OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-04-30-accounts

RETAIL TRUST

(A company limited by guarantee)

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

Company Number: 04254201 Charity Number No. (England and Wales): 1090136 Registered Charity No. (Scotland): SC039684 Registered Social Landlord No. L4362

TRUSTEE REPORT AND FINANCIAL STATEMENTS For the year ended 30 April 2021

Retail Trust

CONTENTS Page
Legal and Administrative Details 2
Trustees’ Report 3
Independent Auditors’ Report 19
Consolidated Statement of Comprehensive Income 22
Consolidated Balance Sheet 23
Parent Balance Sheet 24
Consolidated Statement of Changes in Equity 25
Consolidated Statement of Cash Flows 26
Accounting Policies 27
Notes to the Financial Statements 32

1

Retail Trust TRUSTEES’ REPORT

LEGAL AND ADMINISTRATIVE DETAILS For the year ended 30 April 2021

INCORPORATED AND REGULATORY BODIES Company limited by guarantee No. 4254201 Registered Charity in England and Wales No. 1090136 Registered Charity in Scotland No. SC039684 RSL No. L4362

REGISTERED OFFICE

Marshall Estate Hammers Lane Mill Hill London NW7 4DQ

COMPANY SECRETARY: David Kaye

TELEPHONE NUMBER: 020 8201 0110

CONFIDENTIAL HELPLINE: 0808 801 0808

WEBSITE: Corporate: www.retailtrust.org.uk

BOARD OF TRUSTEES: Richard Armstrong (Appointed 08/12/2021) Erin Brookes (Appointed 03/02/2021) Philip Bell-Brown (Appointment date 19/08/2020) Amanda Cox Nigel Duxbury (Resigned 19/08/2020) Lesley Exley Helena Feltham (Resigned 08/12/2021) Sally Hopson (Resigned 07/04/2021) Simon Ledsham (Resigned 08/12/2021) Michael Logue Karen McCormick David McCorquodale Alistair McGeorge - Chairman Gita North Lindsay Page (Resigned 08/09/2020) Christopher Powell (Appointed 16/12/2020) Timothy Seal Brian Small – Honorary Treasurer

ACTUARY Barnett Waddingham LLP Decimal Place Chiltern Avenue Amersham HP6 5FG

BANKERS National Westminster Bank Plc 317 Hale Lane Edgware Middlesex HA8 7AX

INSURANCE BROKER Griffiths & Armour Drury House 19 Water Street Liverpool L2 0RL

Employees & beneficiaries: www.myrtwellbeing.org.uk

EXECUTIVE TEAM Christopher Brook-Carter Chief Executive Officer Neil Duffy Commercial Services Director Kathleen MacIntyre Director of Supported Living Services Olaitan Ogunmoyela Finance Director Amy Prendergast Transformation and Operations Director

AUDITOR - External Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

AUDITOR - Internal Mazars LLP Tower Bridge House St Katherine’s Way London E1W 1DD

INVESTMENT MANAGER Smith & Williamson Investment Services Limited 25 Moorgate London EC2R 6AY

SOLICITOR Harper Macleod LLP The Ca’d’oro 45 Gordan Street Glasgow G1 3PE

2

Retail Trust TRUSTEES’ REPORT

WHY WE’RE HERE

OUR CAUSE

Creating hope, health and happiness for everyone in retail.

OUR BELIEFS

Our beliefs reflect those of the original founders in 1832 and are as relevant now as they were back then. They guide the way we behave with one another, our partners and colleagues in retail.

We make a difference by empowering people to lead happier lives. And we follow through on our word, always.

OUR STRATEGIC FOCUS 2020/21

Fundraising

Cause-led partnership model in fundraising to create sustainable, repeatable long-term engagement.

Learning & Development

Strategic shift to Social Mobility, living our purpose and driving Trusts & Institutions opportunity whilst uniting the industry behind our cause.

Property

Investment in estates and offices to be proud of that reflect the pioneering spirit of the trust and fuel its ongoing purpose.

Wellbeing

Turbo charge the growth in wellbeing products and services, driving up the value to both colleague and client through utilisation and market share.

HOW

By focussing on four key elements…

Wellbeing Focus

Transform wellness service into the clear market leader in retail, building engagement at all levels of retail organisations through delivery of tailored content for colleague needs.

3

Retail Trust TRUSTEES’ REPORT

Organisation and Culture

As we focus on a common cause, we will build a more collaborative and collegiate culture with clear values that will positively impact organisational structure and working environments to provide the stimulus for creativity, innovation and support and career paths.

Skills & Capability

Experts in the critical disciplines that underpin our strategy with access to the tools, resources and training employees need in order to thrive.

Property Focus

Build more agile approach to explore other property investments and choices, continuing to invest in our property portfolio and make it a beacon for supported living.

4

Retail Trust TRUSTEES’ REPORT (continued)

CHAIRMAN’S MESSAGE

Dear Supporters, Sponsors, Patrons, Volunteers and Colleagues

At the start of May 2020, no one could have predicted that we would be only in the first of three lockdowns.

The challenges of the past year have led to profound changes in our society and asked questions of the way we work and live. For the retail sector, employing over three million colleagues, businesses have had to face accelerated structural change, whilst keeping employees and customers safe from dangers of COVID-19.

But these times have also shone a spotlight on the role business and in particular retail can play as a force for good, as grocers kept the nation fed, essential retailers ensured we had access to the goods and services we need, and organisations of all shapes and sizes reframed the responsibility industry has to improving public health.

In this new environment, with unprecedented pressure on employers to build cultures and structures that promote and support mental, physical, financial and vocational health, the Retail Trust has never been more relevant in its 190 years.

In the inaugural meeting of the Trust in January 1832, the vision of our founder Thomas Helps was to create an organisation that championed the role the sector’s leaders must play in creating health and happiness for those working in the trade; to build a far-reaching coalition of businesses to maximise the impact of that vision and to empower individuals to make change for themselves and their people.

Across the year, we have continued to work hard to bring Helps’ vision to life.

We have enjoyed a unique opportunity to influence the approach of the sector to the health and wellbeing of retail colleagues, growing our services and the number of organisations turning to us for help. And, by expanding our enhanced training programmes, we’ve helped upskill hundreds of leaders across the retail sector in mental health leadership.

As employers and employees continued to adjust to the emergent situation during the year, we relaunched the brand, highlighting the purpose of the organisation since inception to promote hope, health and happiness for all involved.

Despite the challenges COVID-19 has placed on running a programme of live events, we launched and hosted our first digital conference to highlight the role leadership plays in enhancing the wellbeing of an industry and relaunched our ambassador programme in order to build on our ever-expanding network of influence in UK retail.

We delivered £1.4m of support to our beneficiaries in the year, a 40% increase on the previous year, as the impact of COVID-19 and the results of our renewed approach to market, ensured that more individuals than ever before sought our help in their time of need.

Our supported living housing provision recorded one death related to COVID-19 and we maintained high levels of confidence in our housing provision thanks to our investment in smart technology at the end of April 2020. Income grew by 7% despite our highest void rate of 6.2% against an average of 1.75% over the prior four years.

Charitable income fell by 48% year on year with the largest decline being in gifts in kind which fell by 70% during the year. Gifts in kind aside, there was a 20% increase in income from fundraising activities where we saw the impact of better engagement with our corporate partners drum up support for our activities to promote the wellbeing of our colleagues in the sector. We remain grateful to all who have supported so generously even in these most unexpected times.

Our cash position remains robust with immediate cash of £4.4m allowing us to ringfence funds towards our asset optimisation projects. Our investments recovered to £2.1m from £1.8m following the volatile stock markets this time last year and our total reserves have grown to £34.4m, an increase as a result of the FRS102 valuation of our pension fund. The robustness of our balance sheet creates the perfect foundation for us to focus on our wellbeing strategy as we seek to ensure the Trust sits at the heart of how retail looks after its people.

5

Retail Trust TRUSTEES’ REPORT (continued)

While we will still have significant capital commitments with the refurbishment of Marshall Hall in London into 10 smart-enabled flats, we are confident that we can continue to deliver an exceptional service to the sector given that all the success of the past year was achieved alongside a passing of the baton from Richard Boland, who retired at the end of prior financial year, to new chief executive Chris Brook-Carter, who joined us from Retail Week on 1 May 2020.

This is a new era for the Trust. But we must also see it as a new era for retail. Together we have a once-in-ageneration opportunity to create the kind of industry that places the hope, health and happiness of its people at the centre of how we operate and leave a legacy for the next generation of retailers that ensures our sector and its people thrive.

With personal best wishes to ALL

Alistair McGeorge Chair of Trustees

6

Retail Trust TRUSTEES’ REPORT (continued)

The Trustees present the report together with the audited financial statements of the TRUST for the year ended 30 April 2021. The Trustees are directors under company law and this report represents the directors’ Annual Report and the Strategic Report.

OBJECTIVES AND ACTIVITIES

1. KEY OBJECTIVES

The Charity shall operate for the public benefit in pursuance of the following charitable objects to support individuals who are or have been in employment within the retail and associated sectors in need because of youth, age, ill-health, financial hardship or another disadvantage, in particular by:

2. KEY ACTIVITIES

The TRUST organises its operations around four key activities:

brand of retailRIGHT for those seeking to enter or progress within the sector;

All of these operations have as their primary objectives the Wellbeing of all beneficiary groups involved.

STRATEGIC OPERATIONS REPORT

1. OVERVIEW

The TRUST is the oldest trade charity in the UK covering over 3.5 million people working in retail and supporting industries through to the end of the reporting period. Our scope is the wellbeing of everyone involved in all forms of retail and retail supporting services, from factory to warehouse, from shop floor to online supply chain and all functions supporting that journey particularly in the wake of the coronavirus pandemic.

Supported Living

The TRUST owns and operates supported living estates for retirees in London (Mill Hill), Derby (Leylands), Glasgow (Crookfur), Liverpool and Salford – in the past, known collectively as cottageHOMES. Now more clearly referred to as Supported Living. The provision of retirement estates has been a key part of our work since 1897. It includes both the provision of supported living and extra care services.

Following the addition of 33 new units in February 2020 to the Hugh Fraser estate in Glasgow as part of our asset optimisation plan, Phase 2 of the redevelopment completed in September 2020 and saw 13 further digitally enabled units become available.

We currently support circa 450 residents in highly regarded accommodation with superior support services.

During the past year, we introduced safety control measures across all Estates to protect residents and staff and reduce the spread of the COVID-19 virus. A redeployment programme was initiated across non-Housing colleagues with reduced workload to support the activities of the Housing Management team, developing foodbanks at each estate and supporting the distribution of these provisions to those residents most in need.

