Charlty number.. 1077572 THE HIGHCOMBE EDGE TRUST TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 THE HIGHCOMBE EDGE TRUST CONTENTS Pag¢ Reference and admlnlstrativè detalls of the Charlty, Its Trustèès and advisers Trustet$' report Trust6ès' responsibilitl8S Statemgnt Indépendent audltor's report on the flnanclal stst8m&nts Consolldated statement of flnanclal activities Consolidatèd balance sheet Charity balance sheat Consolldated Statement of cash flows 12 Notes to the financial statements 13-29 THE HIGHCOMBE EDGE TRUST REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE PERIOD ENDED 31 DECEMBER 2021 Trustèos B W Anderson J G Spencer A Dalrymple WAL￿e8 Charity re9lStèred number 1077572 Principal office Somerville 8 Biidle Close Graysholt Hindhead GU26 6EA Chief •xecutlve offic8r B W Anderson Independent audltor Crowe U.K. LLP Fourth Floor Sl James House St James Squar8 Chelt8nhdm GL50 3PR Bankers Lloyds Bank Business Bsnking BX11LT Page 1 THE HIGHCOMBE EDGE TRUST TRUSTEES, REPORT FOR THE PERIOD ENDED 31 DECEMBER 2021 The Trustees of Tho Highcombe Edge Trusl pre8ent their annual report and audited ac¢ounls for th8 period ended 31st De￿mber 2021 and confirm they comply with the r8quiremenls of the Ch3rilies Act 2011, the Trust de8d, FRS1Q2 and the Charities SORP IFRS 1021. Ob ectives and Actlvltles The charilahle objects of the Trust are the advancement of the eduGalion of children and young people by asslstance lo Ihpir parents to enable such childran to b8 laughl otherwlse than at school as defined in th Education Acts 1944 to 1993. The obj8¢ts also inGlude any ulher charilabla purpos8 for the benefit ol thrgn. In furtherance of its objects, the TrLJSt provldes one premises und8r for￿al léase for an independent school based in Hindhead which has been run by Oneschool Global UK IOSGUKI. The Trust also providos one premises under formal lease to Zapp UK Trading Ltd. under tho Campus & Coo brand, who provide funding for OSGUK. The Trust also provides grdnl lundlng and other financi81 support to OSGUK at the dis¢rgtion of the Tru51ees In ord8r to enable OSGUK lo provide a well balanced edu¢atian al pThmary and secondary levels, for childron and young poople whose parents appr8¢ial8 the Chrfstlan ethos. Suceess is measured in 18im5 of the provision of apprapriaté f8cllities to OSGUK whilst minimising expendlturts. This in turn, frees up funds for ralsing standards ol aducation for all concemed dnd lor the improvem@nt of faalilles for puplls and slafl alike. The Trustees have r8f8Tf8d to the guidance contained In tho Charity Commission's general guidanc8 on public benefit and havtr regard lo il when revlewlng their aims and objo¢lives, and In plannlng their lulure activities. In particular they consider how plann8d 8clivities ￿￿11 contribute lo tho edu¢alional aims and objectives they have set. Volunteer5 are an Integral part of the community ethos and values of tha Trijst and tharo are strong and willing group of volunt88r5 who assist and support the Trust th[￿ghoul the period. structure Gov8rnance and Mana ement The Highcombe Edg$ Trust Is consliluted by a D8ed of Trust dated 15th July 1999 and is registered with the Charlty Commission for England and Wales. Th2 Trustees who served during the period and th£ p8rliKI end are sel out on page 1. Nc>ne of the Tmstees, nor any person connected with Ihem, received any remunèratlon from the Trust in the period ended 31st D8c&rnb6r 2021 lyear ended 30th June 2020 £nS11. The power to appoint Truslees is invested in the existing Trvste8s subjecl lo the Trust Deed requlr8mÈnt. Truslees are sel8cled according to their own specialism in a particular field and are expected to pursue that specialism. New Trustees are insltucted ill Ihe n88d to completely adhem lo the ethos and values of the Trust. The Trusle8s have examined the major strat8glc, business and operational risks that the Trust faces. The Truslees are salisf1ed that the major risks identif￿d have been adequately miligaled wher8 necessary. It is recognised that systems can only prov￿& reasonable bul not absolute assurance thal major risks have be8n adequately mallaged. nlflcant Actlvltles Throughout the period the Trust has continued to provlde educational pr8ryllS8S In support of the educational actlvi11g9 of OSGUK. Page 2 THE HIGHCOMBE EDGE TRUST TRUSTEES, REPORT ICONTINUEDI FOR THE PERIOD ENDED 31 DECEMBER 2021 On the 31 Èt July 2021 the Trust was gifted by Three Counties Education Trust the whole of the issued share capltal of Zapp UK Trading Ltd and now holds th8 shares in Zapp UK Tradlng Ltd as a wholly owned subsidiary company, which undertakes trading a¢tivltles. All proflts charg8ablè