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2023-12-31-accounts

Charity registration number 1083913

Company registration number 4115137 (England and Wales)

THE PRESTON TRUST HOMES CHARITY

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

THE PRESTON TRUST HOMES CHARITY

LEGAL AND ADMINISTRATIVE INFORMATION

Directors/Trustees R.T.O Bridgeman, Seventh Earl of Bradford Mrs. C Kenyon-Slaney Mr. D Stacey Mr. A Kenyon Mrs. N Peers A M O Bridgeman, Viscount Newport Charity number 1083913 Company number 4115137 Registered office 74a Forton Road Newport Shropshire United Kingdom TF10 8BT Independent examiner Azets St David's Court Union Street WV1 3JE Solicitors Farrer & Co

THE PRESTON TRUST HOMES CHARITY

CONTENTS

Page
Directors'/Trustees' report 1 - 3
Independent examiner's report 4
Statement of financial activities 5
Summary income and expenditure account 6
Balance sheet 7
Notes to the financial statements 8 - 17

THE PRESTON TRUST HOMES CHARITY

DIRECTORS'/TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

The directors/trustees present their annual report and financial statements for the year ended 31 December 2023.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)(effective 1 January 2015)"

Objectives and activities

The charity's objects are the provision of accommodation (and assistance for those located in such accommodation) for those in need who are primarily resident in the County of Shropshire, or were born in the County of Shropshire. The policies adopted in furtherance of these objects are the maintenance of a residential home with an on site manager to cater for residents needs and there has been no change in these during the year.

Aims for the year

Continued improvement of Clerk processes.

Fully move to xero accounting and improve electricity recharge invoicing, further reducing duplication. Move investment fund.

The directors/trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Significant activities during the year

THE PRESTON TRUST HOMES CHARITY

DIRECTORS'/TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Achievements and performance

Residents

Buildings and grounds

Team

Financial review

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The directors/trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

The charity has performed well again this year, with the apartments being fully let for the majority of the year.

Repairs costs were higher than usual due to various maintenance issues, but with the investment portfolio valuation increasing, the overall result for the year is still a surplus.

The directors/trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

THE PRESTON TRUST HOMES CHARITY

DIRECTORS'/TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Plans for next year

Structure, governance and management

The charity is a company limited by guarantee and does not have a share capital. The governing instrument is the Memorandum of Association dated 15 September 2000.

The directors/trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

R.T.O Bridgeman, Seventh Earl of Bradford

Mrs. C Kenyon-Slaney Mr. D Stacey Mr. A Kenyon Mrs. N Peers

A M O Bridgeman, Viscount Newport

Trustees are recommended to the Board by existing Trustees, and if accepted are given a history of the charity and an opportunity to review its financial accounts and previous minutes in order to familiarise themselves with the operations of the charity.

None of the directors/trustees has any beneficial interest in the company. All of the directors/trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The company's current policy concerning the payment of trade creditors is to:

Day to day decisions over the running of the Preston Trust Homes are made by the Manager, who is answerable to the Clerk to the Trustees. These decisions are then regularly reviewed by the Board of Trustees.

The directors'/trustees' report was approved by the Board of Directors/Trustees.

R.T.O Bridgeman, Seventh Earl of Bradford

Director/Trustee Dated: 29 April 2024

THE PRESTON TRUST HOMES CHARITY

INDEPENDENT EXAMINER'S REPORT

TO THE DIRECTORS/TRUSTEES OF THE PRESTON TRUST HOMES CHARITY

I report to the directors/trustees on my examination of the financial statements of The Preston Trust Homes Charity (the charity) for the year ended 31 December 2023.

Responsibilities and basis of report

As the directors/trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Helen Tinsley FCCA Azets

St David's Court Union Street Wolverhampton WV1 3JE United Kingdom

Dated: .........................

THE PRESTON TRUST HOMES CHARITY

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted Endowment
funds
funds
2023
2023
Notes
£
£
Income from:
Other trading
activities
3
-
86,700
Investments
4
8,691
39,615
Total income and
endowments
8,691
126,315
Expenditure on:
Charitable activities
5
103,612
-
Other
9
-
27,733
Total expenditure
103,612
27,733
Net gains/(losses) on
investments
11
-
31,949
Net (outgoing)/incoming
resources before
transfers
(94,921)
130,531
Gross transfers
between funds
107,302
(107,302)
Net movement in funds
12,381
23,229
Fund balances at 1 January
2023
237,191
1,920,875
Fund balances at 31
December 2023
249,572
1,944,104		 Total
Unrestricted Endowment
funds
funds
2023
2022
2022
£
£
£
86,700
-
90,496
48,306
3,369
35,247
135,006
3,369
125,743
103,612
129,899
-
27,733
-
27,733
131,345
129,899
27,733
31,949
-
(138,733)
35,610
(126,530)
(40,723)
-
131,642
(131,642)
35,610
5,112
(172,365)
2,158,066
232,079
2,093,240
2,193,676
237,191
1,920,875		 Total
2022
£
90,496
38,616
129,112
129,899
27,733
157,632
(138,733)
(167,253)
-
(167,253)
2,325,319
2,158,066

