Company registration number: 03936652 (England & Wales) Charity registration number: 1090320
North West Lung Centre Group Strategic Report, Report of the Trustees and Consolidated Financial Statements For the year ended 31 March 2023
North West Lung Centre Consolidated Financial Statements For the year ended 31 March 2023
| Contents | Page |
|---|---|
| Reference and Administrative Details | 1 |
| Trustees Annual Report including Directors Report and Strategic Report | 2-6 |
| Independent Auditor's Report | 7-10 |
| Consolidated Statement of Financial Activities (including an Income and Expenditure Account) |
11-12 |
| Company Statement of Financial Activities (including an Income and Expenditure Account) |
13 |
| Consolidated Balance Sheet | 14 |
| Company Balance Sheet | 15 |
| Consolidated Statement of Changes in Equity | 16 |
| Company Statement of Changes in Equity | 17 |
| Consolidated Cash Flow Statement | 18 |
| Company Cash Flow Statement | 19 |
| Notes to the Financial Statements | 20-38 |
North West Lung Centre Reference and Administrative details For the year ended 31 March 2023
| Company registration number | 03936652 |
|---|---|
| Charity registration number | 1090320 |
| Trustees | Professor J Vestbo |
| Mr J H Alcock | |
| Dr A M Jones | |
| Professor C S Murray | |
| Mr A K Webb | |
| Dr H Badri | |
| Dr L A Brown | |
| 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 | |
| Mynshull House | |
| 78 Churchgate | |
| Stockport | |
| SK1 1YJ | |
| 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 2023
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 2023. 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 Professor C S Murray Mr A K Webb Dr H Badri Dr L A Brown (Appointed 18/07/2023)
Objectives and activities
The objects of the charity are:
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To promote research into the causes and treatment of human diseases and disseminate the same to the public.
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To engage in research and development of respiratory medicines and general medicines for use in connection with the treatment referred to above.
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To promote the health and wellbeing of patients with respiratory or related diseases.
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 2023 was £17,573,750 and it has been in a position to donate £1,100,000 to the Charity. The company operates a thirty-six bed facility following the completion of its £1.2 million extension 10 years ago and plans are in place to expand the facility further over the next few years.
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 Team 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.
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North West Lung Centre Trustees Annual Report For the year ended 31 March 2023
Strategic Report Achievements and performance- continued
The funding awarded this year supports:
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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.
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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 Idiopathic Pulmonary Fibrosis and COPD.
In the last few years several 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.
- 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 four 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. And the fourth in respiratory immunological mechanisms.
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, securing significant external funding and clinical academic posts within the NHS and University.
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A PhD student analysing findings from the Manchester Early Detection of Lung Cancer programme. This work is led by Professor Phil Crosbie – who himself initiated his research career as a Pickering Fellow. The Manchester approach to lung cancer screening using mobile scanner facilities and combining with screening for other chronic lung diseases is set to be the model used by NHS England when lung cancer screening goes nationwide.
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Laboratory consumable and equipment support – providing funding for shared consumables, equipment maintenance contracts, repair and replacement.
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A research assistant to provide support in the creation and maintenance of databases.
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To continue and grow Volatile organic compound work, established in the AMR building at Wythenshawe hospital, a grant of £375k over 3 years will be given to provide one post-doc and 2 other members of staff will be given.
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Salaries for one research nurse and 2 research practitioners, to work on acute respiratory event research as part of the BRC Respiratory theme (infection, asthma and COPD).
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Support for 2 experimental medicine studies into long covid, one in children and one in adults.
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North West Lung Centre Trustees Annual Report For the year ended 31 March 2023
Strategic Report Achievements and performance- continued
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Support towards administrative staff salaries for respiratory research theme, to increase productivity of key researchers.
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Salary support for a senior research nurse in the asthma program for 30 months.
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12 months’ salary for post-doc clinical engineer within the respiratory symptoms theme, app 59k.
