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2022-12-31-accounts

Charity Registration No. 1089564

Company Registration No. 04104341 (England and Wales)

The British Thoroughbred Retraining Centre Limited

Trustees’ Report and Unaudited Financial Statements

For The Year Ended 31 December 2022

THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

CONTENTS

Page
Charity reference and administrative details 1
Trustees’ annual report (including the directors’ report) 2
Independent Examiner’s report to the trustees 13
Statement of financial activities 14
Balance sheet 15
Statement of cashflows 17
Notes to the accounts 18

THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

CHARITY REFERENCE AND ADMINISTRATIVE DETAILS

FOR THE YEAR ENDED 31 DECEMBER 2022

Registered charity name The British Thoroughbred Retraining Centre Limited Charity registration number 1089564 Company number 04104341 Principal and registered office address Whinney Hill Aughton Road Halton Lancashire LA2 6PQ Trustees Ms B Bell Mr M Davis Ms M Metz Mrs S Scott Mr J Sexton Mr K Thomas Mr P Woodcock-Jones Independent Examiner MHA Moore and Smalley Chartered Accountants Priory Close St Mary’s Gate Lancaster Lancashire LA1 1XB

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THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees have pleasure in presenting their report and the financial statements of the charity for the year ended 31 December 2022. This report includes the requirements of a directors’ report as required by company law.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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 (FRS102).

The trustees

The Trustees, who are also the directors for the purpose of company law, and who served during the period were:

Ms B Bell

Mr M Davis Ms M Metz Mrs S Scott Mr J Sexton Mr K Thomas Mr P Woodcock-Jones

Structure, governance and management

The Charity is a company limited by guarantee incorporated on 8 November 2000 and a registered charity constituted under a trust deed dated 15 September 2001. The company was established under a Memorandum of Association which establishes the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up the members are required to contribute an amount not exceeding £10.

There is a governing body of currently seven directors, which meets at least four times a year and is responsible for making strategic decisions. These people are both trustees of the registered charity and non-executive directors of the company. Authority for the day to day running of the Charity is delegated to the Chief Executive.

The charity was the first charity in the UK to concern itself with the welfare, retraining and rehoming of retired racehorses and is recognised as the leader in the field by its founders, the media and the horse loving public.

The Trustees balance the benefits of maintaining strong partnerships with key suppliers alongside the need to obtain value for money for the charity.

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THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2022

Recruitment

The Board of Trustees appoints new Trustees. Vacancies are advertised in the Charity’s newsletter, social media and on the website. In addition, retiring and existing trustees are asked to nominate candidates with appropriate skills for consideration.

New Trustees meet the existing trustees and are given a tour of the centre. The work of the charity us discussed in detail and the new Trustee is issued with an information pack containing the following:

Objectives and activities

The Charity’s objectives are:

To achieve these objectives the Charity campaigns for better consideration for Thoroughbreds from breeders, owners and the racing, equestrian and veterinary sectors through:

The Charity is recognised as Britain’s foremost Centre for the rehabilitation, retraining and rehoming of retired racehorses by:

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THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2022

The Charity ensures that every opportunity is taken to promote its work by:

As well as the main task of retraining and re-homing retired racehorses, a significant amount of time is spent giving advice and guidance to Thoroughbred owners. The charity is committed to being open and helpful to people in distress with their horses and aims to never be too busy to deal with these often very time consuming and emotionally exhausting phone calls.

Public benefit

We have referred to the guidance contained in the Charity Commission’s general guidance when reviewing our aims and objectives and in planning our future activities.

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THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2022

Key Performance Indicators

Rehabilitation and Retraining of Thoroughbreds

The main key performance indicator for the charity is the number of horses that complete the BTRC rehabilitation and retraining programme and are either successfully rehomed or put to sleep at the Centre on equine welfare grounds.

Risk Management

The 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 largest of these is deemed to be meeting the daily operational costs of caring for the Thoroughbreds in the Charity’s care. Similarly, income and expenditure are constantly monitored and plans are in place to ensure the charity is able to meet the annual running costs through a comprehensive fundraising and diversification strategy. Trustees meet regularly to work on strategic planning and to update the 3-year strategic plan.