7

Retail Trust TRUSTEES’ REPORT (continued)

The Trust’s employees from various departments also volunteered to complete shopping trips for residents to ensure they were able to access essential supplies, including medication and supported the delivery of meals from our restaurants to our residents each lunchtime during the entire lockdown period.

Due to the measures we put in place, we have only lost one resident directly due to COVID-19 across all of our Estates.

The design and layout of our new Smart Homes at Hugh Fraser Retirement Estate in Glasgow has improved the physical wellness of residents, made particularly visible due to the pandemic. The openplan design allows for ease of access and residents have the ability to voice-activate heating and lighting which gives them greater control over their lives.

In a survey, 100% of residents have stated that they can manage things better and have more choice over products and services to enable them to live independently. 100% of residents also stated that they have experienced fewer accidents and hospital admissions and have required less medical intervention since they moved to the Retail Trust estate.

Maximising the potential of our physical assets is key to our sustainability. We have further opportunities and will shortly commence the development of 10 new digitally-enabled units at Marshall Estate, London, partly funded by a bank loan. This is a change to our plans to commence the development of 12 new digitally-enabled units at Leyland’s Estate, Derby fully funded by a Bank of Scotland loan. The latter is now scheduled to commence summer 2022.

In Supported Living we are at the forefront of developing “Smart Homes and Villages” for our residents and the provision of smart devices across our estates has proven to be an especially impactful investment as the pandemic broke out, enabling our residents to communicate via video calls with close friends and family.

The digital technology we have introduced has improved the emotional wellness of residents as they feel safe and secure within their properties.

In a survey, 85% of residents felt that the new technology helped them to have greater social interaction with 84% commenting they felt less lonely. 82% of residents stated they would not have been able to previously afford the smart home technology they now have in their homes. 100% of residents have stated their new flat is more economical to run than their previous home.

We have experienced high void rates throughout the year directly impacted by the COVID pandemic. We have sadly lost one resident directly due to COVID and have also had some residents admitted to hospital who have not returned to the Estates, or have required to transfer to nursing care homes.

Voids have been slow to fill as many older people spent much of the year shielding, and Social Work Services have not been completing assessments in the community or making referrals. Management have looked at alternative avenues to access vulnerable older people in the community and support them to move on to Estates. We are now seeing movement on voids as many older people have had vaccinations and are more comfortable to move to a new home. Many have felt isolated in the community, particularly during the pandemic.

Wellbeing Services

During the last year, the wellbeing service returned the telephone counselling team to in-house delivery after taking the decision not to renew the contract for outsourcing this element of support. The team became fully operational in February 2021.

To ensure the wellbeing service maintains the highest levels of service, changes to operational protocols were developed to enhance internal processes to improve our approaches to risk management for clients contacting the helpline. These developments have been supported with system changes to allow for greater visibility for senior management of client risk and associated safeguarding issues, ensuring the service responds appropriately and effectively and minimises risk to the clients we support given the increased call volumes experienced throughout the pandemic.

Since transfer we have seen significant improvements in the service levels and availability of counselling resource which has seen the response for 1[st] time contact with counselling increase from around 35% to over 85% since the transfer of service has been completed.

Mental health and emotional support continue to be the primary reason for clients reaching out for support. We have seen increases in clients accessing support correlated with the lifting of lockdown restrictions and clients returning to the workplace. The impact of furlough and changes to workplace arrangements have also contributed significantly to contact from colleagues accessing support.

8

Retail Trust TRUSTEES’ REPORT (continued)

As part of the wider approach to support financial wellbeing, during the last 12 months, a suite of new financial wellbeing content has been created and deployed on the wellbeing portal. Portal developments in the past 12 months have included the introduction of the dedicated online therapy section, this has improved visibility of the content enabling clients needing to access support to do so more easily.

To help in the development of new content and areas of support during the year, content has been developed in conjunction with a range of carefully selected partner organisations including The Domestic Abuse Alliance, Drinkaware, Stepchange and Relate.

Learning & Development

During the year, the large majority of our employability and Traineeship programmes were either postponed or cancelled as a result of the pandemic. However, we still supported 31 young people with 60% of them moving into jobs across the shop floor and supply chain.

Our focus over the past year has been to continue to support those retail colleagues who unfortunately were made redundant due to the global pandemic. We received £22,000 from the SCVO fund that helped us to deliver a re-skilling workshop for 17 people being made redundant from retail in Scotland. The webinar provided an initial introduction to the new world of work including digital skills for the modern workplace, CV & interview techniques and work readiness post Covid-19.

Further, the fundraising team supported the L&D programme by successfully accessing £100k funding from Barclays, £20k of which was spent on digital poverty grants for 100 disadvantaged young people from some of the country’s poorest communities to be able to access online education, training and employment opportunities they otherwise would have missed because they don’t have the tools or technology to get online easily.

Fundraising has also supported the L&D team to develop the new social mobility programme, targeting young people who face significant barriers to employment. Together, they are seeking funding to kick-start a pilot project working with 100 young people initially with a view to rolling out nationally once funding is established.

In a year of continued uncertainty, during the pandemic most apprenticeship training as well as

enrolment onto apprenticeship programmes has continued uninterrupted online. 71 employees continued to study across our ‘gRADuate’ Retail Apprenticeship Degree programmes with over £400,000 levy monies accessed and reinvested back into the industry.

A further 10 mentees were supported through our Elevator Mentoring programme this year. In total, 60 hours’ worth of mentoring and £120,000 were delivered to support aspiring talent in retail to progress with their careers. £27.5k was also invested to support 5 students on business and fashion related degree courses in the form of scholarships and £20k was awarded to 22 students facing hardship through the loss of part-time jobs and income.

Erin, a final year International Fashion Branding student, shared an insight into her experience, ‘Unfortunately due to lockdown my employment was terminated, and I had to return home to my family over 100 miles away, who were not able to help me financially. I feel very fortunate to have received this funding as it has allowed me to return to Glasgow to continue my course. I cannot express how much this means to me and feel sure that without this support I wouldn’t have been able to continue with my studies. Thank you Retail Trust’

While the Trust was able to continue all this great work, unfortunately, less than a year into its operation and as part of our organisational strategic review, we made the decision to cease all future End Point Assessment activity. Given the impact of the pandemic, our ROI had more than halved making it no longer a cost-effective investment for the charity as well as no longer aligning to our strategic purpose.

Business Transformation

Our commitment to digital transformation has allowed the Trust to begin transforming its systems infrastructure, particularly benefitting from spending on additional CRM development to ensure that each division of the organisation is on the same Microsoft Dynamics platform and to set the foundations for integration across systems to improve efficiency and consistency of information from a single data source.

The amalgamation of the website and the wellbeing portal have also created a seamless landing page for both client and colleague customer groups to recognise, improving the way the organisation is presented to its stakeholders.

9

Retail Trust TRUSTEES’ REPORT (continued)

With improving efficiency through automation of many previously manually compiled reports, we are moving quickly towards a single source of truth and the launch of cloud servers in 2021/22 will allow the integration work for efficient reporting and real time data uploads regardless of location to become a reality.

Continuing to transition away from merely reporting towards providing timely, actionable insight that provides strategic value will be critical to the achievement of our wellbeing strategy and how quickly we can really drive change and support our customers through what continues to be a period of significant change in Retail.

We are aware that many of the insights we gain come from the personal data that we steward on behalf of its owners: our helpline callers, residents, donors, and other contacts. A hallmark of responsible business practice in the digital age is managing these data resources in an ethical manner and in line with GDPR guidelines as they evolve for the UK since Brexit.

Our aim as a team continues to be supporting and guiding the transformation of all the Trust’s service delivery to meet and ultimately anticipate the needs and expectations of our stakeholders and be a true Trailblazer in the Wellbeing of ALL involved in Retail.

2. FINANCIAL REVIEW

With the pandemic putting the UK into lockdown at the end of the prior year, we embarked on a period of aggressive cost management at the Trust to ensure that we could insulate our financial assistance programme from the potential impact of reduced income from fundraising activities and this effort proved successful in allowing us to increase our giving in 2020/21.

Total income for the period reduced by 5.3% to £8.5m from £9.0m the previous year. The Trust recorded income of £18.2k relating to the Chancellor’s Job Retention Scheme for a period of 5 months for 5 employees, 3 of whom were made redundant during the course of the year due to changes in organisational structure as a result of COVID-19.

Income from Supported Living housing lettings shows growth of 7% following 33 properties becoming available at our Glasgow estate in February 2020, followed by a further 13 properties completed in September 2021. Despite the increase in income, there was £372k of missed income as a result of the

lockdowns impacting our void rates 6.2% in 2020/21 compared with 3.01% in 2019/20.

Wellbeing Services continued growth from £1.55m last year to £1.76m at the end of April 2021, a 13.5% increase, testament to the excellence delivered through our support programmes for colleagues and training programmes for managers in Retail.

With a strong desire to ensure we could continue our charitable activities, we managed our cost base down by 7.45%, allowing our Helpline, grants and other services to grow from £2.6m spent in 2019/20 to £3.4m in 2020/21. Total costs were £0.6m lower in the year. As the pandemic forced us to pivot our operations in counselling services from face-to-face to telephonic services, we were able to reach almost double the demand for counselling and the pandemic created an opportunity to look more closely at our wellbeing services and how we could develop the products to serve more people through training.

A 70% decrease in Gifts In Kind £0.2m, was recognised in the year. This is treated as income and expenditure and includes consultants donating their services in the form of significantly favourable day rates, marketing expenditure and general pro – bono work where we would have paid for the services at full cost.

The FRS102 calculation gives a more marketsensitive valuation of the pension scheme hence the prior year actuarial deficit has improved by 72% to £0.67m, contributing to a total other comprehensive income amount of £2.1m in the year.

These movements contributed to a net surplus of £0.4m and total comprehensive income of almost £2.6m. Net assets have increased in line with other comprehensive income to £34.4m. At 30 April 2021, cash at bank and in hand was £4.35m, £1.4m up on the previous year.

3. VALUE FOR MONEY (VFM)

Our Sector continues to experience significant challenges both structurally and economically. The impact of COVID19 has accentuated that process acutely. It is imperative therefore that we ensure VFM in the support and services we provide to the sector.

We manage our VFM controls via the Executive Directors business meetings with clear policies on tendering and astute contract negotiation.

10

Retail Trust TRUSTEES’ REPORT (continued)

DELIVERY OF VFM DURING 2020/21

Social Impact

The TRUST plays an integral role in supporting public services. We create considerable fiscal savings and economic benefits through reducing the impact on health services, social care, and welfare benefits by delivering wellbeing support, supported living, financial inclusion and career development services.