to corporation lax ar8 gifted lo th6 Trust in support of Ihe charitable activities of tho Trust. Financlal Revlow In the perfod ended 31st December 2021 the Group rèported a net deficit of £251,323 12020 surplus of £271,691 l. All funds are unrestricted. Tha Trust Is support8d and flnanced princlpally by profi15 frorn ils trading subsidlary Zapp UK Trading Ltd plus other ad hoc donations and thoso ralsed by fundrf the Trust deed. They arg alsc) responslble for safeguarding the assets ol the Group and th8 Charity and h8nce for laklng reasonable steps for the prevention and dot0¢tion of fraud (Ind other irr¥gularilies, Approved by order of th8 m8mb8r8 of the board of Trustees and signed on ils behalf by.. W Anderson Truslee Date.. Page 4 THE HIGHCOMBE EDGE TRUST INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF THE HIGHCOMBE EDGE TRUST Oplnltsn We have audit8d the financi81 sialewents of Th8 Highcombe Edge Trust Itho'parent charllll and its subsidiaries (the 'group'l for the period 8nded 31 December 2021 which compris8 the Consolidated stalement ol financial activities, the Consolidated balance sheet, the Charity balance sheet, tho Consolidated slaletyent ol cash fluws and the related nolos, including 8 summary of significanl a¢countlng policies. The financial reporung frarnewtsrk that ha5 been applied in th&ir preparation is applicablo law and Unitgd Kingdom Accounting Standards, induding Financ121 Reporting Standard 102 'The Finanaal Reporting Standard 3pplicabla in the UK and Republic of reland, Iunlted Kingdom Generally Accepted Accounting Pracllcel. Th8 financial sialemenls have been prgpared in accordance with Accounting and Reportlno by Charlties preparing their 8ccounts ill accordanc8 with the Flnancial Reportin9 Standards appliuable in Ihe UK and Republic of Ireland IFRS 1021 in preference to the Accountlng and Reporiing by Charities.. Stalprnent of Recommendod Practic& issued on l April 2005 which is rele￿￿￿ to in the extanl regulations bul has been withdrawn. This has b88n done in order for the accounts to provide a tru8 and fair view in accordanco wth the Gtsnerally Accepted Accounting Practice effective for reporting periods bgginning on or after 1 January 2015. In our opinion th8 financia1 st8tements'. give 3 true and fair view of lh8 state of the Group's and of the parent charivs affgirs as al 31 D6cember 2021 and of the Grovp'5 incoming fesources and application of resources, including ils income and expBnditur8 lor the period then 8nded', have béen properly prepared in accordance vllh Uniled Klngdom Generally Accepted Aecounling Practice., and have been prepared in accordan￿ wilh the requiroments of the Charities Act 2011. Basls for opinlon We conducted our audit In accordanTr wth International Standards on Auditlng IUKI IISAS IUKII and appllcable law, Our respons5bililies under those standards are lurth8r described in the Auditorts responsibilities lor the audit of the financial slalempnts section of our report. We are independent ol the Group in accordance with the ethical requirgrnents Ihal are relevant to our audit of the financial statements in the Uniled Kingdom, incl￿ding th9 FinancAal Reporting Councifs Ethlcal Standard. and we have fulfilled our other ethical responsibilltles in accordance with Ihese reouirem8nts. We believe that the audit evidence we havo obtained is sufficiant and appropriaie to provlde a basis for our opinion. Concluslons relating to golng eoncern In auditing the financial statemonts, we have conGluded that the Trustees, use ol the going concern basis al aocounting in the prep2ratlon ol the financial statements Is approprlale. Based on the work we have performed, we have not Identlliad any rnaterial uncertalnties relating to evenis or conditions that, individually or Gollectively. may cast significant doubt on the Group's or the parent charity's ability lo continue as a going concem for a perlod af al least twelve months from when the flnancial statements are authorisgd for issue. Our responsibililies and the responsibilili&s of the Trustees with respe¢l lo going concern ar8 described in the re16vant sections of this r8POrt. Page 5 THE HIGHCOMBE EDGE TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE HIGHCOMBE EDGE TRUST ICONTINUEDI other information The other information comprises thè information included in the Annual report olh9r than the finallci81 statements and our Audilorfs report Ihereon. The Trustees are responsible lor the other information contained within the Annual report. Our opinion on the finanelal statements does not cover the other informstlon and, except to the 8xtent Oth8￿ls9 explicitly stat8d in our r8POrt, We do not