Reserves policy

The charity aims to have the equivalent of 12 months’ running costs in free reserves. The trustees define free reserves as total reserves less reserves represented by capital assets owned (net of the associated mortgage/loan finance on these assets). At the end of the year, the Trustees noted that free reserves amounted to a deficit of £52,934 which falls short of the target figure and therefore it is a priority for the trustees to build the free reserves and this has been factored into the financial plan and diversification strategy.

Financial review

At the period end, the total reserves of the Charity were £771,920 of this the unrestricted reserves were £732,441. Capital assets owned had a net book value of £1,127,698 and the associated finance amounted to £342,323.

During 2022, the Charity cared for 48 Thoroughbreds at the Centre and continued to provide support and annual field visits for over one hundred horses on permanent loan around the United Kingdom. BTRC never sells any of their horses but instead offers them on a lifetime loan contract to safeguard their future for life.

The year began with 31 horses at the Centre and a further 13 horses entered between January and July whereupon the Vulnerable Horse Programme (VHP) had to be suspended – see more information in Funding. An additional 4 horses that had previously been on loan were returned.

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THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2022

Of the new horses entering the Centre, 4 horses were straight off track from race owners and trainers who gave the Charity a donation to support the post-racing equestrian training and the re-homing of their horse. The remaining horses were gifted from the preequestrian trained sector and entered the Centre as part of BTRC’s Vulnerable Horse Programme as they were deemed at risk, due to the owners not being able to give them the care that they required. The majority of these VHP horses had noted rideability or behavioural issues disclosed on their application meaning the owners were unable to sell or rehome them through normal rehoming channels. Furthermore, a significant number of these horses had reported clinical or behavioural issues, some resulting in injury to their owners. BTRC provides a safety net for these horses that would otherwise have had no other option other than to be destroyed.

All horses entering BTRC receive a thorough veterinary assessment before embarking on a rehabilitation and retraining programme, as well as undergoing regular monthly monitoring (documented by veterinary reports and videos) to evaluate the progress of the horse and determine suitability for future sustainable equestrian use to be approved to join BTRC’s rehoming programme.

During 2022, 31 horses completed the BTRC programme and 20 were successfully rehomed through the BTRC loan programme and 11 horses were sadly required to be put to sleep at the Centre on welfare grounds.

Funding

2022 has been a difficult year for the Centre as the funding situation became critical in Summer and the BTRC Vulnerable Horse Programme (VHP) had to be suspended for the first time in the Centre's history - more than 31 years. This crisis was in part due to the legacy of Covid-19 and the ongoing rise in inflation of goods and services. However, the fundamental problem, which has been an ongoing issue since 2017, was the lack of direction and strategy from the racing industry regarding how to fund racehorse aftercare in the United Kingdom. Many reviews have taken place, but still a clear, concise, and constructive way forward is not forthcoming. BTRC followers showed their support for the charity’s work with over 48,000 signing a petition calling on the racing to support aftercare funding. BTRC hopes that details and implementation of the new aftercare funding strategy will be released in the near future. Nevertheless, due to the hard work and dedication of BTRC’s team and with the continued help from our loyal supporters, BTRC were pleased to reopen the VHP at the end of 2022 to support horses in need.

BTRC were able to reopen the programme due to the charity completing a 360 review on the current operation and analysing where there were possible areas of opportunities that could lead to new income streams and would ensure the charity could remain sustainable for future years. The new strategy therefore focused on diversifying BTRC’s activities to offer new services to racehorse owners including opening a racehorse spelling station and a Thoroughbred Assessment service for owners who have bought retired racehorses but would like advice on veterinary or retraining issues.