Since The Social Value Act of 2012, the measurement of public services and public sector projects is in part driven by the social impact and social value created. We now have a responsibility to account for Social, Economic and Environmental impact of the projects and services we deliver.

This applies to physical health, mental health, employment and skills, education, social care, housing and construction projects. Commissioners are required to factor social value into the procurement and funding process. Social Value is then measured and evaluated throughout the project or service delivery. Evidence needs to be visible of Value for Money, Social Value added and Social Impact.

There are seven VFM metrics which the RSH requires us to measure as we are in part a Social Housing provider.

They relate mostly to Supported Living Housing and are as follows: -

Metric 1 Reinvestment in Housing Property Assets

The reinvestment figure for the year was 2.40% compared to prior year 8.81%, primarily due to lockdowns affecting ability to continue with capital projects.

Metric 2a/2b New Housing Provision

During the year, we added 13 units to the Social Housing portfolio. A 3% increase.

Metric 3 Gearing %

During the year, we recorded 1.57% gearing, compared with 2019/20 at (3.64%). The figure is after drawing down £5m of bank borrowing from Bank of Scotland. The repayment of a third of the loan began in February 2021 and continues until 2029 when a bullet repayment of the balance is payable or the option to refinance the loan.

Metric 4 EBITDA MRI Interest Cover

We are pleased to report that our Social Value Return on Investment (SROI) per £1 invested has increased from £6.81 in 2019/20 to an incredible £11.73 this year. A very encouraging 72% increase on last year’s figure. The overall value for SVROI has grown in the same period from £70m to £99m. This improvement has been driven by new services delivered through our website and our provision of mental wellbeing training services for 2,300 managers and retail staff, evidence of the opportunity that exists to influence the wellbeing of our colleagues in a manner that really demonstrates value beyond a single individual.

To ensure we robustly measure those impacts we work with The Social Profit Calculator Ltd. using HM Treasury models, ONS, and Social Value UK’s Global Value Exchange databases. Social Profit Calculator Ltd. is one of the only UK platforms accredited by Social Value International and Social Value UK.

We believe the measurement of the outputs provides the strongest evidence of the value for money we deliver.

Regulator of Social Housing Value for Money Metrics

The figure for 2020/21 indicates interest is covered 11.8 times by cash generated in year.

Metric 5 Headline Social Housing Cost £

Per unit the cost was £7.65k in 2020/21 down from £8.96k in 2019/20 largely due to the addition of 13 new units.

Metric 6a and 6b Operating Margin

Social housing operating margin 30.93% and overall TRUST 2.16% in 2020/21 compared to 19.1% and 2.12% in 2019/20.

Metric 7 Return on Capital Employed

In 2020/21 the figure is 0.43% compared to 0.46% in 2019/20.

Examples of VFM delivery

SMART HOMES

The rollout of smart devices across our estates to all residents with a live broadband connection allowed staff to continue to support those who required minimal assistance in a safe and secure way.

The investment in the smart-enabled homes in Glasgow created an excellent recipe for success

11

Retail Trust TRUSTEES’ REPORT (continued)

without needing to increase the number of personnel on site at any time.

The Trustees review Executive Director packages annually through the TRUST’s Remuneration Committee and by reference to its financial performance and individual Executive performance.

WELLBEING SERVICES

The ability to move to telephonic counselling throughout the past year has led to a 40% cost saving whilst continuing to ensure that as many people as are in need of additional support are able to access it quickly, efficiently and with continued confidence that they will continue to receive skilled support for whatever challenges they are facing.

POLICIES

1. RESERVES

The Board has developed a reserves policy which is in line with the guidance given by the Charity Commission’s booklet CC19 and subsequent documents. Following a review of the risk register, an appropriate level of reserves has been established so as to enable the TRUST to continue its charitable activities and related support for a period of one year if fundraising income is reduced by 50%.

Note 21 reflects the change in undesignated reserves growing to £5.78m from £2.87m in prior year, primarily as a result of an FRS102 gain on pension reserves of £1.7m in the year. Excluding fixed assets from the unrestricted reserves and ringfenced income of £2.9m for the further development of the Hugh Fraser Estate in Glasgow, planned for 2023, leaves ‘free’ reserves of £1.9m, in line with the Trust’s reserves requirement of £1.0m at any given time.

The other reserves are restricted or designated in nature and are described in more detail in Notes 21, 22 and 23. Restricted reserves are used only for the purpose for which the donor has specified. Designated reserves are those reserves which have been set aside by the TRUST to be used for a named purpose. If that purpose subsequently is not relevant, then these reserves are transferred back to unrestricted. It is expected that restricted reserves will be spent over the next 2 years and that the designated reserves will be spent over the next 5 years.

2. KEY MANAGEMENT PERSONNEL REMUNERATION

All key management personnel receive a base salary which is based on factors such as qualification, length of service, experience and performance and their package may include superannuation and fringe benefits.

The remuneration policy is designed to attract the highest calibre of Executives and reward them for performance that results in the long-term growth and sustainability of the TRUST.

The TRUST’s employment policy is to offer fair pay to attract and keep appropriately qualified Executives to lead, manage, support and deliver its aims.

The Trustees, through the Remuneration Committee, are ultimately responsible for setting remuneration levels for the Executive Directors. The Executive Directors, working within guidelines supported by the Trustees, are responsible for the setting of salaries for staff below Executive Director Level.

In deciding the levels of pay and rewards for the Executives, Trustees consider:

Trustees will also consider:

12

Retail Trust TRUSTEES’ REPORT (continued)

3. HEALTH AND SAFETY

The health and safety of residents, employees and volunteers is of paramount importance to the TRUST. There is a robust health and safety structure at each location, coordinated by a Health & Safety Committee which devises and reviews policies as necessary in line with legislation and good practice. Regular Health & Safety audits take place with an action plan devised to ensure effective resolution of any issues arising. An annual report is presented to the Board.

A full review of all these policies was initiated as part of the resilience programme against impacts of COVID19.

In response to COVID-19, we made the following decisions:

Government bonds (Markit iBoxx GBP Gilts 7-10 Yrs) (-4.3%), Alternatives – Commodities – LBMA Gold Price, PM (-5.5%), Alternatives – Property - MSCI UK IMI* Core Real Estate (11.4%), UK Equities – MSCI UK Investable Market Index (10.8%), Overseas Equities – MSCI All-Country World Index excluding the UK (8.8%).

The actual return in the year was 20.6% which compares with the benchmark of 22.2%. This is because we continued with the decision to adopt less risk than the composite benchmark in this particular economic climate. The TRUST meets with the investment managers regularly to review performance. The portfolio is maintained to a risk profile as agreed with the Board.

Following a perceived loss of value due to the early effects of the pandemic, the portfolio has rebounded to £1.78m by the 30[th] April 2021.

5. GRANTS, BURSARIES & SCHOLARSHIPS

The Trust awarded £860k in financial assistance grants, an increase of 115% on the previous year and a result of a successful fundraising appeal, CARe20 in the prior year to respond to the impact of the pandemic. These were awarded based on the TRUST’s grants policy and guidelines which take into account the financial status and specific needs of each applicant. The Board receives regular updates on the level of financial grants awarded. The Trust awarded bursaries and scholarships of £97k in addition to this amount during the year.

6. PENSION

The Board of Trustees are confident that the Trust has adequate resilience in place to continue to weather the impact of COVID-19 and any future surges in infection rates.

4. INVESTMENT

The TRUST has adopted a capital and income growth policy which, over the long-term (over 5 years’ time), will endeavour to maintain the value of the assets.

As permitted by the TRUST’s rules, the Board instructed Smith & Williamson Investment Services Limited to operate on a discretionary basis since 2015. The investment performance is benchmarked against a composite of indexes being UK

The TRUST sponsors group personal pension arrangements with Legal and General which has £907k funds under management in individual employee name policies. This arrangement commenced in 2014 and a small percentage of employees have opted out of this auto-enrolment scheme.

The TRUST previously operated a defined benefit final salary pension scheme (FS) which was closed to new entrants in 2008. From 2009 a career average scheme (CARE) for new entrants was operated. CARE was closed to new entrants in March 2013. Both schemes were closed to future accrual on 31 January 2014.

Under Financial Reporting Standard FRS102 there was a deficit at the year-end of £0.6m for the FS/CARE schemes. This compares with a deficit of £2.4m in the previous year

13

Retail Trust TRUSTEES’ REPORT (continued)

7. FUNDING

Only 8.4% of the Trust’s income in the year came from traditional fundraising activities (excluding Donations in Kind).

The bulk, 91.6% of our income comes from paid for service; residential services, corporate partnerships or wellbeing services, all of which are subject to a minimum contract duration of one year. Sources of funding

While our funding model gives us a degree of stability of income, it also allows us to recognise the opportunity to develop better products for our clients to cope with the ever-changing face of Retail.

Within the traditional fundraising disciplines our key focus is on Events, Challenges, Trusts and Institutions and Donors both individual and corporate. However, looking forward, our strategy will be driven by our wellbeing services as traditional sources such as Events are unlikely to experience an immediate uptake in the short term.

8. FUNDRAISING REGULATOR

We are registered with the Fundraising Regulator, demonstrating our commitment to ethical fundraising practice. We are committed to abide by the Code of Fundraising Practice and to the Fundraising Promise and are authorised to use the Fundraising Regulator badge on our fundraising materials.

To deliver our charitable purpose, we actively engage in maintaining and growing a wide range of funding sources.

All fundraising supports the TRUST’s strategy and is in keeping with its values, ethics and reputation. Fundraising activity adheres to the following standards and complies with all relevant laws, including GDPR regulations:

There were no fundraising complaints during the year.

9. COMPLAINTS

When we receive a complaint, we endeavour to resolve it quickly, fairly and effectively. We continue to improve the services we provide by listening and responding to the views of our clients, partners and stakeholders and by responding positively to complaints. We aim to ensure that:

10. GDPR

We have a robust internal process for review of any issues we are notified of with regard to GDPR. There is an internal manager responsible for it and the Company Secretary is the nominated person for the ICO.

14

Retail Trust TRUSTEES’ REPORT (continued)

We continue to take data protection and data governance seriously and are working to ensure that digital developments take place within a framework that respects the rights of the individuals who share their data with us. To support this commitment, we made an internal appointment in March 2020 of a Data Protection Officer to help the Trust continue to work towards responsible digital transformation.

