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2022-12-31-accounts

Retraining of Racehorses

Annual report Registered charity number 1084787 Registered number 4089376 OSCR Registered number SC043339 Year ended 31 December 2022

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Contents
Legal and administrative details 1
Trustees 3
Report of the independent auditor to the members of Retraining of Racehorses 10
Statement of financial activities (including the Income and Expenditure Account) 13
Balance sheet 14
Cash flow statement
 15
Notes to the Financial Statements 16

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Legal and administrative details

Name of charity

Retraining of Racehorses, also known as 

Registered charity numbers

1

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Legal and administrative details

Professional advisers

Bankers

Weatherbys Bank Sanders Road Wellingborough Northampton NN8 4BX

Solicitors

Royds Withy King Cross Keys House 27 The Parade Marlborough SN8 1NE

Auditors

James Cowper Kreston Audit 2 Communications Road Greenham Business Park Greenham Newbury Berkshire RG19 6AB

Restrictions on operations and investment powers

There are no material restrictions on the operations and investment powers of the charity in pursuance of its charitable obligations.

2

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

The Trustees (who are also directors of the charitable company for the purposes of the Companies Act) present their annual report together with the audited financial statements of Retraining of Racehorses (the company) for the year ended 31 December 2022. The Trustees confirm that the annual report and financial statements of the rning document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Structure governance and management

Governing instrument

Memorandum and Articles of Association dated 9 October 2000, as amended by special resolutions dated 10 January 2001, 29 April 2003 and 11 November 2004.

Appointment of Trustees

Under the Articles of Association, the Trustees are appointed to serve a 2 year period, which is renewable. The Trustees of the charitable company are also the directors of the company for the purposes of the Companies Act 2006. RoR is governed by a Board of six Trustees, one each nominated by the National Trainers Federation the British Horseracing The charity is also able to appoint up to two non-voting independent trustees. The BHA has responsibility for appointing the Chairman.

The Trustees at 31 December 2022, who are also members of the company, have undertaken to contribute a sum not exceeding £1 each to meet the liabilities of the company in the event that it is wound up.

New Trustees are fully briefed by the Chairman on their responsibilities as a Trustee under charity law and as a director under company law. They receive an induction pack including copies of the following: the Memorandum management accounts, including the current budget; the current Trustee Commission publication CC3 The Essential Trustee: What You Need to Know. During their first year, all new Trustees visit at least one of the RoR-supported racehorse rehabilitation centres.

Organisational structure

The Board of Trustees delegate the day to day management of the charity to its administrative team.

The organisational chart below reflects the structure of the charity in 2023 following the departure of the Chief Executive. The Managing Director is supported by a small team of one full time member of staff and a number of part time staff who all have clearly defined responsibilities as detailed in the 2023 organisation chart below. In addition, Fiona Carlin and Lorna Ewens provide Executive Assistance and accounting services respectively to the Trustee Board. RoR is grateful to the BHA for the donation of their services. also give considerable time to RoR and its activities at no cost to the charity.

Registered number 4089376

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Remuneration policy

the Managing Director and Chief Executive. In setting the overall pay levels for staff, RoR considers the prevailing pay practice in the wider economy and takes external counsel from the BHA.

Relationship between the charity and related parties

The relationship between RoR and other racing industry organisations is outlined under the appointment of Trustees above.

Risk management

In order to achieve and maintain best practice in corporate governance and acknowledging responsibility for safeguar responsible for the areas in which the charity may be exposed to risk. The charity maintains a risk register of the operational, business and environmental

This is regularly monitored and reviewed by the Trustees. Key risks for the charity include an economic downturn ally leading to an increase in ex-racehorses requiring assistance from RoR. Also, any outbreak of equine disease could result in a cessation of racing with a major impact on the sport and associated equine activities. Cognisant of these risks, the charity keeps a prudent level of reserves which are held in a wide spread of leading Bond and Equity Funds, although they may be subject to market fluctuation and downturns.

The Trustees are responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the charity, and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The controls over the key financial systems have operated effectively throughout the year. Details of the financial procedures are

Charity Governance

In 2017, RoR undertook a review of its governance in order to comply with the principles of the Charity Governance Code (July 2017). Following this, the Trustees agreed a new Board Code of Conduct and have approved policies for Conflicts of Interest, Safeguarding, Whistleblowing, and Complaints which are reviewed on a regular basis.

Objectives and Activities for the public benefit

The

of racehorses and former racehorses which are unwanted or vulnerable to abandonment, abuse, misuse or neglect, or otherwise in need of care and attention, in particular (but without prejudice to the generality of the The details of the Education and Training programme for 2022 are covered in this report. The full programme of events for 2023 is available on the charity (www.ror.org) under regional activities.

aims and objectives and in planning future activities and setting the grant-making policy for the year.

Aims and objectives

the appropriate skills, resources and facilities, taking as a first priority the welfare of the horses which underpins the key message that racing cares about a life after racing for racehorses on retirement.

To effect its Objects and this vision, the RoR aims are:

Registered number 4089376

4

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

The key objectives for 2022 were to continue the support of the activities of the accredited centres; to expand the targeted promotional and educational programmes; and to continue to encourage the use of ex-racehorses in new occupations. All were achieved.