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THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2022

During the review BTRC assessed all charity’s assets, and the main asset is the wonderful property where the Centre is based, Whinney Hill. The sustainability strategy soon highlighted the huge opportunities available to utilise the land, 180 acres inclusive of 20 acres of woodland, all of which is situated the Forest of Bowland, an area of outstanding natural beauty. As the work of BTRC is limited to supporting the welfare of Thoroughbreds and aftercare in order to deliver the charity’s strategy and aims, a new Community Interest Company was established in December 2022 called ‘Whinney Hill Farm C.I.C’ company number: 14483528. Whinney Hill Farm is asset locked to BTRC, therefore any net profit at the end of each financial year will revert to BTRC. This new community interest company will be able to deliver a range of activities focusing on the community, education and positive wellbeing by using the natural environment.

It is hoped that with the development and implementation of this new strategy, fresh income sources will be generated both by the BTRC and Whinney Hill Farm C.I.C which will lead the Charity to become financially sustainable whilst also caring for both the horses and environment that BTRC own.

Property Development Plans

Planning permission is in place for three barns to be converted to accommodation and educational purposes as well as planning permission for a new outdoor arena incorporating a wide range of exercising facilities and for a second stable block of 40 boxes everything is in place.

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THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2022

Events in 2022 supporting the community, education, racing industry and horse welfare.

1. Community - Horses Helping the Community Programme

In 2022 BTRC began the project, Horses Helping the Community with the aim of spreading positivity and happiness in the local community through the use of horses. The BTRC visited several care homes/schools and community groups with suitable retired racehorses that were undergoing their retraining and the BTRC Shetland pony mascot (Washbear). These visits help to improve the mental health and wellbeing of those people in the community who do not have access to spending time with horses. Hartland House Care Home Manager Leanne said “The BTRC visit gave us something special to give to our residents which meant meeting new friends on a glorious day. This is priceless and we want to thank them for giving us this wonderful opportunity of bringing sparkle to the residents at Hartland House in Cumbria.”

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THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2022

2. Supporting Education.

BTRC is committed to education and improving good horsemanship and therefore were delighted in March to host and deliver 'Between the Lines - Lunging & Longlining Clinic & Demo' in collaboration with The British Horse Society for local equestrians and CPD for BHS qualified coaches, the event was a sell out! A lot of BTRC’s work rehabilitating and retraining thoroughbreds involves longlining and some lunging, they are both very effective training methods when used correctly. The event covered techniques and equipment and how to lunge and longline for rehab, maintenance and production. Several BTRC horses in various

stages of training and rehabilitation were used in the demo and they all behaved brilliantly. It was also great to coach a few participants and give advice and help to some of the audience members who brought their own horses along.

Throughout the year the BTRC also visited several Colleges & Universities to deliver presentations on the charity’s work and Thoroughbred aftercare. BTRC also attend many

careers events, providing information for students on careers in both racing and equestrian. Many of the students attending these days had never considered a job in the racing industry therefore it is beneficial to explain the opportunities available.

As part of #NationalCareersWeek in March BTRC visited Underley Garden School in Kirkby Lonsdale, Cumbria to talk to their amazing SEND students about the different careers they could embark on in both the equestrian and racing industries.

The students also got to meet BTRC Washbear and learn all about the work of BTRC. As a result of the visit one of the students applied to carry out a work placement at BTRC.

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THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2022

3. Supporting Horseracing and Equine welfare

Helping the Next Generation of Racehorses at the ARVS Casualty Management Seminar

In 2022 BTRC supported the Association of Racecourse Veterinary Surgeons (ARVS) to deliver two training sessions by supplying retired racehorses to their Casualty Management Seminars at Aintree Racecourse, with over 100 vets attending each event.

The annual seminar is organised by the ARVS and aims to deliver training updates and new practices to all racecourse vets in the UK to ensure the welfare of Thoroughbreds on and off track.

Supporting Racing Together Community Day

In May, BTRC took part in the Racing Together Community Day by volunteering at the local community centre, The Centre @ Halton. The BTRC team offered their time to help paint the original children's play area that was in desperate need of a fresh lick of paint. The equipment looked fantastic once the team had finished and the community were so grateful for the time and effort donated by BTRC.

Annual Raceday at Cartmel Racecourse

The last weekend in August saw BTRC as the chosen charity at Cartmel Racecourse for the Cartmel Cup Day.