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The charity put out a call for application in August 2022 for small project grants (£50K each). The Scientific Committee met on 16/01/23 to discuss applications from the October 2022 project grant call. We had 16 applications all of high quality. The following 8 grants were approved for funding:
a) Development of a patient centred, patient reported outcome measure (PROM) for patients with Inducible Laryngeal Obstruction (ILO). £7711.17 will be available from 1/8/23 for 24 months.
b) Use of a unique and realistic lung macrophage model to investigate disease and therapy of cystic fibrosis bacterial pathogens. of £25,000 will be available from 1/4/23 for 24 months.
c) A multiomics biomarker discovery study in IPF. £50,000 will be available from 1/4/23 for 20 months.
d) Investigating the role of IL-13 in susceptibility to viral infection in COPD. £25,665 will be available from 1/4/23 for 12 months.
e) Neural Correlates of Low Dose Opioid Therapy in Refractory Chronic Cough. £48,771 will be available from 1/7/23 for 18 months.
f) Resolving monocyte and monocyte-derived macrophage extracellular matrix cross-talk and dysregulation: identification of novel biomarker-guided precision treatment targets for Idiopathic Pulmonary Fibrosis. £50,000 will be available from 1/4/23 for 24 months.
g) Investigating the mechanism of beta-lactam allergy—an essential step in developing better diagnostic test and treatment. £49,797 will be available from 1/4/23 for 12 months.
h) Analysis of mast cell signatures and inhibitory receptor expression to guide new drug applications in asthma and COPD. £27,492 00 will be available from 1/4/23 for 18 months.
The charity is funding four ongoing awards which have been nominated by the directors of Medicines Evaluation Unit Limited. Income received in prior years for these awards which has not been paid to the recipients amounts to £632,082 and is held in restricted funds in the accounts. The awards focus on studies of bacterial persistence in COPD.
Strategic Report Financial review
The group accounts reflect a net increase in funds during the year of £2,786,832 (2022 £4,134,555). At the year end, the group’s reserves totalled £30,327,064 (2022 £27,540,231).
There were unrealised losses on the Charity’s investment portfolio of £85,091 (2022 gains £76,163) and realised losses of £35,608 (2022 £76,734) on investment disposals. The net loss on the Charity’s investment portfolio amounted to £49,483 (2022 £571). Investment income at £16,642 compares with £16,301 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 Manchester Foundation Trust – Wythenshawe Hospital Site. 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.
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North West Lung Centre Trustees Annual Report For the year ended 31 March 2023
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
Following the COVID-19 pandemic, the Charity has seen an increase in research studies and results from the non-costed extensions already funded by the Charity.
The trustees are currently involved in ongoing discussions regarding competitive bids for PhD projects including clinical and non-clinical applications as part of the Charity’s future strategy. Additional applications to fund smaller research projects will be divided “early career investigators” and “standard applications”.
We anticipate that future Pickering Fellowships will be available for application in 2024.
Small travel grants will be made available in 2023-24 for early career researcher to apply to attend National and International conferences to present their work.
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:
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The obligations of trustees and directors.
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The main documents which set out the operational framework for the charity including the Memorandum and Articles of Association.
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Resourcing and the current financial position as set out in the latest published accounts.
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Future plans and objectives.
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 face.
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.
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North West Lung Centre Trustees Annual Report For the year ended 31 March 2023
Related Parties
The Charity owns 84.92% of the share capital of Medicines Evaluation Unit Limited and 69.87% of the share capital of CROS Solutions Limited. Medicines Evaluation Unit Limited is a company principally engaged in evaluating medicines for the pharmaceuticals industry. CROS 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 charitable company and the group and of the income and expenditure of the group for that period. In preparing those accounts the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the accounts; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
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 charitable company 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:
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there is no relevant audit information of which the company’s auditors are unaware; and
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we have taken all the steps that we ought to have taken as directors in order to make ourselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.
Auditors
The auditors, Warr & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.
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 30 January 2024
Prof. C Murray 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 2023
Opinion
We have audited the financial statements of North West Lung Centre (the ‘parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated statement of financial activities, Company 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:
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give a true and fair view of the state of the group's and of the parent charitable company affairs as at 31 March 2023 and of the group's surplus for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 2023
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Report of the trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Report of the trustees has been prepared in accordance with applicable legal requirements.
