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2023-03-31-accounts

(A company limited by guarantee)

Registered Charity Number: 1082750 Registered Company Number: 04061607

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2023

The Magdi Yacoub Institute Contents

Page
Legal and Administrative Information 1
Trustees Report 2 - 7
Independent Auditors Report 8 - 11
Statement of Financial Activities 12
Balance Sheet 13
Statement of Cash Flows 14
Notes to the Financial Statements 15 - 26

The Magdi Yacoub Institute Legal and Administrative Information

Company Registration Number 04061607 Charity Registration Number 1082750 Trustees Mr Alan Hargreaves Professor Kim Fox Resigned 07/11/2023 Dr Magdy Ishak Resigned 20/06/2023 Professor Sir Magdi Yacoub Dr Assem Allam Deceased 02/12/2022 Mr Asghar Khaghani Chief Operating Officer Maria Rogers Company Secretary Mr Alan Hargreaves Registered Office Heart Science Centre Harefield Hospital Hill End Road Harefield Uxbridge UB9 6JH Bankers NatWest Bank plc Rickmansworth 159 High Street Rickmansworth Hertfordshire, WD3 1AR Solicitors Charles Russell Speechlys LLP 5 Fleet Street London EC4M 7RD Auditors Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP

Page: 1

The Magdi Yacoub Institute Report of the Trustees

The Trustees, who are directors for Companies Act purposes, present their report and financial statements for The Magdi Yacoub Institute (‘the Charity’) for the year ended 31st March 2023.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Nature of governing document

The Magdi Yacoub Institute is a registered charity (Charity Commission Registration Number 1082750) and was incorporated as a company limited by guarantee on 30[th] August 2000 (Company Registration Number 04061607). It is governed by the Memorandum and Articles of Association.

The Board of Trustees comprise the Members of the Magdi Yacoub Institute. Members of the charitable company guarantee to contribute an amount not exceeding £1 to the assets of the charitable company in the event of winding up. The total number of such guarantees at 31st March 2023 was 5 (2022: 6).

Recruitment and appointment of Trustees

Trustees are recruited through contacts of the current Board members. Potential trustees are interviewed by the Executive Committee. Trustees are appointed by the Board of Trustees.

Policies and procedures for induction and training of Trustees

Trustees are invited to attend the Institute to meet the staff and have induction meetings with senior management team members. Trustees are able to undertake training as deemed necessary.

Organisational structure and how decisions are made

The Trustees are the Directors and Members of the company limited by guarantee. The Trustees who have served during the year and since the year end are listed below:-

Mr Alan Hargreaves Mr Asghar Khaghani Professor Kim Fox (resigned 07 November 2023) Dr Magdy Ishak (resigned 20 June 2023) Professor Sir Magdi Yacoub Dr Assem Allam (deceased 2 December 2022)

No member of the Board receives any remuneration for their services. The Board meets regularly, with day to day management delegated to a management committee consisting of the Director of Research (Sir Magdi), Deputy Director of Research (Dr Adrian Chester) and the Chief Executive (Dr Magdy Ishak) operating under a scheme of delegation. A Finance Committee consisting of the Chief Executive, Company Secretary (Alan Hargreaves) and an Executive Committee consisting of the Chairman, Director of Research and the Chief Executive are able to take urgent decisions as appropriate which are ratified at the next Board Meeting. This committee propose the pay and remuneration which is approved by the Board. The Scientific and Operational roles reflect the Academic structure set by NHLI (Imperial College) and follow their grading structure for KPI's and salary. Both Research and operational roles are paid according to the corresponding levels of responsibilities described in the NHLI job families. The performance is measured continually by various KPI's which are publications in leading international journals, presentations at meetings, external grant funding and conducting collaborative research with other institutions.

Connections to a wider network

The Magdi Yacoub Institute has no formal links with other organisations but works closely with the National Heart & Lung Institute and the Royal Brompton and Harefield NHS Trust. Professor Sir Magdi Yacoub is also Founder and Trustee of the Chain of Hope. Dr Magdy Ishak, fellow of the Royal Society of Medicine and Freeman of the City of Glasgow holds the post of Chairman of the Magdi Yacoub Foundation ("MYF") in Egypt and Professor Sir Magdi Yacoub as Research & Medical Director. Dr Magdy Ishak is the Chairman of Heart Biotech and Professor Sir Magdi Yacoub is the Research Director of Heart Biotech.

Page: 2

The Magdi Yacoub Institute Report of the Trustees

Objectives of The Magdi Yacoub Institute

The objectives in the Memorandum of Association are:

“To carry out research into all aspects of human heart, lung and other disease including prevention, treatment and rehabilitation, for the benefit of the public by:

(i) undertaking and promoting research (and making the useful results thereof publicly available) in relation to cardiac and transplant surgery, human heart valves and tissue engineering, circulatory support, immunology of heart and lung disease, biochemistry of heart failure, biology of human blood vessels, molecular aspects of heart disease, metabolism of the human heart and lung, transplant medical management, genetic research (in all its forms) and any other medical matter which might effect or affect an improvement in human health and wellbeing;

(ii) relieving persons suffering from heart or other diseases by enabling transplant and other operations to be carried out and associated care and treatment to be provided at Harefield Hospital or at such other site as may be convenient or appropriate;

(iii) providing and constructing amenities, equipment and facilities within the Harefield Hospital site or any linked establishments or other appropriate site or sites for the treatment and research into care and relief of persons suffering from heart or other disease who may require or who are to undergo or who have undergone transplant or other surgery; and

(iv) "any other means which appear convenient or appropriate from time to time."