Grant-making policy

In 2022 RoR maintained its support of the various accredited charitable centres. is responsible for the assessment of all horses in relation to requests for vulnerability grants with grants awarded for horses assessed as s vulnerability criteria.

charitable objectives of RoR.

The charity will also consider programme related investments on a case by case basis when these are in

Working with the Horse Welfare Board, a Retraining Assessment Programme (RAP) was launched that provides support for horses on their first step out of racing. The scheme is designed to provide structured retraining for horses that may be more difficult to rehome due to behavioural or physical concerns. The contract was awarded to HEROS in Oxfordshire. Ongoing monitoring of horses will help us to determine the effectiveness of the programme and the future demand from trainers for supported places.

Strategic Report

Review of charitable activities

racehorse identified as in need of charitable intervention is suitably and properly cared for. Alongside this is the objective to provide opportunities for former racehorses to enjoy a fulfilling second career, thereby reducing the likelihood of horses bred for racing needing third party care or support.

Education continued to form an integral part of the charit work and 2022 saw the recruitment of a National Education Officer to overseas the regional education programme. The regional volunteer group under the leadership of the head of national development held regular group meetings online with local retraining coaches to support the members and answer questions on looking after and retraining their horses. These evenings helped keep the regional groups together and share their journey with their former racehorse. In the second half of the year, in order to strengthen our grass roots support for owners of former racehorses, we recruited Regional Development Officers in 6 regions of the UK to provide formal support for members in their region wanting advice on how to retrain and care for their horses.

2022 saw an increase in the number of horses through the Vulnerable Horse Scheme and the Emergency Relief Fund a total of 54 horses continued to receive support through the scheme. Grant funding of up to £8,000 per horse is available to support those horses admitted to the Vulnerable Horse Scheme (VHS). This funding is paid to the accredited centre or operation looking after the horse.

be a valuable resource for trainers and owners retiring horses from racing and for prospective owners to find a thoroughbred. A total of 284 horses were listed for sale since the beginning of 2022. At the end of 2022, the membership total of 11,136 horses were actively registered on the RoR website.

Parades continued to provide a valuable opportunity to raising awareness of the Charity at major festivals as well as smaller fixtures where over 80 ex-racehorses had an opportunity to parade to appreciative crowds.

Registered number 4089376

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

ROR again held a very successful fundraising cricket day at the renowned Wormsley cricket club. In addition to the competitive cricket provided by teams from across racing, owners and supporters of ROR generously raised funds by bidding for a range of lots on the auction.

RoR continued to demonstrate the adaptability of ex-racehorses to across the many disciplines and events as highlighted by the participation levels below.

Financial review

During 2022, RoR received total income from all sources amounting to £1,025,304 ( 2021: £1,042,809 ). This excludes the drawdown of £148,538 ( 2021: £173,523 ) from the Endowment Fund reserves to the General Fund as permitted under the terms of the gift from the estate of Paul Mellon (see below).

In 2022, RoR received £240,859 ( 2021: £256,046 ) from racehorse owners, trainers and jockeys under the Orders of Racing, including £222,609 from owners ( 2021: £240,316 ). Although decreased from 2021 levels, this is above 2020 levels which had reductions due to the Covid-19 pandemic and the cessation of racing from midMarch to the end of May 2020. In addition varying donations were received from other parts of the Racing Industry: HBLB, racecourses, Point-to-Points, breeders, transporters, bloodstock agents and auctioneers plus some individual gifts. The 2022 sum received from these additional sectors was £241,427 ( 2021: £264,419 ). The charity also received £213,768 ( 2021: £155,973 ) in sponsorship and fundraising income which included donations from Lycetts of £4,000 for polo sponsorship (2021: £4,000), £6,000 from the Jockey Club for the ROR awards (2021: £10,000) , £10,000 from the Jockey Club for the ROR National Championships (2021: £nil), £1,000 from (2021: £7,000) , and £25,000 from Tattersalls for show series sponsorship (2021: £25,000) . ROR held one very successful fundraising event in September 2022, Racing to Cricket, generating fundraising income of £162,034 (2021: £106,225) . Income from Regional clinics and camps, the Aintree Show, online shows and registrations amount to £124,008 ( 2021: £81,938 ). Income from legacies generously bequeathed totalled £5,581 ( 2021: £13,367 ).

Total income from investments was £158,596 (2021: £225,730) which was used to support activities either directly through the general and restricted funds or as part of the drawdown from the endowment fund.

During the year, £104,766 ( 2021: £81,448 ) was spent on generating donations and grant income and £1,313,476 ( 2021: £972,003 ) was spent on the charitable activities of second career educational events for exracehorses and charitable grants as outlined in the review of charitable activities. Grants awarded totalled £268,251 (2021: £182,835) , for h criteria and emergency relief. Of this £8,089 (2021: £8,367) was for ERT support. The Charity purchased a bale shredding machine for loan to the New Beginnings Horses charity in 2020 and charged the £3,000 depreciation for the year to the capital fund (2021: £3,000) .

