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2021-03-31-accounts

Company registration number: 03936652 (England & Wales) Charity registration number: 1090320

Amended

North West Lung Centre Group Strategic Report, Report of the Trustees and Consolidated Financial Statements For the year ended 31 March 2021

North West Lung Centre Consolidated Financial Statements For the year ended 31 March 2021

Contents Page
Reference and Administrative Details 1
Trustees Annual Report including Directors Report and Strategic Report 2-5
Independent Auditor's Report 6-9
Consolidated Statement of Financial Activities (including an Income and 10-11
Expenditure Account)
Consolidated Balance Sheet 12
Company Balance Sheet 13
Consolidated Statement of Changes in Equity 14
Company Statement of Changes in Equity 15
Consolidated Cash Flow Statement 16
Company Cash Flow Statement 17
Notes to the Financial Statements 18-33

North West Lung Centre Reference and Administrative details For the year ended 31 March 2021

Company registration number 03936652
Charity registration number 1090320
Trustees Professor J Vestbo
Mr J H Alcock
Dr A M Jones
Dr C S Murray
Dr Y J Summers (Resigned 27/04/2021)
Mr A K Webb
Professor M A Woodhead (Resigned 20/10/2020)
Professor A Woodcock (Resigned 27/04/2021)
Dr H Badri (Appointed 09/12/2020)
Company secretary Professor J Vestbo
Registered office & principal address The Langley Building
Southmoor Road
Wythenshawe
Manchester
M23 9QZ
Auditors Warr & Co Limited
Chartered Accountants
and Statutory Auditors
76 Manchester Road
Denton
Manchester
M34 3PS
Solicitors Davis Blank Furniss
Units 13-15 Brewery Yard
Deva City Office Park
Trinity Way
Manchester
M2 7BD
Bankers Royal Bank of Scotland Plc
467 Wilmslow Road
Withington
Manchester
M20 4AN
Investment managers Investec Wealth & Investment
Management Ltd
2ndFloor, 3 Hardman Street
Spinningfields
Manchester
M3 3HF

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North West Lung Centre Trustees Annual Report For the year ended 31 March 2021

The trustees who are also directors of the charitable company for the purposes of the Companies Act 2006, present their report and the audited financial statements of the charity and the group for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Trustees of the charity

The trustees who have served during the year and since the year end were as follows:

Professor J Vestbo Mr J H Alcock Dr A M Jones Dr C S Murray Dr Y J Summers (Resigned 27/04/2021) Mr A K Webb Professor M A Woodhead (Resigned 20/10/2020) Professor A Woodcock (Resigned 27/04/2021) Dr H Badri (Appointed 09/12/2020)

Objectives and activities

The objects of the charity are:

Through its close involvement with Manchester University NHS Foundation Trust (Wythenshawe) and in particular the North West Lung Research Centre, the Charity seeks to promote and assist in funding research into lung disease in the North West of England. It seeks to do this by identifying worthwhile and relevant research projects and supporting these financially using funds donated directly as well as those donated by its subsidiary companies.

Public benefit statement

The trustees have considered the Charity Commission guidance on public benefit and consider that the objectives and activities of the charity provide a public benefit in that they contribute to the advancement of public health with a specific focus on the North West of England.

Strategic Report

Achievements and performance

The Charity’s principal subsidiary, Medicines Evaluation Unit Ltd (MEU), has had another excellent year and the activities continue to grow. The company’s turnover for the year ended 31[st] March 2021 was £14,709,377 and it has been in a position to donate £1,213,994 to the Charity. The company now operates a thirty-six bed facility following the completion of its £1.2 million extension 9 years ago and will likely expand further at the Wythenshawe site as the existing building continues to experience high occupancy.

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North West Lung Centre Trustees Annual Report For the year ended 31 March 2021

Strategic Report

Achievements and performance

The Charity continues to provide infrastructure support for respiratory research at the North West Lung Research Centre, Manchester University NHS Foundation Trust, the University of Manchester, and from 2017 also the Respiratory Theme of the NIHR Manchester Biomedical Centre, as well as support for projects and posts. Not least the latter has enabled several of the current University faculty to start and/or accelerate their research and has therefore often led to attraction of further substantial funding. With the growing revenue of the Charity’s principal subsidiary, Medicines Evaluation Unit Ltd (MEU), there are ongoing discussions on larger strategic research investments (people or equipment) as part of the Charity’s future strategy.

The funding awarded this year supports:

  1. Continued research using the dedicated research MRI scanner for cardiorespiratory research at Wythenshawe Hospital. The scanner was originally set up with the help of a Charity donation of £500k as well as funding from the British Heart Foundation, as well as a private donor, the University of Manchester, and the Manchester University Hospital NHS Foundation Trust. The scanner provides an excellent basis for collaborative respiratory and cardiac research.

This year the Charity has funded the purchase of an MRI coil for imaging of the lungs (£45,000) and support for specific imaging research projects (£125,000).