Charity’s Aims

The aim of the Magdi Yacoub Institute is to undertake and advance world class research into the causes and nature of heart disease, including its prevention and treatment for the benefit of humanity. Working in collaboration with other public and private organisations, as well as individuals from across the world, the Institute raises and receives funding to finance its operations and activities. The Institute initiates and promotes innovative research programmes, organising scientific leadership and direction, facilities, staff, equipment and research grants in pursuit of its aims and visions.

Objectives for the year

The objectives for the year were to continue to progress our overall research programme focused around: heart failure, tissue engineering and transplantation. The work streams in this areas are detailed below in our activities.

Charity’s strategies and significant activities

The main activities have been to progress research and to review a structure to have scientific alliances with key institutes to advance the science. Alongside these work activities :

Tissue Engineering. Our research in tissue engineering is aimed at the development of a viable cardiac valve capable of reproducing the sophisticated functions of the normal valve. This research is based on understanding the specific cellular and molecular characteristics of the component parts, during development and in the adult, on examining the properties of stem cells and their suitability for deriving valve tissue and of examining the optimal cellular environment and scaffolds for engineering valve tissue.

Transplantation . Transplant related research continues in addressing several current issues, including chronic rejection, the role of endothelial cells in rejection, metabolic function in xenotransplantation and importantly organ resuscitation.

Page: 3

The Magdi Yacoub Institute Report of the Trustees

Valves Work on the development of the Harefield Composite Component Valve (HCCV) continues to progress well. Much of the work during 2022 and 2023 has centred on converting the labatory production protocols to make the valve, into protocols that meet the standards required to produce a valve for FDA approval and clinical use. We continue to have a number of visiting undergraduate and work experience students working in the laboratory over the course of the year who have contributed to

Valve Calcification Project We have successfully developed an in vitro organ culture model of valve calcification. This model will allow further studies into the mechanisms the initiate and progress the calcification of heart valves and assessment of drugs that may be used to treat the disease. This method has potential advantages over other published methods of looking at valve calcification due to the use of intact (porcine) valve tissue

Volunteer Help

The Magdi Yacoub Institute does not utilise volunteer help with the exception of the time dedicated by its Trustees.

Grant making policy

The Magdi Yacoub Institute supports research by directly employing staff as well as making awards to the National Heart & Lung Institute ("NHLI") (Imperial College) for the cost of consumables for the staff engaged in research at the Heart Science Centre, Harefield. The salaries a small number of some staff employed by Imperial College and the Royal Brompton & Harefield Hospital Trust are also recharged to the Institute. Support is also given to facilitate collaboration with research with the Aswan Heart Centre / Magdi Yacoub Foundation and tissue engineering, genetic studies into cardiomyopathy and developmental dynamics.

REVIEW OF ACHIEVEMENTS AND FINANCIAL ACTIVITY

The Tissue Engineering project continues to make excellent progress. Further implants in large animals are scheduled to continue testing the valve, and a paper has been published documenting this breakthrough work.

The 9th Heart Valve Biology & Tissue Engineering meeting is being explored for 2024 in Egypt.

The team continue to have their papers published in leading peer reviewed journals and the inhouse journal GCSP published a full compliment during the last financial year.

'The Friends of MYI' meet regularly and the first two pledges have been received with further pledges committed

The Leducq grant continues to make good scientific progress. The team continues to publish papers in leading journals. The Institute has received substantial donations to support the advancement of research from personal donors.

Page: 4

The Magdi Yacoub Institute Report of the Trustees

Research Support and Equipment purchases

Funding was made available for the running and maintenance of the MYI laboratories, no significant equipment has been purchased.

Results for the year are shown in the Statement of Financial Activities on page 12.

Total income for the year was £889,827 and expenditure was £1,577,499. The Charity has made a deficit of £687,672 (2022: surplus of £805,502). As a direct result of this, at the year end total unrestricted funds were £4,924,292, including £3,683,743 in designated funds representing the net book value of fixed assets held by the charity and restricted funds of £151,550. Total unrestricted and restricted funds of £5,075,842 (2022: £5,763,514) have been carried forward.

The principal sources of funding during the year were from:

Reserves Policy

The Institute’s policy with regard to reserves is to make suitable investment in ongoing development of the charity whilst maintaining adequate funds to deal with current and medium term needs. Free reserves at the year end excluding designated funds and restricted funds are £1,240,549 (2022: £1,588,901).

The Trustees wish to have a minimum of £360,000 in reserves to cover closure commitment. Free reserves are above the level set by the trustees and they are satisfied with the current situation.