express anyform of assurance conclusion thereon. Our resprjnsibility is ta read Ihe other information and, in doing so, consider whether the other information is matsrially InC￿SEs16nt with the financial slatemenls or our knowledge obtained In the eourse ol the audit, or otherwise appears lo b8 malerlally mlsstat8d. If we id8ntlfy such mat8rlal Inconslstencles or app8r8nt materfal misslatpmenls, we are required to d8lermin8 whether this gives to 8 rnalerial misstatement in fhe linancial statements themselves. If. based on the work we h2ve performed, we conclude that there is a material mSsst8tement of this other information. we are required to report that fset. Wé hÈva nothing lo r6POrt In Ihls regard. Matters on which w& ar8 required to r8POrt by &xception We have nothing to report in respect of the following mallers where the Charities {A￿DU￿￿ and Reports) Regulations 2008 requires us to report to you if. in our opinion.. the information given in the Trustees, report is Inconslstent In any material respect with the financlal stat6ments', or Ihe parent Charity has not kept sufficient accountlng records.. or Ihe parent Charity financial statements are not in agreement with the accounung records and returns.. or we have nol received all the information and explanations we require lor our audit. R88ponsibiliti88 of trustees As 8xplaln8d more fully in th8 Trust88s' r8SPOn8ibilili8s 8tatetll8nl, the Trust68s are regponsib18 for the pr?paralicJn af Ihg fin2ncaal 8t2tgmenl8 which give a true and fair view, and for such inl8m81 control as the Trustees determine is necessary to enable the prep2ralion ol financial statements that are f￿8 from material misst8temant. whéther due to fraud or error. In preparing the financial statements, the Ttustees are responsible for assesslng the Group's and the parent charity's ability to continue as a going concern, disclosing. as 8pplicable, mallers related lo going concern and using the going cor)cern basis of accounting ijnless the Trustees eilhor intend lo liquidate the Group or the paienl chaTEly or lo cease operatlons, or have no realistic alternative but to do so. Page 6 THE HIGHCOMBE EDGE TRUST INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF THE HIGHCOMBE EDGE TRUST ICONTINUEDI Auditor's responslblllll85 for the audtt of thé financlal Statements We have been appointed as auditor under secllon 151 01 the Ch8rities Act 201 l and report in accordance with the Act and ralevant regulations made or having effect Ihereunder. Our objectives are to obtain reasonable assurantre about whether the financial statements as a whole are free from malerlal misslalement. whether due lo fraud or error. and lo issue an Auditorfs roport that inoludes our opinion. Reasonable assurance is a higli level of assurance, bul is not a guarantgo that 8n audit conducted in aecordanee with ISAS IUKI will always detect a matèrla5 misslalernent when It exists. Migstalemenls can aris8 fiom Iraud or error and are consldered material if, individually or in the aggrggate, they could reasonably be expected lo Influence the economlc deeisions of users taken on the basis of these financiel stalomeiits. Irregularities, including Ir8ud, are instonces of non-eomplianc8 Wlth laws and regulations. We design procedures in line with our responsibilllies. outlined above, lo detect matèrial misstatements in respect of irregularitie5, including fraud. Th8 @xlent to which our procedures 8r8 eapable of dele¢ling irregularities. including Iratsd is d8tailed below.. We obtained an understanding of the legal and regulatory frameworks wlthin whlch Ihe Cha￿tY operates, focusing on those laws and regulations Ihal have a direct elfecl on the delerminatlon of Material amounts and disclosures in the financial statements. The laws and regulations we considered in thls contexi were the Charities Acl 2011 and the Charities SORP IFRS 1021. We assesscd the required compliance with these laws and regulatlons 85 part of our audit prO￿dureS on the related financial stat6ment items. Auditing standards limit the required audit procedures to idonlify nortrcompllance with these laws and regulallons to enqulry of the Trustees and other managemunt and inspection of regulatory and legal correspondence, if any. We idellufied the greatebt risk of material impact on thè finanoial ststemenls frotn ir￿qUI￿rItIes, inGludsng fraud, to be ￿thIn the override of controls by man2gemenl. Our audil procedures lo respond to these risks induded enquirles of manaoemonl, and the TIu51ees about their own Identification and assessment of the risks ol irregularilles, sample tebling on the p081ing ol lournals. revlewng accounting estlmates for biases and