Registered number 4089376

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Investment policy, objectives and performance

The Trustees of the Charity are responsible for setting the broad objectives and constraints for the investment portfolio and appointing appropriate investment managers to look after the portfolio on a day to day basis create on-going activity.

Under the terms of the Endowment Fund, the charity can transfer up to 5% of the fair market value of the fund each year. This provides for a lasting legacy, preserving capital whilst at the same time generating income to support the work of ROR. To provide a consistent approach across both the General and Endowment funds, General Fund investments to cover any deficit that may arise on general activities. This policy is reviewed by the Trustees on a regular basis i and market background.

There is no specific income target for the investment portfolio. Income is nevertheless considered an important component of total return, as it is normally more stable than capital and will reduce the need to use capital to cover the annual distribution. The current yield on the portfolio is around 5%, which the Trustees consider an appropriate level in the current market environment.

In order to limit capital risk and volatility, the portfolio is well diversified across asset classes and geographies -term real return objective. Currently, the portfolio is invested in a multi-asset portfolio managed by Brompton Asset Management on a balanced basis targeting a reasonably high level of income.

The asset allocation of the portfolio is regularly reviewed by the Trustees to ensure that the overall asset mix in

The performance of the managers is monitored on a regular quarterly basis and their appointment will be formally reviewed in the event of significant corporate developments, major administrative issues or sustained poor

In 2019 the Trustees commissioned a review of the both the investment strategy and the investment management which included recommendations on strategic benchmark asset allocations, with performance being measured against a charity peer group benchmark and the management of the total portfolio by a single manager being Brompton Asset Management. These changes were made in 2020. Performance during 2022 saw the portfolio decrease in value which reflected the global markets. These are long-term investments and although the charity supplements its operational income with drawdowns from these, investments are of a sufficient level to maintain this.

Fund policy and risk management

(i) unrestricted General Funds arising from accumulated unspent donations that the charity is free to use to fund on-going activities, and (ii) Restricted and Endowment Funds that can only be spent in accordance with the terms set out by the donors.

General Fund

In 2022 RoR made a loss before transfers on the unrestricted General Fund of £411,840 ( 2021: £56,786 loss ). After transfers from the Endowment Fund of £148,538 (2021: £173,523), a realised loss on the sale of investments of £244,550 (realised gain 2021: £66,204) and an unrealised investment loss of £333,074 (2021: unrealised gain £273,162) the General Fund decreased from £5,055,069 to £4,214,143.

Restricted and Endowment Funds

are comprised of the following:

Paul Mellon Capital Projects Fund

This fund was part of a gift from the estate of Paul Mellon in 2001 and is kept in reserve to provide capital grants in accordance with the terms of that gift. In 2020, the charity purchased a Bale Master bale shredding

Registered number 4089376

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

machine which it loaned to New Beginnings Horses in order to assess the benefits to both horse welfare and staff of using this equipment to provide stable and yard bedding. Depreciation of £3,000 on the capital cost was charged to the restricted fund (2021: £3,000) . At 31 December 2022 a total of £96,349 (2021: £110,033) remained in the fund .

Paul Mellon Welfare Database Development Fund

At the end of 2019 the Paul Mellon Foundation awarded the charity a grant towards the development of a welfare database. Incoming resources of £975 were received in 2022 (2021: £1,185). Depreciation of £15,000 has been charged to the fund in 2022 (2021: £15,000) . At 31 December 2022 £6,749 remained in the fund.

Emergency Relief for Thoroughbreds (ERT)

The ERT fund was established in 2008 with funds from the ROA. During the year grants totalling £8,089 were awarded (2021: £8,367).

Endowment Fund

The Endowment Fund, which was established with a bequest from the estate of Paul Mellon, is professionally managed in accordance with accepted practice for investments on behalf of charities. As at 31 December 2022, the Fund was valued at £2,822,220, compared with £3,297,245 at the end of 2021. This decrease is after the transfer of £148,538 ( 2021: £173,523 ) to the General Fund in accordance with the terms of the gift which allow a drawdown of up to 5% of the valuation on an annual basis, thereby providing both income to supplement the annual activity and providing a lasting legacy to secure enduring support for the valuable work of RoR.

Further details of the conditions attached to each fund can be found in Note 16.

General Fund reserves to cover in the event of adverse conditions such as the suspension of racing in Great Britain, or as a result of fluctuations in income caused by continuing economic uncertainty. In addition the charity budgets annually on a breakeven basis, funded in part by a drawdown from the Endowment Fund and unrestricted General Fund reserves.

Plans for future periods

In addition to continuing the vital work of the vulnerable horse scheme, the regional and national education programmes, and providing events and activities for former racehorses, 2023 will see the RoR undertake a root and branch review of its activities and develop a Vision and Mission so that it is able to progress with a clear Aftercare Funding Review. RoR is committed to investing in the delivery of these recommendation, but longer term, sustainable funding will need to be identified.

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 company and of its financial activities for that period. In preparing those financial statements the Trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities.

