DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
## Limited **World Book Day**
Report and financial statements for the year ended 30 June 2023
Company number: 03783095 Charity number: 1079257
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited
2
## **CONTENTS**
|**CONTENTS**||
|---|---|
|Reference and administrative information|3|
|Trustees’ annual report and fnance review|4|
|Independent auditor’s report|23|
|Statement of fnancial activities||
|(incorporating an income and||
|expenditure account)|27|
|Balance sheet|28|
|Statement of cash fows|29|
|Notes to the fnancial statements|30|
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited
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## **Reference and administrative information**
|**Company number**|03783095||
|---|---|---|
|**Country of incorporation**|United Kingdom||
|**Charity number**|1079257 (registered under the name World Book Day Limited)||
|**Country of registration**|England & Wales||
|**Registered ofce and**|6 Bell Yard||
|**operational address**|London WC2A 2JR||
|**Trustees**|Trustees, who are also|directors under company law, who served|
||during the year and up to the date of this report were as follows:||
||E Scot|Chair|
||M Halls||
||H Broadfoot||
||A Bond||
||R Calderon||
||S Mahal||
||J Douglas||
||D Conway|_Appointed September 2022_|
||R Flint|_Appointed September 2023_|
||S Thompson|Treasurer _Resigned February 2023_|
||D Prescot|_Resigned February 2023_|
||C Cowell|_Resigned September 2023_|
||W Obbard|Treasurer_Appointed November 2023_|
|**Key Management**|Cassie Chadderton|Chief Executive and Company Secretary|
|**Personnel**|Emma Pritchard|World Book Day Manager|
||Kate Sayer|Community and Development Manager|
||Maya Maraj|Commercial Partnerships Manager|
||Amy Birch|Finance and Operations Manager|
|**Auditor**|Sayer Vincent LLP||
||Chartered Accountants and Statutory Auditor||
||Invicta House||
||108-114 Golden Lane||
||LONDON||
||EC1Y 0TL||
|**Bank**|HSBC||
||Church Street||
||Weybridge||
||KT13 8DF||
|**Solicitor**|Bristows||
||1st Floor||
||100 Victoria Embankment||
||London EC4Y 0DH||
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited **Trustees Annual Report**
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## **Trustees annual report**
## **The trustees present their report and the audited financial statements for the year ended 30 June 2023.**
Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.
## **Objectives and activities**
The objective of the charity is the promotion and encouragement of reading. Its beneficiaries are children and young people.
## **World Book Day’s vision and mission**
## **Vision**
More children, from all backgrounds, developing a life-long habit of reading for pleasure, and benefitting from the improved life chances this brings them.
## **Mission**
World Book Day’s mission is to promote reading for pleasure, offering every child and young person the opportunity to have a book of their own. Reading for pleasure is the single biggest indicator of a child’s future success – more than their family circumstances, their parents’ educational background or their income.
Through our annual event in March with its joy, celebration and fun, we encourage more children to read and raise awareness of the difference reading makes to their lives. Through our year-round activities, we support families, schools, libraries, booksellers and communities to help children love reading.
For the year ended 30 June 2023
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## **A note from World Book Day's Chair and Chief Executive**
We want World Book Day to be a joyous celebration for everyone and to have an impact long after the day has passed. For many children, choosing their £1/€1.50 book for free with their book token or
taking part in a World Book Day activity, can be the spark that starts their reading journey. Our work with schools, nurseries, libraries, families, booksellers and in communities, helps children make that vital connection; to see themselves as readers all year-round.
With the cost of living crisis ever present, we asked you to celebrate World Book Day in a way that worked for you. Thank you to everyone who embraced the fun and magic of reading in 2023.
**Emma Scott Chair**
Research shows that only 25% of children read every day or nearly every day for pleasure. Children who choose to read in their spare time are more likely to succeed in life, so – through our annual campaign and year-round activities – we encourage more children to read for fun.
We have been focusing on how our annual campaign and year-round activities can do more to encourage children to choose to read. In 2023, we were delighted to see a shift in the conversation, with reading for pleasure sitting at the heart of everyone’s World Book Day celebrations. We’ll build on this to reach even more children and young people in the future.
## **Cassie Chadderton Chief Executive**
## **Purposes and aims**
The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity’s aims, objectives and activities remained focused on its stated purposes.
The trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.
The trustees have complied with the duty in section 4 of the 2006 Charities Act to have due regard to guidance published by the Charity Commission. In particular, the trustees refer to the Charity Commission’s general guidance on public benefit both when reviewing how well past activities have satisfied the charity’s stated objective, and when planning how future activities may best continue to do so.
The main means through which the charity’s objective is met is the organisation and promotion each year of a series of events designed to encourage reading by the public surrounding a designated day (in 2023, it was March 2) known as World Book Day.
For the year ended 30 June 2023
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World Book Day Limited **Trustees Annual Report**
## **Our Activities**
World Book Day’s activities and who it tries to help are described below. All its charitable activities focus on the promotion of reading, especially to children and young people and their families, and are undertaken to further World Book Day Limited’s charitable purposes for the public benefit.
**1. Offering every child and young person the opportunity to have a book of their own.**
- l Working with publishers, World Book Day presents a selection of specially produced £1/€1.50 books for children and young people.
- l World Book Day produces and distributes £1 book tokens (€1.50 in Ireland) to school and preschool aged children throughout the UK and Ireland. Children and young people can take their token to participating bookshops or retailers to swap it for one of the £1 World Book Day books. Or the token can be used to get £1 off any full price book (€1.50 in Ireland) or audiobook costing at least £2.99 (or €3.99 in Ireland).
## **2. Promote and encourage reading for pleasure**
- l World Book Day continued its work to promote and encourage reading for pleasure to children and families across the UK and Ireland. This includes delivery of the World Book Day events and supporting activities.
- l World Book Day also conducts research to understand its impact and how it may improve its reach to beneficiaries.
## **3. Produce resources that support the development of reading for pleasure**
World Book Day produces resources to encourage and support reading for pleasure. This includes resource packs for schools and school children throughout the UK and Ireland and a wide range of activities to support reading available through the World Book Day website.
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## **Why do we have World Book Day?**
**----- Start of picture text -----**
.
Our 6 principles to encourage children to read for pleasure shape our work
**----- End of picture text -----**
**----- Start of picture text -----**
Finding time
Being read to regularly to read
Having books at
home and school Having
trusted help
to find a book
Making reading FUN! Having a choice
in what to read
**----- End of picture text -----**
## **Reading for pleasure matters**
Reading for pleasure is the single biggest indicator of a child’s future success – more than their family circumstances, their parents’ educational background or their income.