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

THE PRESTON TRUST HOMES CHARITY

SUMMARY INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2023

All income funds
2023
£
Gross income
8,691
Transfer from endowment funds
107,302
Total income in the reporting period
115,993
Total expenditure from income funds
103,612
Net income for the year
12,381		 2022
£
3,369
131,642
135,011
129,899
5,112

THE PRESTON TRUST HOMES CHARITY

BALANCE SHEET

AS AT 31 DECEMBER 2023

Notes
Fixed assets
Tangible assets
12
Investments
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current assets
Total assets less current liabilities
Capital funds
Endowment funds - general
17
Income funds
Unrestricted funds		 2023
£
£
973,579
1,165,282
2,138,861
1,719
57,432
59,151
(4,336)
54,815
2,193,676
1,944,104
249,572
2,193,676		 2022
£
£
1,005,592
969,580
1,975,172
899
187,244
188,143
(5,249)
182,894
2,158,066
1,920,875
237,191
2,158,066		 2022
£
£
1,005,592
969,580
1,975,172
899
187,244
188,143
(5,249)
182,894
2,158,066
1,920,875
237,191
2,158,066
1,975,172
182,894
2,158,066
1,920,875
237,191
2,158,066

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2023.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Directors/Trustees on 29 April 2024

R.T.O Bridgeman, Seventh Earl of Bradford

Trustee

Company registration number 4115137

THE PRESTON TRUST HOMES CHARITY

BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2023

1 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the directors/trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

2 Accounting policies

Charity information

The Preston Trust Homes Charity is a private company limited by guarantee incorporated in England and Wales. The registered office is 74a Forton Road, Newport, Shropshire, TF10 8BT, United Kingdom.

2.1 Accounting convention

The accounts have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

2.2 Going concern

At the time of approving the financial statements, the directors/trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the directors/trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

2.3 Charitable funds

Unrestricted funds are available for use at the discretion of the directors/trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

THE PRESTON TRUST HOMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2 Accounting policies

(Continued)

2.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

2.5 Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is included as part of the expenditure to which it relates.

2.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Buildings straight line over 50 years Fixtures, fittings & equipment 12.5% per annum reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

2.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

2.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

2.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

THE PRESTON TRUST HOMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

2 Accounting policies

(Continued)

2.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

2.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

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

3 Other trading activities

2023 2022
£ £
Flat maintenance income 86,700 90,496

THE PRESTON TRUST HOMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

4 Investments

Unrestricted Endowment
funds
funds
general
£
£
Feed in Tariff income
7,263
-
Income from investments
-
39,615
Interest receivable
1,428
-
8,691
39,615
For the period ended 31 December 2022
3,369
35,247
Charitable activities
Staff costs
Rates
Insurance
Light & heat
Repairs & maintenance
Postage & stationery
Telephone & fax
Cleaning
Legal and professional
Sundry costs
Share of support costs (see note 7)
Share of governance costs (see note 7)		 Total
2023
£
7,263
39,615
1,428
48,306
2023
£
19,590
4,583
2,084
23,756
33,715
180
2,198
2,727
2,456
1,083
92,372
8,600
2,640
103,612		 Total
2022
£
3,328
35,247
41
38,616
38,616
2022
£
22,469
4,216
2,493
11,568
62,812
106
2,320
3,121
10,226
43
119,374
7,945
2,580
129,899

5 Charitable activities

6 Directors/Trustees

None of the directors/trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

THE PRESTON TRUST HOMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

7 Support costs

Support
costs
Governance
costs
£
£
Clerk's fees
4,320
-
Depreciation
4,280
-
Independent Examiners
fees
-
2,640
8,600
2,640
Analysed between
Charitable activities
8,600
2,640		 2023
£
4,320
4,280
2,640
11,240
11,240		 2022 Basis of allocation
£
3,052
4,893
2,580
Governance
10,525
10,525

8 Employees

Number of employees

The average monthly number of employees during the year was:

2023 2022
Number Number
Warden 1 1
Employment costs 2023 2022
£ £
Wages and salaries 19,590 22,469

There were no employees whose annual remuneration was £60,000 or more.