Registered number 4089376

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

The Trustees are responsible for the maintenance and integrity of the corporate and financial information includ dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as to disclosure of information to auditors

So far as the Trustees are aware, there is no relevant audit information (as defined by Section 418 of the that he or she ought to have taken as a Trustee in order to make himself or herself aware of any relevant audit

Auditors

In accordance with Section 485 of the Companies Act 2006, a resolution for the re-appointment of James Cowper Kreston as auditors of the company is to be proposed at the forthcoming Annual General Meeting. By order of the Trustees 

Philip Freedman
Chairman

Date: 21 August 2023

Registered number 4089376

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Charity

Opinion

ended 31 December 2022 which comprise the statement of financial activities, balance sheet 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable 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 requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the Annual report other than the financial statements and our 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 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.

Registered number 4089376

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more 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 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.

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

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.

Registered number 4089376

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:

Enquiry of management and those charged with governance around actual and potential litigation and claims;

Enquiry of management and those charged with governance to identify any material instances of noncompliance with laws and regulations;

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed. 

Fiona Hawkins BSc (Hons) MSc FCA

Senior Statutory Auditor

For and on behalf of

James Cowper Kreston Audit

Statutory Auditor and Chartered Accountant 2 Communications Road Greenham Business Park Greenham Newbury Berkshire RG19 6AB

Date: 25 August 2023

Registered number 4089376

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Statement of financial activities (including the Income and Expenditure Account) for the year ended 31 December 2022

Notes
General
Funds
Endowment
Funds
Restricted
Funds
222
Total
£
£
£
£
Income from:
Donations and legacies
2
528932
528932
Income from charitable activities:
Fundraising, grants, sponsorship,
registrations, clinic income and fines
3
337776
337776
Investment Income
4
942
6495
39
58596
Total income
9699
6495
39
2534
Expenditure on:
Expenditure on charitable activities:
Grants and educational activities
7
267983
823
2729
33476
Cost of generating voluntary income
7
4766
4766
Total expenditure
372749
823
2729
48242
Net income expenditure
484
42292
2339
392938
Transfers between funds
16
48538
48538
Realised lossgain on investments
24455
563
9
487
Unrealised lossgain on investments
33374
22648
3878
5596
Net
incomeexpenditure
and
net
movement in funds for the year
84926
47525
47458
36349
Reconciliation of funds
Total funds brought forward
5,055,069
3,297,245
207,101
8,559,415

Total funds carried forward
42243
282222
59643
7966		 2021
Total
£
578,918
238,161
225,730
1,042,809
(972,003)
(81,448)
(1,053,451)
(10,642)
-
(113,364)
467,746
570,468
7,988,947
8,559,415

All of the above results are derived from continuing operations.

RoR has no recognised gains and losses other than those included in the results above and therefore no separate statement of the total recognised gains and losses has been presented. There is no difference between the net income and expenditure stated above and the historical cost equivalent.

Registered number 4089376

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Balance sheet

at 31 December 2022

Note
Fixed Assets
Tangible Assets
10
Investments
11/12

Total Fixed Assets
Current assets
Debtors
14
Cash at bank and in hand
Loans Receivable within 1 year
13
Total Current Assets
Liabilities
Creditors falling due within one year
15
Net current assets liabilities
Total assets less current liabilities
Loans Receivable after more than 1 year
13
Net assets
The funds of the charity
Unrestricted income funds
Endowment funds
Restricted income funds
Total charity funds
16/17		 222
£
66323
74587


75894
34495
3545
5
299
54288
32286
7966
42243
282222
59643
7966		 2021
£
52,503
8,690,864

8,743,367
79,442
99,523
50,000
228,965
(412,917)
(183,952)
-
8,559,415
5,055,069
3,297,245
207,101
8,559,415

The financial statements have been prepared in accordance with the Charities SORP FRS 102.

The notes at pages 16 to 28 form part of these accounts

These financial statements were approved by the Trustees on 21 August 2023 and signed on their behalf by: 

Philip Freedman

Chairman of the Trustees

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Registered number 4089376

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Cash flow statement

for the year ended 31 December 2022

Cash flow statement
for the year ended 31 December 2022
222 2021
£ £
Net cash used in operating activities 67367 297,509
Cash flows from investing activities
Interest income 577 522
Dividends 158,019 225,208
Purchase of property plant and equipment (41,211) (1,833)
Sale of investments 3,907,538 4,394,586
Purchase of investments (3,250,807) (4,473,399)
Cash provided by used in investing activities 7746 145,084
Increase (decrease) in cash and cash equivalents in the 14,649 (42,863)
year
Cash and cash equivalents at January 222 99 462 242,325
Cash and cash equivalents at 3 December 222 24 199,462
Reconciliation of net movement in funds to net
cash flow from operating activities
Net movement in funds during the year 392938 (10,642)
Adjustments for:
Depreciation 28,391 36,756
Interest income from investing activities (577) (522)
Dividend income from investing activities (158,019) (225,208)
Decrease/(increase) in debtors 44,947 (33,394)
Decrease/(increase) in loans receivable - (50,000)
(Decrease)/increase in creditors (129,171) (14,409)
Net cash used in operating activities 67367 297,509
Analysis of cash and cash equivalents
Cash at bank and in hand 135,405 99,523
Notice deposits 78,705 99,939
Total cash and cash equivalents 24 199,462

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Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Notes on the accounts

Accounting policies

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) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and applicable charity law.