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 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:
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adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
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the parent charitable company financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities set out on page six, 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 charitable 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 2023
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;
- undertook substantive testing on a sample basis;
-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 noncompliance 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 2023
Use of our report
This report is made solely to the parent charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the 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 Mynshull House 78 Churchgate Stockport Sk1 1YJ
Dated 31 January 2024
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North West Lung Centre Consolidated Statement of Financial Activities (Including an Income and Expenditure Account) For the year ended 31 March 2023
| Note INCOME Donations and legacies 4 Other trading activities: Trading income 5 Other income 5 Income from investments 6 TOTAL INCOME EXPENDITURE Expenditure on raising funds: Trading expenses Investment management fees 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 |
Unrestricted fund 2023 £ 61,680 18,686,389 - 225,589 18,973,658 12,971,547 11,730 2,007,049 21,288 15,011,614 3,962,044 ( 454,256 ) 3,507,788 342,263 3,850,051 2,861,832 988,219 3,850,051 |
Restricted fund 2023 £ - - - - - - - 75,000 - 75,000 ( 75,000 ) - ( 75,000 ) - ( 75,000 ) ( 75,000 ) - ( 75,000) |
Total funds 2023 £ 61,680 18,686,389 - 225,589 18,973,658 12,971,547 11,730 2,082,049 21,288 15,086,614 3,887,044 ( 454,256 ) 3,432,788 342,263 3,775,051 2,786,832 988,219 3,775,051 |
Total funds 2022 £ 17,192 17,276,417 55,200 147,419 |
|---|---|---|---|---|
| 17,496,228 | ||||
| 11,509,066 12,540 1,521,185 21,244 |
||||
| 13,064,035 | ||||
| 4,432,193 260,997 |
||||
| 4,693,190 359,168 |
||||
| 5,052,358 | ||||
| 4,134,555 917,803 |
||||
| 5,052,358 |
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The notes on pages 20 to 38 form part of these financial statements.
North West Lung Centre Consolidated Statement of Financial Activities (Including an Income and Expenditure Account) For the year ended 31 March 2023
| RECONCILIATION OF FUNDS Total funds brought forward at 1 April 2022 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 funds carried forward at 31 March 2023 |
Unrestricted fund 2023 £ 27,586,384 2,861,832 988,219 ( 387,511 ) 31,048,924 |
Restricted fund 2023 £ 707,802 ( 75,000 ) - - 632,802 |
Total funds 2023 £ 28,294,186 2,786,832 988,219 ( 387,511 ) 31,681,726 |
Total funds 2022 £ 23,516,193 4,134,555 917,803 ( 274,365 ) |
|---|---|---|---|---|
| 28,294,186 |
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 20 to 38 form part of these financial statements.
North West Lung Centre Company Statement of Financial Activities (Including an Income and Expenditure Account) For the year ended 31 March 2023
| Note INCOME Donations and legacies 4 Income from investments 6 TOTAL INCOME EXPENDITURE Expenditure on raising funds: Investment management fees 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 movement in funds Total funds brought forward at 1 April 2022 Total funds carried forward at 31 March 2023 |
Unrestricted fund 2023 £ 1,161,680 27,200 1,188,880 11,730 2,007,049 21,288 2,040,067 (851,187) ( 49,483 ) (900,670) (59,308) (959,978) |
Restricted fund 2023 £ - - - - 75,000 - 75,000 ( 75,000 ) - (75,000) 707,082 632,082 |
Total funds 2023 £ 1,161,680 27,200 1,188,880 11,730 2,082,049 21,288 2,115,067 (926,187) ( 49,483 ) (975,670) 647,774 (327,896) |
Total funds 2022 £ 1,219,988 16,453 |
|---|---|---|---|---|
| 1,236,441 | ||||
| 12,540 1,521,185 21,244 |
||||
| 1,554,969 | ||||
| (318,528) (571) |
||||
| (319,099) | ||||
| 966,873 | ||||
| 647,774 |
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The notes on pages 20 to 38 form part of these financial statements.