The sun was shining and BTRC Washbear enjoyed meeting and greeting so many racegoers whilst we educated them about Thoroughbred Aftercare. It was fantastic to see the course so busy, it was near to record attendance, a great atmosphere and many people generously donated some of their winnings. The team met so many new and old supporters and received over £1,500 in donations!

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THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2022

National Racehorse week

In September, BTRC supported the racing industry’s campaign National Racehorse Week by opening the Centre to the community to help support and educate the public on the care that racehorses receive throughout their lives and the safety net BTRC provides.

Finally, throughout 2022 BTRC welcomed many visitors and groups to the Centre to learn about our work with vulnerable Thoroughbreds. As well as holding several fundraising events such as coffee mornings, tack shop sales and clear-round jumping, all of which were very well supported by the local community.

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THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED TRUSTEES. ANNUAL REPORT (INCLUDINfj DIRECTORS, REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022 Statement of Trustees. Responsibilities iompany law re4uires the trL4Stees to prepare financial statements for each financial year. (Ander that law the trijstees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Acco(Jhting Standards and applicable law). Under company law the trustees mL45t not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable compap)y and the group arld the income and eKpenaiture of the charltable company for chat period. In preparing these financial statements, the tr(AStees are requi red to.. select suitable accounting policies dnd then apply them consistently observe tlie methods aiid pi"iiiGiple5 iri LFie CliariLies SLaLerri¥riL vf R¥iumm¥nded Practice (SORP) make judgements and accounting estimates tht2t dre ret2sohable and prudent state whether applicable UK Accounting Standards have been followed, SL4bject to any material departL4res disclosed ana explained in the fi nL2ncial statements prepare the financial statements on the goi ng concern basis unless it is inappropriate to presume that the group will continue in operation The trustees are responsible for keeping adequate accounting records that are sufficier)t to show and explain the charitable company's and group's transactions and disclose with reasonable accuracy dt time the financial position of the groL4P 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 group and hence for taking reasonable steps for the prevention and aetection of fraud And other trregi4ldritiÉ£. Independent examiner MHA Moore and Smalley have indicated their willingness to accept re-appointment for the ensLiing year. The trustees, report was approved by the Board of Trustees. Mr J Sexton BTRC Chairman Dated.. -12-

THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

FOR THE YEAR ENDED 31 DECEMBER 2022

I report to the charity trustees on my examination of the accounts of the company for the year ended 31 December 2022, which are set out on pages 14 to 33.

Responsibilities and basis of report

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

Having satisfied myself that the accounts of the company 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 your company’s accounts carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies

I confirm that I am qualified to undertake the examination because I am a member of the ICAEW, which is one of the listed bodies.

I have completed my examination. I confirm that no material 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 accounts to be reached.

Jenny McCabe FCA Independent Examiner Priory Close St Mary’s Gate Lancaster Lancashire LA1 1XB

07/06/2023

……………………….

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THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 DECEMBER 2022

Income from:
Donations, legacies and grants
3
Investments
4
Charitable activities
5
Total
Expenditure on:
Raising funds
6
Charitable activities
7
Total
Net (expenditure)/income before
transfers
Transfer between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Restricted
Total
Total
funds
funds
2022
2021
£
£
£
£
393,862
577
394,439
319,901
112
-
112
88
52,913
-
52,913
47,211
446,887
577
447,464
367,200
6,903
-
6,903
6,397
452,324
3,826
456,150
512,724
459,227
3,826
463,053
519,121
(12,340)
(3,249)
(15,589)
(151,921)
100
(100)
-
-
(12,240)
(3,349)
(15,589)
(151,921)
744,681
42,828
787,509
939,430
732,441
39,479
771,920
787,509

The Statement of Financial Activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared.

All of the above amounts relate to continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

The notes on pages 18 to 33 form part of these financial statements.