  1. A laboratory technician and a research manager – who work as part of a team of four technicians providing close to patient sample handling and downstream processing for most of the research projects undertaken in the NWLC including The Manchester Asthma and Allergy Study (MAAS), UBIOPRED, Airprom, Manchester Allergy, Respiratory and Thoracic Surgery Biobank (ManARTS, previously ManRAB), studies conducted within the NIHR Manchester Clinical Research Facility in addition to studies in Lung Cancer Diagnostics and Cystic Fibrosis.

In the last few years seminal COVID studies carried out in collaboration between clinical researchers at Wythenshawe Hospital and researchers at the University’s renowned Lydia Becker Institute of Immunology and Inflammation have been carried out here.

  1. Pickering Fellowship – The Charity has over the years part funded a senior post for a clinical academic as a bridge to securing an external fellowship. The Charity is currently supporting two such posts. One post has been taken up by a researcher studying neuronal mechanisms underlying occupational asthma; this fellowship is also the first to link research ongoing at both Wythenshawe Hospital and North Manchester Hospital. Another studies proteomics in CF and non-CF bronchiectasis, a frequent area of respiratory medicine that has previously been neglected but which we see as a need and an area we want to expand in Manchester. A third has just started research in interstitial lung diseases.

The Charity is very proud of the fellowships. We believe they are an important way of growing new respiratory academics and previous Pickering fellows have all gone on to do well in respiratory research.

  1. A Senior Mesothelioma Clinical Nurse Specialist.

  2. Laboratory consumable and equipment support – providing funding for shared consumables, equipment maintenance contracts, repair and replacement. This includes acquisition of a new microscope camera for the Education and Research Centre at Wythenshawe hospital.

  3. A research assistant to provide support in the creation and maintenance of databases.

  4. An Administrative Financial Coordinator.

Finally, Professors David Denning and Jørgen Vestbo, both previous grant recipients, have again been named Highly Cited Researchers by Web of Science / Clarivate Analytics. The list of Highly Cited Researchers for 2019 contains 6,216 researchers in all fields of research in the world; of these, 436 in Clinical Medicine.

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North West Lung Centre Trustees Annual Report For the year ended 31 March 2021

Strategic Report

Financial review

The group accounts reflect a net increase in funds during the year of £4,872,988. There was a reduction in funds for 2020 of £623,181 resulting from a prior period adjustment as detailed in the notes to the accounts. At the year end the group’s unrestricted reserves totalled £23,405,677 (2020: £18,532,688).

There were unrealised gains on the Charity’s investment portfolio of £142,952 (2020: losses £13,593) and realised gains of £10,851 (2020: £74,025) on investment disposals. The net gains in the Charity’s investment portfolio amounted to £153,803 (2020: £60,432). Investment income at £19,240 compares with £19,407 received in the previous accounting year.

Reserves policy

It is the trustees policy to maintain sufficient reserves to enable the Charity to continue to support studies of lung disease at the University Hospital of South Manchester. In particular, the funding of technicians salaries underpinning the major 10-15 year study of prospective longitudinal epidemiological studies into the development of lung disease. In addition, the trustees seek to maintain unrestricted reserves at a level that will enable them to contribute to other related studies whenever possible.

Investment powers and policy

Under the Articles of Association the trustees have the power to make any investments on behalf of the Charity that they see fit. In considering investment decisions the trustees make due consideration of social, environmental and ethical matters.

Future plans

As a result of the COVID-19 pandemic, very few studies have been able to continue. The Charity has provided non-costed extensions to projects already funded by the Charity, and we have provided costed extensions and allowed changes to project and/or budgets where this has been a consequence of the pandemic.

The trustees are currently involved in ongoing discussions regarding larger strategic research investments (people or equipment) as part of the Charity’s future strategy.

Structure, governance and management

Governing Document

North West Lung Centre is a charitable company limited by guarantee, incorporated on 29 February 2000 and registered as a charity on 30 January 2002. The governing document is the company’s Memorandum and Articles of Association.

Recruitment and appointment of Trustees

New trustees are appointed following recommendation from the existing trustees. Under the requirements of the Memorandum and Articles of Association, one third of the trustees shall retire by rotation at each Annual General Meeting. If the resulting vacancies are not filled, then the retiring trustees are, providing they are willing to act, deemed to be reappointed unless the meeting resolves not to fill the vacancies.

Trustee induction and training

All existing trustees are familiar with the work of the charity, new trustees are assisted and encouraged to make themselves aware of the operation of the Charity and the context within which it operates. In particular:

Risk Management

The trustees have conducted a review of the major risks to which the charity is exposed. Where appropriate, systems of procedures have been established to mitigate the risks the charity faces.

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North West Lung Centre Trustees Annual Report For the year ended 31 March 2021

Structure, governance and management

Organisation

The trustees are responsible for the strategic direction and policy of the charity, and the management of the day-to-day activities of the charity. The Articles dictate that there shall be a minimum of three trustees but there is no prescribed maximum.

The liabilities of the members is limited. In winding up each member shall be required to contribute an amount not exceeding £10. Application for membership of the Charity must be approved by the trustees and the number of members shall not be less than two.