Fundraising policy

Magdi Yacoub Institute has a cost of raising funds in the financial statements in relation to generating income from donors. The charity does not utilise external professional fundraisers or commercial participators to carry out fundraising activity and does not engage in face-to-face or telephone fundraising. We aim to build and maintain solid partnerships with our supporters and do not undertake activities to raise funds from those that could be classified as “vulnerable people”. Any approach to fundraising would take account of the Code of Fundraising Practice issued by the Fundraising Regulator. Magdi Yacoub Institute has received no complaints about its fundraising activities either during the financial year or subsequently.

Page: 5

The Magdi Yacoub Institute Report of the Trustees

Risk Management

In March 2023, the Trustees completed its annual review of the Institute's risk management strategy in accordance with the requirements of the SORP. Each identified risk is classified into one of the following categories:

Governance: Trustee appointments, decision making and possible conflicts of interest. Operational: Disaster recovery. Health & Safety issues. Regulatory Framework: Compliance with existing legislation and regulations. External: Relationship with the NHS and Imperial College. Financial: Reduction in investment income, donations and grants. Fundraising issues: Loss of key supporters. Appropriate fundraising strategy.

In the course of the review, the Trustees have determined the major risks to which the Institute is exposed, the potential impact if an individual risk materialises, and which mitigating action is to be taken, by whom, in order to reduce the risk to a level which the Trustees consider to be acceptable. The position is recorded in a risk register which is used by management and will continue to be formally reviewed annually.

Public Benefit

The Trustees have considered the Charity Commissioner's general guidance on public benefit when reviewing the Institute's aims and objectives and planning future activities. The aim of the Institute is to undertake and advance world class research into the causes and nature of heart disease, including its prevention and treatment, for the benefit of humanity. To this end, advances in research are published and available to others with similar aims.

The Institute collaborates with other organisations undertaking research in third world countries and assists in advancing their research capability. There are no exclusions to those who can benefit from the results of the Institute's research and beneficiaries will be worldwide. There are no private benefits gained, other than incidental, by those engaged in research at the Institute.

Plans for the Future

For the year to 31st March 2024, the Trustees have set the following key performance indicators (KPI):

Our aim remains to progress research projects and this data is being gathered. The team are progressing well with grant submissions and articles being citied in renowned journals.

Page: 6

The Magdi Yacoub Institute Report of the Trustees Disclosure of Infomiation to Auditor5 So far as the trustees are aware. there 1$ no relevant audit information of which the companls auditors are unaware. The trustees have taken all the steps that they ought lo have taken as trustees in order lo make Ihemsefves awdre of any rekvanl audrt infomialion and to eSta￿lsh that the c(￿￿panIS audilof5 are aware of that irrformakn"on. ststgm•nl of Trustees, Respon811)iliti6s The Iruslees (who are also direct¢xs of The Magdi Yacoub Inslrtute for the purposes of company lawl are responsible for p￿paring the TfUStees' ReFQrt and the financol statements in accordance wrth applicable law and United Kingdom Generalty Accepted Accounting Practte. Company law requires trustees lo prepa￿ financial ststements for financial year wh￿h give a true armj fair of the state of affairs of the charitsb￿ company and of the Incomin￿OUt90lng resources and of resoufces, including the incx)me and expenditure. of the charrtable company ft)r that pericKI. In preparing tt)ose financial statements, the directors are wuired to" select suitable accounts.ng and then appty them consistenty, observe the methods and princip￿ in the Charrbes SORP.. make judgements and estimates that are reasonable and prudent Stale whether applicab￿ UK AcccwJnts"ng Standards have been subject to any materral departures disclosed and explained in the financial ststefflents, prepare the financial stments on the going conceffl basi5 unkn rt is inappropriate to presume that the charrtable ￿npanY will c￿tinUe in bU￿ne$S. The trustees are resp(￿sible for keeping proper aLxounlirkg records that d1sch￿ with reascM)able accuracy at any time the financKAI rx)sth'on of the chartkNe c￿npanY arKI enable them to ensure that the financial statements LX)mpfy the Cornpanres Act 21x1%. They are also resKM)nsible for safeguarding the assets of the charitsble company and the group and herKe for taking reasonab￿ steps for the prevention and detection of fraud and other irwularits. These accounts have been prepared in accordance with the wal provtsh)ns relating to small CoMpan￿S wrthin Part 15 of the Ccrfnpanw Acl 2c￿. By order of the t¥)ard Trustee & The Director of Research Profes8orSlr Magdl Ya¢oub Date.. 29th January 2024 Page: 7

Independent Auditors Report to the Trustees of The Magdi Yacoub Institute

Opinion

We have audited the financial statements of The Magdi Yacoub Institute (‘the charitable company’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company’s affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• 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 financial statements section of our report. We are independent of the Corporation 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

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

Other information

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

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page: 8

Independent Auditors Report to the Trustees of The Magdi Yacoub Institute

Opinions on other matters prescribed by the Companies Act 2006

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

• 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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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 where the Companies Act 2006 requires us to report to you if, in our opinion:

• the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Trustees’ Annual Report and from preparing a Strategic Report.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 7, 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.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Page: 9

Independent Auditors Report to the Trustees of The Magdi Yacoub Institute

Auditor’s responsibilities for the audit of the financial statements (continued)

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charitable company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

• Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

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

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

Our approach was as follows:

• We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, UK financial reporting standards as issued by the Financial Reporting Council and UK taxation legislation.