revie￿￿rng regulalory correspondence. Owing to the inherent limltatlons of an audll, there Is an unavoidable risk that we rnay not have detected some materi31 misstatoments In lh8 financlal slaltrmenls, evell thouqh we have properly p18nned and performed our audlt in accordance with auditing standards. For example, the fijrther removed Ron-compliance with laws ar)d regulations lirregulariliesl Is from the Events and transactions rellecl8d in the financlal statements, thelgss likely the inherently limited pra￿dureS required by auditing slandards would idenllfy it. In addition. as wth a4)y audit, there ran)ained a highér risk of nc>n-delecllon of irregularlties, as Ihtsse may involve Gollusion, forgery, Inlentional omlssions, misrepresentations, or the override of internal controls. We are not responsible for preventing nan- compllanee and cannot be expected to d8teot non-complian¢e wlth all laws and regulallons. A further descriptlon of our r¢8pDnsibili119s for the audit of the financial statements is IoGate(S on the Finanoial Reporling Council's website al.. www.frc.o uklauditorsres nsibllitlps. This description forms part of our Audilorfs r8POrt. Page 7 ## **THE** HIGHCOMBE EDGE TRUST ## **INDEPENDENT AUDITOR'S REPORT TO** THE **MEMBERS OF** THE **HIGHCOMBE EDGE TRUST (CONTINUED)** ## **Use of our report** This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed. **Crowe U.K. LLP** Statutory Auditor Fourth Floor St James House St James Square Cheltenham GL50 3PR Date: 30 January 2023 Crowe U.K. LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. Page 8 THE HIGHCOMBE EDGE TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 31 DECEMBER 2021 Unrestrlcted funds 2021 Tolal funds 2021 Tolal funds 2020 Not8 Income froTll: Donations and legacies Charitable acllvities Other trading acllvities Invgslm8nts 29S,029 10,700 886,032 173 295,029 10,70Q B86,032 173 207,080 155, 149 Total income 1,191,934 1,191,934 382,229 Expendllure on- Raising funds Charitable 8Ctivities 667,423 775,834 667,423 775,834 90,538 Total expenditure 1,443,257 1,443,257 90,538 Net movement In funds 1251.3231 1251,3231 271,691 Re¢onclllatlon of funds.. Total funds brought forward Nel movement in funds 18 18 6,171,169 (251,3231 6,171,169 1251,3231 5,899,478 271,691 Total funds carried forward 5,919,846 5,919,846 6, 171. 169 The Consolldated Stal8m8nt of Financial Activliles Includes all gains and losses recc>gnlsed in the period. The note8 on p￿e5 13 10 29 form part ol these financial slatemenls. Page g THE HIGHCOMBE EDGE TRUST CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2021 31 Docémber 2021 30 Jun8 2020 Notè Flxed assets Tangible assets Inveslm6nt property 12 5,526,728 292,546 5,533,937 5,526,728 5,826,283 Current assets Stocks Debtors Cash 8t bank and1n hand 15 247,437 62,125 354,247 16 351.066 663,809 35t,066 Creditors.. amounts falling due wlthln one year 1270,6911 {6, 18Q) Net current assets 393.118 344,888 Total assets less current liabllltles S,919,846 6, Y71, 169 Total net assets 5,919,846 6, t71,169 Ch8rily funds Unrestrlcted funds 18 5,919,846 6,171,169 Total funds 5,919,84fj 6,171. 169 The financlal statements were approved and authorised lor issue by the Trustees and sign8d on their behalf by.. B W Anderson Trust8 Dale.. ?ol bi120tJ The notés on pages 13 lo 29 form part of these flnancial slalemenls. Page 10 THE HIGHCOMBE EDGE TRUST CHARITY BALANCE SHEET AS AT 31 DECEMBER 2021 31 Docember 2021 30 June 2020 Note Fixed assets Tangible assets Inveslmonls Investment prop8rty 12 5,317,547 266,294 292.346 14 13 5.533,937 5,583,841 5,826.283 Current assets Debtors Cash at bank and In hand 16 57 242,369 351,066 242,426 351,066 Creditors.. amounts f811ing du8 wlthin one year 17 15,4801 (6, 180) Net current assets 236,946 344,886 Total ass8ts less current Ilablllties 5,820,787 6,171,169 Total net asséls 5,820,787 6,171,169 Charity funds Unrestricted funds 18 5,820,787 6, 171, Y69 Total funds 5.820,787 6,171, 169 The financial statements wer8 approved and aulhorised for issue by th8 TIu8t88S and slgned on thttir t￿half by.. B W Anderson Trustee Date.. 2ty1ts1120IJ The notes on pages 13 10 29 form part of these fin3ncI81 stalements. Page 11 THE HIGHCOMBE EDGE TRUST CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 DECEMBER 2021 2021 2020 Note Cash flows from op8ratlng activitles Net eash used in opgrating activities 20 244,889 337,838 Cash flows from Investing actSvltles Transfer ol fixed assets on acqusition of subsldiary Purchase of t8ng1ble fix8d sssels Purchase ol Inveslm8nl property Interest recEived Interest paid 1122,4191 1269,8311 (47,245) (52,552) 149 (9, 199) 173 Nat cash used In investing actlvities 