Related Parties

The Charity owns 95.5% of the shares capital of Medicines Evaluation Unit Limited and MEU Solutions Limited. Medicines Evaluation Unit Limited is a company principally engaged in evaluating medicines for the pharmaceuticals industry. MEU Solutions Limited is a clinical research organisation.

Statement of trustees’ responsibilities

The trustees (who are also the directors of North West Lung Centre for the purposes of company law) are responsible for preparing the Report of the trustees, including the group strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company Law requires the trustees to prepare financial statements for each financial period which show a true and fair view of the state of affairs of the charity and the group and of the income and expenditure of the group for that period. In preparing those accounts the trustees are required to:

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

Disclosure of information to the auditors

We, the trustees of the charitable company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:

In approving the Trustees' Annual Report, we also approve the Strategic Report included therein, in our capacity as company directors.

Signed on behalf of the board on XX March 2023.

Prof. J Vestbo, DMSc FRCP FERS FMedSci Trustee and Board Secretary

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Independent Auditor’s Report to the Members of North West Lung Centre For the year ended 31 March 2021

Opinion

We have audited the financial statements of North West Lung Centre (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2021 which comprise the Consolidated statement of financial activities, Consolidated balance sheet, Company balance sheet, Consolidated statement of changes in equity, Company statement of changes in equity, Consolidated cash flow statement, Company cash flow statement 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 Auditors' 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 and the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information in the Report of the trustees, but does not include the financial statements and our Report of the auditors thereon.

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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Independent Auditor’s Report to the Members of North West Lung Centre For the year ended 31 March 2021

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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities set out on page five, the trustees, who are also directors of the parent charitable company for the purpose 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 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 or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the auditors 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.

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Independent Auditor’s Report to the Members of North West Lung Centre For the year ended 31 March 2021

Auditors' responsibilities for the audit of the financial statements

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations were as follows:

-the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-we identified the laws and regulations applicable to the company through discussions with the trustees and other management and review of appropriate industry knowledge;

-we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and

-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the charitable company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

-making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and -considering the internal controls in place to mitigate risks of fraud and non- compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we;

-performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships;

-reviewed the application of accounting policies with focus on those with heightened estimation uncertainty.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to;

-agreeing financial statement disclosures to underlying supporting documentation; and -enquiring of management as to actual and potential litigation and claims.

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

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 Report of the auditors.

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Independent Auditor’s Report to the Members of North West Lung Centre For the year ended 31 March 2021

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Nicola Joyce ACA, FCCA(Statutory Senior Auditor) for and on behalf of Warr & Co Limited Chartered Accountants & Statutory Auditors 76 Manchester Road Denton Manchester M34 3PS

Dated XX March 2023

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North West Lung Centre Consolidated Statement of Group Financial Activities (Including a Consolidated Income and Expenditure Account) For the year ended 31 March 2021

Unrestricted Funds

Note
INCOME
Donations and legacies
4
Other trading activities:
Trading income
5
Government grants
5
Income from investments
6
TOTAL INCOME
EXPENDITURE
Expenditure on raising funds:
Trading expenses
Investment management fees
Publicity expenditure
Expenditure on charitable activities:
Promotion of research
7
Governance costs
7
TOTAL RESOURCES EXPENDED
Net incoming resources before gains/(losses) on
investments
Net gains/(losses) on investments
Net income before taxation
Taxation
11
Net movement in funds
Net movement in funds for the year is attributable to:
- Parent charity
- Non-controlling interests		 2021
£
215,253
15,097,720
442,226
112,593
15,867,792
11,127,026
11,376
-
808,138
22,011
11,968,551
3,899,241
938,601
4,837,842
285,438
5,123,280
4,872,988
250,292
5,123,280		 2020
as restated
£
7,755
11,672,424
-
71,781
11,751,960
9,206,669
11,028
234
2,707,528
30,267
11,955,726
(203,766)
(522,605)
(726,371)
204,839
(521,532)
(623,181)
101,649
(521,532)

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

North West Lung Centre Consolidated Statement of Group Financial Activities (Including a Consolidated Income and Expenditure Account) For the year ended 31 March 2021

RECONCILIATION OF FUNDS
Total unrestricted funds brought forward at 1 April 2020
Net movement in funds for the year is attributable to:
- Parent charity
- Non-controlling interests
- Dividends paid to non-controlling interests in subsidiary
undertakings
Total unrestricted funds carried forward at 31 March 2021		 Unrestricted Funds
2021
2020
as restated
£
£
18,583,320
19,275,848
4,872,988
(623,181)
250,292
101,649
(190,407)
(171,000)
59,885
(69,351)
23,516,193
18,583,316		 Unrestricted Funds
2021
2020
as restated
£
£
18,583,320
19,275,848
4,872,988
(623,181)
250,292
101,649
(190,407)
(171,000)
59,885
(69,351)
23,516,193
18,583,316
(69,351)
18,583,316

All income and expenditure derives from continuing activities.