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THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

BALANCE SHEET

AS AT 31 DECEMBER 2022

Fixed assets £
£
£
£
2022
2021		 £
£
£
£
2022
2021
Tangible assets
12		 1,127,698
1,129,212
Current assets
Stock
13
Debtors
14
Cash at bank and in hand
Creditors:amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Creditors:amounts falling due after
more than one year
16
Net assets
Funds:
Restricted funds
19
Unrestricted funds
20
Total funds		 1,500
3,989
55,367		 1,500
7,520
68,819
77,839

(180,080)
(31,897)
(102,241)
1,095,801
1,026,971
(323,881)
(239,462)
771,920
787,509
39,479
42,828
732,441
744,681
771,920
787,509
60,856
(92,753)

For the financial year ended 31 December 2022, the company was entitled to exemption from audit under section 477 of the Companies Act 2006.

The Trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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.

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THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED BALANCE SHEET ICONTINUEDI AS AT 31 DECEMBER 2022 These financial slalemenls have been prepared in accordan￿ with the provisions applicable to companies subject to the small companigs, rp.aim@. These linancial slalemenls were approved by the trustees and aulhorised for issue on and are signed on their beha5f by.. 1 June 2023 exton Chairman Company Registration No. 04104341 The notes on pages 18 to 33 form part of these financial slalemenls. -16-

THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

STATEMENT OF CASHFLOWS

FOR THE YEAR ENDED 31 DECEMBER 2022

2022 2021
£ £
Cash generated in operating activities (8,834) (1,938)
Cashflows from investing activities
Investment income 112 88
Purchase of tangible fixed assets (4,730) (13,326)
Cash provided by/(used in) investing activities (13,452) (15,176)
Increase/(Decrease) in cash and cash equivalents in the
year (13,452) (15,176)
Cash and cash equivalents brought forward 68,819 83,995
Cash and cash equivalents carried forward 55,367 68,819
Reconciliation of net movement in funds to net cashflow from operating activities
Net movement in funds (15,589) (151,921)
Investment income received (112) (88)
Depreciation and amortisation 6,244 6,945
(Increase)/Decrease in debtors 3,531 10,584
Increase/(Decrease) in creditors (2,908) 132,542
Net cash generated in operating activities (8,834) (1,938)
Components of cash and cash equivalents
Cash at bank and in hand 55,367 68,819
55,367 68,819

The notes on pages 18 to 33 form part of these financial statements.

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THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

Legal form

The British Thoroughbred Retraining Centre Limited is a registered charity and a limited company, limited by guarantee, as defined by the Companies Act 2006, incorporated in England and Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.

The registered office of the charity, the nature of its operations and its principal activities are all detailed in the charity administrative details and the trustees report of these financial statements.

Basis of accounting

The charity constitutes a public benefit entity as defined by FRS102. 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 (FRS102) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011 and the Companies Act 2006.

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

The financial statements have been prepared on a going concern basis under the historical cost convention. The particular accounting policies adopted by the trustees are described below. These policies have been consistently applied to all years presented unless otherwise stated.

Preparation of the accounts on a going concern basis

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operating existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Income

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

No income is shown net of expenditure.

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THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies (continued)

Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

It is the opinion of the Trustees that all costs are attributable to the care of Thoroughbreds, and all direct and support costs are therefore allocated to this activity.

Fixed assets

All fixed assets are initially recorded at cost, and subsequently measured at cost net of depreciation and any impairment losses.

Depreciation is provided at rates calculated to write off the cost of fixed assets, less their residual value, over their expected useful lives on the following bases:

Land and building - Not depreciated/4% straight line on buildings
Property improvements - Not depreciated/4% straight line on buildings
Plant and equipment - 20% reducing balance
Motor vehicles - 25% reducing balance

At each reporting 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).

Stocks

Stocks are stated at the lower of cost and net realisable value.

Cash and cash equivalents

Cash balances represent cash in hand and deposits held at banks and building societies.

Debtors and creditors

Debtors and creditors with no stated interest rate and receivable and payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Fund accounting

Unrestricted funds

General funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

Restricted funds

Restricted funds arise where there is a donor-imposed restriction on the use of the funds, or the funds have arisen in response to an appeal for a specified purpose.

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THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies (continued)

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 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 offset 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.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the statement of financial activity.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the statement of financial activity.