• We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.

• We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

• We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.

• Based on this understanding, we designed specific appropriate audit procedures to identify instances of noncompliance with laws and regulations. This included making enquiries of

Page: 10

Independent Auditors Report to the Trustees of The Magdi Yacoub Institute

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

management and those charged with governance and obtaining additional corroborative evidence as required.

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

Use of our report

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

Date:

Luke Holt (Senior Statutory Auditor), FCA for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

9 Appold Street London EC2A 2AP

Page: 11

The Magdi Yacoub Institute Statement of Financial Activities (including Income and Expenditure account) For the year ended 31st March 2023

Notes
Income from:
Grants and donations
2a
Legacies
2b
Investment income
3
Total income
Expenditure on:
Raising funds
Charitable activities:
Research
Total expenditure
4
Net income
5
Transfers between funds
11/12
Net movement in funds
Reconciliation of Funds
Balance brought forward
at 1 April 2022
Balance carried forward
at 31 March 2023
11/12
Unrestricted
£
540,008
-
5,154
545,162
286,837
728,614
1,015,451
(470,289)
163,205
(307,084)
5,231,376
4,924,292
Restricted
£
344,665
-
-
344,665
-
562,048
562,048
(217,383)
(163,205)
(380,588)
532,138
151,550
2023
Total
£
884,673
-
5,154
889,827
286,837
1,290,662
1,577,499
(687,672)
-
(687,672)
5,763,514
5,075,842
2022
Total
£
1,487,701
747,265
109
2,235,075
180,915
1,248,658
1,429,573
805,502
-
805,502
4,958,012
5,763,514

The accompanying notes on pages 15 - 26 form part of these financial statements.

Page: 12

The Magdi Yacoub Institute Balance Sheet As at 31st March 2023 Nots8 2023 2022 Fixod Assets Intangible fixed assets Tangible r￿ed asse15 3.075 3,639,400 3,642,475 3.681,797 3,683,743 Current A88ets St(%k Debtors Cash 8t bank and in hand 1,000 369.820 1,207,052 1.000 1,141.366 1.107.228 1.5TT,872 2.249.594 Crnditors: Amounts falling duo within one year 10 1185.773) 1128,555) Not Currgnt A￿ts 1,392,099 5.075,842 2.121.039 Net As$gts 5,763.514 Funds un￿striCted funds General - DesvJnated Restricted funds 1.240,549 3,683.743 151,550 1,588,901 3.642.475 532,138 11 12 5.075.842 5.763.514 Thv3e finanual statements We￿ approved by the Board of Trustees and authorised foT issue on .*V).JAnuary2Q24 Trustee & The Director of Research. Prof•ssor Sir Magd• Yacoub The accompanying notes C￿ pages 15 - 26form part ofthese finanaal statements. Company RegiJtr8ts)n Number. 04¢A1607 Page.. 13

The Magdi Yacoub Institute Statement of Cash Flows For the year ended 31st March 2023

Notes 2023 2022
£ £
Cash inflow used in operating activities
Net cash generated by operating activities (i) 309,949 21,664
═══════ ═══════
Cash flows used in investing activities
Investment income 5,154 109
Acquisition of tangible fixed assets 8 (215,279) (8,961)
Acquisition of intangible fixed assets 7 - -
Disposal of intangible fixed assets 7 - -
──────── ────────
Net cash flows used in investing activities (210,125) (8,852)
═══════ ═══════
Net increase/(decrease) in cash and cash equivalents 99,824 12,812
Cash and cash equivalents at beginning of year 1,107,228 1,141,681
─────── ───────
Cash and cash equivalents at end of year 1,207,052 1,154,493
═══════ ═══════
(i) Reconciliation of net expenditure to net cash flow from operating activities:
2023 2022
£ £
Net income as per Statement of Financial Activities (687,672) 805,502
Adjustments for:
Depreciation charge 172,882 180,875
Amortisation charge 1,129 1,126
Interest income (5,154) (109)
Decrease/(Increase) in stock - -
Decrease/(Increase) in debtors 771,546 (849,590)
Increase/(Decrease) in creditors 57,218 (116,140)
─────── ───────
Net cash generated by operating activities 309,949 21,664
═══════ ═══════
As at 1 Cash As at 31
Analysis of changes in net debt April 2022 flows March 2023
£ £ £
Cash at bank 1,107,228 99,824 1,207,052

Page: 14

The Magdi Yacoub Institute Notes to the Financial Statements For the year ended 31st March 2023

1 Accounting Policies

These financial statements are prepared on a going concern basis, under the historical cost convention.

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Company is a public benefit entity for the purposes of FRS 102 and a registered charity established as a company limited by guarantee and therefore has also prepared its financial statements in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP) including Update Bulletin 2 and the Companies Act 2006.