Source: OECD
## **Fewer children are reading for fun**
Nearly 1 million children in the UK do not have a book of their own.
Source: National Literacy Trust
**World Book Day** encourages more children into a life-long habit of reading for pleasure, and the improved life chances this brings.
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## **Achievements and performance**
The charity’s campaign set out to encourage all families and children to see reading as part of their lives, using its ‘6 principles’ as a framework for campaign messaging and activity. The charity’s work to reach children and families in areas of high deprivation and low-literacy continued, in partnership with the National Literacy Trust and distributing copies of the £1 books – made possible by donations from publishers and McDonald’s.
**----- Start of picture text -----**
50 million
book tokens distributed through schools,
magazines & partnerships including
5.3 million
book tokens on Happy Meal® boxes
45.7k 30k
£1/€1.50 token packs downloads of
sent to schools schools and early
and nurseries. years packs
59% say World Book Day is
effective for engaging reluctant readers
**----- End of picture text -----**
**1,930** libraries joined in the celebrations with story telling events, displays and activities sharing the joy of reading, choosing and book discovery
**----- Start of picture text -----**
90k
£1/€1.50 books donated
by publishers distributed
directly to children in
disadvantaged communities
across the UK and ROI with
support from McDonald's.
**----- End of picture text -----**
**----- Start of picture text -----**
#worldbookday and
#readingforpleasure
trended on Twitter
713k
social media
impressions
**----- End of picture text -----**
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**Over**
**960k** children enjoyed in-person and digital events in partnership with the National Literacy Trust and BookTrust; and tuned in to the World Book Day BBC Teach Live Lesson.
The Queen Consort spoke about the importance of reading at an early age in an OK! magazine feature to celebrate World Book Day.
## **Over**
## **4,000**
booksellers participated and got involved with colourful displays, events and pop-up bookshops. World Book Day saw the largest uplift in sales of books of any week of the year, including Christmas. Total Consumer Market +38%, Children's Books +35%.
Reception at 10 Downing Street and cross-party support from
## **MPs 119**
## The **London Eye**
donated £1 from every adult ticket purchased on World Book Day and gave free entry to children dressed in costume.
## **3,000**
pieces of media coverage including... Extensive online and print broadcast including BBC Breakfast, ITV London, CBeebies Bedtime Story and Steph's Packed Lunch. Sir Lenny Henry joined BBC Breakfast Live to discuss the
importance of reading and finished the day with CBeebies Bedtime Story, reading Luna Loves World Book Day by Joseph Coelho.
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## **World Book Day's strategy and impact**
**Increasing the reach and impact 0f the World Book Day campaign:** Giving every child the opportunity to be a reader by increasing reach and addressing behavioural and economic barriers.
Every March, World Book Day, shines a spotlight on the importance of reading for pleasure. By creating a buzz and excitement around reading we inspire a new generation of children to choose to read. Through family reading corners in libraries and bookshops, fun football reading sessions with McDonald’s, book parties in the sky courtesy of the London Eye, books popping up on Manchester trams, and free audiobooks through our partnership with Yoto, we invited everyone to celebrate World Book Day in a way that worked for them.
"It is a moment where we say publicly that reading is important, playful and social."
Teacher, World Book Day 2023 survey
## **In 2023, we focused on:**
## **Embedding our 6 principles of reading for pleasure**
Our school and early years resources are created to encourage children to discover a love of reading. This year, we worked in ten schools in areas of high deprivation (supported by The Mercers Company) to understand what prevents, and motivates, a child to read. Our teacher seminars in partnership with the Centre for Literacy in Primary Education, The Open University and The National Literacy Trust advised teachers on how to develop a reading for pleasure culture in their school.
"The teachers packs and digital activities offer a huge number of different ways to engage with children in an easy-to-access format."
Teacher, World Book Day 2023 survey
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"Even the most reluctant readers are able to enjoy World Book Day as it isn't about their ability to read but about what they enjoy reading. It makes it a level playing field."
Teacher, World Book Day 2023 survey
**52.1% of teachers reported that World Book Day is extremely or very efective for children who are not interested in reading (up from 35% in 2019)**
## **Making World Book Day celebrations inclusive and available to all**
With the cost of living crisis making it harder for many families to access books and reading materials, we encouraged everyone at school, nursery and home to celebrate World Book Day with low/no-cost reading ideas, from whole school reading activities to games and free audiobooks.
"A focus on reading for pleasure rather than just dressing up was transformative this year. We used lots of ideas from the website to create opportunities for children to read, talk about reading and share stories with friends."
Teacher, World Book Day 2023 survey
**----- Start of picture text -----**
CBI X An Post
**----- End of picture text -----**
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## **Spotlight on early years**
The early years are crucial for a child’s reading journey. We partnered with BookTrust to host engaging story time sessions for preschoolers with our £1 book authors and illustrators. At the three events, all held in libraires in areas of low literacy and high deprivation, children chose a £1 book to take home. Participants reported feeling more comfortable exchanging their tokens in a place with no onward spending pressure. BookTrust also distributed 90K £1 book tokens through BookStart Co-ordinators in library settings.
## **Giving every child the chance to choose and own their own book**
In 2023, we worked with over **4,000 booksellers** who buy 2 million of the £1 books from publishers (who fund the printing and distribution of the books), to gift to children for free in exchange for their £1 book tokens. Families found their nearest bookseller with our new interactive map.
"In our disadvantaged area, it is a special experience for children to take their token to choose a book in a shop."
Participating bookseller
## **Improving life chances for children through reading:** ensuring our activities meet the charity’s purpose and the needs of beneficiaries – particularly those from lower socio-economic groups.
## **Working in partnership to widen access for all children**
We collaborated with partners including the National Literacy Trust, BookTrust and BBC Teach to create inspiring digital events featuring the authors and illustrators behind the £1 books. **960k children** experienced these events bringing the excitement of World Book Day to schools, nurseries and homes across the country.
We also ran live events in partnership with the National Literacy Trust, Bradford Literature
“After [Lenny Henry] reading parts of the book, I want to read the book. So I’m going to ask my parents to get the book for me.” Child after attending a live author event
Festival and Waterstones, showcasing our £1 authors to over **4,000 children** and giving every child a book to take home.
We want every child to be a reader. To encourage access we work with the RNIB, Blind Dogs, Calibre Audio and NCBI to distribute the £1/€1.50 books in large print, braille and audio. We also work with Books Council of Wales and Foras na Gailege in the Republic of Ireland to provide a £1/€1.50 book choice in the Welsh and Irish languages respectively so that all children are given the opportunity to choose a book that speaks to them.