De-recognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities 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 receipts discounted at a market rate of interest.

-20-

THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies (continued)

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.

De-recognition of financial liabilities

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

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight-line basis over the period of the lease.

Pensions

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity. The annual contributions payable are charged to the statement of financial activities.

Taxation

HM Revenue & Customs considers The British Thoroughbred Retaining Centre to be a charity and therefore they are entitled to exemption from tax afforded by Sections 478-489 of the Corporation Taxes Act 2010 to the extent that income is applied exclusively for charitable purposes.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

2 Judgements and key sources of estimation uncertainty

In the application of the charity’s accounting policies, the 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.

Key assumptions, judgements and estimates

There have been no key assumptions concerning future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

-21-

THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

3 Income from donations, legacies and grants

Donations, legacies and grants Unrestricted
Restricted
Total
Total
funds
funds
2022
2021
£
£
£
£
Donations
Gift Aid
Legacies receivable		 177,781
577
178,358
143,939
15,316
-
15,316
18,761
150,765
-
150,765
25,200
Grants receivable for core activities
343,862
577
344,439
187,900
Retraining of Racehorses (ROR)
Covid-19 Emergency Grant (RF)
Coronavirus Job Retention Scheme (CJRS)		 50,000
-
50,000
14,745
-
-
-
105,000
-
-
-
12,256
Total 2021
393,862
577
394,439
319,901
303,607
16,294
319,901

The Retraining of Racehorses (RoR) grant of £50,000 was the conversion of a previous loan to the Charity to a non-refundable grant. In the prior year, the grant of £14,745 was for the erection of temporary stables.

4 Investment income

Investment income
Bank interest receivable
Total 2021		 Unrestricted
Restricted
Total
Total
funds
funds
2022
2021
£
£
£
£
112
-
112
88
112
-
112
88
88
-
88

-22-

THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

5 Income from charitable activities

Income from charitable activities
Fundraising
Sale of merchandise
Rent from land
Compensation and easements
Single farm payment
Other income
Total 2021		 Unrestricted
Restricted
Total
Total
funds
funds
2022
2021
£
£
£
£
20,508
-
20,508
20,028
9,610
-
9,610
2,125
6,300
-
6,300
6,300
513
-
513
538
14,691
-
14,691
15,939
1,291
-
1,291
2,281
52,913
-
52,913
47,211
47,211
-
47,211

6 Expenditure on raising funds

Unrestricted
Restricted
Total
Total
funds
funds
2022
2021
£
£
£
£
Fundraising and marketing costs 6,903
-
6,903
6,397
Total 2021
6,903
-
6,903
6,397
6,397
-
6,397

-23-

THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

7 Expenditure on Charitable Activities

----- Start of picture text -----
Total Total
2022 2021
£ £
Care of Thoroughbreds 88,569 161,002
Depreciation 6,244 6,945
Staff costs 186,637 179,118
281,450 347,065
Support costs ( note 8 ) 170,762 163,159
Governance costs ( note 8 ) 3,938 2,500
456,150 512,724
Analysis by fund
Unrestricted funds 452,324 480,515
Restricted funds 3,826 32,209
456,150 512,724
----- End of picture text -----

‘Care of Thoroughbreds’ relates to all direct costs for the care and management of thoroughbreds including but not limited to; veterinary, farriery, feeding and bedding etc. The decrease in 2022 is due to a reduction in horse numbers, as explained in the Trustees Annual Report.

-24-

THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

8 Support costs

----- Start of picture text -----
Support Governance Total Total
costs costs 2022 2021
£ £ £ £
Staff costs 101,974 - 101,974 102,058
Premises 12,909 - 12,909 11,224
Legal and professional 1,859 - 1,859 1,578
Finance costs 10,557 - 10,557 5,424
Office costs 9,092 - 9,092 8,427
Repairs 3,072 - 3,072 8,092
Insurance 13,021 - 13,021 10,563
Motor 15,172 - 15,172 13,028
Licences 2,433 - 2,433 2,163
Subscriptions 673 - 673 602
Accountancy - 3,938 3,938 2,500
170,762 3,938 174,700 165,659
----- End of picture text -----

Staff costs are gross of £nil (2021: £12,256) CJRS income used to offset these costs.