1392.0771 {108,8471 Cash flows from flnancing actlvitie5 Cash inflow8 from new borrowing Repayment8 of borro￿ng 150,369 (450,000) Net cash provlded byllused Inl flnanclng activltles 150,369 1450,0001 Chang8 in cash and cash equivalènts In th8 p•riod Cash gnd cash equivalents al the beginning of the p8ri0d 3,181 351,066 1227,0091 5T8,075 Cash and cash equlvalents at thè end of the perlod 21 354,247 351.066 The notes on pages 13 10 29 form part ol these finallciaS stalernonls Pag¢ 12 THE HIGHCOMBE EDGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 General Informatlon The Highcombe Edge Trust is an unincorporated charity (no.. 10775721 registered in England and Walés. The registered addr8ss is Somèrvllle, BrKJle Close, Graysholl. Hindhead, GU26 6EA. Accounting policies 2.1 Basis of preparation of flnanclal statements The financial statements have been wepargd in accordance with the Charities SORP IFRS 1021 Accounling and Reporting by Charities., Slalom¢nt of Recom¥nended Practice applicable lo ¢haiities preparing their accounts in accordance wth Ihe Financial Reporting Standard applicable in tho UK and Republic of Ireland IFRS 1021 (effective 1 January 201QI, th& Finanaal R6POrting Standar appli¢abl8 in the UK and Republic of Irolaiid {FRS 1021 and the Charities Act 2011. The financi81 siatemenls have been prepared lo glve a 'lrue and faie view and have departod from the Charit188 IAccounts and Reports) Regulations 2008 only to the exlenl required lo pruvidtTr a 'lrue and fair, view. Thls departure has involved fo51owing the Charities SORP IFRS 1021 publlshed in Ociober 2Q19 rather than the kncounling and Reporting by CharitiBS.' StÈtement of Recommond8d Practice 8ffèctiV6 from 1 April 2005 which has slne6 bean withdrawn. The Highcombe Edge Trust meets the definition of a publlc benefit entlty under FRS 102. Assets and liabilities are inllially rocognis8d al hlsiorleal cost or transaction value unless otheNrise slated in the relevant accounting pulicy. The Consolidated st8tem8nt of financial activities ISOFAI and Consolidated balanc8 sheet ¢￿￿5011date Ihe financial statements of the Charity and its subsidiary undertaklng. The results of the subsidiary are consolidated on a line by Ilno basis. The Charity has also t2k&n advantage of the exemption available to 8 quallfylng entity in FRS 102 from the requirement to present a Charity onty statement of cash flows and certaln di￿10$ureS about the charityls financlal Instruments wilhln tho ￿ns01[dated accounts. No separa16 SOFA has been pr6p8rad for the Charity alon8. 2.2 Golng ¢oncern The Tru8t8es are of the opinion Ihal there is sufficient funding in place to continue actiiqlies of tho charity. Thereft>re, th8 accounts have been prepared on a ooing con￿rn basis, Page 13 THE HIGHCOMBE EDGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 A¢counting pollcles Icontlnuedl 2.3 Incomé All income is recognised c>nce the Charlty has enlillemenl lo the inwrn8, it is prob8ble that the Income will be received and the amount of income ￿CeIVable can be measured reliably. The r8cognillon ol income from legacies is depend&nl on establlshlng 8ntltl&menl, the probability of receipt and the ability lo estimate with sufflcienl accuracy the amount r8c6ivabltt. Eviden￿ ol entitlement lo a legacy exists when the Charity has sufficlent evldence that a gift has been left lo IhorN Ilhrough knowledge of the existen￿ of a valid wll and the death of the benefactor) and tho executor is salisfigd that the property in question will not be required lo satisfy claims in the estate. Recelpt ol a legacy musl be recognised when It Is probable that it wll be received and the 18ir value of the amounl reLeivdble, which will qenerally be th8 8xp8Cted eash amount lo be distributed lo the Charity, can be rellably measured. Grants are iiicluded in the Consolidated stgtamenl of financial activities on a receivats19 basis. The balance ol Income received fcjr %pprifir purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where incorne is received in 8dvanc¢ ol enlilleFrignl of receipt, ils reLoonilion is defarred and includ8d In ci'6ditors as deferred income. Where enli118ment occurs before income is received, the incomé is accruad. Income tax rocov8rabl8 in relatlon to investment income is r8cogni8ed al the time the Investment income is re￿1Vable. 