2021 2022 2021
£ £ £ £
Due within one year
Trade debtors 1,540,425 1,397,944 607,149 591,756
Amounts owed by Group undertakings - - 1,527,843 586,595
Other debtors 14,955 10,261 11,301 10,261
Prepayments and accrued income 197,758 1,046,294 138,873 104,104
Deferred Taxation - 42,379 - -
1,753,138 2,496,878 2,285,166 1,292,716

Annual Report & Accounts For the year ended 31 December 2022 33

21. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Charity
Group Group Charity 2021
2022 2021 2022 as restated
£ £ £ £
Trade creditors 783,493 2,007,453 281,601 166,731
Amounts owed to Group undertakings - - 756,623 994,019
Other taxation and social security 343,978 125,256 49,809 74,194
Other creditors 70,531 69,927 21,417 19,957
Accruals and deferred income 109,747 145,200 72,801 106,926
1,307,749 2,347,836 1,182,251 1,361,827
Charity
Group Group Charity 2021
2022 2021 2022 as restated
£ £ £ £
Deferred income at 1 January 2022 8,357 20,343 8,357 20,343
Resources deferred during the year 2,319 8,357 2,319 8,357
Amounts released from previous periods (8,357) (20,343) (8,357) (20,343)
2,319 8,357 2,319 8,357

CHARITY

The Charity has a legal charge in place with Barclays Bank PLC, secured against the land and buildings held at Scotsbridge House, Rickmansworth, Hertfordshire.

The Charity comparatives have been restated to correctly reflect the gift aid position.

22. STATEMENT OF FUNDS

Statement of funds - current year

Balance at 31
Balance at 1 Gains/ December
January 2022 Income Expenditure Taxation Losses 2022
£ £ £ £ £ £
Unrestricted funds
Free Reserves 5,425,017 3,013,626 (3,188,890) - 145,312 5,395,065
Non-Charitable Subsidiaries 3,743,716 8,942,832 (7,797,755) (42,379) - 4,846,414
Revaluation reserve 7,598,360 - - - - 7,598,360
16,767,093 11,956,458 (10,986,645) (42,379) 145,312 17,839,839
Statement of funds - prior year
Balance at 31
Balance at 1 Gains/ December
January 2022 Income Expenditure Taxation Losses 2022
£ £ £ £ £ £
Unrestricted funds
Free Reserves 5,444,795 2,846,263 (3,038,711) - 172,670 5,425,017
Non-Charitable Subsidiaries 2,339,917 8,900,919 (7,539,499) 42,379 - 3,743,716
Revaluation reserve 7,598,360 - - - - 7,598,360
15,383,072 11,747,182 (10,578,210) 42,379 172,670 16,767,093

Annual Report & Accounts For the year ended 31 December 2022

34

23. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Analysis of net assets between funds - current year

Analysis of net assets between funds - current year
Unrestricted Total
funds funds
2022 2022
£ £
Tangible fxed assets 12,379,309 12,379,309
Intangible fxed assets 68,908 68,908
Fixed asset investments 1,642,152 1,642,152
Investment property 2,325,000 2,325,000
Current assets 2,732,219 2,732,219
Creditors due within one year (1,307,749) (1,307,749)
Total 17,839,839 17,839,839

Analysis of net assets between funds - prior year

Analysis of net assets between funds - prior year
Unrestricted Total
funds funds
2021 2021
£ £
Tangible fxed assets 10,224,831 10,224,831
Intangible fxed assets 158,077 158,077
Fixed asset investments 1,796,843 1,796,843
Investment property 2,000,000 2,000,000
Current assets 4,935,178 4,935,178
Creditors due within one year (2,347,836) (2,347,836)
Total 16,767,093 16,767,093

24. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

FLOW FROM OPERATING ACTIVITIES
Group Group
2022 2021
£ £
Net income for the period (as per Statement of Financial Activities) 747,746 1,384,021
Adjustments for:
Depreciation charges 162,363 179,824
Amortisation charges 89,169 150,214
Revaluation on investments 183,332 (170,796)
Dividends, interests and rents from investments (135,393) (114,826)
Decrease in stocks 29,393 8,530
Decrease/(increase) in debtors 743,740 (547,981)
Increase/(decrease) in creditors (1,040,087) 1,047,510
Proft on sale of fxed assets (12,750) -
Net cash provided by operating activities 767,513 1,936,496