RoR meets the definition of a public benefit entity under FRS 102.

Basis of accounting

These financial statements have been prepared in accordance with the historical cost convention except for fixed asset investments which are recorded at market value. All expenditure is recognised on an accruals basis.

Accounting policies are supplemented by estimation techniques where judgement is required in measuring the value of income and expenditure and of assets and liabilities.

Going concern

The Trustees believe that the charity is well placed to manage its business risks successfully have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Statement of financial activities

RoR is a registered charity and so achievements cannot be measured by normal commercial criteria. Accordingly, the Trustees consider that it would be inappropriate to present a profit and loss account in one of the formats set out in the Companies Act 2006. Therefore, as permitted by are of the opinion that it would be more appropriate to present a Statement of Financial Activities.

Taxation

The Trustees believe that no charge to UK corporation tax will arise in respect of the year to 31 December 2022 as all activities of the company during this year were of a charitable nature. As a registered charity, the company is entitled to various exemptions from taxation on income used for charitable purposes.

Income and expenditure

All incoming resources are included in the SOFA when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Income is only deferred where the donor has specified that the amounts received are for use in future accounting periods.

16

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Notes (continued)

Accounting policies (continued)

Grants payable are payments made to rehabilitation centres in furtherance of the charitable objects of the charity. Grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the Trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and any condition attaching to the grant is outside the control of the charity.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of the grant payable.

Other charitable expenditure represents administrative costs payable for the period. The cost of generating funds represent advertising costs for the general fund and allocated support costs. Support costs are allocated based on management estimates of the time spent on the different activities of the charity.

VAT

As the charity is not registered for VAT, all expenses are shown gross of VAT.

Investments and investment income

All investments are stated at market value and the movement shown in the statement of financial activities comprises both realised and unrealised gains and losses. Investment income is accounted for on a receivable basis.

Social Investments

Social investments are stated at cost less impairment at the year end. Investment in the form of equipment assets are impaired is over the useful life of the investment.

Fund accounting

Funds held by the charity are either:

General funds these are unrestricted free reserves which can be used in accordance with the charitable objectives at the discretion of the Trustees.

Endowment funds these are funds invested by the Trustees and up to 5% of the value of the investment may be used in accordance with the charitable objectives at the discretion of the Trustees. Income earned on the endowment funds is unrestricted. However, in accordance with the endowment bequest, any such income which is unexpended in the year is transferred to the endowment funds.

Restricted funds these are funds that can only be used for the particular restricted purposes within the objectives of the charity. Restrictions arise when specified by the donor or when the funds are raised for particular restricted purposes. Income generated by the restricted fund is attributed to the general fund.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Fund transfers

The Paul Mellon endowment fund represents bequests from the Paul Mellon estate in December 2001 and a further grant given in May 2015, the terms of which state that RoR may transfer to discretion.

17

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Notes (continued)

Accounting policies (continued)

The bequest also states that any investment or interest income earned on the endowment funds which is unexpended in the year should be added to the endowment principal.

Intangible and Tangible fixed assets

The cost of intangible and tangible fixed assets is their purchase cost, together with any incidental costs of acquisition. Depreciation is provided so as to write off the cost of intangible and tangible

fixed assets on a straight line basis over the estimated useful economic lives of the assets concerned. The rates of depreciation are as follows:

Office equipment 3-4 years
Website / database development 4 years
Office furniture 10 years
Vehicles 4 years

Pension scheme

The charity does not, itself, operate a pension scheme. The BHA operates a pension scheme that employees of the charity are able to join. The defined benefit section of the scheme was closed to future accrual on 31 December 2015 and from 1 January 2016 all employees in the pension scheme were active members of the defined contribution section.

The charity is unable to identify its share of the underlying assets and liabilities of the defined benefit scheme on a consistent and reasonable basis and therefore as required by FRS 102, accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the statement of financial activities represents the contributions payable to the scheme in respect of the accounting period in which they are paid. The charity continued to pay an amount £1,500 (2021: £1,500) into the scheme in respect of voluntary deficit funding as agreed with the BHA. Amounts of £26,083 (2021: £24,502) were also paid into the defined contribution scheme operated by the BHA.

Donated Services

Administrative support costs, which are borne by BHA, are recognised as donated services. The amounts in the Statement of Financial Activities represent an allocation of BHA employee salary based on time spent by those employees in administering the charity. Donated services also includes services and facilities provided by racecourses for RoR parades and polo events, and horse testing services provided by the BHA. All amounts are included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable.

Legacies

Legacies are accounted for in whole or in part, is only when receipt is considered probable, the make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Foreign currency

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

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

18

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Notes (continued)

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

Debtors

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

Cash

Cash at bank and cash in hand includes current account balances and cash held in deposit accounts.

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.

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 with the investments which are subsequently measured at market value.