"Kids were proud to come in with their tokens and to choose a book." Participating bookseller
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Many children look forward to celebrating World Book Day by going to choose a £1 book with their £1 book token. To make this exciting occasion accessible to more children we gifted **90K £1/€1.50 books** .
Through our targeted partnerships with publishers, booksellers and community partners including the National Literacy Trust, and with funding from McDonald’s, we reached more of the country’s most disadvantaged children and young people through prisons, foodbanks, libraries and other community settings.
Children’s Books Ireland and AnPost delivered **14K** World Book Day books to children in Irish hospitals, direct provision centres, homelessness services and Travelling communities.
"In the current economic climate both the schools and us were keener than ever to make sure all local children got a book and the amount of happy kids leaving the shop reading was gratifying."
Participating bookseller
**World Book Day event in Number 10 Downing Street**
For **1 in 5** children receiving free school meals, the book they chose to buy with their £1 book token was the first book of their own.
**World Book Day and National Literacy Trust event in Peterborough**
## **Spotlight on libraries**
Over 1,930 libraries joined in World Book Day with displays, activities and events offering children and families an accessible way to enjoy reading and discover new books for free.
**----- Start of picture text -----**
Wordsley Library
**----- End of picture text -----**
"World Book Day is a great way to engage children with books and develop a positive relationship with the library. The book tokens allow children to engage with books and parents to buy them a book without financial pressure."
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## **Measuring World Book Day’s impact on our beneficiaries**
## **As part of our 2020-2025 strategy we are looking at the impact that World Book Day has and understanding how to reach our beneficiaries more effectively.**
NB Data from the Nielsen and National Literacy Trust reports for 2021 and 2022 relates to World Book Days that took place during the pandemic. World Book Day activity returned to normal in 2023. This data will be represented in the 2024 impact report.
**86%** of UK adults (16-75) have heard of the event "World Book Day".
Among those who are aware of World Book Day:
- **91%** believe World Book Day aims to encourage children to read for pleasure
- **78%** agree World Book Day is a fun event
- **79%** agree World Book Day is a good way of making children feel more enthusiastic about reading
On behalf of World Book Day, Ipsos UK interviewed a nationally representative sample of 2,241 adults aged 16-75 in the United Kingdom within which 1,950 were aware of World Book Day. Interviews took place on the online Omnibus between 24 and 27 March 2023. Data were weighted to the known offline population for age, gender, social grade, working status and region.
World Book Day is the leading source of book discovery for 5-10 year olds. For less affluent families, it is the second source of offline book disovery after supermarkets (28%).*
**From the 2023 NLT, Annual Literacy Survey, (relating to World Book Day 2022), we can see:**
**95.4%** of children and young people have heard of World Book Day.
**2 in 3 children (77.2%)** took part in a World Book Day event or activity (up from **64.8%** in 2020). This rose to **81.5%** for children in key stage 2.
**1 in 7 pupils (16.1%)** said that the book they ‘bought’ with their World Book Day book token had been their first book of their own. Among children receiving free school meals, this number rose to **1 in 5 (20.7%)** .
## **From the Nielsen, Understanding the Children’s Book Consumer, 2022, data we can see:**
|||||||27%
23%
**2022**|
|---|---|---|---|---|---|---|
||**STATEMENTS RELATING TO WORLD BOOK DAY (% TRUE)**|**2018**|**2019**|**2020**|**2021**||
||World Book Day makes children more enthusiastic about
books and reading|27%|24%|27%|24%||
||There is a good selection of World Book Day books for
children to choose from|26%|24%|24%|24%||
||The World Book Day voucher encourages children to go
in to bookshops|28%|23%|24%|23%|26%
24%
22%|
||Parents say World Book Day is more about school than
home reading|22%|21%|22%|19%||
||World Book Day encourages parents to read
to their child|22%|19%|21%|21%||
||||||||
* Nielsen, Understanding the Children’s Book Consumer, 2022. Figures relate to the year the data was taken and refer to the World Book Day that took place the year before.
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||**As a result of World Book Day, primary children**
**said they:**
Read more with
their parents
**2021**
**2020**
**2022**
36%
30.5%
28.5%|**As a result of World Book Day, primary children**
**said they:**
Read more with
their parents
**2021**
**2020**
**2022**
36%
30.5%
28.5%|**As a result of World Book Day, primary children**
**said they:**
Read more with
their parents
**2021**
**2020**
**2022**
36%
30.5%
28.5%|**As a result of World Book Day, primary children**
**said they:**
Read more with
their parents
**2021**
**2020**
**2022**
36%
30.5%
28.5%|**As a result of World Book Day, primary children**
**said they:**
Read more with
their parents
**2021**
**2020**
**2022**
36%
30.5%
28.5%|**World Book Day’s annual survey to schools/**
**nurseries taken just afer World Book Day**
**2023 shows awareness/agreement levels for**
**the following statements:**
**What best helps children perceive reading as fun?**
**EARLY**
**YEARS**
**PRIMARY**
**SECONDARY**
World Book Day
is extremely/
very efective
in fostering
a reading for
pleasure culture
in your seting.
World Book Day
is extremely/
very efective
in reaching
reluctant readers.
81%
84%
73%
59%
53%
18%
Dressing up
Emphasis on
reading for
pleasure
Sharing
recommendations
with peers
79%
83%
35%
68%
70%
74%
53%
68%
51%
**EARLY**
**YEARS**
**PRIMARY**
**SECONDARY**
**_70%_**
_in 2022_
**_77%_**
_in 2022_
**_50%_**
_in 2022_
**_61%_**
_in 2022_
**_40%_**
_in 2022_
**_24%_**
_in 2022_
**90k World Book day books donated to:**
**•**
**Prisons**
**20,105**
**•**
**National Literacy Trust**
**22,630**
**literacy hubs**
**•**
**National Literacy Trust,**
**15,640**
**Premier League Reading**
**Stars programme**
**•**
**Community projects in**
**10,000**
**Republic of Ireland**
**•**
**Community projects in Wales**
**9,250**
**•**
**BookTrust**
**2,000**
**•**
**Scotish Book trust**
**2,000**
**•**
**Other**
**8,375**|
|---|---|---|---|---|---|---|
||**2020**||**2021**||||
||Read more with
their parents
30.5%||36%||||
||Talk more about books
with their family and
friends
45.3%||46%||||
||Make more time to read
45%||54%||||
||Find reading more fun
63%||59%||||
||Have more choice in
what they can read||55%||||
||||||**2022**||
||**2018**|**2019**|**2020**|**2021**|||
||17%
Being read to|16%|14%|17%|14%||
||25%
Receiving book voucher
/geting a new book|25%|26%|24%|25%
22%||
||24%
Being able to choose
a book themselves|23%|24%|24%|||
||33%
Dressing up at school|35%|34%|34%|39%||
||26%
Nothing: don’t like/ take
part in World Book Day|30%|27%|31%|25%||
||Nielsen, Understanding the Children’s Boo|k Consum|er||||
||||||||
||**2018**|**2019**||**2020**|**2021**|**2022**||
|---|---|---|---|---|---|---|---|
|Being read to|17%|16%||14%|17%|14%||
|Receiving book voucher
/geting a new book|25%|25%||26%|24%|25%||
|Being able to choose
a book themselves|24%|23%||24%|24%|22%||
|Dressing up at school|33%|35%||34%|34%|39%||
|Nothing: don’t like/ take
part in World Book Day|26%|30%||27%|31%|25%||
|Nielsen, Understanding the Children’s Book Consumer||||||||
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## **World Book Day’s 2023 £1/€1.50 Books**
Over 2 million books were printed in 2023 giving children and young people 12 exciting books to choose from and own.