North West Lung Centre Consolidated Balance Sheet For the year ended 31 March 2023
| 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 Funds attributable to: - Parent charity - Non-controlling interests |
Unrestricted funds 2023 £ 4,547,244 6,925,895 11,473,139 8,251,658 21,373,473 29,625,131 7,981,455 21,643,676 33,116,815 1,732,053 70,439 31,314,323 29,694,982 1,619,341 31,314,323 |
Restricted funds 2023 £ - - - - 632,082 632,082 - 632,082 632,082 - - 632,082 632,082 - 632,082 |
Total funds 2023 £ 4,547,244 6,925,895 11,473,139 8,251,658 22,005,555 30,257,213 7,981,455 22,275,758 33,748,897 1,732,053 70,439 31,946,405 30,327,064 1,619,341 31,946,405 |
Total funds 2022 £ 4,203,099 7,140,324 |
|---|---|---|---|---|
| 11,343,423 | ||||
| 6,069,362 17,016,060 |
||||
| 23,085,422 5,101,235 |
||||
| 17,984,187 | ||||
| 29,327,610 976,747 41,479 |
||||
| 28,309,384 | ||||
| 27,540,231 769,153 |
||||
| 28,309,384 |
The financial statements were approved and authorised for issue by the Board on 30 January 2024 Signed on behalf of the board of trustees
Prof. C Murray Trustee
Mr A K Webb Trustee
Company registration number 03936652
The notes on pages 20 to 38 form part of these financial statements.
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North West Lung Centre Company Balance Sheet For the year ended 31 March 2023
| 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 Restricted funds |
Unrestricted fund 2023 £ 837,444 837,444 - 2,341,919 2,341,919 2,407,288 ( 65,369 ) 772,075 1,732,053 ( 959,978 ) |
Restricted fund 2023 £ - - - 632,082 632,082 - 632,082 632,082 - 632,082 |
Total funds 2023 £ 837,444 837,444 - 2,974,001 2,974,001 2,407,288 566,713 1,404,157 1,732,053 ( 327,896 ) ( 959,978 ) 632,082 ( 327,896) |
Total funds 2022 £ 882,015 |
|---|---|---|---|---|
| 882,015 | ||||
| 636 2,328,035 |
||||
| 2,328,671 1,586,165 |
||||
| 742,506 | ||||
| 1,624,521 976,747 |
||||
| 647,774 | ||||
| ( 59,308 ) 707,082 |
||||
| 647,774 |
The financial statements were approved and authorised for issue by the Board on 30 January 2024 Signed on behalf of the board of trustees
Prof. C Murray Trustee
Mr A K Webb Trustee
Company registration number 03936652
The notes on pages 20 to 38 form part of these financial statements.
15 | P a g e
North West Lung Centre Consolidated Statement of Changes in Equity For the year ended 31 March 2023
| Unrestricted funds £ At 1 April 2021 22,861,903 Changes in equity Net movement in funds 4,999,563 New shares issued - Dividends paid to Non- controlling interests (274,365) At 31 March 2022 27,587,101 Changes in equity Net movement in funds 3,850,052 Share premium and unpaid share capital recognised - Dividends paid to Non- controlling interests ( 387,511) At 31 March 2023 31,049,642 At 1 April 2021 Changes in equity Net movement in funds New shares issued Dividends paid to Non-controlling interests At 31 March 2022 Changes in equity Net movement in funds New shares issued Dividends paid to Non-controlling interests At 31 March 2023 |
Restricted funds £ 654,287 52,795 - - 707,082 ( 75,000 ) - - 632,082 |
Share capital £ 78 - 426 - 504 - - - 504 Total controlling interest £ 23,405,676 4,134,555 - - 27,540,231 2,786,833 - - **30,327,064 ** |
Share premium £ 14,697 - - - 14,697 - 249,480 - 264,177 Non- controlling interest £ 125,289 917,803 426 (274,365) 769,153 988,219 249,480 ( 387,511) 1,619,341 |
Total fund balances £ 23,530,965 5,052,358 426 (274,365) |
|---|---|---|---|---|
| 28,309,384 | ||||
| 3,775,052 249,480 ( 387,511) |
||||
| 31,946,405 | ||||
| Total fund balances £ 23,530,965 5,052,358 426 (274,365) |
||||
| 28,309,384 | ||||
| 3,775,052 249,480 ( 387,511) |
||||
| 31,946,405 |
16 | P a g e
The notes on pages 20 to 38 form part of these financial statements.