STRUCTURE, GOVERNANCE AND MANAGEMENT

1. INCORPORATION, LEGAL AND ORGANISATIONAL STRUCTURE

The TRUST was incorporated on 17 July 2001 as a private company under the Companies Act and registered as a charity on 17 January 2002. Its memorandum sets out the objects and powers of the organisation and is governed in accordance with its Articles of Association. The TRUST complies with HCA Governance & Financial Viability Standard. The retirement estates are across five locations in the United Kingdom; London, Glasgow (Crookfur), Derby, Liverpool and Salford.

2. GOVERNANCE

The governing body of the TRUST is the Board of Directors, who are the TRUST’s Trustees. The Board governs the organisation in line with its vision, aims and strategy. It is also responsible for compliance with the legal and statutory requirements of a UK charity and of a registered company.

The Board comprises at least three and not more than fourteen members or such other number as the Trustees may decide. New members are selected using formal recruitment processes and elected to the Board by the existing membership.

Trustees serve for three years with a second term available also of three years in line with Charity Commission best practice. The normal tenure of a trustee is therefore six years.

There is a formal induction programme for new Trustees and all Trustees are encouraged to undergo external training for continuing development.

The Board met five times in the year to oversee and steer the work of the organisation; management of the TRUST is delegated by the Trustees to the Chief Executive and the Executive team. It delegates appropriate functions to the Board sub-committees listed below and at least two members of every committee must be a Trustee.

Sub-committees Chair

Sub-committees
 Chair
Risk/Audit/Finance Brian Small
Funding &
Communications
Committee
(Retired June 2021)		 Simon Ledsham
Remuneration &
Nominations		 Sally Hopson
(Replaced by Mike Logue
on retirement as Trustee
February2021)
Property & Cottage
Homes
(Renamed Supported
Living & Property June
2021)		 Philip Bell-Brown
Wellbeing Services
Committee
(Retired June 2021)		 Helena Feltham

3. PUBLIC BENEFIT STATEMENT

The TRUST develops its strategic plan to provide public benefit and achieve its objectives as set out in the objects of the TRUST.

The Trustees confirm that they have referred and had due regard to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the TRUST’s aims and objectives and in planning future activities.

4. INTERNAL CONTROL

The Trustees have overall responsibility for establishing and maintaining the whole system of internal controls and for overseeing its effectiveness.

The Board recognises that no system of internal control can provide absolute assurance or eliminate all risk. The system of internal control is designed to manage risk and provide assurance that key business objectives and expected outcomes will be achieved. It also exists to give reasonable assurance about the preparation and reliability of financial and operational information and the safeguarding of the TRUST’s assets and interests. In meeting its responsibilities, the Risk, Audit and Finance Committee (RAF) has adopted a risk-based approach to internal controls. This includes a regular review of the risks to which the TRUST is exposed, evaluating their nature and impact. Risk self-assessments are performed throughout the year and are audited on an annual basis.

15

Retail Trust TRUSTEES’ REPORT (continued)

The Board appointed Mazars LLP to act as its internal auditors and a 3-year plan of audits commenced during the period. All audit reports, subsequent actions and follow ups are considered by the RAF Committee. A schedule of actions is prepared periodically and reviewed with the Finance Director and subsequently presented to the RAF committee for review.

The means by which the Board reviews the effectiveness of the systems of internal control, together with the robustness of the risk management framework, include standing orders and financial regulations which clearly set out the systems of delegation and authority which are in place. These are reviewed on a regular basis by the Board. There are also defined policies and procedures with which employees and Board members must comply to ensure the completeness and accuracy of transactions.

The RAF Committee meets up to four times per year. It considers the external auditor’s management letter which outlines weaknesses in internal control. Action to rectify weaknesses identified is monitored by the committee.

5. RISK

Trustees consider the key risks facing the TRUST are:

Financial

The risk is that the income generation from services, donations and other fundraising activity is insufficient to meet the needs of the beneficiaries. We manage this risk to services and fundraising activity by monitoring and regularly evaluating existing income sources, by developing new sources of funding and encouraging strong expenditure controls. In extreme circumstances, the Trustees may need to reconsider some of the forms of support we provide.

Failure to support those in need

Failure to create awareness of the TRUST in potential beneficiaries who are in need. We manage this through continuous marketing, an engaged feedback and relationship management process with retailers and networking. We monitor the reach of our services by use of KPI measures and are dedicated to delivering practical support, guidance and development opportunities to those most in need.

Residential Estates sustainability

The risk that voids are not managed sufficiently well to continue to produce trading surpluses which can sustain not only future growth plans but ongoing maintenance and repair costs. This is a constant focus of the Housing team and the low void rates of

1.4% by end of August 2021 show the impact of COVID on this number was more significant than we could have anticipated yet didn’t too heavily impact the surpluses from the division.

We mitigate future lockdowns by strictly following government guidelines and ensuring our internal controls are regularly reviewed and updated in line with the guidelines and monitoring those of the local authority care providers attending our extra care facilities.

Safety

The risk is an incident which would impact residents, visitors or employees. We manage this through a rigorous process of health and safety procedures and independent audits. During the pandemic we effectively locked down our estates and limited the spread of the disease by supporting our residents through the provision of a food bank on each estate to provide essentials to those most in need.

Data Protection

The TRUST undertook rigorous work to ensure compliance to GDPR. An independent audit at the conclusion of the work proved satisfactory.

Independent audits will be a standard feature going forward.

Cyber Security

The TRUST is aware of the risk of cyber-attacks and promotes investment in resources and scrutiny which manages the risk. A full cyber audit took place in the financial year with a move to cloud solution during the summer allowing significant improvement to antimalware coverage across all network devices.

Disaster Recovery and COVID-19

We have created plans which would be followed in the event of a disaster. For this purpose, disasters fall into the following categories:

Financial – a loss exceeding £1m

Physical – a disaster on one of the estates such as a coronavirus outbreak

Reputational – in the national press with adverse reports for three days or more

Industry – a huge loss in the community which we serve

In each case, a pre-determined committee would meet with a set of pre-determined actions. Public relations messages would be prepared and ready to be released.

Our Business Continuity Planning and Disaster

16

Retail Trust TRUSTEES’ REPORT (continued)

Recovery Plans have been enhanced in direct response to COVID-19 to include a communications process for our stakeholders in the event of localised and national lockdowns.

6. FRAUD

The TRUST manages fraud risks through the system of internal controls and procedures. There is also an anti-fraud policy in place which sets out clear procedures for the reporting and investigation of suspected irregularities of any sort.

All cases of fraud or attempted fraud are reported to the RAF so they may consider whether appropriate action has been taken and whether internal controls require further review. All matters of financial loss are reported to the Police and all cases above the limit set by the Homes and Communities Agency are reported to them. The anti-fraud policy contains the clear message about the sanctions that will be employed for members of staff who are found to have perpetrated a fraud. A register of all incidents is open for inspection by members of the Board.

7. STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company, housing and trust 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 group and the parent and of the income and expenditure of the group and the parent for that period.

The Trustees are responsible for keeping adequate accounting records to show and explain the group’s and the parent’s transactions and disclose with reasonable accuracy at any time the financial position of the group and the parent and enable them to ensure that the financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008, the Accounting Direction for Private Registered Providers of Social Housing 2019, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the group and the parent and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the TRUST’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

8. STATEMENT AS TO DISCLOSURE OF INFORMATION TO THE AUDITOR

The Trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the Trustees have confirmed that they have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

9. SUBSIDIARY UNDERTAKINGS

In preparing those financial statements, the Trustees are required to:

At 30 April 2021 the TRUST had three subsidiaries, Retail Trust Events Limited, Cottage Homes Contracts Limited and RT Wellbeing Services Limited which are incorporated as private companies under the Companies Act 2006.

Retail Trust Events Limited is a trading subsidiary and conducts celebration events and other trading activities.

Cottage Homes Contracts Limited is a subsidiary which manages building and maintenance contracts of behalf of the TRUST.

RT Wellbeing Services Limited is a subsidiary which manages income and costs of Wellbeing Services.

17

Retail Trust TRUSTEES’ REPORT (continued)

Retail Trust is the ultimate controlling party of all subsidiaries.

10. DIVERSITY AND EQUALITY

We have continued to build upon our actions from last year to continue to promote a healthier, happier, diverse and more inclusive workforce.

Mental health and wellbeing is such an important topic and an integral aspect in creating a more inclusive working environment. We want to ensure that our employees are happy and healthy in their personal and professional lives. Already this year we have taken positive steps in putting the wellbeing of our people at the forefront of what we do.

11. AUDITORS

Haysmacintyre LLP have been appointed as the auditor at the Annual General Meeting.

This Trustees Report, including the Strategic report was approved by the Board on 27 January 2022.

Alistair McGeorge

Chairman

Brian Small

Brian Small Honorary Treasurer

This year we introduced Wagestream, a financial planning tool where employees can access a percentage of their earned wages ahead of pay day. We also increased annual leave entitlement that has positively impacted 40% of our work force and confirmed remote working as a permanent option for our central support staff to further drive flexible working across the Trust.

In our efforts to drive a more diverse and inclusive workforce this year, we put our senior leadership team through ‘unconscious bias’ training and from this year will be joining ‘Inclusive Employers’ to help shape our longer team D&I strategy.

It’s really important that all of our employees feel included and respected, whoever they are, their background and wherever they are working in the organisation. We celebrate our diversity on a regular basis through recognition of celebrations such as Black History Month and Diversity & Inclusion Week and consciously share the steps we are taking as individuals and an organisation to promote a culture of inclusivity.

We continue to challenge ourselves to ensure that employee wellbeing, diversity and inclusion is central to our organisations strategic planning moving forward.

18

Retail Trust INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF RETAIL TRUST

Opinion

We have audited the financial statements of Retail Trust for the year ended 30 April 2021 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Charity Balance Sheets, the Consolidated and Charity Statements of Changes in Equity, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’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 trustees are responsible for the other information. The other information comprises the information included in the Trustees’ 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

19

Retail Trust INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF RETAIL TRUST (CONTINUED)

Opinions 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 the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report (which incorporates the strategic report and the directors’ report).