**----- Start of picture text -----**
Cymru
yn unig
Wales only
Éire amháin
Éire amháin
Ireland only
Ireland only
**----- End of picture text -----**
## **Comparison with Previous Years – UK & Ireland**
**----- Start of picture text -----**
UK Ireland UK & Ireland
2017 1,006,327 73,733 1,080,060
10 x titles
2018 1,000,184 56,448 1,056,632
10 x titles
2019 1,113,204 78,480 1,191,684
10 x titles
2020 949,697 52,000 1,001,697
12x titles
2021 Nielsen did not have a
Data not available full market measure due Data not available
12 x titles to the closure of physical
retail stores
2022
12 x titles (14 with ROI) 1,051,469 60,638 1,112,107
2023
1,144,185 57,398 1,201,583
12 x titles (14 with ROI)
**----- End of picture text -----**
Source: Nielsen Bookscan
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World Book Day Limited **Trustees Annual Report**
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## **Financial review**
Overall for the financial year ended 30 June 2023 the charity’s financial position has been stable.
The charity has continued to attract sponsorship, licence fee income and other income associated with its charitable activities from companies within the publishing and bookselling industry.
New funding was awarded from The Foyle Foundation (restricted funds of £40,000 for a year between September 2022 and August 2023), the remaining funds from the Mercers Company for the third year were received (restricted funds of £190,000 over three years) and the final instalment was received from Arts Council England (restricted funds of £94,360 between February 2021 and August 2022).
The charity continues to significantly improve its year-on-year income and consider the long-term sustainability and diversification of its income streams taking steps both to review and improve its income over the coming years. It maintains close control of its costs and expenditure. The charity’s delivery of projects in association with grant income received increased expenditure (including employment of staff) during the year.
The net movement of funds for the year was a net increase of £11,156 (2022: net decrease £94,897) The increase in funds comprised of an increase of £27,859 in unrestricted funds and a decrease of (£16,703) in restricted funds. Overall, the Charity’s funds increased to £269,244 from £258,088 in 2022, of which £249,252 (2022: £221,393) was unrestricted.
Unrestricted income increased to £793,122 from £757,487 in 2022, there was an increase of £53,847 in licence fees however there was reduction in the take-up of publisher opportunities.
Unrestricted expenditure increased to £789,939 from £735,649 in 2022, the charity continued to focus expenditure on encouraging access and the promotion of reading. Areas of increased expenditure included; staff costs, website and media, printing and distribution. It should be noted that there were significant inflationary rises in printing costs in 2023.
## **Principal risks and uncertainties**
The charity reviews its strategic and operational risks regularly. The financial and operational effect of loss of income from sponsors and funders has been considered by trustees. It is believed that all major sources of income will remain stable.
World Book Day’s strategy for 2023-27 addresses the broad socio-economic context and the impact of the rising cost of living on children’s engagement with reading.
## **Risk management**
The trustees 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 the necessary steps can be taken to minimise these risks. The trustees have taken steps to ensure that all child protection issues are properly addressed. A key element in the management of financial risk is the setting of a reserves policy and its regular review by trustees.
The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited **Trustees Annual Report**
18
## **Investment powers and policy**
Under the Memorandum of Association, the trustees have the power to deposit or invest funds in any manner they think fit, providing that they first obtain independent expert financial advice. In practice, any surplus funds are held on ordinary bank deposit and are likely to be so in the foreseeable future.
## **Reserves policy and going concern**
It is the policy of the charity to aim to establish and maintain unrestricted funds at a level which equates to approximately 30% of the following year’s estimated resources to be expended. This provides sufficient funds to maintain, at least in the short term, the quality and effectiveness, of the annual World Book Day campaign in the event of there being a reduction in incoming resources.
The charity’s actual free reserves at 30 June 2023 were £249,252 (2022: 221,393) which equates to 32% (2022: 28%) of the total estimated unrestricted resources for the following year. The Trustees are satisfied this is above the policy level, the Charity will continue to invest its resources to grow the Charity and increase its income and expenditure to further meet beneficiary need.
After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
## **Fundraising**
World Book Day’s approach to fundraising is intended to protect its reputation and encourage public trust and confidence in the charity.
World Book Day adheres to recognised standards, including the Charity Commissions six principles for trustees to take responsibility for fundraising and the Fundraising Regulator’s Code of Fundraising Practice. World Book Day is registered with the Fundraising Regulator.
World Book Day did not work with professional fundraisers or third parties during the year. During the year World Book Day received no complaints.
World Book Day contacts the majority of current and potential donors directly by email and in-person. These donors are commercial organisations or schools.
In 2023 World Book Day encouraged donations by individuals via Just Giving, Supported Giving, and through a fundraising pack available to interested organisations or individuals
World Book Day began leading schools’ fundraising activity in 2021. Book Aid International receives a portion of the funds raised by schools. In 2022/23 the amount was 50% of the total funds raised by schools.
World Book Day was successful in an application to the Mercers’ Company Reading and Writing for Pleasure Initiative in June 2020, for work to develop and provide evidence-based reading for pleasure teaching resources. A grant of £190,000 over three years was confirmed. The final instalment of this grant was received in 2022/23.
World Book Day ensures that its staff always treat people fairly and with respect, including as part of fundraising activities. Our fundraising materials are reviewed annually to ensure they explain our cause clearly and are sensitive to people who may be in vulnerable circumstances.
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited **Trustees Annual Report**
19
## **Plans for the future**
In 2022/23 World Book Day’s trustees reviewed the charity’s strategy and business plan and approved their intention to deliver greater reach and impact to promote and encourage children’s reading for pleasure, building on the reputation and recognition of the World Book Day annual campaign and brand.