9 Other

Land and building depreciation 2023
£
27,733
27,733		 2022
£
27,733
27,733

10 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

THE PRESTON TRUST HOMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

11 Net gains/(losses) on investments

Movement on investments
12
Tangible fixed assets
Cost
At 1 January 2023
At 31 December 2023
Depreciation and impairment
At 1 January 2023
Depreciation charged in the year
At 31 December 2023
Carrying amount
At 31 December 2023
At 31 December 2022		 Endowment Endowment
funds
funds
general
general
2023
2022
£
£
31,949
(138,733)
Buildings
Fixtures,
fittings &
equipment
Total
£
£
£
1,438,526
81,463
1,519,989
1,438,526
81,463
1,519,989
476,800
37,597
514,397
27,733
4,280
32,013
504,533
41,877
546,410
933,993
39,586
973,579
961,726
43,866
1,005,592

THE PRESTON TRUST HOMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

13
Fixed asset investments
Listed
investments
£
Cost or valuation
At 1 January 2023
98,333
Additions
145,000
Valuation changes
31,949
Income re invested
18,753
Cash balance re invested
871,247
At 31 December 2023
1,165,282
Carrying amount
At 31 December 2023
1,165,282
At 31 December 2022
98,333
14
Debtors
Amounts falling due within one year:
Prepayments and accrued income
15
Financial instruments
Carrying amount of financial assets
Debt instruments measured at amortised cost
Equity instruments measured at cost less impairment
Carrying amount of financial liabilities
Measured at amortised cost		 Cash in
portfolio
871,247
-
-
-
(871,247)
-
-
871,247
2023
£
1,719
2023
£
57,378
1,165,282
4,336		 Total
£
969,580
145,000
31,949
18,753
-
1,165,282
1,165,282
969,580
2022
£
899
2022
£
187,056
969,580
4,302

Financial assets measured at amortised cost consists of trade debtors, other debtors and cash at bank.

Financial liabilities measured at amortised cost consists of trade creditors, other creditors and accruals.

THE PRESTON TRUST HOMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

16 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Other taxation and social security
Other creditors
Accruals and deferred income		 2023
£
975
-
3,361
4,336		 2022
£
947
1,218
3,084
5,249

THE PRESTON TRUST HOMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

17 Endowment funds

Endowment funds represent assets which must be held permanently by the charity. .

The original Endowment fund was introduced into the charitable company on its incorporation in the form of Land & Buildings and Investment portfolio, on the basis that the Endowment fund is maintained at the value that these assets would represent were they held within a seperate legal entity. As such the fund is maintained at the Net Book Value of the Original Land & Buildings, and the Market Value of the Investment portfolio (excluding any cash additions from operations at later dates).

Any excess over this value is available for transfer to the Unrestricted fund and can be used according to the charitable objects.

Balance at
1 January 2022
£
2,093,240
2,093,240		 Incoming
resources
£
125,743
125,743		 Movement in funds
Resources
expended
Transfers
Revaluations
gains and
losses
Balance at
1 January 2023
£
£
£
£
(27,733)
(131,642)
(138,733)
1,920,875
(27,733)
(131,642)
(138,733)
1,920,875		 Incoming
resources
£
126,315
126,315		 Movement in funds
Resources
expended
Transfers
Revaluations
gains and
losses
Balance at
31 December
2023
£
£
£
£
(27,733)
(107,302)
31,949
1,944,104
(27,733)
(107,302)
31,949
1,944,104		 Movement in funds
Resources
expended
Transfers
Revaluations
gains and
losses
Balance at
31 December
2023
£
£
£
£
(27,733)
(107,302)
31,949
1,944,104
(27,733)
(107,302)
31,949
1,944,104
1,944,104

THE PRESTON TRUST HOMES CHARITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

18
Analysis of net assets between funds
Unrestricted
Fund
Endowment
Fund
2023
2023
£
£
Fund balances at 31
December 2023 are
represented by:
Tangible assets
49,757
923,822
Investments
145,000
1,020,282
Current assets/(liabilities)
54,815
-
249,572
1,944,104		 Total Unrestricted
Fund
Endowment
Fund
2023
2022
2022
£
£
£
973,579
54,297
951,295
1,165,282
-
969,580
54,815
182,894
-
2,193,676
237,191
1,920,875		 Total
2022
£
1,005,592
969,580
182,894
2,158,066

19 Related party transactions

There were no disclosable related party transactions during the year (2022 - none).