The financial statements have been prepared in sterling, which is the functional currency of the entity. Monetary amounts in these financial statements are rounded to the nearest pound.

Going Concern

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the company to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. Donation income is the Institute's main source of income and often is reliant on large ad-hoc donations from donors from the wider network of the Institute's founder Professor Yacoub. The trustees have prepared a cash flow forecast covering a period of at least twelve months from the date of approval of these accounts that only takes into account confirmed income and considered howe expenditure could be managed if further donations were no forthcoming. Based on this they have concluded the Institute has adequate resources to continue in operation in this period and therefore the company continues to adopt the going concern basis in preparing its financial statements.

Income

Donations, Legacies and similar income

All income is recognised when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably.

Legacies are recognised following probate and once there is sufficient evidence that receipt is probable and the amount of the legacy receivable can be measured reliability. Where entitlement to a legacy exits but there is uncertainty as to its receipt or the amount receivable, details are disclosed as a contingent asset until the criteria for income recognition are met.

Grants Receivable

Grants receivable are credited to the Statement of Financial Activities (SOFA) in the year for which they are received. Deferred income represents amounts received for future periods and is released to incoming resources in the period for which it has been received.

Expenditure

Expenditure is accounted for on an accruals basis and are recognised when there is a legal or constructive obligation to pay for the expenditure.

Expenditure on operational programmes is recognised in the period in which it is incurred. A designated fund is established for expenditure, which has been committed to projects, but remains unspent at the year end.

Raising Funds

These include the salaries, direct expenditure and overhead costs of the staff who promote fundraising including events.

Charitable expenditure

These comprise of research costs. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Page: 15

The Magdi Yacoub Institute Notes to the Financial Statements For the year ended 31st March 2023

1 Accounting Policies (continued)

Allocation of costs

All costs are allocated between expenditure categories of the SoFA on a basis to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on a direct cost basis.

Governance costs

These include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and the costs linked to the strategic management of the charity.

Stock

Stock is stated at the lower of cost and net realisable value.

Capitalisation and Depreciation of Tangible Fixed Assets

All assets costing more than £500 are capitalised at cost.

Depreciation is provided on all tangible fixed assets at rates calculated to write off their cost over their expected useful lives as follows:

Freehold Land Land is not depreciated Freehold Buildings 2% straight line Furniture, Fittings and Equipment 25% reducing balance Machinery 25% reducing balance

Financial Instruments

Cash and cash equivalents

Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less.

Debtors and creditors

Debtors and creditors receivable or payable within one year of the reporting date are carried at their at transaction price. Debtors and creditors that are receivable or payable in more than one year and not subject to a market rate of interest are measured at the present value of the expected future receipts or payment discounted at a market rate of interest.

Pension

The organisation operates a defined contribution scheme where costs are charged to the Statement of Financial Activities as they become due.

Taxation

The charity is exempt from corporation tax under sections 466-497 of the Corporation Taxes Act 2010 as all its income is applied to charitable purposes.

Employee benefits

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Fund Accounting

Funds held by the charity are:

Unrestricted general funds

These are funds which can be used in accordance with the charitable objects at the discretion of the trustees.

Designated Funds

These funds have been earmarked by the trustees for a particular purpose.

Page: 16

The Magdi Yacoub Institute Notes to the Financial Statements For the year ended 31st March 2023

1 Accounting Policies (continued)

Fund Accounting (continued)

Restricted Funds

These are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Foreign Currencies

Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange ruling at the balance sheet date. Gains or losses on transactions are included in the Statement of Financial Activities.

Critical accounting estimates and areas of judgement

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.

(a) Useful economic lives of tangible assets

The annual depreciation charge is sensitive to changes in the estimated useful economic lives of the assets. Useful economic lives are re-assessed annually and are amended where necessary to reflect current estimates based on the physical condition of the assets. See note 1 accounting policies for the useful economic lives of tangible assets.

2a) Grants and Donations

2023
Heart Biotech
Dulverton Trust
Leducq Foundation
Recharges- Magdi Yacoub Foundation
Eva Pharma
Sawiris Foundation
Kuwait Foundation for the Advancement of Science (KFAS)
Other donations
Unrestricted
£
-
20,000
-
330,632
100,000
-
79,132
10,244
540,008
Restricted
£
155,562
-
88,712
-
-
66,510
-
33,881
344,665
2023
Total
£
155,562
20,000
88,712
330,632
100,000
66,510
79,132
44,125
884,673

Page: 17

The Magdi Yacoub Institute Notes to the Financial Statements For the year ended 31st March 2023

2a) Grants and Donations (continued)

2022
Unrestricted
£
Heart Biotech
-
Imperial College London - BHF
-
Leducq Foundation
-
Magdi Yacoub Global Heart Foundation (MYGHF)
-
Recharges
371,709
Baxter Healthcare
-
Eva Pharma
100,000
CJRS grants
55,866
Kuwait Foundation for the Advancement of Science (KF
144,735
Other donations
54,172
726,482
Legacies
Legacies
Restricted
£
500,917
41,596
70,157
142,032
-
353
-
-
-
6,164
761,219
2023
£
-
2022
Total
£
500,917
41,596
70,157
142,032
371,709
353
100,000
55,866
144,735
60,336
1,487,701
2022
£
747,265

2b) Legacies

Of the legacies received during the year £nil (2022: £747,265) were received for unrestricted purposes.