World Book Day’s strategy for 2023-27 sets out how the charity will:
- **1)** Increase the reach and impact of the World Book Day charitable campaign: giving every child the opportunity to be a reader by increasing reach and addressing behavioural and economic barriers.
- **2)** Improve life chances for children through reading: ensuring our activities meet the charity’s purpose and the needs of beneficiaries – particularly those from lower socio-economic groups.
- **3)** Nurture and strengthen the World Book Day brand for the long-term benefit of our beneficiaries, stakeholders and partners.
- **4)** Build operational capacity and revenue generating capability to support the secure and effective development of the charity and its strategy.
As part of the delivery of the strategy World Book Day will review its content and mechanisms to ensure they are linked to its outcomes and impacts and meet the charity’s purpose and needs of beneficiaries.
World Book Day is operationally lean and agile, with low fixed costs. It has been able to adapt to the rises in operational costs and inflation with no significant financial impact. There have been no changes to the value of the charities’ assets and liabilities and investments during the year.
Staff costs increased in the year this was as a result of the introduction of a part time Finance and Operations Manager, and a part time Commercial Partnerships Manager.
World Book Day’s business plan for 2023-27 sets out how the charity aims to improve its income levels and diversify income sources. Additional income will support World Book Day’s engagement activities and content, its work to support life-changing reading habits with children and families experiencing disadvantage and inequality, and organisational development to ensure World Book Day can meet current needs and realise opportunities to make a greater impact.
The charity is introducing long-term funding agreements, maintaining a transparent funding structure from a broad range of income sources. These measures will allow it to adapt successfully to any changes in future context.
The charity also plans to review its reserves policy, in the event that its level of reserves drops and changes to its future commitments are required.
World Book Day believes that in the context of widening educational and economic disparity its work to encourage all children to develop a life-long habit of reading for pleasure, leading to improved life chances, will remain relevant.
## **Structure, governance and management**
The organisation is a charitable company limited by guarantee, incorporated on 7 June 1999 and registered as a charity on 4 February 2000.
The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association.
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited **Trustees Annual Report**
20
All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 6 to the accounts.
## **Appointment of members**
Under the terms of the company’s Articles of Association (approved September 2020) there shall be four members, of whom two shall be the Founder Members (Booksellers Association and Publishers Association). Each Founder Member may also nominate one individual or organisation to be admitted as an additional Member.
## **Method of nominating: members**
Membership of the Charity is open to any individual or organisation interested in promoting the Objects who is nominated by either the Booksellers Association of the Publishers Association and signs the register of members or consents in writing to become a member either personally or (in the case of a member organisation) through an authorised representative.
## **Appointment of trustees**
Under the terms of the company’s Articles of Association there shall be no more than 12 trustees at any one time.
The trustees shall comprise of up to three eligible persons appointed by the BA and PA and up to an additional six eligible persons.
The Chair will be appointed by the Trustees from among those of their number for a term of office of three years and may be reappointed for two consecutive terms.
## **Method of nominating: trustees**
The method of recruiting BA and PA appointed trustees is set out in the Articles, supported by a process run by the BA and PA; each seek names of potential appointees from colleagues and others involved in the book trade and the world of reading. During 2021 the charity went through an open recruitment process, using its recruitment policy, to appoint three non-industry trustees (including a Chair).
## **Trustee induction and training**
New trustees are provided with a Trustee Handbook outlining their legal obligations under charity and company law and are made aware of the content of the Articles of Association, the decision making process and the financial performance and plans of the charity.
## **Organisation**
The trustees are responsible for the overall administration of the charity and for making strategic decisions. Under the terms of the Articles of Association, the trustees must meet at least four times a year.
The implementation of strategic plans is carried out by the Executive, which includes the Chief Executive, World Book Day Manager, Finance and Operations Manager and Corporate Partnerships Manager
World Book Day also contracted with freelance contractors and service providers to assist in the delivery of programme. A leading public relations company is employed on a contract basis to promote the charity’s activities. Staff employed by the Booksellers Association and the Publishers Association provide additional support and administration, free of charge to the charity.
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited **Trustees Annual Report**
21
## **Related parties and relationships with other organisations**
The charity has a close relationship with both the Booksellers Association and Publishers Association.
The BA and PA are Founder Members of World Book Day and appoint under the terms of the company’s current articles of association two members to represent the Booksellers Association and the Publishers Association.
During the year, the charity paid £NIL (2022: Nil) to the BA for recharged expenses. At the year ended 30 June 2023, the charity owed the BA £Nil (2022: £Nil).
The charity received administrative assistance free of charge from both the BA and the PA. The charity has estimated this at £9,000 (2022: £9,000) and is included within the donated services in the year.
Throughout the year the charity’s Board included trustees holding senior positions at companies or organisations with the publishing and bookselling industries that provided financial donations.
The charity is sponsored by National Book Tokens, a subsidiary of the Booksellers Association.
The charity’s Board also included a trustee holding a senior position at a literacy charity, The National Literacy Trust, with whom World Book Day works on research and evaluation, and as a partner on the achievement of its charitable objectives.
Amounts received and paid during the year are detailed in the financial statements.
## **Remuneration policy for key management personnel**
The chief executive’s salary is set by the trustees and will be reviewed annually, referring to benchmarking information to confirm that the salary is reasonable and in line with the market. A performance and salary review is normally be carried out at least once in each year for all key management personnel.
## **Statement of responsibilities of the trustees**
The trustees (who are also directors of World Book Day Limited for the purposes of company law) are responsible for preparing the trustees’ annual 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 year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.
: In preparing these financial statements, the trustees are required to
- l Select suitable accounting policies and then apply them consistently
- l Observe the methods and principles in the Charities SORP
- l Make judgements and estimates that are reasonable and prudent
- l State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements
- l Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited **Trustees Annual Report**
22
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## In so far as the trustees are aware:
- l There is no relevant audit information of which the charitable company’s auditor is unaware.
- l The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Members of the charity promise to pay up to £1 towards the assets of the charity in the event of winding up. The total number of such guarantees at 30 June 2023 was £4 (2022: £4).
Four of the trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.
## **Auditor**
Sayer Vincent LLP was re-appointed as the charitable company’s auditor during the year and has expressed its willingness to continue in that capacity.
The trustees’ annual report has been prepared in accordance with the special provisions applicable to companies subject to the small companies’ regime.