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

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

North West Lung Centre Consolidated Balance Sheet For the year ended 31 March 2021

Note
Fixed assets
Tangible assets
16
Investments
17
Current assets
Debtors
18
Cash at bank and in hand
Creditors
Amounts falling due within one year
19
Net current assets
Total assets less current liabilities
Creditors
Amounts falling due after more than one year
20
Provisions for liabilities
21
Total assets
Unrestricted funds attributable to:
- Parent charity
- Non-controlling interests		 2021
£
4,372,213
4,886,071
9,258,284
4,235,179
13,961,385
18,196,564
3,240,327
14,956,237
24,214,521
620,496
63,059
23,530,966
23,405,677
125,289
23,530,966		 2020
as restated
£
4,583,283
3,948,963
8,532,246
3,849,128
9,354,120
13,203,248
1,864,44
11,338,774
19,871,020
1,209,869
63,059
18,598,092
18,532,688
65,404
18,598,092

The financial statements were approved and authorised for issue by the Board on XX March 2023 Signed on behalf of the board of trustees

Prof. J Vestbo, DMSc FRCP FERS FMedSci Trustee

Mr A K Webb Trustee

Company registration number 03936652

The notes on pages 17 to 31 form part of these financial statements.

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North West Lung Centre Company Balance Sheet For the year ended 31 March 2021

Note
Fixed assets
Investments
17
Current assets
Debtors
18
Cash at bank and in hand
Creditors
Amounts falling due within one year
19
Net current assets
Total assets less current liabilities
Creditors
Amounts falling due after more than one year
20
Total assets
Funds
Unrestricted funds		 2021
£
878,825
878,825
636
1,690,332
1,690,968
982,424
708,544
1,587,369
620,496
966,873
966,873
966,873		 2020
as restated
£
703,229
703,229
2,930
1,506,498
1,509,428
847,482
661,946
1,365,175
1,209,869
155,306
155,306
155,306

The Charitable company’s net movement in funds for the year was a surplus of £811,567 (2020 deficit £2,628,621).

The financial statements were approved and authorised for issue by the Board on XX March 2023 Signed on behalf of the board of trustees

Prof. J Vestbo, DMSc FRCP FERS FMedSci Trustee

Mr A K Webb Trustee

Company registration number 03936652

The notes on pages 17 to 31 form part of these financial statements.

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North West Lung Centre Consolidated Statement of Changes in Equity For the year ended 31 March 2021

At 1 April 2019
Changes in equity
Net movement in
funds
Dividends paid to
Non-controlling
interests
At 31 March 2020
Prior year adjustment
As restated
Changes in equity
Net movement in
funds
Dividends paid to
Non-controlling
interests
At 31 March 2021		 Unrestricted
funds
£
19,275,848
1,380,034
-171,000
1,209,034
-1,901,565
18,583,317
5,123,280
-190,407
23,516,190		 Share
capital
£
78
-
-
78
-
78
-
-
78		 Share
premium
£
14,697
-
-
14,697
-
14,697
-
-
14,697		 Total
controlling
interest
£
19,155,868
1,285,215
-
20,441,083
-1,908,395
18,532,688
4,872,988
-
23,405,676		 Non-
controlling
interest
£
134,755
94,819
-171,000
58,574
6,830
65,404
250,292
-190,407
125,289		 Total fund
balances
£
19,290,623
1,380,034
-171,000
20,499,657
-1,901,565
18,598,092
5,123,280
-190,407
23,530,965

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The notes on pages 17 to 31 form part of these financial statements.

North West Lung Centre Company Statement of Changes in Equity For the year ended 31 March 2021

At 1 April 2019
Changes in equity
Net movement in funds
At 31 March 2020
Prior year adjustment
As restated
Changes in equity
Net movement in funds
At 31 March 2021		 Unrestricted
funds
£
2,783,927
(727,056)
2,056,871
(1,901,564)
155,306
811,567
966,873		 Total
£
2,783,927
(727,056)
2,056,871
(1,901,564)
155,306
811,567
966,873

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The notes on pages 17 to 31 form part of these financial statements.

North West Lung Centre Consolidated Cash Flow Statement For the year ended 31 March 2021

Note
Cash flows from operating activities
Cash generated from operations
23
Interest paid
Government grants
Tax paid
Net cash from operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Purchase of fixed asset investments
Sale of fixed asset investments
Interest received
Dividends received
Net cash from investing activities
Cash flows from financing activities
Dividends paid to non-controlling interests
Increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
24
Cash and cash equivalents at end of year
24		 2021

£
4,078,232
(192)
442,226
216,390
4,736,655
(37,608)
(1,635,124)
1,633,491
17,735
82,523
61,017
(190,407)
4,607,265
9,354,120
13,961,385		 2020
as restated
£
(327,226)
-
-
-
327,226
(260,249)
(4,468,099)
786,395
34,585
25,674
(3,881,694)
(171,000)
(3,725,468)
13,079,588
9,354,120

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The notes on pages 17 to 31 form part of these financial statements.