3 Investment Income and Interest

3 Investment Income and Interest
Bank interest
4 Expenditure
2023
Staff costs
Travel
Research
Equipment
Advertising
Support costs:
Bank charges
Accountancy
Legal and professional fees
Premises
Communications
Depreciation
Stationery
Insurance
Foreign exchange gains
Sundry
Governance (note 4a)
Fundraising
and
Publicity
£
136,834
1,977
665
-
62
139,538
56
1,395
286
4,499
1,414
-
114
1,688
-
230
137,617
286,837
2023
£
5,154
Research
£
446,885
94,369
331,527
38,077
1,169
912,027
448
26,496
5,426
85,458
34,472
172,882
2,151
32,072
(68)
4,415
14,883
1,290,662
2022
£
109
Total
2023
£
583,719
96,346
332,192
38,077
1,231
1,051,565
504
27,891
5,712
89,957
35,886
172,882
2,265
33,760
(68)
4,645
152,500
1,577,499

Page: 18

The Magdi Yacoub Institute Notes to the Financial Statements For the year ended 31st March 2023

4 Expenditure (continued)
2022
Staff costs
Travel
Research
Equipment
Advertising
Support costs:
Bank charges
Accountancy
Legal and professional fees
Premises
Communications
Depreciation
Stationery
Insurance
Foreign exchange gains
Sundry
Governance (note 4a)
Fundraising
and
Publicity
£
85,116
1,382
597
-
29
87,124
40
1,106
71
3,450
1,484
-
81
1,595
-
190
85,774
180,915
Research
£
526,178
39,558
276,648
51,839
542
894,765
247
21,024
1,352
65,566
36,849
180,875
1,539
30,311
17
3,603
12,510
1,248,658
Total
2022
£
611,294
40,940
277,245
51,839
571
981,889
287
22,130
1,423
69,016
38,333
180,875
1,620
31,906
17
3,793
98,284
1,429,573

Allocation of support

Support costs are allocated on a basis consistent with the use of resources.

4a Governance costs comprise of the following:
Staff costs
Audit and accountancy
5 Net expenditure for the year
This is stated after charging:
Depreciation
Amortisation
Auditors’ remuneration (excluding VAT)
Audit
Other services
2023
£
136,834
15,666
152,500
2023
£
172,882
1,129
16,626
1,680
2022
£
85,116
13,168
98,284
2022
£
180,875
1,125
9,295
3,595

Page: 19

The Magdi Yacoub Institute Notes to the Financial Statements For the year ended 31st March 2023

6 Staff Costs and Numbers
Staff costs were as follows:
Gross salaries - administrative support
Gross salaries - research staff
Gross salaries - grants
Employer National Insurance
Pension costs
Research staff - Imperial College
Other staff costs
2023
£
109,938
340,649
27,798
48,254
32,203
-
161,710
720,552
2022
£
107,953
304,525
42,108
45,856
34,299
44,214
117,455
696,410

The number of employees who were paid in excess of £60,000 (including benefits in kind) were:

2023 2022
No. No.
£60,000 - £69,999 1 1
£70,000 - £79,999 1 2

The pension contributions relating to the higher paid employees amounted to £14,025 (2022: £21,715) during the year.

No trustees or connected persons, received any remuneration during the period. No trustees (2022: None) were reimbursed for travel and subsistence expenses (2022: £Nil) during the year.

The average monthly head count of employees are as follows:

The average monthly head count of employees are as follows:
Administration support
Research
2023
No.
2
11
13
2022
No.
2
10
12

Key Management Personnel

The charity considers that the key management personnel comprise of the trustees and the senior management team, who are the trustees and the Chief Operating Officer. The total employee benefits including pension costs of the key management personnel were £89,305 (2022: £96,591).

7 Intangible Fixed Assets
Cost
At 1st April 2022
Additions
Disposals
At 31st March 2023
Amortisation
At 1st April 2022
Charge
Disposals
At 31st March 2023
Net Book Value
At 31st March 2023
At 31st March 2022
Website
2023
£
5,625
-
-
5,625
2,550
1,129
-
3,679
1,946
3,075

Page: 20

The Magdi Yacoub Institute Notes to the Financial Statements For the year ended 31st March 2023

8
Tangible Fixed Assets
Freehold
Property
Cost
£
At 1st April 2022
5,280,222
Additions
-
At 31st March 2023
5,280,222
Depreciation
At 1st April 2022
1,891,850
Charge
98,804
At 31st March 2023
1,990,654
Net Book Value
At 31st March 2023
3,289,568
At 31st March 2022
3,388,372
9
Debtors
Trade debtors
Other debtors
Prepayments and accrued income
10 Creditors: Amounts falling due within one year
Trade creditors
Other Creditors
Taxation & Social Security
Accruals and deferred income (10a)
Fixtures and
Fittings
£
1,249,561
211,189
1,460,750
1,146,363
36,249
1,182,612
278,138
103,198
Machinery
£
571,870
4,090
575,960
424,040
37,829
461,869
114,091
147,830
£
280,909
9,196
79,715
369,820
2023
£
45,325
12,100
14,939
113,409
185,773
2023
Total
£
7,101,653
215,279
7,316,932
3,462,253
172,882
3,635,135
3,681,797
3,639,400
£
306,206
425
834,735
2022
1,141,366
2022
£
31,198
16,846
18,946
61,565
128,555

10a) Deferred income in 2023 includes amounts received in advance of use of the research laboratories.