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

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 17, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group and the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

Based on our understanding of the group and the environment in which it operates, we identified the principal risks of noncompliance with laws and regulations related to the regulation of registered charities and registered providers of social housing, as well as the health and safety regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011, the Housing and Regeneration Act 2008, payroll tax and sales tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined the principal risks to be around the

20

Retail Trust INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF RETAIL TRUST (CONTINUED)

potential use of fraudulent journals and management manipulation of accounting estimates. Audit procedures performed by the engagement team included:

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, section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Tracey Young (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of Haysmacintyre LLP, Statutory Auditor London 27 January 2022 EC4R 1AG

21

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the year ended 30 April 2021

RETAIL TRUST

2021 2021 2020
NOTES £ £
INCOME AND ENDOWMENTS from:
Charitable income 1 942,123 1,812,942
Cottage Homes 2 5,619,271 5,243,302
Tradingincome 3 1,769,393 1,930,135
Other income 4 176,218 118
TOTAL INCOME 8,507,005 8,986,497
EXPENDITURE on:
Raisingfunds 5 (798,103) (1,868,286)
Cottage Homes 2 (3,808,568) (4,273,783)
Helpline, grants and other services 6 (3,386,486) (2,619,835)
(7,993,157) (8,761,904)
TOTAL EXPENDITURE
OPERATING SURPLUS 7 513,848 224,593
Investment income 8 62,065 67,407
Pension costs 20 (126,000) (93,000)
NET SURPLUS 449,913 199,000
OTHER COMPREHENSIVE INCOME
Gains on investments 15 285,588 (87,704)
Actuarial surplus/(deficit)inpension scheme 20 1,825,000 (1,075,000)
(1,162,704)
TOTAL OTHER COMPREHENSIVE INCOME 2,110,588
TOTAL COMPREHENSIVE INCOME 2,560,501 (963,704)

All the above results are derived from continuing activities. There are no recognised gains or losses other than those stated above. The notes on the accompanying pages form part of these financial statements.

The notes set out on pages 32 to 49 form an integral part of these financial statements

22

CONSOLIDATED BALANCE SHEET

RETAIL TRUST

RETAIL TRUST
CONSOLIDATED BALANCE SHEET
as at30April 2021
2021
NOTES £
FIXED ASSETS
Housing properties 13 35,051,029
1,732,392
2,107,190
Other tangible fixed assets 14
Investments at market value 15
38,890,611
926,196
4,350,844
TOTAL FIXED ASSETS
CURRENT ASSETS
Debtors 17
Cash and cash equivalents 18
5,277,040
TOTAL CURRENT ASSETS
CREDITORS: amounts fallingdue within oneyear 19 (1,886,282)
3,390,758
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES 42,281,369
CREDITORS: amounts falling due after more than one
19		 (7,128,420)
year
Pension liability 20 (674,000)
NET ASSETS 34,478,949
RESERVES
Unrestricted reserves 21 34,059,799
Restricted reserves 22 34,247
Endowment funds 23 384,903
34,478,949
TOTAL RESERVES

The financial statements on pages 32 to 49 were approved by the Trustees and authorised for issue on 27 January 2022 and are signed on their behalf by:

Alistair McGeorge Chairman ~~Brian Small~~ Brian Small Honorary Treasurer

23

RETAIL TRUST
CHARITY BALANCE SHEET
as at30April 2021 CompanyRegistration No. 04254201
2021 2020
NOTES £ £
FIXED ASSETS
Housing properties 13 35,051,029 34,697,188
Other tangible fixed assets 14 1,620,604 1,654,654
Investments at market value 15 2,107,190 1,801,675
Investment in subsidiaries 16 156 156
TOTAL FIXED ASSETS 38,778,979 38,153,673
CURRENT ASSETS
Debtors 17 2,359,395 907,122
Cash and cash equivalents 18 2,153,992 2,339,757
TOTAL CURRENT ASSETS 4,513,387 3,246,879
CREDITORS: amounts falling due within one year 19 (1,113515) (760,694)
NET CURRENT ASSETS 3,399,872 2,486,185
TOTAL ASSETS LESS CURRENT LIABILITIES 42,178,851 40,639,858
CREDITORS: amounts falling due after more than
one year		 19 (7,128,420) (6,546,474)
Pension liability 20 (674,000) (2,373,000)
NET ASSETS 34,376,431 31,720,384
RESERVES
Unrestricted reserves 21 33,957281 31,354,325
Restricted reserves 22 34,247 34,247
Endowment funds 23 384,903 331,812
TOTAL RESERVES 34,376,431 31,720,384

The total comprehensive income for the year of the Parent Company is £2,656,047 (2020: (£1,052,722)).

The financial statements on pages 32 to 49 were approved by the Trustees and authorised for issue on 27 January 2022 and are signed on their behalf by:

Alistair McGeorge Chairman Brian Small Brian Small Honorary Treasurer

24

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the year ended 30 April 2021

RETAIL TRUST

GROUP Unrestricted Restricted Endowment Total
Reserves Reserves Funds
£ £ £ £
As at 1 May 2019 31,719,517 814,247 348,388 32,882,152
Surplus for the year 199,000 - - 199,000
Transfers in the year 780,000 (780,000) - -
Other comprehensive income (1,146,128) - (16,576) (1,162,704)
Total comprehensive income for the
year		 (167,128) (780,000) (16,576) (963,704)
As at 30 April 2020 31,552,389 34,247 331,812 31,918,448
As at 1 May 2020 31,552,389 34,247 331,812 31,918,448
Surplus for the year 449,913 - - 449,913
Other comprehensive income 2,057,497 - 53,091 2,110,588
Total comprehensive income for the
year		 2,507,410 - 53,091 2,560,501
As at 30 April 2021 34,059,799 34,247 384,903 34,478,949
PARENT Unrestricted Restricted Endowment Total
Reserves Reserves Funds
£ £ £ £
As at 1 May 2019 31,610,471 814,247 348,388 32,773,106
Surplus for the year 109,982 - - 109,982
Transfers in the year 780,000 (780,000) - -
Other comprehensive income (1,146,128) - (16,576) (1,162,704)
Total comprehensive income for the
year		 (256,146) (780,000) (16,576) (1,052,722)
As at 30 April 2020 31,354,325 34,247 331,812 31,720,384
As at 1 May 2020 31,354,325 34,247 331,812 31,720,384
Surplus for the year 545,459 - - 545,459
Other comprehensive income 2,057,497 - 53,091 2,110,588
Total comprehensive income for the
year		 2,602,956 - 53,091 2,656,047
As at 30 April 2021 33,957,281 34,247 384,903 34,376,431

25

RETAIL TRUST CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended 30 April 2021

2021 2021 2020
£
199,000
605,266
93,000
(25,600)
(318,366)
(323,979)
229,321
(3,159,888)
(547,321)
413,812
-
(3,293,397)
3,065,000
-
3,065,000
924
2,961,798
2,962,722
2,922,090
40,632
2,962,722
Balance at 30
April 2021
NOTES £
CASH FLOWS FROM OPERATING ACTIVITIES
Net surplus 449,913
Adjustments for:
Depreciation 705,661
Pension Costs 126,000
Amortisation of social housing grant (25,600)
Decrease/(increase)in debtors 400,361
Increase/(decrease)in creditors 109,173
NET CASH INFLOWS FROM OPERATING ACTIVITIES 1,765,508
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets (1,059,324)
Additions to investments (348,615)
Proceeds from sale of investments 353,858
Gain on investment 1,900
NET CASH INFLOWS/(OUTFLOWS) FROM
(1,052,181)
INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Draw down of new longterm borrowing 775,000
Repayment of longterm borrowing (32,502)
742,498
NET CASH INFLOWS FROM FINANCING ACTIVITIES
1,455,825
NET INCREASE IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the beginningof theyear 2,962,722
CASH AND CASH EQUIVALENTS AT THE END OF
THE YEAR
Cash and cash equivalents
Cash and cash equivalents 18 4,350,844
Cash held byinvestment managers 15 67,703
4,418,547
Balance at
1 May
2021		 Cash Flows
Bank and cash
Loans due within one year
Loans due after morethanone year		 2,962,722 1,455,825 4,418,547
32,502 134,952 167,454
4,192,498 607,546 4,800,044
Net Debt 7,187,722 2,198,323 9,386,045

26

RETAIL TRUST ACCOUNTING POLICIES for the year ended 30 April 2021

GENERAL DETAILS

The TRUST is a company limited by guarantee, incorporated in England and Wales (company number: 04254201), a charity registered in England and Wales (charity number: 1090136) and in Scotland (Scottish charity number: SC 039684) and Registered Social Landlord (number: L4362). The TRUST’s registered office address is: Marshall Hall, Marshall Estate, Hammers Lane, London NW7 4DQ.

ACCOUNTING BASIS

The format of the financial statements has been presented to company with the Companies Act 2006, FRS102 The Financial Reporting Standard applicable in the UK and Ireland, the Statement of Recommended Practice for social housing providers (Housing SORP 2018) and the Accounting Direction of Private Registered Providers of Social Housing 2019. The TRUST is a Public Benefit Entity as defined by FRS102.

BASIS OF CONSOLIDATION

The group financial statements consolidate the financial statements of the TRUST and its subsidiary undertakings, Retail Trust Events Limited, Cottage Homes Contracts Limited and RT Wellbeing Services Limited drawn up to 30 April 2021 on a line by line basis.

GOING CONCERN

The financial statements have been prepared on the going concern basis as the trustees consider there are no material uncertainties about the ability of the group or the company to continue on a going concern basis. It expects that COVID-19 might have some impact in the short term on the volume of Financial Aid applications as we realise the impact of the pandemic on the Retail workforce and the effect of government support tapering off as the rollout of vaccines have allowed a return to near-normal activities.

The Trust completed a critical review of costs and organisational structure to ensure that value for money remains a priority when engaging suppliers and to actively reduce waste and enhance our digital transformation plans to reduce the need to increase personnel costs by employing “smart” solutions in our Housing services.

In relation to expected future performance, or the effects on some future asset valuations, there has been a distinct shift in colleague expectations of their employers to take an interest in their wellbeing. This is most obvious in Retail where we have seen a large-scale exit of people from the sector due to the negative impact the pandemic has had on their wellbeing at work. This has created a greater opportunity for the Trust to increase reach and impact through our Wellbeing Portal and through increased engagement with colleagues of those that subscribe to our Wellbeing services.

There is therefore no material uncertainty that may cast significant doubt on the Trust’s ability to continue as a Going Concern. The trustees have prepared budgets and cash flow forecasts to support their consideration of this matter and these are reviewed regularly at the Board meetings and sub-committee meetings and the trustees are confident of the TRUST’s ability to continue to support its beneficiaries and meet its obligations based on its cash position and ability to pivot quickly in response to changing economic factors.

INCOME

All income is included in the consolidated income and expenditure account when the group is legally entitled to the income receipt, is probable and the amount can be quantified with reasonable accuracy. Such amounts are stated net of VAT.

Income comprises rent and service charge contributions from tenants, Supporting People contractual income, income from fundraising events, voluntary income and pecuniary legacies.