Judgements in applying accounting policies and key sources of information uncertainty

In determining if leases entered into by the charity are finance or operating leases, the lease has been assessed to determine whether the risks and rewards of ownership have been transferred to the lessor by the lessee on a lease by lease basis.

Tangible and intangible assets are capitalised when the asset is deemed to have a useful life in excess of one year. Assets are then depreciated over what is assessed as their useful economic life.

2. Income from donations and legacies

Incoming resources are derived from industry funding and self generating sources. Interest income all relates to bank interest.

Donations received:
- Owners
- Racecourses
- HBLB
- Trainers
- Jockeys
- Hunter certificates
- Point to Point Authority
- Breeders (in addition to sponsorship)
- Other
Legacies received
Donated services
Total		 222
£
2021
£
22269
240,316
446
143,600
262
28,618
279
11,070
546
4,660
595
1,449
3
3,240
9
14,700
6252
72,812
482286
520,465
558
13,367
465
45,086
528932
578,918

19

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Notes (continued)

3.

4.

Income from charitable activities

Fundraising grants and sponsorship
Registration and clinic income
Fines
Total
vestment Income
Dividends
Interest received
Total		 222
£
2021
£
23768
155,973
248
81,938
250
337776
238,161
222
£
2021
£
589
225,208
577
522
58596
225,730

Investment Income

5. Analysis of staff costs, trustees remuneration and expenses and the cost of key
management personnel

The Trustees received no emoluments or benefits in kind in respect of their services to the charity during the year (2021: nil) . Total expenses incurred on behalf of Trustees during the year were £nil (2021: £nil). £2,348 was incurred in respect of meeting costs and other expenses (2021: £2,733) .

Indemnity insurance is provided for the Trustees under a policy held by BHA, the proportion of which relating to RoR is not separately identifiable and has therefore not been included in the

Salaries and wages
Social security costs
Pension costs
Total		 222
£
2021
£
38276
289,448
3253
29,628
2683
24,547
439862
343,623

Administrative support costs are borne by BHA and in 2022 these amounted to £41,065 (2021: £39,916).

The number of employees who received emoluments between £90,000 and £100,000 was 1 (2021: £90,000-£100,000 1) , this includes pension benefits accruing under a defined benefit scheme.

The key management personnel of the charity comprise Trustees, the CEO and Managing Director. The total employee salary, pension and benefits in kind of the key management personnel were £132,098 ( 2021: £95,069 )

20

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Notes (continued)

6. Staff numbers

The average monthly head count was 10 (2021: 7)

7. Analysis of general fund expenditure on charitable activities

Directly attributable costs
Grants and assessment
Event management
Audit fee
Investment management
Trustees expenses and
meeting costs
Total
Support costs allocated
Staff costs
Travel costs & car leasing
Website
Advertising
Professional fees
Equipment Depreciation
Pension Deficit Funding
Fundraising event costs
Other office costs
Total
 Directly attributable costs
Grants and assessment
Event management
Audit fee
Investment management
Trustees expenses and
meeting costs
Total
Support costs allocated
Staff costs
Travel costs & car leasing
Website
Advertising
Professional fees
Equipment Depreciation
Pension Deficit Funding
Fundraising event costs
Other office costs
Total
 Charitable activities
Cost of
generating
voluntary
income
£
Investment
management
fees
£
Promotion
of ex-
racehorses
in 2nd
careers
£
Vulnerable
Horse
Scheme
£
Governance
costs
£
222
Total
£
2021
Total
£

-
-
-
378,910
-
3789
312,626
-
-
459,221
-
-
45922
276,557
-
-
-
-
11,292
292
9,720
-
48,244
-
-
-
48244
45,397
-
-
-
-
2,348
2348
2,733
48244
45922
3789
364
95
64733

23,572
-
247,503
23,572
20,533
358
255,107
-
-
11,357
11,357
-
2274
16,251
7,789
-
7,790
7,790
-
23369
33,063
454
-
453
453
-
36
570
-
-
-
-
53,351
5335
23,551
960
-
959
959
-
2878
2,393
500
-
500
500
-
5
1,500
58,299
-
-
-
-
58299
38,200
13,192
-
13,192
13,192
-
39576
35,783
4766
28754
57823
73884
58227
4648
Total expended 4766
48244
74975
436733
87524
48242
5345

21

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Notes (continued)

8.  Net income/(expenditure) for the year

This is stated after charging:

his is stated after charging:

222		 2021
£ £
Depreciation
2839		 36,756
Audit fees
292		 9,720
Additional fees - 
9.

Grants paid

The number and value of grants given to organisations in pursuit of the objectives of the charity are as follows.