2.4 Exponditure Expenditure is recognisgd on¢0 there Is a leoal or constructive obligalion lo Iransler 8conomic benefit to a thlrd party. it is probable that a transfer of economlc benefits wlll be required in sPtllemenl and the amaijnl of the obligation can be measured reliably. Expondilurc is dassifled by actlvlty. Expendlture on raising funds Inoludes all expenditure Incurred by ihe Group to raise funds for its ch8riteble purposes and includes costs of all fundraising activitl8S 8V8nis and non-charilable trading. Expenditure on charitable activities is incurred on directly undertaking the actiiqlios whieh furth&r the Group's objectlves, as well as any associal8d support costs. All expenditure is inclusive of irrecoverable VAT. 2.5 Interest recelvable Interest on funds held on deposit is inclLJded when receivable and Ihe amount can ￿ measured rgliably by the Group., this is norma15y upon No￿fIcatIon of the interest paid or payable by tho inslilulion qlh whom the funds are deposited. 2.6 Tanglble Ilxed assots 2nd deprecFatlon Tanglbl8 fixed assèts costing £500 or more are capitalised and recognised when future economit benefits are probable and th8 cosl or value of the asset can be measured reliably. Tanglb18 flxed as￿t$ are inilially recognlsed 81 cost. After recognition, under the cost modol, tangible fixed assets ar8 measured at cost less accumulated dopre¢igtion and any accumulated impairment losses. All costs incurred lo bving 8 tangible Ilxed asset into ils inlend8d working condllion should be ineluded in the measurement of cost. Page 14 THE HIGHCOMBE EDGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 Accountlng pollcle$ Iconllnuedl 2.6 Tangible flxod assets and depreciation Icontinuedl Depreciation is charged $0 88 to allocate the cost of tangib18 fix8d assets 1gSS their residual value over their estimated useful lives, Depreriailon is provided on th6 following basis.. Freehold property Motor vehiclos Fixtures and liÉlings Office equiprnent The asset5, residual valuas, useful lives and depreciation m&lhods are ra￿ewed, and 8djusled prospectively il appropriate, or11 there is an indicallon of a signlfirant thang& since the last reporiing dote. 2 /a Straight Ilne 25¥ll reducing balance 15% reduring b8lallce 25Yo 8tralght line Gains and losses on dispos81s are determined by comparing the proceeds with the carrying amount and are recognis8d In the Consolidated siatement of financial aolivities. 2.7 Investments Investments in subsidiaries ar8 valued 2t cost less provlsion for impalrment. 2.8 stock8 Stocks are valued at the lower of eost and ng1 realisable value after making due allowanco ft>r obsolole and slcTrW-movlng stocks. Cogt includes all direot costs and an appropriate proportion ol fixed and variable overheads. 2.9 Debtors Trade and other debtors ar8 rècognised al the settlement amount after any tr8de discount c>ffered. Pr8payments are valued at thè amount prepald nel ol any tradg dlscounls due. 2.10 Cash at bank and In hand Cash 81 bank and in hand Includes c8sh and short-lerm highly liquld investments with a short malurily of three months or less from the date ol acquisition or opening ol Iho deposit or similar account. 2.11 Liabilltles Liabili11os ale recognis8d when ther8 is an obllgalion al the Balanca 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 atnount of the settlem8nt cèn be estimEled reliably. Llabilities sre recognised at the amount that the GhaTlty antScipales it will pay to selllg the dèbt or the Amounl il has T8celved as advanced payments for the goods or servlces il musl provlde. P8ge15 THE HIGHCOMBE EDGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDEO 31 DECEMBER 2021 Accounllng polictès Icontlnuedl 2.12 Financial Instrumènts The Group only has financial assets and financial liabilitl8s ol a kind Ihal qualify as basic financial Instruments. Baslc flnancial instrurnenls are initlally re￿￿nIS￿ at transadion vallte and sttbsequenlly m8asured al Ihgir settlement value. 2.13 Fund a¢¢ountlng General funds ar¢ unr6Strioted fvnds which ar8 avallable for usg 81 the dlscretion of the Truste85 in furtherance of the gen8ral obje¢livos of the Group and which have not been designated for oth8r purposes. Investment in¢om8, galns and losses are allocated to the appropriate fund. Incoma from donations and legac185 Unrestrlcted funds 2021 Total furtds 2021 Donalions Grants Zapp UK Trading Ltd 9,779 18,960 266.290 9,779 18,960 266,290 295,029 295,029 Unreslricled funds 2020 Total funds 2020 Donations 207,080 207.080 Income from charitabl8 activities Unrestricted funds 2021 Total funds 2021 Tol81 fun&s 2020 Rent income 10,700 10,700 Pagg 16 THE HIGHCOMBE EDGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 Income from other tradlng activltles Income from non charitable trading actlvltles Unrestrlcted funds 2021 Total funds 2021 TotÉl fvnds 2020 Trading income- Zapp UK Trading Ltd 886,032 886,032 Investmènt in¢ome Unrestricted funds 2021 Total funds 2021 Bank inter8st 173 173 Unrestricted funds 2020 Total