Deferred income 2023
Deferred income 2022
2,632
-
(815)
2,732
2,532
(2,632)
Brought
forward
Amount
added
Amount
released
1,817
Carried
forward
2,632

Page: 21

The Magdi Yacoub Institute Notes to the Financial Statements For the year ended 31st March 2023

11 Unrestricted Funds
2023
General
Designated:
Fixed assets - Building
Fixed assets - Equipment
Fixed assets - Machinery
Fixed assets - Website
Total
Unrestricted Funds
2022
General
Designated:
Fixed assets - Building
Fixed assets - Equipment
Fixed assets - Machinery
Fixed assets - Website
Total
Balance at
1st April
2022
£
1,588,901
3,388,372
103,198
147,830
3,075
3,642,475
5,231,376
Balance at
1st April
2021
£
956,551
3,487,176
127,032
197,106
4,201
3,815,515
4,772,066
Income
£
545,162
-
-
-
-
-
545,162
Income
£
1,473,856
-
-
-
-
-
1,473,856
Expenditure
£
(841,440)
(98,804)
(36,249)
(37,829)
(1,129)
(174,011)
(1,015,451)
Expenditure
£
(832,545)
(98,804)
(32,795)
(49,276)
(1,126)
(182,001)
(1,006,553)
Transfers
£
(52,074)
-
211,189
4,090
-
215,279
163,205
Transfers
£
(8,961)
-
8,961
-
-
8,961
-
£
1,240,549
Balance at
31st March
2023
3,289,568
278,138
114,091
1,946
3,683,743
4,924,292
£
1,588,901
Balance at
31st March
2022
3,388,372
103,198
147,830
3,075
3,642,475
5,231,376

Fixed Assets - Building

This fund represents the net book value of Phase II, Heart Science centre, Harefield which is owned by the charity.

Fixed Assets - Equipment/Machinery/Website

This fund represents the net book value of the remaining fixed assets (Equipment and Machinery) and intangible fixed assets.

Transfers

All transfers relate to costs for specific projects that have been met directly from other unrestricted funds and have therefore been reallocated to the correct fund.

Page: 22

The Magdi Yacoub Institute Notes to the Financial Statements For the year ended 31st March 2023

12 Restricted Funds
Balance at
1st April
2022
£
Heart Biotech Holdings
182,116
Sawiris Foundation
-
Leducq Foundation
-
New Cairo Heart Centre
70,891
Magdi Yacoub Foundation
453
Magdi Yacoub Global Heart Foundation-IPS
278,497
Imperial College London - BHF
Baxter Healthcare
181
Other
-
532,138
2023
12 Restricted Funds
Balance at
1st April
2022
£
Heart Biotech Holdings
182,116
Sawiris Foundation
-
Leducq Foundation
-
New Cairo Heart Centre
70,891
Magdi Yacoub Foundation
453
Magdi Yacoub Global Heart Foundation-IPS
278,497
Imperial College London - BHF
Baxter Healthcare
181
Other
-
532,138
2023
£
155,562
66,510
88,712
-
-
-
33,381
-
500
Income
£
(276,867)
(57,096)
(88,712)
(70,891)
(453)
(34,148)
(33,381)
(500)
Expenditure
£
(163,205)
-
-
-
-
-
(163,205)
Transfers
Balance at
31st March
2023
£
(102,394)
9,414
-
-
-
244,349
-
181
-
532,138 344,665 (562,048) 151,550
Restricted Funds
Balance at
1st April
2021
£
Heart Biotech Holdings 2019
(86,094)
Imperial College London-BHF
-
Leducq Foundation
-
New Cairo Heart Centre
65,327
Magdi Yacoub Foundation
453
Magdi Yacoub Global Heart Foundation-IPS
204,324
Baxter Healthcare
1,936
Stockwell
-
185,946
2022
Restricted Funds
Balance at
1st April
2021
£
Heart Biotech Holdings 2019
(86,094)
Imperial College London-BHF
-
Leducq Foundation
-
New Cairo Heart Centre
65,327
Magdi Yacoub Foundation
453
Magdi Yacoub Global Heart Foundation-IPS
204,324
Baxter Healthcare
1,936
Stockwell
-
185,946
2022
£
500,917
41,596
70,157
5,564
-
142,032
353
600
Income
£
(232,707)
(41,596)
(70,157)
-
-
(67,859)
(2,108)
(600)
Expenditure
£
-
-
-
-
-
-
-
Transfers
Balance at
31st March
2022
£
182,116
-
-
70,891
453
278,497
181
-
185,946 761,219 (415,027) 532,138

Purpose of Restricted Funds:

Heart Biotech Holdings

The Institute collaborates with Heart Biotech in developing a tissue engineered free-standing 3D valve that reproduces the hemodynamic function of a normal valve and therefore is ready for the next stage of validation.