North West Lung Centre Company Cash Flow Statement For the year ended 31 March 2021

Note
Cash flows from operating activities
Cash generated from operations
23
Tax paid
Net cash from operating activities
Cash flows from investing activities
Purchase of fixed asset investments
Sale of fixed asset investments
Interest received
Dividends received
Net cash from investing activities
Increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
24
Cash and cash equivalents at end of year
24		 2021

£
(1,065,879)
2,930
(1,062,949)
(175,122)
163,987
691
1,257,227
1,246,783
183,834
1,506,498
1,690,332		 2020
as restated
£
(482,388)
-
(482,388)
(158,108)
172,374
3,989
182,715
200,970
(281,418)
1,787,916
1,506,498

17 | P a g e

The notes on pages 17 to 31 form part of these financial statements.

North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2021

1 Statutory Information

North West Lung Centre is a private charitable company, limited by guarantee and registered in England and Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The address of the registered office is given in the charity information on page one of these financial statements. The nature of the charity’s operations and principal activities are detailed in the Trustees Report.

2 Accounting policies

Basis of preparing the financial statements

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Companies Act 2006, the recommendations of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities (FRS 102) (effective 1 January 2019) and UK Generally Accepted Accounting Practice. The financial statements have been prepared on a going concern basis under the historical cost convention modified to the extent that listed investments are included at fair value.

The financial statements are presented in sterling, which is the functional currency of the company. All amounts stated are rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Group financial statements

These financial statements consolidate the results of the Charity and its subsidiaries, Medicines Evaluation Unit Limited and MEU Solutions Limited on a line by line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the parent charity is not presented as part of these financial statements as permitted by Section 408 of the Companies Act 2006.

All financial statements are made up to 31 March 2021. All inter-company transactions and balances between group companies are eliminated on consolidation.

Medicines Evaluation Unit Limited and MEU Solutions Limited have been included in the group financial statements using the purchase method of accounting. Accordingly, the group financial statements and statement of cash flows include the results and cash flows of both companies. The 4.5% non-controlling interest of each company has been separately disclosed.

Going concern

The trustees have considered the impact of the Covid 19 pandemic in their assessment of the group’s financial position. They expect that the companies will continue to create positive cash flows for the foreseeable future and are confident that there is a reasonable expectation that the companies have adequate resources to continue in operational existence for the foreseeable future, being at least 12 months from the date of approval of the financial statements. Thus, the company has prepared the financial statements on a going concern basis.

Funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Any capital gains or losses arising on the investments form part of the unrestricted fund. Investment management charges and legal advice relating to the investments are charged against the unrestricted fund.

18 | P a g e

North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2021

2 Accounting policies – continued

Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income, the amount can be measured reliably and it is probable that the income will be received.

No amount is included in the financial statements for volunteer time in line with the SORP.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Investment income is earned through holding assets for investment purposes such as shares. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend income is recognised as the charity’s right to receive payment is established.

Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. The costs of each activity are made up of the total of direct costs and a share of other costs including support costs involved in undertaking each activity. Costa are categorised under the following headings:

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Short leasehold land and Over the term of the lease buildings Medical and office equipment 25% on cost Fixtures and fittings 15% on cost Motor vehicles 25% on cost Computer equipment 33% on cost

19 | P a g e

North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2021

2 Accounting policies – continued

Investments

Fixed asset Investments are recognised initially at transaction price excluding transaction costs. Subsequently, they are measured at fair value at each reporting date with changes recognised in ‘net gains / (losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

For the purposes of the Charity’s balance sheet, the investments in Medicines Evaluation Unit Limited and MEU Solutions Limited are shown at the cost to the charity, which is the share capital of the company.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at banks, and other short term liquid investments.

Financial instruments

The company has elected to apply the provisions of section 11 'Basic Financial Instruments' of FRS102 to all of its financial instruments.

Financial instruments are recognised in the group and company balance sheets when the company becomes party to the contractual provisions of the instrument.

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

Basic financial assets

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

Basic financial liabilities

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

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

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

20 | P a g e

North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2021

2 Accounting policies – continued

Taxation

Taxation for the year comprises current and deferred tax in respect of the group companies. Tax is recognised in the Consolidated Statement of Financial Activities, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

The parent company meets the definition of a charitable company and is potentially exempt from taxation in respect of its income and capital gains to the extent that such income or gains are applied exclusively to charitable purposes.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Turnover from trading activities

Turnover is recognised at the fair value of the consideration received or receivable for services provided in connection with the operation of clinical trials and related services.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of future receipts. The difference between the fair value of the consideration and the normal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged as an expense on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The groups subsidiary undertakings contribute to a defined contribution pension scheme. Contributions payable are charged as an expense in the period to which they relate.

21 | P a g e

North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2021

2 Accounting policies – continued

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. Costs relating to any unused holiday entitlement is recognised in the period in which the employee's services are received.

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

Government grants

Government grants are accounted for on a receivable basis and represent sums received in response to the Covid 19 pandemic including amounts claimed under the Coronavirus Job Retention Scheme.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

3 Critical accounting judgements and key sources of estimation uncertainty

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

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

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Management have used their expectation of the estimated useful lives of each category of assets in order to ensure the appropriate provision is made for depreciation. Details of the estimated useful lives are noted in the accounting policies and the depreciation provision is stated in note 16.

Amounts recoverable under contracts are measured by management who by reference to individual contracts assess the stage of completion by determining the proportion of work completed and costs incurred to ensure that revenue is recognised in the correct accounting period.