The trustees’ annual report has been approved by the trustees on 25 January 2024 and signed on their behalf by
## **Emma Scott Chair and Trustee**
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited
23
## **Independent auditor’s report To the members of World Book Day Limited**
## **Opinion**
We have audited the financial statements of World Book Day (the ‘charitable company’) for the year ended 30 June 2023 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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
- l Give a true and fair view of the state of the charitable company’s affairs as at 30 June 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended
- l Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
- l Have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on World Book Day’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 trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited
24
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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- l The information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- l The trustees’ annual report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the 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’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- l Adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- l The financial statements are not in agreement with the accounting records and returns; or
- l Certain disclosures of trustees’ remuneration specified by law are not made; or
- l We have not received all the information and explanations we require for our audit; or
- l The directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited
25
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.
## **Capability of the audit in detecting irregularities**
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
- l We enquired of management, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to:
- l Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- l Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
- l The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
- l We inspected the minutes of meetings of those charged with governance.
- l We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience.
- l We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
- l We reviewed any reports made to regulators.
- l We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
- l We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
- l In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited
26
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
## **Fleur Holden (Senior statutory auditor)**
13 February 2024
for and on behalf of Sayer Vincent LLP Statutory Auditor Invicta House 108-114 Golden Lane London EC1Y 0TL
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited
27
## Statement of financial activities (incorporating an income and expenditure account)
**----- Start of picture text -----**
2023 As Restated 2022
Unrestricted Restricted Total Unestricted Restricted Total
Note £ £ £ £ £ £
Income from:
Donations 2 551,782 101,436 653,218 563,937 37,744 601,681
Charitable activities 3
- -
Encouraging access 88,483 88,483 63,559 63,559
- -
Promotion of reading 158,068 158,068 129,716 129,716
Other 10,029 - 10,029 275 - 275
Total income 808,362 101,436 909,798 757,487 37,744 795,231
Expenditure on:
Charitable activities 4
Encouraging access 482,712 13,058 495,771 413,744 53,875 467,619
Promotion of reading 268,346 12,307 280,654 313,168 15,307 328,475
Developing resources 38,879 83,337 122,216 8,737 85,297 94,034
Total expenditure 789,938 108,703 898,641 735,649 154,479 890,128
Net income/(expenditure) for the year 18,424 (7,267) 11,157 21,838 (116,735) (94,897)
Transfer between funds 9,428 (9,428) - (9,436) 9,436 -
Net movement in funds 27,852 (16,695) 11,157 12,402 (107,299) (94,897)
Reconciliation of funds:
Total funds brought forward 221,393 36,695 258,088 208,991 143,994 352,985
Total funds carried forward 249,245 20,000 269,245 221,393 36,695 258,088
**----- End of picture text -----**
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 14 to the financial statements.
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited
28
Balance sheet (Company no. 03783095)
**----- Start of picture text -----**
2023 2022
Note £ £ £ £
Non-current assets:
Tangible assets 10 2,532 1,054
2,532 1,054
Current assets
Debtors 11 107,637 59,809
Cash at bank and in hand 205,405 252,767
313,043 312,576
Liabilities
Creditors: amounts falling due within one year 12 (46,330) (55,542)
Net current assets 266,712.66 257,034
Total net assets 269,245 258,088
The funds of the charity 14
Restricted funds 20,000 36,695
Unrestricted funds 249,245 221,393
Total unrestricted funds 249,245 221,393
Total charity funds 269,245 258,088
**----- End of picture text -----**
Approved by the trustees on 25 January 2024 and signed on their behalf by
## **Emma Scott Chair and Trustee**
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited
29
## Statement of cash flows
**----- Start of picture text -----**
2023 2022
£ £ £ £
Cash flows from operating activities
Net income for the reporting period 11,157 (94,897)
(as per the statement of financial activities)
Depreciation charges 1,436 552
(Increase)/decrease in debtors (47,828) 16,185
(Decrease) in creditors (9,213) (37,425)
Net cash used in operating activities (44,448) (115,585)
Cash flows from investing activities:
Purchase of fixed assets (2,914) (861)
Net cash used in investing activities (2,914) (861)
Change in cash and cash equivalents in the year (47,362) (116,446)
Cash and cash equivalents at the beginning of the year 252,767 369,213
Cash and cash equivalents at the end of the year 205,405 252,767
**----- End of picture text -----**
For the year ended 30 June 2023
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World Book Day Limited
30
## Notes to the financial statements
## **1 Accounting policies**
## a) Statutory information
World Book Day Limited is a charitable company limited by guarantee and is incorporated in England and Wales
The registered office address is 6 Bell Yard, London, WC2A 2JR
## b) Basis of preparation
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.
In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements 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. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.
## c) Public benefit entity
The charity meets the definition of a public benefit entity under FRS 102.
## d) Going concern
The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
- e) Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.
## f) Donations of gifts, services and facilities
Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.
On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
World Book Day continues to receive support in our distribution of book tokens. See note 2 for additional information on the policy used in accounting for this support.
For the year ended 30 June 2023
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World Book Day Limited
31
## **1 Accounting policies** _(continued)_
g) Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
## h) Fund accounting
Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.
Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.
- i) Expenditure and irrecoverable VAT Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- l Expenditure on charitable activities includes the costs of delivering services undertaken to further the purposes of the charity and their associated support costs
- l Other expenditure represents those items not falling into any other heading
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
j) Allocation of support and governance costs Resources expended are allocated to the particular activity where the cost relates directly to that charitable activity. Support costs of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, are apportioned based on the value of each charitable activity.
Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.
- k) Tangible fixed assets
Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.
Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:
l Computer equipment (2 years)
l) Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
- m) Cash at bank and in hand
- Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
- n) Creditors and provisions
- Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## o) Financial instruments
The charity 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.
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited
32
## **2 Income from donations**
**----- Start of picture text -----**
2023 As Restated 2022
Unrestricted Restricted Total Unestricted Restricted Total
£ £ £ £ £ £
Sponsorship 507,477 - 507,477 500,140 - 500,140
Grants 85,000 85,000 - - -
- -
Grant income received from Arts Council England 9,436 9,436 37,744 37,744
Donated services and facilities 15,240 - 15,240 21,040 - 21,040
Other donations 29,065 7,000 36,065 42,757 - 42,757
551,782 101,436 653,218 563,937 37,744 601,681
**----- End of picture text -----**
As detailed in the trustees’ annual report, the charity distributes over 15 million World Book Day £1 Tokens each year.
World Book Day pays to produce and distribute the physical token each year, but the tokens have no onward redeemable value to the booksellers, once they have been redeemed by the children and young people.
The publishers produce the £1 titles (WBD books) at no cost to World Book Day.
The booksellers purchase the books from the publishers at a cost of 10p per book.
The above are not recognised as a donated service on the grounds that the benefit provided to the charity cannot be measured accurately.
Income from donated services and facilities relate to support received from the Booksellers' Association and Publishers' Association in the form of office space, equipment and administrative support to World Book Day.