Income is recognised on the following bases:

27

RETAIL TRUST

ACCOUNTING POLICIES (continued) for the year ended 30 April 2021

EXPENDITURE

All expenditure is recognised when the related liability is incurred, and is classified in the Statement of Comprehensive Income according to the activity to which it relates.

Expenditure is recognised on the following bases:

ANALYSIS OF TRANSACTIONS BETWEEN REGULATED AND NON-REGULATED ACTIVITIES

Transactions between regulated and non-regulated activities have been presented with a fair allocation of overheads. Direct costs are allocated between regulated and non-regulated activities based on time and usage of the underlying activity and reviewed each year during the annual planning cycle. Support costs which include the central functions have been allocated as described in the above paragraph.

FIXED ASSETS – FREEHOLD HOUSING PROPERTIES

Freehold housing properties are stated at cost.

Cost of housing properties

Cost includes the cost of acquiring land and buildings, development costs, interest charges incurred during the development period and expenditure incurred in respect of improvements. Items costing less than £500 are not capitalised unless part of larger projects.

Improvements are works which result in an enhancement of economic benefits such as increase in the net rental income, a reduction in future maintenance costs, or result in a significant extension of the useful economic life of the property in the business.

28

RETAIL TRUST ACCOUNTING POLICIES (continued) for the year ended 30 April 2021

FIXED ASSETS – FREEHOLD HOUSING PROPERTIES (continued)

Depreciation of housing properties and component accounting

Freehold land and assets under construction are not depreciated. The Group operates full component accounting.

Depreciation is provided at rates calculated to write off the cost, less any estimated residual value, of each component evenly over its expected useful life, as follows:

Wall structure 125 years
Roof structure 75 years
Doors and windows 75 years
Boilers, electrics and plumbing 30 years
Kitchen and bathrooms 15 years
Lifts and stairs 30 years 30 years
External infrastructure and utilities 50 years
Fittings > £500 20 years
Digital 5 years

The estimated useful economic life for each component has been arrived at based on the Group’s current experience of component replacements. The useful economic lives of all components are monitored and revisions made where sustained material changes arise.

OTHER TANGIBLE FIXED ASSETS

All other tangible fixed assets are stated at cost less accumulated depreciation. Items costing less than £500 are not capitalised. The carrying values of other tangible fixed assets are reviewed for impairment if events or change in circumstances indicate the carrying value may not be recoverable.

Depreciation is provided at rates calculated to write off the cost, less any estimated residual value, of each asset evenly over its expected useful life, as follows:

Fixtures and fittings 5 years
Office equipment 5 years
Plant and machinery 10 years
Motor vehicles 5 years
Computer equipment and software 4 years
Office buildings 75 years

Land is not depreciated.

Impairment of assets

Housing properties and office buildings are subject to impairment reviews annually in accordance with FRS102. Where there is evidence of impairment, housing properties are written down to the recoverable amount. Any such write down is charged to the operating result.

29

RETAIL TRUST ACCOUNTING POLICIES (continued) for the year ended 30 April 2021

INVESTMENTS

Investments are valued at market price, as represented by the bid price on the relevant stock exchange at the year-end.

Realised gains and losses on investments are calculated as the difference between sales proceeds and the carrying amount.

Unrealised gains and losses are taken to the Statement of Comprehensive Income.

The TRUST owns deferred shares in Voyager Alliance Credit Union Limited. These shares are held at the value of consideration.

BASIC FINANCIAL INSTRUMENTS – ASSETS AND LIABILITIES

Basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable are accounted for on the following basis:

Cash and cash equivalents

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

Debtors and creditors

Debtors and creditors are recorded at the transaction price. Any losses arising from impairment are recognised in the Statement of Comprehensive Income. A provision for rent arrears and doubtful debts is made in the financial statements if rent arrears or debtors remain unpaid after six months, or as soon as there is reason to believe there is non-payment of the outstanding amount.

LIABILITIES

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the TRUST to the expenditure.

Financial assistance grants

Financial assistance grants are payment made to third parties in the furtherance of the charitable objectives of the TRUST. The grants are accounted for where either the Trustees have agreed to pay the grant without condition and recipient has a reasonable expectation that they will receive the grant, or any condition attaching to the grant is outside the control of the TRUST.

Grant commitments

Grant commitments are recognised in the accounting period when the relevant conditions underlying the grant have been met by the recipient or receiving entity of the grant. Grants authorised but unpaid at the balance sheet date are recognised as expenditure in the Consolidated Statement of Comprehensive Income where the conditions underlying the grants have been met.

Social Housing Grant

Social housing grant (SHG) is receivable from the Homes and Communities Agency and is utilised to fund the capital costs of housing properties, including land costs. The balance of the grant received is recognised as a liability on the balance sheet and amortised on the same basis as the wall structures of the housing assets.

The amount of SHG receivable is calculated on a fixed basis depending on the size, location and type of housing property. SHG due from the Homes and Communities Agency or received in advance is included as a current asset or liability. SHG received in respect of revenue expenditure is recognised in the same period as the expenditure to which it relates.

SHG is subordinated to the repayment of loans by agreement with the Homes and Communities Agency. SHG released on sale of a property is normally available to be recycled and is credited to a Recycled Capital Grant Fund and included in the Balance Sheet in creditors. The SHG is repayable if properties funded by it are sold to any institution other than a housing association.

30

RETAIL TRUST ACCOUNTING POLICIES (continued) for the year ended 30 April 2021

INTEREST PAYABLE

Interest is capitalised on borrowings to finance developments/redevelopments to the extent that it accrues in respect of the period of developments if it represents either:

Interest is capitalised from the date of the site acquisition/commencement of redevelopment to the date of practical completion. Other interest payable is charged in the Consolidated Statement of Comprehensive Income.

PENSION SCHEME

The TRUST operates a funded defined benefits related pension scheme. The assets of the scheme are held separately from those of the TRUST. Pension scheme liabilities are measured on an actuarial basis using the projected unit credit method and are discounted at the current rate of return on a high quality corporate bond of the equivalent term and currency to the liability.

Pension scheme assets are measured at fair market value at the balance sheet date. The pension scheme deficit is recognised in full on the Balance Sheet. Increases in the present value of the scheme liabilities expected to arise from employee service in the period are charged to operating surplus. The net interest income or expenditure calculated on the scheme assets and liabilities by reference to the discounted rate is credited or charged to the surplus for the year. Actuarial gains and losses are recognised in other comprehensive income.

The TRUST also operates a defined contribution scheme. The amount charged to the Statement of Comprehensive Income in respect of pension costs and other post-retirement benefits for the defined benefit scheme is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the Balance Sheet.

ENDOWMENT FUNDS

Endowment funds represent donations and legacies received where donors require that the capital must be preserved and the income must be spent on a particular purpose. Trustees may apply the income from endowment funds in line with such restricted purposes but the capital is permanent and must be held indefinitely.

RESTRICTED RESERVES

Restricted reserves represent donations and legacies received where donors require that they must be spent on a particular purpose or where funds have been raised for a specific purpose.

DESIGNATED RESERVES

Any sums which the Board members have designated for specific purposes in the future are treated as designated reserves. Transfers are made from the undesignated reserves account to the designated reserves account.

31

RETAIL TRUST NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 April 2021

RETAIL TRUST
NOTES TO THE FINANCIAL STATEMENTS
for the yearended 30April 2021
2021 2020
NOTE 1 - CHARITABLE INCOME £ £
GROUP
Restricted
Income from fundraising activities 237,808 515,368
Unrestricted
Gross income from events 79,985 324,118
Income from fundraising activities 400,359 228,796
Gifts in kind 223,971 744,660
TOTAL CHARITABLE INCOME 942,123 1,812,942

NOTE 2 - COTTAGE HOMES - GROUP

a) Turnover, operating costs and operating surplus

TURNOVER TURNOVER OPERATING COSTS OPERATING COSTS OPERATING SURPLUS OPERATING SURPLUS
2021 2020 2021 2020 2021 2020
£ £ £ £ £ £
Social housing lettings (2b) 5,443,204 5,074,558 3,711,058 4,154,928 1,732,146 919,630
Other social housing activities:
- Supporting people 97,510 96,148 97,510 96,148 - -
Non-social housing activities:
- Letting 25,477 24,876 - - 25,477 24,876
- Other 27,480 22,121 - 22,707 27,480 (586)
- Amortisation of SHG 25,600 25,600 - - 25,600 25,600
5,619,271 5,243,303 3,808,568 4,273,783 1,810,703 969,519
The accommodation provided is as follows: 2021 2020
Total number of units:
Owned 422 409
Under management 1 1
423 410

32

RETAIL TRUST

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 April 2021

NOTE 2 - COTTAGE HOMES - GROUP

b) Income and Expenditure from social housing lettings

SUPPORTED HOUSING SUPPORTED HOUSING
2021 2020
£ £
NET RENTAL INCOME 5,443,204 5,074,558
Management 764,090 822,694
Services 1,974,381 2,519,501
Routine maintenance 135,610 108,865
Planned maintenance 198,369 112,240
Depreciation 524,129 430,783
Other costs 114,480 160,844
TOTAL EXPENSES 3,711,058 4,154,928
OPERATING SURPLUS/(DEFICIT) 1,732,146 919,630
2021 2020
Analysis of social housing lettings: £ £
Rent receivable 2,080,597 2,006,872
Service Charges 3,362,607 3,067,686
Social housing lettings 5,443,204 5,074,558
Rental income is stated net of voids as follows:
2021 2020
£ £
Voids 372,355 161,907

The total losses for the year ended 30 April 2021 arising from the irrecoverable debts were 25,576.62. (2019: £253).