4 Income from donations and legacies

General donations

Company Company
2021 2020
£ £
215,253 7,755

22 | P a g e

North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2021

5 Income from other trading activities

Income from other trading activities
Trading activities
Turnover - clinical trials
Government grants - Covid 19		 Group
2021
2020
£
£
15,097,720
11,672,424
442,226
-
15,539,946
11,672,424		 Company
2021
2020
£
£
-
-
-
-
-
-
-

6 Income from investments

Bank interest
Income from listed investments
Expenditure on charitable activities
Promotion of research
Research grants to institutions
Travel costs
Donations		 Group
2021
2020
£
£
17,735
34,585
94,858
37,196
112,593
71,781		 Company
2021
2020
£
£
691
3,989
19,240
-
19,931
3,989
Company
2021
2020
£
£
803,095
2,682,006
2,821
12,243
2,222
13,279
808,138
2,707,528

7 Expenditure on charitable activities

Governance costs
Legal and professional fees
Auditors remuneration
Sundries
Bank charges		 Company
2021
2020
£
£
8,829
16,712
10,930
5,700
2,080
7,674
171
181
22,010
30,267		 Company
2021
2020
£
£
8,829
16,712
10,930
5,700
2,080
7,674
171
181
22,010
30,267
30,267

23 | P a g e

North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2021

8 Analysis of grants

All grants are made to institutions in furtherance of the charitable objectives as detailed in the Trustees Report. The majority of grant support was awarded to the Manchester University NHS Foundation Trust and The University of Manchester, the total cost of grants awarded includes support costs and is disclosed on the face of the SoFA as Promotion of Research, a breakdown of the costs is included in note 7 to the accounts.

The following institutions received grant support from the charity during the year.

Manchester University NHS Foundation Trust
The University of Manchester
The University Hospital of South Manchester
Pennine Acute Hospital NHS Trust
Others
he nature of projects supported during the year are as follows:
Research projects
Salary funding awards
Purchase of equipment and consumables		 2021
£
668,100
126,488
-
-
8,507
803,095		 2020
£
725,534
1,627,316
148,527
157,496
23,133
2,682,006
2021
£
194,908
81,396
526,791
803,095

The nature of projects supported during the year are as follows:

9 Movements in funding commitments

The Charity awards a number of grants, some are awarded and paid out in the same financial year. However, some grants especially those relating to research or funding specific posts are multi-year grants paid over a longer period.

The movement in funding commitments during the year is as follows:

Opening balance at 1 April 2020
New funding awards approved during the year
Movement from non-current to current
Amounts paid during the year
Closing balance at 31 March 2021		 Current
liabilities
£
825,635
786,604
589,373
(1,256,267)
945,345		 Non-
current
liabilities
£
1,209,869
16,491
(589,373)
636,987		 Total
£
2,035,504
803,095
-
(1,256,267)
1,582,332

24 | P a g e

North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2021

10 Auditors remuneration

0 Auditors remuneration
2021
£
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts
6,000
Fees payable to the charity's auditor in respect of non -audit services not
included in the above.
4,930
1 Taxation
2021
£
Current tax:
UK corporation tax
(285,439)
Adjustments in respect of prior periods
-
Total current tax
(285,439)
Deferred tax
-
Tax on profits
(285,439)
UK Corporation tax has been charged at 19% (2020 19%)
Reconciliation of total tax credit included in the Consolidated Statement of Financial
2021
£
Net income before taxation
4,837,843
Profit multiplied by the standard rate of corporation tax in the UK of 19% (2020 19%)
919,190
Effects of:
Expenses not deductible for tax purposes
(154,198)
Income not taxable for tax purposes
(71,796)
Utilisation of tax losses brought
forward
(1,101)
Capital allowances in excess of depreciation
-
Depreciation in excess of capital allowances
38,671
Adjustments to tax charge in respect of previous periods
-
Research and development tax
claim
(1,016,205)
Deferred tax adjustment
-
Total tax credit
(285,439)		 2021
£

6,000

4,930
2021
£
(285,439)
-		 2020
£
5,700
-
2020
as restated
£
(264,439)
(3,459)
(267,898)
63,059
(204,839)
Activities
2020
as
restated
£
(726,371)
(138,010)
582,500
(1,191)
(755)
(6,507)
-
(3,459)
(700,476)
63,059
(204,839)
(204,839)

11 Taxation

25 | P a g e

North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2021

12 Net income

2 Net income
Group
Net income is stated after charging/(crediting): 2021 2020
£ £
Operating lease rentals 47,173 37,674
Depreciation - owned assets 248,678 223,781
(Profit) /loss on disposal of fixed assets -205,365 11,411
Interest paid 192 -
Foreign exchange differences 3,356 -

13 Trustees remuneration and expenses

The trustees neither received nor waived any remuneration during the year (2020 £Nil).

Travel expenses amounting to £2,446 were reimbursed to one of the trustees during the year (2020: £11,943 to two trustees).