9 Net income/expenditure

Net income/expenditure
Net income is stated after charging:
Staff pension contributions
Independent Examiner's fees
Depreciation of tangible assets
- owned by the charity		 2022
2021
£
£
4,225
4,501
3,938
2,500
6,244
6,945

10 Trustee’s remuneration

None of the Trustees (or any persons connected to them) received any remuneration or expenses from the charity during the year.

-25-

THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

11 Staff costs and emoluments

Total staff costs were as follows:
Wages and salaries
Social security costs
Pension costs
Administrative staff
Stable staff
The number of employees whose annual remuneration was £60,000 or
more were:
£60,000 - £69,999		 2022
2021
£
£
271,770
264,633
12,616
12,042
4,225
4,501
288,611
281,176
2022
2021
No
No
2
2
17
16
19
18
2022
2021
No
No
1
1

-26-

THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

12 Tangible fixed assets

Cost
At 1 January 2022
Additions
Disposals
At 31 December 2022
At 1 January 2022
Charge for the year
Eliminated on disposal
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021		 Freehold
Plant &
Property equipment
Totals
£
£
£
1,458,212
94,810
1,553,022
-
4,730
4,730
-
-
-
1,458,212
99,540
1,557,752
346,731
77,079
423,810
1,018
5,226
6,244
-
-
-
347,749
82,305
430,054
1,110,463
17,235
1,127,698
1,111,481
17,731
1,129,212

13 Stock

Finished goods 2022
2021
£
£
1,500
1,500
1,500
1,500

-27-

THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

14 Debtors

Debtors
Trade debtors
VAT
Gift aid recoverable
Other debtors		 2022
2021
£
£
47
808
-
2,726
3,940
3,695
2
291
3,989
7,520

15 Creditors: amounts falling due within one year

Note
Bank loans
17
Other taxation and social security
Trade creditors
Other creditors
RoR loan
Racing Foundation loan
Accruals
Other loan		 2022
2021
£
£
18,442
18,442
2,480
3,985
11,728
3,135
484
976
-
50,000
-
100,000
27,019
3,542
32,600
-
92,753
180,080

16 Creditors: amounts falling due after more than one year

Note
Bank loans
17
Racing Foundation loan		 2022
2021
£
£
223,881
239,462
100,000
-
323,881
239,462

-28-

THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

17 Bank loans

Bank loans
Bank loans
Payable within one year
Payable after more than one year
Amounts included above which fall due after more than five years:
Payable by instalments		 2022
2021
£
£
242,323
257,904
18,442
18,442
223,881
239,462
144,360
160,909

The loans are secured by first legal charge over Whinney Hill Farm, Halton, Lancaster. Both bank loans are being repaid by monthly instalments and are due to mature on 1 April 2035. One loan is a variable rate loan with interest being charged at 1.5% over base and the second loan is a fixed rate loan with interest being charged at 1.45% over base rate.

18 Retirement benefit schemes

The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £4,225 (2021: £4,501).

Pension commitments outstanding at the year end were £423 (2021: £914).

-29-

THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

19 Restricted funds: current year

At 1
At 31
January
December
2022
Income Expenditure Transfers
2022
£
£
£
£
£
Horsewalker
Racing Foundation Capital Grant
Petplan Grant for Horse Trailer
Thompson family trust
Hedging grant
Over reach boots appeal
D Canning memorial fund
Iain Milne
Jockey Club : Christmas card
sponsorship		 2,030
-
(406)
-
1,624
10,107
-
(2,527)
-
7,580
2,616
-
(526)
-
2,090
24,541
-
-
-
24,541
1,124
-
(193)
-
931
994
-
-
-
994
174
-
(174)
-
-
1,142
577
-
-
1,719
100
-
-
(100)
-
Restricted income funds 42,828
577
(3,826)
(100)
39,479