33

RETAIL TRUST

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 April 2021

NOTE 3 - TRADING INCOME

2021 2020
GROUP £ £
Unrestricted
Income from events 8,550 378,685
Income from Wellbeing Services 1,760,843 1,551,450
TOTAL TRADING INCOME 1,769,393 1,930,135
NOTE 4 - OTHER INCOME
2021 2020
GROUP £ £
Sundry Income 176,218 118
TOTAL OTHER INCOME 176,218 118
NOTE 5 - EXPENDITURE ON RAISING FUNDS
2021 2020
GROUP £ £
Direct costs of events 22,566
225,373
223,971
326,193		 409,415
Employee costs 198,826
Gifts in kind 744,661
Support and other costs 515,384
798,103
TOTAL EXPENDITURE ON RAISING FUNDS 1,868,286

34

RETAIL TRUST

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 April 2021

NOTE 6 – WELLBEING SERVICES

GROUP 2021
£		 2020
£
605,856
435,769
403,202
652,599
522,409
Counselling services
Financial assistance, bursaries and scholarships
Charitable services
Employee costs
Support costs		 384,153
959,083
273,669
795,355
974,226
TOTAL WELLBEING SERVICES 3,386,486 2,619,835
2020
£
24,665
4,865
8,550
579,665
(25,600)
32,043
NOTE 7 - OPERATING SURPLUS
GROUP 2021
£
Operating surplus is stated after charging:
Auditor’s remuneration – audit services
Auditor’s remuneration – non-audit services
Trustees' expenses
Depreciation of owned assets
Amortisation of housing grant
Redundancy costs		 31,510
3,100
468
680,061
(25,600)
13,234

35

RETAIL TRUST

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 April 2021

NOTE 8 - INTEREST INCOME

2021 2020
GROUP £ £

Interest on bank accounts 9,912 19,496
Interest on loan 2,500 2,500
Interest and dividends on investments 49,653 45,411

TOTAL INTEREST INCOME 62,065 67,407
2021
No.
NOTE 9 - EMPLOYEES AND EMPLOYEE COSTS
GROUP 2020
No.
Average number of employees:
Supported Living 33
19
25		 38
Charitable services 17
Central support and fundraising 26
TOTAL EMPLOYEES 77 81

The total number of staff included part time employees. The full time equivalent average number of employees was 65 (2020: 66).

2021
£		 2020
Employee costs during the year: £
Wages and salaries 2,481,033 2,394,414
National Insurance contributions 226,626 220,202
Pension costs 160,420 138,385
TOTAL EMPLOYEE COSTS 2,868,079 2,753,001

36

RETAIL TRUST

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 April 2021

NOTE 10 - KEY MANAGEMENT PERSONNEL AND THEIR EMOLUMENTS

GROUP

The key management personnel are defined as the members of the Board, the Chief Executive and the Executive team. The aggregate amount of emoluments paid to the Executive team was £656,769 (2020: £558,164). This figure includes aggregate pension contributions of £43,791 (2020: £23,037). Members of the Board received no emoluments during the year (2020: £nil).

During the year the Chief Executive received £225,596 (2020: £133,000) including benefits and pension contributions of £16,736 (2020: £nil).

Remuneration banding, excluding pension and employer NI contributions, for all employees earning above £60,000:

2021 2020
No. No.
£60,001 to £70,000 2 1
£70,001 to £80,000 2 2
£80,001 to £90,000 1 -
£110,001 to £120,000 - -
£130,001 to £140,000 - 1
£180,000 to £190,000 1 -
6 4

NOTE 11 - TAXATION

GROUP

The company meets the definition of a charitable company for UK corporation tax purposes. Accordingly, it is potentially exempt from taxation in respect of income or capital gains received to the extent that such income or gains are applied exclusively to charitable purposes.

The subsidiary companies are subject to corporation tax in the same way as any commercial organisation.

37

RETAIL TRUST

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 April 2021

NOTE 12 - RELATED PARTY TRANSACTIONS

The company has taken advantage of the exemption in FRS102 from disclosing transactions with other members of the Retail Trust group.

NOTE 13 - FIXED ASSETS - HOUSING PROPERTIES
2021 2020
£ £
GROUP AND PARENT
COST
Opening as at 1 May 2020 39,234,616 36,220,329
Additions 821,522 3, 014,287
Closing as at 30 April 2021 40,056,138 39,234,616
DEPRECIATION
Opening as at 1 May 2020 (4,537,428) (4,163,726)
Provided in the year (467,681) (373,702)
Closing as at 30 April 2021 (5,005,109) (4,537,428)
NET BOOK VALUE
As at 30 April 2021 35,051,029 34,697,188
34,697,188 32,056,603
As at 30 April 2010

38

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 April 2021

RETAIL TRUST

NOTE 14 - OTHER TANGIBLE FIXED ASSETS

GROUP Fixtures & Plant and
Machinery
£		 Motor Motor Comp Equip
& Software
£		 Freehold Office
Fittings Vehicles Buildings Total
£ £ £ £
COST
Opening at 1 May 2020
Additions
Disposals		 534,360 205,823
34,190
-		 11,409 769,482
186,922
(1,658)		 1,145,933 2,667,007
16,689 - - 237,801
- - - (1,658)
Closing at 30 April 2021 551,049 240,013 11,409 954,746 1,145,933 2,903,150
DEPRECIATION
Opening at 1 May 2020
Provided during the year
Disposals		 (192,127)
(7,601)
-		 (441,264)
(173,180)
1,658
(137,324) (11,379)
(26)
-		 (152,342) (934,436)
(41,659) (15,514) (237,980)
- - 1,658
Closing at 30 April 2021 (178,983) (199,728) (11,405) (612,786) (167,856) (1,170,758)
NET BOOK VALUE
As at 30 April 2021 372,066 40,285 4 341,960 978,077 1,732,392
As at 30 April 2020 397,036 13,696 30 328,218 993,591 1,732,571
PARENT Plant and
Machinery		 Comp Equip
& Software
Fixtures & Motor Freehold Office
Fittings Vehicles Buildings Total
COST
Opening at 1 May 2020
Additions
Disposals		 £ £
205,823
34,190
-		 £ £
665,002
102,922
(1,658)		 £ £
534,360 11,409 1,145,933 2,562,527
16,689 - - 153,801
- - - (1,658)
Closing at 30 April 2021 551,049 240,013 11,409 766,266 1,145,933 2,714,670
DEPRECIATION
Opening at 1 May 2020
Provided during the year		 (137,324) (192,127)
(7,600)		 (11,379) (414,701)
(123,053)		 (152,342) (907,873)
(41,659) (26) (15,513) (187,851)
Disposals - - - 1,658 - 1,658
Closing at 30 April 2021 (178,983) (199,727) (11,405) (536,096) (167,855) (1,094,066)
NET BOOK VALUE
As at 30 April 2021
372,066 40,286 4 230,170 978,078 1,620,604
As at 30 April 2020 397,036 13,696 30 250,301 993,591 1,654,654

39

RETAIL TRUST

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 April 2021

NOTE 15 - INVESTMENTS

GROUP AND PARENT Market Value Market Value Cost
2021 2020 2021 2020
£ £ £ £
Restricted
Listed investments 319,885 272,593 247,673 246,348
Unrestricted
Listed investments 1,400,852 1,169,700 1,084,620 1,057,078
Unlisted investments and cash 386,453 359,382 386,453 359,382
1,787,305 1,529,082 1,471,073 1,416,460
TOTAL INVESTMENTS 2,107,190 1,801,675 1,718,746 1,662,808
Reconciliation of Market Value Movement:
Unlisted Listed Cash Total
£ £ £ £
As at 1 May 2020 318,750 1,442,293 40,632 1,801,675
Additions -
-
-
-		 348,614
(353,858)
283,688
-		 (348,614) -
Disposals 353,858 -
Gain / (loss) 1,900 285,588
Investment income received 35,716 35,716
Investment income withdrawn - - (1,613) (1,613)
Investment fee - - (14,176) (14,176)
As at 30 April 2021 318,750 1,720,737 67,703 2,107,190

40

RETAIL TRUST

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 April 2021

NOTE 16 - INVESTMENTS IN SUBSIDIARIES

At 30 April 2021, the Group and Parent had interests in the following subsidiaries:

Subsidiaries Nature of business Type of shares
held		 Proportion held Country of
incorporation
Retail Trust Events
Limited (RTE)		 Conducts celebration
events and other trading
activities.		 Ordinary 100% England and
Wales
Cottage Homes
Contracts Limited
(CHC)		 Offers design and build England and
Wales

contracting services to		 Ordinary 100%
Retail Trust for its
buildings.
RT Wellbeing
Services Limited
(RTWS)		 Provides wellbeing
services to employees in
the retail sector		 Ordinary 100% England and
Wales
2020
£
156
-
PARENT 2021
£
AT COST
As at 1 May 2020
156
Additions / (disposals) in the year -
As at 30 April 2021 156 156

41

RETAIL TRUST NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 April 2021

NOTE 16 - INVESTMENTS IN SUBSIDIARIES (continued)

CHC CHC RTE RTE RTE
2021 2020 2021 2020 2021
£ £ £ £ £
SUMMARY PROFIT & LOSS ACCOUNT
Turnover 124,177 2,812,116 8,583 379,189 1,760,843
Cost of sales (117,662) (2,681,628) (76,856) (305,225) (1,233,676)
Expenditure - shared costs (21,465) (120,668) (1,742) (59,534) (339,685)
Net profit (14,950) 9,819 (70,015) 14,429 187,482
SUMMARY BALANCE SHEET
Fixed Assets - - - - 111,790
Debtors 59,533 101,537 48,476 111,948 550,219
Cash at bank 413,957 71,843 90,755 123,606 1,692,141
Creditors (488,439) (163,560) (209,191) (221,071) (2,166,568)
Net assets (14,949) 9,820 (69,960) 14,484 187,582
Retained earnings (14,950) 9,819 (70,015) 14,429 187,482
Called up share
capital		 1 1 55 55 100
Shareholder funds (14,949) 9,820 (69,960) 14,484 187,582

The net profits above will be distributed by means of gift aid to the parent charity.

42

RETAIL TRUST

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 April 2021

NOTE 17 - DEBTORS
GROUP
2021 2020
£ £
Rents receivable
Trade debtors
Other debtors
Accrued income
Prepayments
Voyager Alliance CU loan - Subordinated		 157,427 154,041
346,483 639,015
160,613 153,928
50,278 154,522
111,395 125,049
100,000 100,000
TOTAL DEBTORS 926,196 1,326,555
PARENT
Rents receivable
Trade debtors
Other debtors
Accrued income
Prepayments
Amounts receivable from subsidiary undertakings
Voyager Alliance CU loan - Subordinated		 2021 2020
£ £
157,426 154,041
5,588 78,050
160,613 80,399
48,611 150,356
100,496 119,081
1,786,661 225,195
100,000 100,000
TOTAL DEBTORS 2,359,395 907,122
Bad debt provision of £ nil (2020: £19,472) relating to rental and trading income is netted above within rent receivable and trade
debtors. The subordinated loan is recoverable in 2023.
NOTE 18 - CASH AND CASH EQUIVALENTS
GROUP
2021 2020
£ £
Cash at bank and in hand
Short term deposits		 2,850,844 922,090
1,500,000 2,000,000
TOTAL CASH AND CASH EQUIVALENTS 4,350,844 2,922,090
PARENT
Cash at bank and in hand
Short term deposits		 2021 2020
£ £
653,992 339,757
1,500,000 2,000,000
TOTAL CASH AND CASH EQUIVALENTS 2,153,992 2,339,757