Heros
Greatwood
New Beginnings Horses
Grange Farm
World Horse Welfare
Frederick A Cook Partnership
Victoria Cartmel
Horses & Ponies Protection Association
Peopleton Brook Farm
Sophie Spiteri
Racehorse Relief
Retreat Livery (J A Clark)
Racehorse Rescue Centre
The British Thoroughbred Retraining
Centre
Claire Hart Equine
The Racehorse Sanctuary &
Rehabilitation Centre
Justo Development Ltd
Jody Sole
Impel Equines
Grants to 3rdparties for emergency relief,
vet fees and transport
Total grants made in the year		 222
Number
2021
Number
222
£
2021
£
8
14
864
9,000
6
595
56,500
8
26
57993
39,826
8
3
9
3,500
8
7
9
12,000
8
5
8
8,500
6
2
7
2,000
5
6
55
7,000
3
3
4
1,500
3
-
25
-
3
4
2
6,000
1
5
1,000
4
5
4,000
6
14,745
2
2,500
1
2,000
1
500
-
-
-
-
4
31
27
12,264
32
122
268,251
182,835

All grants paid in 2022 ty criteria.

22

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Notes (continued)

10. Tangible fixed assets

Office
equipment
Website
Database
Development
£
£
Cost
At beginning of year
22,322
153,966
Additions
22,456
-
Disposals
(2,765)
-
At end of year
42,013
153,966
Depreciation
At beginning of year
19,801
106,082
Charge for year
2,386
24,545
Disposals
(2,765)
-
At end of year
19,422
130,627

Net book amount
At 32222
2259
23339

At 01.01.2022
2,521
47,884
 Office
furniture
£
4,164
473
-
4,637
2,066
460
-
2,526
2
2,098		 Vehicles
£
43,956
18,282
-
62,238
43,956
-
-
43,956
8282
-		 Total
£
224,408
41,211
(2,765)
262,854
171,905
27,391
(2,765)
196,531
66323
52,503

All fixed assets are held for charitable purposes

23

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Notes (continued)

Investments

Investments
Money
Market & UK
Cash
Global
Equities
Fixed Income
Corporate &
Treasury Bonds
£
£
Market Value at 1 January 2022
86,935
5,854,835
907,227
Add: acquisitions
-
2,543,356
707,451
Less: disposals at opening book
value
- (2,962,719)
(731,614)
Add: net gain/(loss) on revaluation
-
(382,793)
(1,584)
Add: net movement in cash
(2,621)
-
-
Add: dividends
(18,609)
-
-
Less: accrued fees
1,568
-
Market value at 32222
67273
552679
8848
Historical cost at 32222
67273
59225
97854		 Property
Mixed Asset
Funds
Total
£
£
£
213,205
1,620,162
8,682,364
-
-
32587
(213,205)
-
397538
-
(175,223)
5596
-
-
262
-
-
869
-
568
444939
744637
37425
755277
744637
755277

Material investments

The following listed investments were considered by the Trustees to be material to the portfolio at the year end:

Brompton Global Income P
FIL Investment Services (UK) Ltd
Man Fd Mgmnt UK Man Glg UK Inc Prof D Inc
Liontrust Fund Partners LLP Special Situations Inc
Vanguard Investment Series Global Bond
Ishares VII PLC Core S&P 500 units ETF USD
Guinness Asset Management Funds PLC
KBA Consulting Management Ltd
Ishares II Plc USD Treasury Bd 7-10yr
Matthews Asia Funds Asia Ex Japan
Artemis Fund Managers Income
Polar Capital Funds Global Technology
Vulcan Global Value Fund PLC
Blackrock Fund Manager Ltd European Dynamic FD
Other holdings
Cash
Total portfolio		 2022
2022
Value
Portfolio
£
%
1,444,939
19
539,292
7
525,896
7
463,503
6
363,654
5
348,581
5
313,896
4
294,314
4
288,661
4
258,300
3
223,755
3
192,888
3
-
-
-
-
2,109,987
29
__
7,367,666
78,705
1
7,446,371
100		 2021
2021
Value
Portfolio
£
%
1,620,162
19
347,681
4
529,440
6
530,396
6
-
-
383,005
4
-
-
261,640
3
-
-
317,401
4
232,144
3
282,393
3
610,014
7
502,572
6
2,965,847
34
__
8,582,425
99,939
1
8,682,364
100

24

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Notes (continued)

12. Social Investment

Programme related investment 222
2021
£
£
55
8,500

5 5
8,500

The charity purchased a Balemaster straw shredding machine at a cost of £12,000. The value of £5,500 is after a cumulative impairment charge of £6,500. This is on loan to New Beginnings Horses.

13. Loans Receivable

Amounts due within 1 year
Loans Receivable
Amounts due in greater than 1 year
Moorcroft
BTRC
Greatwood
Provision		 222
2021
£
£
-
100,000
33
133,000
10,000
93
(193,000)

5
50,000

An interest free loan of £50,000 was provided in 2021 to BTRC. This was due for repayment on 31 December 2022.