## 2022 Income from donations (Restated)
£14,000 of income included in other donations for 2022 has been reclassified as follows: Sponsorship income of £10,000 for the 25th anniversary event has been reclassified as sponsorship income to reflect the nature of this income.
Royalty income of £4,000 has been reclassified as income from charitable activities - Licence fees to better reflect the nature of this income.
These reclassifications do not impact the net result for the year.
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited
33
## **3 Income from charitable activities**
**----- Start of picture text -----**
2023 As Restated 2022
Unrestricted Restricted Total Unestricted Restricted Total
£ £ £ £ £ £
License fees 176,966 - 176,966 127,118 - 127,118
Income from promotional activities - -
69,585 69,585 66,157 66,157
(previously sale of school packs)
- -
246,551 246,551 193,275 193,275
**----- End of picture text -----**
License fee income is split equally between Encouraging access and Promotion of reading to best support the charities objectives to ensure every child has access to a book of their own. Income from promotional activities (previously sale of school packs) is included under Promotion of reading as they are provided to schools to promote reading for pleasure.
## 2022 Income from charitable activities (Restated)
Royalty income of £4,000 which was included in other donations for 2022 has been reclassified as income from charitable activities - Licence fees to better reflect the nature of this income.
The description ‘Income from sale of school packs’ has been revised to ‘Income from promotional activities’ to reflect it is income from promotional materials provided within the school packs and not the sale of school packs themselves.
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited
34
## **4a Analysis of expenditure (current year)**
|**4a Analysis of expenditure (cu**|**rrent year)**|**rrent year)**|
|---|---|---|
||Charitable activities
Encouraging
access
Promotion of
reading
Developing
resources
Governance
costs
Support
costs
2023
Total
2022
Total
£
£
£
£
£
£
£
-
-
48,231
-
243,076
291,307
191,303
-
-
-
-
-
10,047
44,431
-
-
-
-
44,431
50,391
159,449
-
-
-
-
159,449
146,182
-
84,755
-
-
-
84,755
81,847
12,000
-
-
-
-
12,000
23,415
-
-
-
-
15,240
15,240
21,040
-
56,629
-
-
-
56,629
73,483
-
-
-
-
45,208
45,208
74,160
-
29,280
88
-
-
29,368
39,874
-
-
17,000
-
-
17,000
14,952
-
-
9,000
-
-
9,000
11,945
85,594
-
-
-
-
85,594
72,807
-
-
-
10,100
11,995
22,095
26,824
-
-
-
-
1,939
1,939
1,104
-
-
-
3,033
16,183
19,215
32,380
-
-
-
-
1,923
1,923
11,859
-
-
-
-
3,488
3,488
6,515||
||||
||||
|Staf costs (Note 6)|||
|Anniversary event|||
|Printing costs|||
|Distribution costs|||
|Public relations|||
|Delivering WBD in communities|||
|Donated services|||
|Website, apps and social media costs|||
|Project co-ordination|||
|Artwork and design|||
|Research and data|||
|Evaluation|||
|Point-of-sale materials|||
|Audit & accountancy|||
|Bank charges|||
|Legal and Professional|||
|Irrecoverable VAT|||
|Sundry expenses|||
|||301,474
170,664
74,319
13,133
339,051
898,641
890,128
187,051
105,889
46,111
-
(339,051)
-
-
7,245
4,101
1,786
(13,133)
-
-
-|
|Support costs|||
|Governance costs|||
||||
|Total expenditure 2023||495,771
280,654
122,216
-
-
898,641
-
467,619
328,475
94,034
-
-
890,128|
|Total expenditure 2022|||
||||
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited
35
## **4a Analysis of expenditure (prior year)**
**----- Start of picture text -----**
Charitable activities
Encouraging Promotion of Developing Governance Support 2022
access reading resources costs costs Total
£ £ £ £ £ £
- - -
Staff costs 41,662 149,641 191,303
Anniversary event - 10,047 - - - 10,047
Printing costs 50,391 - - - - 50,391
Distribution costs 146,182 - - - - 146,182
Public relations - 81,847 - - - 81,847
Delivering WBD in communities 23,415 - - - - 23,415
Donated services - - - - 21,040 21,040
- - - -
Website, apps and social media costs 73,483 73,483
- - - -
Project co-ordination 74,160 74,160
- - -
Artwork and design 36,274 3,600 39,874
Research and data - - 14,952 - - 14,952
Evaluation - - 11,945 - - 11,945
Point-of-sale materials 72,807 - - - - 72,807
- - -
Audit & accountancy 6,650 20,174 26,824
Bank charges - - - - 1,104 1,104
- - -
Legal and Professional 15,860 16,520 32,380
Irrecoverable VAT - - - - 11,859 11,859
- - - -
Sundry expenses 6,515 6,515
292,795 201,651 72,159 22,510 301,013 890,128
Support costs 162,164 117,241 21,608 - (301,013) -
Governance costs 12,660 9,583 267 (22,510) - -
- -
Total expenditure 2022 467,619 328,475 94,034 890,128
**----- End of picture text -----**
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited
36
## **5 Net income / (expenditure) for the year**
|Depreciation
Auditor’s remuneration (excluding VAT):
Audit
Other
This is stated afer charging:|2023
2022
£
£
1,436
552
8,600
7,500
-
-|
|---|---|
## **6 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel**
Staff costs were as follows:
|||
|---|---|
|Salaries and wages
Social security costs
Employer’s contribution to defned
contribution pension schemes
Staf costs were as follows:|2023
2022
£
£
261,604
174,278
17,964
9,231
11,739
7,794|
||291,307
191,303|
Number of employees whose total benefits excluding employer pension and national insurance contributions exceeded £60,000 were as follows:
|Number of employees whose total benefts excluding employer pension and national
insurance contributions exceeded £60,000 were as follows:||
|---|---|
|£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000|2023
2022
-
-
-
-
1
1|
||1
1|
The total employee benefits (including pension contributions and employer’s national insurance) of the key management personnel were £249,604 (2022: £139,292). The increase in costs relates an increase in the number of key management personnel roles during the year.
The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2022: £nil). No charity trustee received payment for professional or other services supplied to the charity (2022: £nil).
Trustees’ expenses represents the payment or reimbursement of travel and subsistence costs totalling £Nil (2022: £nil) incurred by no (2022: none) members relating to attendance at meetings of the trustees.
## **7 Staff numbers**
The average number of employees (head count based on number of staff employed) during the year was 3.9 (2022: 2.6).
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited
37
## **8 Related party transactions**
The charity is supported by The Booksellers Association (BA) and The Publishers Association (PA). Both the BA & PA have three members each appointed as trustees of the charity during the year.