43

RETAIL TRUST

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 April 2021

RETAIL TRUST
NOTES TO THE FINANCIAL STATEMENTS
for the yearended 30April 2021
NOTE 19 - CREDITORS
2021 2020
GROUP £ £
AMOUNTS FALLING DUE WITHIN ONE YEAR
Unrestricted
Tax and social security 64,714 64,513
Other creditors 190,550 249,519
Accruals 561,225 532,994
Deferred income 876,739 737,029
Long term borrowing 167,454 32,502
Restricted
Social housing grant 25,600 25,600
TOTAL AMOUNTS FALLING DUE WITHIN ONE YEAR 1,886,282 1,642,157
AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Unrestricted
Long term borrowing 4,800,044 4,192,498
Restricted
Social housing grant 2,328,376 2,353,976
TOTAL AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 7,128,420 6,546,474
2021 2020
PARENT £ £
AMOUNTS FALLING DUE WITHIN ONE YEAR
Unrestricted
Tax and social security 64,714 83,973
Other creditors 274,649 162,262
Accruals 492,573 390,312
Deferred income 88,525 66,045
Long term borrowing 167,454 32,502
Restricted
Social housing grant 25,600 25,600
TOTAL AMOUNTS FALLING DUE WITHIN ONE YEAR 1,113,515 760,694
AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Unrestricted
Long term borrowing 4,800,044 4,192,498
Restricted
Social housing grant 2,328,376 2,353,976
TOTAL AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 6,546,474
7,128,420

A £5m development loan facility was taken out on 12 May 2017 for the Crookfur development and is secured over the freehold of the Crookfur estate. At year end, the balance of the development loan was £4.9m. Interest only was charged in the first 2 years whilst the development was taking place commencing July 2018. The capital is repayable over the following 23 years. Interest is payable at 1.75% over base rate. After 10 years of the 25-year loan term, a bullet repayment or re-finance agreement at prevailing market rates at this time will apply.

44

RETAIL TRUST NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 April 2021

NOTE 20 - PENSION PROVISIONS AND ARRANGEMENTS

GROUP AND PARENT

The TRUST operates a closed retirement and death benefits scheme with two categories of historic membership. The first category, the final salary pension scheme, was closed to new entrants in 2008. The second category, the career average scheme (CARE), was closed to new entrants in March 2013. Both categories of the scheme closed to future accrual on 31 January 2014 and were replaced by a Group Personal Pension (GPP) which has a current value of £926,777. Currently, 90% of staff have contributions invested with the GPP, which is managed by Legal and General and the TRUST contributed £128,085 (2020: £141,515) to the scheme on behalf of staff. The closed retirement and death benefits scheme is actuarially assessed every 3 years by qualified independent actuaries and the scheme’s assets are held separately from those of the group in an independent Pension Trustee administered fund.

2021
2020		 2021
2020
The main assumptions used by the actuary are: %
%
Rate of increase in pensions in payment - main 3.30
2.95
Rate of increase in pensions in payment - CARE 2.25
1.95
Rate of increase in pensions in deferment - main 3.40
2.55
Rate of increase in pensions in deferment - CARE 2.50
2.50
Discount rate 1.90
1.70
Retail Price Index inflation 3.40
2.55
Transfer values assumed taken at retirement 20%
25%
2021
2020
Life expectancies: %
%
65 at balance sheet date - Male S3PMA 115.0
115.0
66 at balance sheet date - Female S3PMA 125.0
125.0
65 in 20 years - Male CMI 2018 1.25
1.25
66 in 20 years - Female CMI 2018 1.25
1.25
Fair value of the assets and liabilities of the scheme were: Value of Assets
2021 2020
£ £
Equities 6,552,000 5,344,000
Bonds and gilts 4,723,000 3,591,000
Diversified growth fund 3,915,000 3,941,000
Cash 47,000 187,000
Fair value of assets of the scheme 15,237,000 13,063,000
Present value of scheme liabilities (15,911,000) (15,436,000)
(674,000) (2,373,000)

At 30 April 2021, the scheme owed the Charity £4,417 (2020: £4,417) in respect of overpaid contributions and tax-free payments made by the TRUST on behalf of the scheme. The amount is included within net current liabilities above and Note 17 - Debtors.

45

RETAIL TRUST NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 April 2021

NOTE 20 - PENSION PROVISIONS AND ARRANGEMENTS (continued)

2021 2020
Change in scheme liabilities £ £
Scheme liabilities at 1 May 2020 (15,436,000) (15,217,000)
Interest cost (256,000) (350,000)
Actuarial gain/(loss) (1,024,000) (496,000)
Benefits paid directly by the employer 805,000 627,000
Scheme liabilities at 30 April 2021 (15,911,000) (15,436,000)
Change in scheme assets:
Fair value of assets at 1 May 2020 13,063,000 14,012,000
Actuarial (loss)/gain on assets 2,849,000 (579,000)
Benefit paid (805,000) (627,000)
Interest income 215,000 321,000
Administration expenses (85,000) (64,000)
Fair value of assets at 30 April 2021 15,237,000 13,063,000
Pension liability recognised at 30 April 2021 (674,000) (2,373,000)
Analysis of the amounts recognised in net surplus/(deficit):
Administrative expenses 85,000 64,000
Net interest 41,000 29,000
Amount charges to net surplus/(deficit) 126,000 93,000
Analysis of the amounts recognised in other comprehensive income:
Actuarial gains/(losses) on liabilities (1,024,000) (496,000)
Return on assets excluding amount included in net interest (2,849,000) (579,000)
Amount recognised in other comprehensive income 1,825,000 (1,075,000)

The last actuarial valuation of the Scheme was performed by the actuary for the Trustees as at 30 June 2019, which reported a surplus of £1,096,000. As there was a surplus in the Scheme the Employer has not needed to pay any contributions into the scheme over the year to 30 April 2021 (2020: nil). In the financial year ending 30 April 2022, the employer's contributions are expected to be £nil.

46

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 April 2021

RETAIL TRUST

NOTE 21 - UNRESTRICTED RESERVES

GROUP AND
PARENT		 As at
01-May
2020		 Surplus /
(Deficit)
for the year		 Gains /
Losses		 Gains /
Losses		 Transfers
between
funds		 As at
30-Apr
2021
£
144,095
(674,000)
28,707,632
5,779,554
33,957,281
102,518
34,059,799
As at
30-Apr
2020
£
144,095
(2,373,000)
30,712,633
2,870,597
31,354,325
198,064		 As at
30-Apr
2021
£
144,095
(674,000)
28,707,632
5,779,554
33,957,281
102,518
34,059,799
As at
30-Apr
2020
£
144,095
(2,373,000)
30,712,633
2,870,597
31,354,325
198,064
£ £ £ £
Designated Reserves
Crookfur
development		 144,095 - - -
Other unrestricted
reserves		 -
Pension scheme
reserve		 (2,373,000) 1,825,000 (126,000)
Property reserve 30,712,633 - - (2,005,001)
Retained earnings 2,870,597 545,459 232,497 2,131,001
Parent total reserves 31,354,325 545,459 2,057,497 -
Retained earnings of
subsidiaries		 198,064 (95,545) - -
Group total reserves 31,552,389 449,913 2,057,497 -
As at Surplus / Transfers
01-May (Deficit) Gains / between
2019 for the year Losses funds
£ £ £ £
Designated Reserves
Crookfur
development		 144,095 - - -
Other unrestricted
reserves		 (1,075,000)
Pension scheme
reserve		 (1,205,000) - (93,000)
Property reserve 29,932,633 - - 780,000
Retained earnings 2,738,743 109,982 (71,128) 93,000
Parent total reserves 31,610,471 109,982 (1,146,128) 780,000
Retained earnings of
subsidiaries		 109,046 89,018 - -
Group total reserves 31,719,517 199,000 (1,146,128) 780,000 31,552,389

47

RETAIL TRUST

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 April 2021

NOTE 21 - UNRESTRICTED RESERVES (continued)

Property reserve

The property reserve represents net book value of the freehold housing and office properties adjusted by the social housing grant and long term borrowing associated with the properties and is an amount that is not distributable.

Pension reserve

The pension reserve represents the balance in the defined benefit pension scheme.

Designated reserves

The designated reserves reflect the balances designated for the Crookfur development project.

Transfers between funds

Crookfur development represents pre-development costs utilised from amounts previously designated.

Pension Scheme represents costs of the scheme.

Property reserve represents net additions and outstanding loan balance in the year.

NOTE 22 - RESTRICTED RESERVES

GROUP AND
PARENT		 Multi- Other
sensory Trust Retail
Stimulation Funds Right Crookfur Total
£ £ £ £ £
As at 1 May 2019 10,247 24,000 - 780,000 814,247
Income - - 63,265 - 63,265
Expenditure - - (63,265) - (63,265)
Transfer - - - (780,000) (780,000)
As at 1 May 2020 10,247 24,000 - - 34,247
Incoming resources - - - - -
Outgoing resources - - - - -
As at 30 April 2021 10,247 24,000 - - 34,247

The "Multi-sensory Stimulation" reserve is to provide specialist rooms of relaxation for dementia residents on the Cottage Homes estates.

The "Other Trust Funds" have been provided to fund specific equipment, including IT equipment, mobility vehicles and outdoor furniture.

The restricted reserves for "Retail Right" provides a range of educational and development support services.

The "Crookfur" fund represents donations that have been received specifically for the Crookfur development project.

48

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 April 2021

RETAIL TRUST

NOTE 23 - ENDOWMENT FUNDS

GROUP AND PARENT John John John
Goodenday Goodenday Walsh
Cottage Endowment Pension Total
Homes Trust Fund Fund
£ £ £ £
As at 1 May 2019 113,423 185,284 49,680 348,387

Increase in the market value of investments		 (5,396) (8,816) (2,364) (16,576)
As at 1 May 2020 108,027 176,468 47,316 331,811
Increase in the market value of investments 17,285 28,235 7,572 53,092
As at 30 April 2021 125,312 204,703 54,887 384,903

The restricted reserves include three endowment funds. The investment income derived from the funds is for the use of Retail Trust in its ongoing operations; however, capital is not usable.

NOTE 24 - OPERATING LEASE COMMITMENTS

At 30 April 2021 the TRUST had annual commitments under non-cancellable operating leases relating to photocopiers and telecommunications.

telecommunications.
2021 2020
£ £
Within one year 4,320 52,019
One to five years - 4,320
4,320 56,340

NOTE 25 - CAPITAL COMMITMENTS

Amounts contracted for in the group but not provided for in the financial statements as at 30 April 2021 is £nil (2020: £3,181,013).

NOTE 26 - POST BALANCE SHEET EVENTS

There were no post balance sheet events subsequent to year end.

49