Annual Report & Accounts For the year ended 31 December 2022 35

25. ANALYSIS OF CASH AND CASH EQUIVALENTS

Group Group
2022 2021
£ £
Cash in hand 871,699 2,301,525
Total cash and cash equivalents 871,699 2,301,525

26. ANALYSIS OF CHANGES IN NET DEBT

At 1 January
2022		 Cash fows At 31
December 2022
£ £ £
Cash at bank and in hand 2,301,525 (1,429,826) 871,699
2,301,525 (1,429,826) 871,699

27. CAPITAL COMMITMENTS

Group Group Charity Charity
2022 2021 2022 2021
£ £ £ £
Acquisition of tangible assets 413,848 - 19,280 -

28. PENSION COMMITMENTS

The Group operates an occupational pension scheme providing money purchase benefits on a defined contribution basis. Employees who joined the money purchase pension scheme contract directly with the pension company, Now Pensions Ltd. Contributions by the group and employees are determined by the scheme rules. The Group acts as an agent in collecting and paying over employee pension contributions. Once the contributions have been paid, the Group, as employer, has no further obligations.

AUTOMATIC ENROLMENT

From 1 April 2015, the Charity and subsidiary, separately entered into a participation agreement with NOW: Pensions Ltd which ultimately allows the employees of the Charity and subsidiary to become members of NOW: Pensions Trust (Plan), which is a registered occupational pension scheme governed by the Trust Deed and Rules dated 29 November 2011 by which the Plan was established. NOW: Pensions Ltd is currently the Trust Manager and the Trustee of the Plan is currently NOW: Pension Trustee Ltd.

Plan Summary:

Accordingly, the Plan is capable of acting as an automatic enrolment scheme for the purposes of the Automatic Enrolment Laws. However, in order to act as an automatic enrolment scheme, it will also need to satisfy certain contribution requirements. The charity and subsidiary will both be responsible for ensuring that those requirements are satisfied, and for giving any certificate which is required under the Automatic Enrolment Laws for that purpose.

Annual Report & Accounts For the year ended 31 December 2022

36

29. OPERATING LEASE COMMITMENTS

At 31 December 2022 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Group Group Charity Charity
2022 2021 2022 2021
£ £ £ £
Not later than 1 year 107,826 115,894 6,519 15,139
Later than 1 year and not later than 5 years 112,729 32,823 9,852 3,325
220,555 148,717 16,371 18,464

30. RELATED PARTY TRANSACTIONS

Annual Report & Accounts For the year ended 31 December 2022 37

31. PRINCIPAL SUBSIDIARIES

The following were subsidiary undertakings of the Charity:

Names Company
number		 Registered ofce
or principal place
of business		 Principal activity Class of shares Holding Included in
consolidation
The Cattle
Information
Service LTD
The Centre
for Dairy
Information LTD
National Bovine
Data Centre LTD		 SC144462
05409255
10052419		 9 Queens Road,
Aberdeen,
AB15 4YL
Scope House,
Hortonwood 33,
Telford, Shropshire,
TF1 7EX
Scope House,
Hortonwood 33,
Telford, Shropshire,
TF1 7EX		 Support activities
for animal
production and
data processing,
hosting and
related activities
Support activities
for animal
production
- currently
dormant
Support activities
for animal
production.		 Ordinary A
& Ordinary B
Limited by
guarantee and no
share capital.
Ordinary		 100%
100%
100%		 Yes
Yes
Yes
The fnancial results of the subsidiaries for the year were: Proft (loss)/
surplus/ (defcit)		 Net assets
Income Expenditure for the year (liabilities)
£ £ £ £
The Cattle Information Service LTD 7,549,888 (6,469,353) 1,080,535 2,152,487
The Centre for Dairy Information LTD - 163,571 163,571 -
National Bovine Data Centre LTD 1,392,944 (1,534,352) (141,408) (458,145)

Annual Report & Accounts For the year ended 31 December 2022

38

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T: 01923 695200 l W: www.holstein-uk.org l E: info@holstein-uk.org Holstein UK, Scope House, Hortonwood 33, Telford, Shropshire TF1 7EX Company Registered No: 3674328 (England and Wales) l Charity No: 1072998