In the preceding year both the BA and PA made payments of £5,000 (combined total of £10,000) to the charity to sponsor the 25th Birthday Party event.
During the year, the charity paid £nil (2022: £nil) to the BA for recharged expenses.
The charity received administrative assistance free of charge from both the BA and the PA. The charity has estimated this at £9,000 (2022: £9,000), and is included within the donated services in the year.
During the year, the charity received sponsorship income of £156,500 (2022: £156,500 ) from Book Tokens Limited, a wholly owned subsidiary of BA. The charity paid for services received from Book Tokens Limited of £nil (2022: £nil). As at 30 June 2023 (2022: £Nil), there are no outstanding balances between the charity and Book Tokens Limited.
During the year, the charity paid for services received from National Literacy Trust £3,512 (2022: £14,000), a company of which the trustee J Douglas, is chief executive at the balance sheet date. As at 30 June 2023, there was a balance of £nil (2022: £nil) owed to National Literacy Trust.
During the year, the charity received sponsorship income of £nil (2022: £5,500) from Scholastic UK, a company of which the trustee S Thompson is a director. As at 30 June 2023 (2022: £Nil), there are no outstanding balances between the charity and Scholastic UK. The charity also received sponsorship income of £62,353 (2022: £57,063) from Hachette UK, a company of which the trustee A Bond is a director. As at 30 June 2023 (2022: £Nil), there are no outstanding balances between the charity and Hachette UK.
## **9 Taxation**
The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
## **10 Tangible fixed assets**
|**10 Tangible fxed assets**||
|---|---|
|Cost
At the start of the year
Additions in year
At the end of the year
Depreciation
At the start of the year
Charge for the year
At the end of the year
Net book value
At the end of the year
At the start of the year
All of the above assets are used for charitable purposes|Computer
equipment
£
£
2,076
2,076
2,914
2,914|
||4,990
4,990|
||1,022
1,022
1,436
1,436|
||2,458
2,458|
||2,532
2,532|
||1,054
1,054|
|||
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited
38
## **11 Debtors**
|**11**
**Debtors**||
|---|---|
|Trade debtors
Prepayments
VAT debtor
Other debtors|2023
2022
£
£
80,681
58,104
20,314
1,606
6,642
-
-
99|
||107,637
59,809|
## **12 Creditors: amounts falling due within one year**
|Trade creditors
Taxation and social security
Accruals
Other creditors|2023
2022
£
£
1,083
7,513
9,843
17,210
31,807
29,200
3,596
1,619|
|---|---|
||46,330
55,542|
## **13a Analysis of net assets between funds (current year)**
|**13a Analysis of net assets between funds (c**|**urrent year)**|||
|---|---|---|---|
||Unrestricted|Restricted|Total funds|
||£|£|£|
|Tangible fxed assets|2,532|-|2,532|
|Current assets|293,042|20,000|313,042|
|Creditors due within one year|(46,330)|-|(46,330)|
|Net assets at 30 June 2023|249,245|20,000|269,245|
## **13b Analysis of net assets between funds (prior year)**
||Unrestricted|Restricted|Total funds|
|---|---|---|---|
||£|£|£|
|Tangible fxed assets|1,054|-|1,054|
|Current assets|267,041|45,536|312,577|
|Creditors due within one year|(46,702)|(8,841)|(55,543)|
|Net assets at 30 June 2022|221,393|36,695|258,088|
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited
39
## **14a Movements in funds (current year)**
|**14a Movements in funds (current year)**|**14a Movements in funds (current year)**|
|---|---|
|At 1 July 2022
Income & gains
Expenditure
& losses
Transfers
At 30 June 2023
£
£
£
£
£
Restricted funds:
Charity of Sir Richard Whitington
36,695
45,000
(81,703)
8
-
Arts Council England
-
9,436
-
(9,436)
-
The Foyle Foundation
-
40,000
(20,000)
-
20,000
Other Donations
-
7,000
(7,000)
-
-
Total restricted funds
36,695
101,436
(108,703)
(9,428)
20,000
Unrestricted funds:
General funds
221,393
808,362
(789,938)
9,428
249,245||
|||
|Restricted funds:
Charity of Sir Richard Whitington
Arts Council England
The Foyle Foundation
Other Donations
Total restricted funds
Unrestricted funds:
General funds||
||36,695
101,436
(108,703)
(9,428)
20,000|
||221,393
808,362
(789,938)
9,428
249,245|
|Total funds|258,088
909,798
(898,641)
-
269,245|
The narrative to explain the purpose of each fund is given at the foot of the note below.
## **14b Movements in funds (prior year)**
||At 1 July 2021
Income & gains
Expenditure
& losses
Transfers
At 30 June 2022
£
£
£
£
£
105,814
-
(69,119)
-
36,695
38,180
37,744
(85,360)
9,436
-|
|---|---|
|||
|Restricted funds:
Charity of Sir Richard Whitington
Arts Council England
Total restricted funds
Unrestricted funds:
General funds||
||143,994
143,994
(154,479)
9,436
36,695|
||208,991
757,487
(735,649)
(9,436)
221,393|
|Total funds||
||352,985
795,231
(890,128)
-
258,088|
For the year ended 30 June 2023
DocuSign Envelope ID: 6BAEFBB5-738D-48DE-898E-54756F7EEA50
World Book Day Limited
40
## Purposes of restricted funds
Charity of Sir Richard Whittington - funding will be used to employ a full time education manager to develop and provide evidence-based reading for pleasure teaching resources.
Arts Council England - funding will be used to explore and improve the role that reading plays in the lives of older children, to reach less engaged readers and disadvantaged communities to encourage reading and access to books, and to improve the cultural diversity of the £1 book selection.
The transfer between the unrestricted fund and the Arts Council England fund reverses the transfer made in 2022, unrestricted reserves were used to pay for expenditure relating to the final 10% of the grant which was withheld by the Arts Council until the completion of the project. The project is now complete and all funding has been received so the money has been returned to unrestricted reserves.
The Foyle Foundation - Funding will be used to support the transition of World Book Day from a day’s celebration into a year round charitable cause – a reading movement, changing attitudes and behaviours to encourage reading for pleasure.
The charity received a restricted donation of £7,000 towards the cost or the provision of 50,000 books for distribution to WBD community hubs.
## **15 Legal status of the charity**
The charity is a company limited by guarantee and has no share capital. Members of the charity promise to pay up to £1 towards the assets of the charity in the event of winding up. The total number of such guarantees at 30 June 2023 was £4 (2022: £4).
For the year ended 30 June 2023
Docusign Envelope ID". 6BAEFBB5-738D-48DE-898E-54756F7EEA50
WORLD
BOOK
DAY