14. Debtors

Amounts due within 1 year
Prepayments and accrued income		 222
2021
£
£
34495
79,442

34495
79,442

15. Creditors: amounts falling due within one year

Accruals and trade creditors 222
2021
£
£
54288
412,917
_
_
54288
412,917

25

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Notes (continued)

16. Reconciliation of movement in accumulated funds
222 Opening
balance		 Incoming
resources		 Outgoing
resources		 Loss on
investments		 Transfers Closing
balance
£ £ £ £ £ £
Unrestricted funds
General fund
Restricted funds		 55569 960,909 (1,372,749) (577,624) 148,538 42443
ERT fund 69977 975 (8,390) (6,017) - 56545
Paul Mellon capital
projects fund		 33 1,950 (3,600) (12,034) - 96349
Paul Mellon welfare
database
Endowment funds		 279 975 (15,300) (6,017) - 6749
Paul Mellon 3297245 60,495 (18,203) (368,779) (148,538) 282222
endowment fund
______ _ _ _ _ ______
Total 855945 2534 48242 9747 7966
_______ _______ _______ _______ _______ _______
2021 Opening Incoming Outgoing Gain on Transfers Closing
balance resources resources investments balance
£ £ £ £ £ £
Unrestricted funds
General fund
Restricted funds		 4598966 949,122 (1,005,908) 339,366 173,523 55569
ERT fund 767 2,032 (8,367) 5,245 - 69977
Paul Mellon capital
projects fund		 48 2,639 (3,532) 6,808 - 33
Paul Mellon welfare
database
Endowment funds		 487 1,185 (18,239) 3,058 - 279
Paul Mellon 37379 87,831 (17,405) 226,633 (173,523) 3297245
endowment fund
_ _ _ _ ______
Total 7988947 4289 5345 58 855945
_______ _______ _______ _______ _______ _______

The unrestricted General Fund represents free reserves and can be used in accordance with the charitable objectives at the discretion of the Trustees.

The Paul Mellon endowment fund represents bequests from the Paul Mellon estate in December 2001 and May 2015, the terms of which state that the RoR may transfer to general funds not more than 5% of the fair market value of the fund each year. The Trustees transferred £148,538 of the bequest to general funds during the year (2021: £173,523). Under the terms of the bequest, any unexpended income earned on the endowment funds should be added to the endowment principal at the end of the year. In the year ended 31 December 2022, £60,495 was added to the endowment principal (2021: £87,831).

Also, included within the movement in funds during the period is a realised loss of £156,131 (2021: realised gain £44,212) and an unrealised loss of £212,648 (2021: unrealised gain of £182,421) .

The Paul Mellon capital projects fund was funded by a bequest from the Paul Mellon estate in December 2001. The terms of the bequest state that it must be used to build, acquire or improve structures, equipment and other facilities to be used for the care and maintenance of retired thoroughbred racehorses. The fund was used in 2020 to purchase a Balemaster bale shredder at

26

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Notes (continued)

depreciation charge in 2022 was £3,000 (2021: £3,000).

The Paul Mellon welfare database fund is donation provided for the development of a welfare database. During the year £15,000 depreciation on the capitalised development costs was charged to the fund (2021 £15,000).

The Emergency Relief for Thoroughbreds fund (ERT) was established in 2008 with the transfer of the ERT funds from the Racehorse Owners Association. During the year grants of £8,089 (2021: £7,958) were made from the fund. 

17. Analysis of net assets between funds as at 31 December 2022
General Endowment Restricted
Funds Funds Funds Total
£ £ £ £
Fixed assets 39,023 - 27,300 66323
Investments 4,497,308 2,822,220 132,343 74587
Cash at bank and in hand 135,405 - - 3545
Other assets 84,495 - - 84495
Current liabilities (542,088) -
 - 54288
42443 282222 59643 7966

18.

Financial commitments

At 31 December 2022 the Company had total commitments under non-cancellable operating leases as follows:

Expiring
2022
Land and
Buildings
£
within one year
17,609
between two and five years
inclusive
over five years
70,435
73,370

161,414		 2022
Vehicles
£
4,711
7,245
-
11,956		 222
Total
2021
Total
£
£
2232
23,968
7768
7337
84,654
90,980
7337
199,602

19. Liability of members

The members of the Company have undertaken to contribute a sum not exceeding £1 each to meet the liabilities of the company in the event that it is wound up.

27

Retraining of Racehorses (a company limited by guarantee) Annual report Year ended 31 December 2022

Notes (continued)

20. Related party transactions

The company has transacted with the following related parties, all of which are related by virtue of one of their employees, appointments, or directors being a director of the company.

Details of sales and recharges to and administrative expenses incurred from related parties are detailed below

Aintree Racecourse Developments
British Horseracing Authority
Chester Race Company Ltd
Point to Point Authority Limited
Musselburgh Racecourse Limited
Thoroughbred Breeders Association
BRS Education Limited		 Sales sponsorship & donations
Good & services supplied from
222
2021
222
2021
68
-
26857
20,719
465
38,866
475884
371,447
3
1,500
-
3
3,240
66
10,154
25
2,600
-

3225
8,375
-
-
2
-
-
2334
-

Related party transactions included in year end debtors and creditors were as follows;

British Horseracing Authority
Point to Point Authority Limited
BRS Education Limited		 Receivables outstanding
Creditors outstanding
222
2021
222
2021
-
453554
326,648
-
66
11,154
-
2
-

The charity held one fundraising event in 2022 and there was £2,000 income from two Trustees and their related parties as a result (2021: £2,000 2 Trustees) .

21. Ultimate controlling party

RoR is controlled by its Board of Trustees. Accordingly, there is no single individual that can, or does, exert control over the charitable company.

28