14 Staff costs and employee benefits

4 Staff costs and employee benefits 4 Staff costs and employee benefits 4 Staff costs and employee benefits
Group
2021
2020
£
£
The average number of employees during the year was as follows:
Admin
59
47
Clinical
63
89
122
136
The total staff costs and employee benefits were as follows:
Wages and salaries
4,793,819
4,720,606
Social security
465,519
517,832
Other pension costs
190,100
198,412
5,449,438
5,436,850		 Company
2021
2020
£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
5,449,438 5,436,850 - -

The number of group employees who received total employee benefits (excluding employer pension costs) of more than £60,000 is as follows:

more than £60,000 is as follows:
Group Company
2021 2020 2021 2020
Number Number Number Number
£60,001- £70,000 3 3 - -
£80,001- £90,000 1 2 - -
£100,001- £110,000 2 1 - -
£130,001- £140,000 1 - - -
£140,001- £150,000 - 1 - -
£180,001- £190,000 1 1 - -

26 | P a g e

North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2021

14 Staff costs and employee benefits - continued

The key management personnel of the group comprise the directors of the subsidiary undertakings Medicines Evaluation Unit Limited and MEU Solutions Limited whose employee benefits totalled £314,638 (2020: £331,077).

15 Prior year adjustment

In accordance with the accounting treatment required under FRS 102 the comparative prior year sum of £151,786 in respect of dividends received from a subsidiary company previously reported as donations received in the Charity accounts have been restated and are now included as income from investments.

Expenses amounting to £55,157 relating to the year ended 31 March 2020 have been accrued at the prior period balance sheet date. This has resulted in a reduction in net income and the unrestricted fund balance at 31 March 2020. Other items of expenditure recorded in the Statement of Financial Activities have been re-categorised in respect of the year to 31 March 2020.

Obligations in respect of awards approved but unpaid at 31 March 2020 have been recognised in the prior period balance sheet. This has resulted in an increase of £1,846,408 in creditors at 31 March 2020.

16 Tangible fixed assets

Group
Cost
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
Eliminated on disposal
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Short
Leasehold
£
5,494,933
-
-
5,494,933
1,285,406
127,775
-
1,413,181
4,081,752
4,209,527		 Plant and
Machinery
£
932,748
-
(180,692)
752,056
752,682
55,347
(180,692)
627,337
124,719
180,066		 Fixtures
and
fittings
£
468,654
37,608
-
506,262
333,164
27,546
-
360,710
145,552
135,490		 Motor
Vehicles
£
6,959
-
-
6,959
6,959
-
-
6,959
-
-		 Computer
equipment
£
247,288
-
-
247,288
189,088
38,010
227,098
20,190
58,200		 Total
£
7,150,582
37,608
(180,692)
7,007,498
2,567,299
248,678
(180,692)
2,635,285
4,372,213
4,583,283

27 | P a g e

North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2021

16 Tangible fixed assets - continued

Company
Cost
At 1 April 2020
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Eliminated on disposal
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Computer
equipment
£
180,692
(180,692)
-
180,692
(180,692)
-
-
-

17 Fixed asset investments

Group
Cost or valuation
At 1 April 2020
Additions
Disposals
Movement in valuation
At 31 March 2021
Market value
At 31 March 2021
At 31 March 2021		 Listed
investments
£
3,948,963
1,635,123
(1,417,275)
719,259
4,886,070
4,886,070
3,948,963		 Unlisted
investments
£
-
1
-
-
1
1
-		 Total
£
3,948,963
1,635,124
(1,417,275)
719,259
4,166,812
4,886,071
3,948,963

28 | P a g e

North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2021

17 Fixed asset investments - continued

Company
Cost or valuation
At 1 April 2020
Additions
Disposals
Movement in valuation
At 31 March 2021
Market value
At 31 March 2021
Market value
At 31 March 2020		 Shares in
group
undertakings
£
1,656
-
-
-
1,656
1,656		 Listed
investments
£
701,573
175,122
(153,136)
153,610
877,169
877,169		 Total
£
703,229
175,122
(153,136)
153,610
725,215
878,825
1,656 701,573 703,229

Subsidiary undertakings

The following were subsidiary undertakings of the charity at 31 March 2021.

Name Registered Office Address Class of
share		 Holding
Medicines Evaluation Unit Limited The Langley Building, Southmoor Road, Ordinary 'A' 95.50%
Wythenshawe, Manchester M23 9QZ
MEU Solutions Limited The Langley Building, Southmoor Road, Ordinary 'A' 95.50%
Wythenshawe, Manchester M23 9QZ

18 Debtors

Trade debtors
Amounts recoverable on contracts
Other debtors
Tax
Prepayments and accrued income		 Group
2021
2020
As restated
£
£
2,623,023
2,668,918
924,280
550,548
124,046
107,983
549,877
480,829
13,953
40,850
4,235,179
3,849,128		 Company
2021
2020
As restated
£
£
-
-
-
-
-
-
-
2,930
636
-
636
2,930		 Company
2021
2020
As restated
£
£
-
-
-
-
-
-
-
2,930
636
-
636
2,930
2,930