Imperial College London - BHF

This BHF grant was given to support the research costs to investigate the Role of the Angiotensin II and Natriuretic Peptides in Aortic Valve Disease. The grant started in October 2020 and runs for 2 years.

Leducq Foundation

These funds are restricted to the project "Redox Regulation of Cardiomyocyte Renewal" in which the MYI is one of the participating institutions within the Leducq funded Transatlantic Network.

Sawiris Foundation

These funds are restricted for the funding of a master's degree program for Mohammed Roshdy. The grant started in October 2022 for 1 year.

New Cairo Heart Centre

Funds received towards building a new Cardiac Unit.

Page: 23

The Magdi Yacoub Institute Notes to the Financial Statements For the year ended 31st March 2023

12 Restricted Funds (continued)

Magdi Yacoub Global Heart Foundation (IPS)

This fund is a project for Generation of AHC- 100 iPSC lines library.

Magdi Yacoub Foundation

This fund supports the laboratory costs, including minor equipment and travel for Ms Mona Allouba, a PhD Student under the supervision of Dr Paul Barton, Cardiovascular Genetics and Genomics Group.

Baxter Healthcare

This grant was given to support the research costs to evaluate Preveleak as a surgical sealant for aortic dissection repair.

Other

This fund represents amounts to fund a specific project, which were fully spent at the year end.

Transfers

Transfers relate to costs for specific projects that have been met directly from other unrestricted funds and have therefore been reallocated to the correct fund.

Negative fund balances

Negative fund balances relate to funding which has not met the income recognition criteria at the year end which has been recognised in the following financial year.

Page: 24

The Magdi Yacoub Institute Notes to the Financial Statements For the year ended 31st March 2023

13 Analysis of Net Assets between funds
Tangible fixed assets
Net Current Assets
At 31st March 2023
Analysis of Net Assets between funds
Tangible fixed assets
Net Current Assets
At 31st March 2022
2023
2022
General
£
-
1,240,549
1,240,549
General
£
-
1,588,901
1,588,901
Designated
£
3,683,743
-
3,683,743
Designated
£
3,642,475
-
3,642,475
Restricted
£
-
151,550
151,550
Restricted
£
-
532,138
532,138
Total
2023
£
3,683,743
1,392,099
5,075,842
Total
2022
£
3,642,475
2,121,039
5,763,514

14 Share Capital

The Magdi Yacoub Institute is a company limited by guarantee. The liability of the members of the charitable company is limited to £1 each.

15 Pension Scheme

The Foundation operates a defined contribution scheme for the employees. The assets of the scheme are administered by Aviva (formerly Friends Life) and are held in a separate fund.

The pension costs for the year were £32,203 (2022: £34,299) of which £4,715 (2022: £8,800) was unpaid at the year end and is included in creditors.

16 Capital Commitments

There were no capital commitments noted at year end (2022: £Nil).

17 Related Party Transactions

Costs of £330,632 (2022: £369,087) were incurred by Magdi Yacoub Institute (MYI) and recharged to Magdi Yacoub Foundation (MYF) as agreed between the entities. Dr Magdy Ishak is the Chairman of MYF and a trustee of MYI. At the year end a balance of £75,355 (2022: £126,773) was due from MYF.

MYI received restricted grants totalling £155,562 (2022: £500,917) from Heart Biotech Holdings of which Dr. Magdy Ishak is the Chairman and where Professor Sir Magdi Yacoub is a Research Director. Dr. Magdy Ishak is the Chief Executive of MYI and Sir Magdi Yacoub is a trustee of MYI.

During the year MYI received restricted grants from the Magdi Yacoub Global Heart Foundation (MYGHF) totalling £nil (2022: £142,032). Mr Magdy Ishak and Sir Magdi Yacoub are board members of MYGHF and trustees of MYF.

During the year, MYI transacted with a company in which one of the key management personnel has a relationship and is the beneficial owner totalling £109,785 (2022: £79,850) for management services. The Trustees confirm the relationship is transacted on an arms length basis and payments are approved by a Trustee who is not conflicted prior to payment.

During the year, MYI transacted with an individual one of the key management personnel has a relationship with totalling £36,300 (2022: £36,540) for management services. The Trustees confirm the relationship is transacted on an arms length basis and payments are approved by a Trustee who is not conflicted prior to payment.

Page: 25

The Magdi Yacoub Institute Notes to the Financial Statements For the year ended 31st March 2023

18 Grants MYI board approved but not committed to

At 31 March 2023 the Magdi Yacoub Institute board has grants approved but not committed of £12,986 (2022:£39,669). These are unspent at the year end and are not included in these financial statements. .

Page: 26