funds 2020 Bank inleresl Licence incorng 149 155,00 149 155,000 155, 149 155, 149 Page 17 THE HIGHCOMBE EDGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 Expendits]re on raising funds Costs of ral$lng voluntary income Unrestricted funds 2021 Totsl funds 2021 Totèl funds 2020 Trading costs- Zapp UK Trading Ltd 667,423 667,423 Analysls of èxpèndltura on charltablè actlvltles Summary by fund type Unrestricted fijnds 2021 Total 2021 Charitable 3clivilles 775,834 775,834 Unreslrict8d funds 2020 Tolal 2020 Charftable activities 90,538 90,538 Pag8 18 THE HIGHCOMBE EDGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 Analysls of oxpendlture by actlvltles Activities undertaken directly 2021 Support costs 2021 Total funds 2021 Charitable acliwlies 101,020 674,814 775,834 Aclivltles undertak8n directly 2020 Support costs 2020 Tofal funds 2020 Charitable actlwtles 81,255 9.283 90,538 Analysls of direct ¢osts Total funds 2021 Tot&1 fvnds 2020 Donatiot)s Advancement of education of children and young people 101.020 91,255 101,020 81,255 In 2021 donations of £101,020 were mode to OSGUK. Page 19 THE HIGHCOMBE EDGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 Analysis of expendlture by activltlos {contlnuedl Analysls of support CO8t5 Total funds 2021 Total funds 2020 Depreciation Admini51ralive costs Premises costs Govemanoe costs Professlonal fees 658,S05 139 7,827 5,423 2,920 9,263 674,814 9,283 Staff costs are nil. The Highcombe Edge Trust is run wholly by volunteors. The depreclatlon rharge reflects tho rccla5s1fical￿n of the property from investment property lo fixed assets, gs discussed in note 12, Thg depreciation has been back dated lo the point of purchase and th8 eharge is Yéflect6d in the period lo 31 December 2021. 10. Audllor's remuneration 2021 2020 Feas payable lo the Charivs auditor lor the audit servic85 5,000 4,000 Fees payable lo the Charitls auditor and Ils Èssociales in connection wth the Charivs pension sGhemelsl in respect of.. Non-audit serVI￿S 2,250 11. Trustees. remuherktlon and exp8ns&s Ourlng the period, no Truslees Yeceived any remuneration or oth8r benefits (2020- £NIL). During the period ended 31 Dec8mbor 2021, no Trustee expenses have been Incurrgd (2020- £hllL). Page 20 THE HIGHCOMBE EOGE fRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 12. Tan9lbla flxed asset8 Group Freehold propèrty otor Flxtures and vehicles fittings OffÈce equipm8nt Total Cost or valuatlon At l July 2020 Additions On acquisition ol subsidiaries Transfers betweon classes 473,667 5,649 138.928 473,667 269.831 206,895 5,533,937 227,114 19,366 5,533.937 37,068 17,844 30,757 At 31 December 2021 5,780,417 30.7S7 618,244 54,912 6,484,330 Depreciation At 1 July 2020 Charge for the period On acquisition ol subsldi8lle 181,321 91,374 181,321 691,805 592,727 6,539 1,165 4,601 68,681 11,194 84,476 Al 31 Decembar 2021 592,727 11.140 341,376 12,359 957,602 Net book valu8 Al 31 December 2021 5,187,690 19,617 276,868 42,553 5,526,728 AI 30 June 2020 292,346 292,346 Page 21 THE HIGHCOMBE EDGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 12. Tangible flxed assets Icontlnu8dl Charlty Freehold Flxtures and property fittings Total Cost or valuation At 1 July 2020 Additions Transfers between classes 473,667 473,667 149,769 5,533,937 149,769 5,533,937 At 31 December 2021 5,683,706 473,667 6,157,373 Depreclatlon Al 1 July 2020 Charg8 lor the period 181,321 65,778 181,321 fj58,505 592,727 Al 31 December 2021 592,727 247.099 839.826 Net book value Al 31 December 2021 5,090,979 226,568 5,317,547 At 30 Jun& 2020 292.346 292,S46 The freehold property has been transferred from investment property to frèehold property al fair value of £5,533,937 on 1 July 2020 In line with the charitable oblecllves of the Trust. The depreciation of th8 properly has been back dated Ic) the point ol purchase and the charge is reflected in the perlod to 31 December 2021. Page 22 THE HIGHCOMBE EDGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 13. Investment property Group and Charlty Freehold Investment property Al t July 2020 Transfers belween classes 5,533,937 15,533,937) At 31 Decamb&r 2021 The freehold property has been transf8rr6d from investmanl property to Ireahold properly al falr valua of £5,533,937 on 1 July 2020 in line with the charildble objecllvès of the Tiusl. Page 23 THE HIGHCOM8E EDGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 14. Flxed asset Investments Investments in subsldlary companies Charlty Cost or valuation Transfer in ol Zapp UK Trading Ltd Investment in Zapp UK Trading Ltd 266.290 Al 31 December 2021 266,294 Net book value At 31 December 2021 266,294 Prlnclpal subsldlarles The following