29 | P a g e

North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2021

19 Creditors – Amounts falling due within one year

Trade creditors
Amounts owed to participating
interests
Social security and other taxes
VAT
Other creditors
Accruals and deferred income
0 Creditors – Amounts falling due
Accruals and deferred income		 Group
2021
2020
As
restated
£
£
121,130
318,689
-
-
111,746
105,858
33,035
-
1,681
1,681
3,593,233
1,438,247
3,860,825
1,864,475
after more than one year
Group
2021
2020
As
restated
£
£
620,496
1,209,869		 Company
2021
£
-
-
-
-
1,681
980,743
982,424
Company
2021
£
620,496		 2020
As
restated
£
-
12,335
-
-
1,681
833,468
847,484

2020
As
restated
£
1,209,869

20 Creditors – Amounts falling due after more than one year

21 Provisions for liabilities and charges

Deferred tax
Accelerated capital allowances		 Group
2021
2020
as restated
£
£
63,059
63,059
Group
Balance as at 1 April 2020
Balance as at 31 March 2021		 Deferred
Tax
£
63,059
63,059

30 | P a g e

North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2021

22 Leasing commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

Not later than one year
Later than one year and not later than five years
In more than five years
23 Reconciliation of cash generated from operations
Group
Net incoming resources before taxation
Depreciation charges
Profit on disposal of fixed assets
(Gain)/loss on valuation of investments
Governments grants
Finance costs
Finance income
Decrease/(increase) in trade and other debtors
Increase /(decrease) in trade and other creditors
Cash generated from operations
Company
Net incoming resources before taxation
Profit on disposal of fixed assets
(Gain)/loss on valuation of investments
Finance income
Decrease/(increase) in trade and other debtors
Increase /(decrease) in trade and other creditors
Cash generated from operations		 2021
£
104,437
2,798,758
391,563
3,294,758
2021
£
4,825,506
248,678
(216,216)
(719,259)
(442,226)
192
(100,258)
3,596,417
(442,539)
924,354
4,078,232
2021
£
811,567
(10,851)
(153,610)
(1,270,253)
(623,147)
(636)
(442,096)
(1,065,879)		 2021
£
104,437
2,798,758
391,563		 2020
£
92,140
247,744
444,358
3,294,758 784,242
2021
£
4,825,506
248,678
(216,216)
(719,259)
(442,226)
192
(100,258)		 2020
as restated
£
(714,847)
223,781
(64,103)
586,708
-
-
(71,781)
(40,242)
(1,095,848)
(1,463,316)
327,226
2020
as restated
£
(2,628,621)
(75,514)
149,539
(186,704)
(2,741,300)
370,074
1,888,838
(482,388)

31 | P a g e

North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2021

24 Cash and cash equivalents

Group
Year ended 31 March 2021
Cash and cash equivalents
Year ended 31 March 2020
Cash and cash equivalents
Company
Year ended 31 March 2021
Cash and cash equivalents
Year ended 31 March 2020
Cash and cash equivalents
25 Analysis of changes in net funds
Group
Net cash
Cash at bank and in hand
Total
Company
Net cash
Cash at bank and in hand
Total		 At 1.4.2019
£
9,354,120
9,354,120
At 1.4.2019
£
1,506,498
1,506,498		 2021
£
13,961,385
2021
£
9,354,120
2021
£
1,690,332
2021
£
1,506,498
Cash flow
£
4,607,265
4,607,265
Cash flow
£
183,834
183,834		 2020
as restated
£
9,354,120
2020
as restated
£
13,079,588
2020
as restated
£
1,506,498
2020
as restated
£
1,787,916
At 31.3.2020
£
13,961,385
13,961,385
At 31.3.2020
£
1,690,332
1,690,332

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North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2021

26 Movements in funds

At 1.4.20
Unrestricted funds
£
General funds
18,583,316
Total funds
18,583,316
Net movement in funds, included in the above are as follows:
Incoming
resources
Unrestricted funds
£
General funds
17,091,831
Total funds
17,091,831
Comparatives for movement in funds
At 1.4.2019
Unrestricted funds
£
General funds
19,275,848
Total funds
19,275,848
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
Unrestricted funds
£
General funds
11,956,799
Total funds
11,956,799		 Net
movement
in funds
£
4,932,877
4,932,877
Resources
expended
£
12,158,9584
12,158,954
Net
movement
in funds
£
(692,532)
(692,532)

Resources
expended
£
12,649,331
12,649,331		 At
31.3.2021
£
23,516,193
23,516,193
Movement
in funds
£
4,932,877
4,932,877
At
31.3.2020
£
18,583,316
18,583,316
Movement
in funds
£
(692,532)
(692,532)

27 Non adjusting events after the financial period

The directors of MEU Solutions Limited have approved the purchase of new business premises and initial enquiries are being dealt with by the company’s solicitors. The cost of the purchase is expected to be less than £500k and will be funded from existing reserves.

28 Related Party Transactions

Legal fees of £5,000 (2020: £5,000) were paid to Eversley Resolutions, a business operated by Mr J Alcock. The amount was fully paid during the year and there are no amounts outstanding at the balance sheet date.

There are no other related party transactions.

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