Restricted funds: prior year

At 1
At 31
January
December
2021
Income Expenditure Transfers
2021
£
£
£
£
£
Horsewalker
Project Grant
Ride for Retraining
Racing Foundation Capital Grant
EPT Grant for Lunge Pen
Petplan Grant for Horse Trailer
Thompson family trust
Hedging grant
Retraining of Racehorses
Over reach boots appeal
D Canning memorial fund
Iain Milne
Jockey Club : Christmas card
sponsorship		 2,538
-
-
(508)
2,030
-
-
-
-
-
7,870
-
-
(7,870)
-
13,476
-
-
(3,369)
10,107
-
-
-
-
-
3,318
-
-
(702)
2,616
41,382
-
(16,841)
-
24,541
1,124
-
-
-
1,124
1,484
-
(490)
-
994
-
-
14,745
(14,745)
-
-
-
307
(133)
-
174
-
1,142
-
-
1,142
-
100
-
-
100
Restricted income funds 71,192
16,294
(32,209)
(12,449)
42,828

-30-

THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

19 Restricted funds: current year (continued)

The Horse walker fund will decrease in line with the future depreciation of a horse walker included within plant and machinery which was originally purchased with restricted funds.

The capital grant from The Racing Foundation was for the purchase of a new horse lorry included in plant and equipment. The fund will decrease in line with depreciation charged on the asset.

The Pet Plan grant was in respect of a horsebox trailer. This fund will decrease in line with the depreciation charged on the asset.

£50,000 was received in the year 2020 from the Thompson Family Charitable Trust to be used towards the masterplan development.

The Hedging grant was for the purchase of hedging, some of which has been purchased during the year.

£2,000 was received in 2020 from The Jockey Club in respect of sponsoring the Charity’s Christmas Cards. It was agreed with The Jockey Club that outstanding monies can be utilised against future years Christmas cards.

The over-reach boots appeal has been spent on overreach boots.

The D Canning memorial fund is to be spent on a memorial at the retraining centre.

The Ian Milne fund was an unrestricted donation that has been released to general funds.

20 Unrestricted funds: current year

Unrestricted funds: current year
At 1
At 31
January
December
2022
Income Expenditure Transfers
2022
£
£
£
£
£
General Funds 744,681
446,887
(459,227)
100
732,441
Unrestricted funds 744,681
446,887
(459,227)
100
732,441

-31-

THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

20 Unrestricted funds: prior year (continued)

At 1
At 31
January
December
2021
Income Expenditure Transfers
2021
£
£
£
£
£
General Funds 868,238
350,906
(486,912)
12,449
744,681
Unrestricted funds 868,238
350,906
(486,912)
12,449
744,681

21 Analysis of net assets between funds: current year

Restricted Funds
General Funds
Total funds		 Tangible Net current
Long term
fixed assets
assets
liabilities
Total
£
£
£
£
11,802
27,677
-
39,479
1,115,896
(59,574)
(323,881)
732,441
1,127,698
(31,897)
(323,881)
771,920

Analysis of net assets between funds: prior year

Restricted Income Funds
General Funds
Total funds		 Tangible
Net current
Long term
fixed assets
assets
liabilities
Total
£
£
£
£
15,261
27,567
-
42,828
1,113,951
(129,808)
(239,462)
744,681
1,129,212
(102,241)
(239,462)
787,509

-32-

THE BRITISH THOROUGHBRED RETRAINING CENTRE LIMITED

NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

22 Operating leases - lessee

At the reporting date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases which fall due as follows;

non-cancellable operating leases which fall due as follows;
Amounts payable:
Within 1 year
Between 1 and 5 years		 2022
2021
£
£
4,941
4,372
8,226
-
13,167
4,372

23 Related party transactions

Remuneration of Key management personnel

The remuneration of key management personnel is as follows:

2022
2021
£
£
Aggregate compensation 98,595
96,948
Loan from Trustee
98,595
96,948
32,600
-

No further disclosable related party transactions occurred during the current or prior period.

24 Company limited by guarantee

The company is limited by guarantee. In the event of the company being wound up each member will be required to contribute an amount not exceeding £10.

-33-