was a wholly owned siibsidiary und?rtaking of the Charlty from 31 July 2021. The subsidiary transferred lo The Highcomb8 Edge Trust from Three Counties Education Trust. The results of the subsidlary have been consolidated into The Hlgheombe Edge Trust from the dale of transfer. Name Corrpany numbèr Registered offlce or prlnclpal Principal actlvlty place of buslness Zapp UK Tradlng Ltd 09432502 The Old Fire Station, Wheeler Lane, Willey, Goldalming, Surr8y, GU8 SQU Sale ol retail goods The flnancial r8sults of the subsidiary for the 5 month period w8r6', Nam8 Income Expendllure ProflVILossl I Surplusl IDeficitl for the 5 month period hlet assets Z8pp UK Trading Ltd 886,032 786,973 99,059 365,349 Page 24 THE HIGHCOMBE EDGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 stocks Group 31 December 2021 Group 3Q June 2020 Sto¢k 247,437 16. Debtors Group 31 D8cember 2021 Charity 31 December 2021 Group 30 Jun& 2020 Chgrily 30 JunE 2020 Due withln one yeay Tiade debtors other debtors Prep2ymenls and accrued in¢om8 54,132 51 57 7,936 62,125 57 17. Credltors.. Amounts falllng due wlthln one year Group 31 December 2021 Charlty 34 December 2021 Group 30 Jujjé 2020 Charity 30 June 2020 Other loans 150,369 53.671 8,072 17,504 41,075 Tr2d& creditors ather taxalion and soclal securlty Other creditors AccNals and deferred in¢omo {4,38KII 6,180 6,180 9,864 270,691 6, 180 5,480 6, 180 Paoe 25 THE HIGHCOMBE EDGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 18. stalÈment of funds Statemenl of funds curronl period Balance at 31 Balance at I July 2020 Dec8mb8r Income Exp&ndlture 2021 Unre$t¥lcled funds General Funds 6,171,169 1,191,934 11.443,2571 5,919,846 Slatement of funds - prlor period B6lance 21 30 JunB 202Q B818nc6 81 l July 2079 Income Expenditure Unrèstrlcted funds General Funds 5,899.47B 362,229 (90.538) 6, 171, 169 19. Analysls of net a8sets belween funds AnalysFs of net assets between funds - CLtrrent perlod Unrestricted funds Total funds 31 December 2021 December 2021 Tangible fixed assats Current assets 5,526.728 5,526,728 663,809 663,809 1270,6911 1270,6911 Creditors due within ong ygar rolÈl 5,919,846 5.919,846 Page 26 THE HIGHCOMBE EDGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 19. Analysls of net assets between funds Icontlnuedl Analysis of net assets between funds - prior period UnrsslKicÈed funds 30 June 2020 Total funds 30 June 2020 Tangible fix6d assets Inveslm8nl property Current assets Creditors due within one year 292,346 5,533,937 551,066 (6, t80J 292,346 5,533,937 351,066 f6, 180) Total 6,171,169 6,171,169 20. Roconclllatlon of net movement In funds to n8t cash flow from operatlng a¢llvlties Group 31 December 2021 Group 30 June 2020 Net incomelexp8nditure for the period las per Stat8menl of Financial Aclsvitlesl 1251,3231 271.891 Adju5tmants for- Dep￿Clat￿on charg8S Interest received Interest paid Dècreasellincreas81 in stocks D8cr88sellincreasel in debto Increaselldecreasel in creditors 691,805 11731 57,591 (14g) 9. 199 1247.4371 162,1251 114,142 (494J Nel cash provlded by oparating aetlvlties 244,889 331,838 Page 27 THE HIGHCOMBE EDGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 21. Analysls of cash and cash equlvalehts Group 31 December 2021 Gmup 30 June 2020 Cash in hand 354,247 351,066 Total cash and cash equlvalents 354,247 351.068 22. Analysls of changes In net debt At31 At 1 July 2020 Cash flows December 2021 Cash at bank End in hand D8bl due withln 1 year 351,066 3,181 354,247 1150.3691 1150,3691 351,066 1147,1881 203,878 23. Operatlng lease commltments At 31 December 2021 the fjroup and the Charity had commltmènls lo make future mlnlmum leas8 paym8nls und8r non-cancellable operating leases as follows.. Group 31 Group 30 Jun8 2020 December 2021 Not later than 1 year Laler than 1 year and not later than 5 yèars Later than 5 years 34,994 180,000 108,750 323,744 Page 28 THE HIGHCOMBE EDGE TRusr NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 24. Related party transactlons As slated In notè 14, Zapp UK Tr8dlng Ltd was a wholly owned subsidiary undertaklng of the Charity from 31 July 2021. £119.500 was received by the Charity from tho svbsldiary under glft aid. B.W. Anderson, a Trustee, Is also a Director of Planteria Group IUKI Ltd. Planteria GroLJP IUKI Ltd lllcilltated a payment of AUS$ 2655.00 to Oneschool Global Ltd Australia on behalf of The Highcomb8 Edge Trust, The Highcombe Edge Trust were required lo pay Oneschool Global Ltd Australia in AUS$ bul they were not abE8 to arrange this as no foreign exchange transactions are allowed on the bank aecount. The payment was mada by Plantèria Group IUKI Ltd and reimbursed by Thg Highcombe EdgÉ Trust. Page 2g