North West Lung Centre Company Statement of Changes in Equity For the year ended 31 March 2023
| At 1 April 2021 Changes in equity Net movement in funds At 31 March 2022 Changes in equity Net movement in funds At 31 March 2023 |
Unrestricted funds £ 312,586 (371,893) ( 59,307) (900,669) ( 959,976) |
Restricted funds £ 654,287 52,795 707,082 (75,000) 632,082 |
Total fund balances £ 966,873 (319,098) |
|---|---|---|---|
| 647,775 | |||
| (975,669) | |||
| ( 327,894) |
17 | P a g e
The notes on pages 20 to 38 form part of these financial statements.
North West Lung Centre Consolidated Cash Flow Statement For the year ended 31 March 2023
| 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 tangible fixed assets Sale of fixed asset investments Interest received Dividends received Net cash from investing activities Cash flows from financing activities Amount withdrawn by directors Share issued to non-controlling interests Share premium recognised from non-controlling interests Dividends paid to non-controlling interests Net cash from financing 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 |
2023 £ 6,045,338 - - - 6,045,338 (589,366) (2,320,338) - 2,080,511 85,233 140,356 (603,604) (92,376) (110,916) 138,564 (387,511) (452,239) 4,989,495 17,016,060 22,005,555 |
2022 £ 5,246,583 - - - |
|---|---|---|
| 5,246,583 (74,882) (3,445,301) 2,750 1,452,045 40,929 106,490 |
||
| (1,917,969) - 426 - (274,365) |
||
| (273,939) 3,054,675 13,961,385 |
||
| 17,016,060 |
18 | P a g e
The notes on pages 20 to 38 form part of these financial statements.
North West Lung Centre Company Cash Flow Statement For the year ended 31 March 2023
| 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 |
2023 £ (476,322) - (476,322) (97,199) 92,287 10,558 1,116,642 1,122,288 645,966 2,328,035 2,974,001 |
2022 £ (577,785) - |
|---|---|---|
| (577,785) (174,805) 171,044 152 1,219,097 |
||
| 1,215,488 637,703 1,690,332 |
||
| 2,328,035 |
19 | P a g e
The notes on pages 20 to 38 form part of these financial statements.
North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2023
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 CROS Solutions Limited on a line by line basis..
All financial statements are made up to 31 March 2023. All inter-company transactions and balances between group companies are eliminated on consolidation.
Medicines Evaluation Unit Limited and CROS 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 non-controlling interest of each company has been separately disclosed.
Going concern
The trustees recognise that the charity has future funding commitments that exceed the charitable company’s reserves as an individual entity at the balance sheet date. When undertaking their assessment of the group’s financial position they have considered the expected continuing positive cash flows to be generated by the subsidiary undertakings and are confident that there is a reasonable expectation that the group will 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 group 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.
Restricted funds represent funds received from Medicines Evaluation Unit Limited which are intended to fund specific research projects as requested by the directors.
20 | P a g e
North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2023
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. Costs are categorised under the following headings:
-
Costs of raising funds include costs incurred in attracting voluntary income, managing the charity’s investment portfolio and those costs incurred in trading activities that raise funds.
-
Expenditure on charitable activities comprises expenditure associated with the funding of research into lung disease and other activities of the Charity as detailed in the Trustees report; and
-
Other expenditure represents those items not falling into the categories above and generally relates to Governance costs which include those costs primarily associated with constitutional and statutory requirements.
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 buildings Over the term of the lease Medical and office equipment 25% on cost Fixtures and fittings 15% on cost Motor vehicles 25% on cost Computer equipment 33% on cost
21 | P a g e
North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2023
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 CROS 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.
22 | P a g e
North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2023
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.
23 | P a g e
North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2023
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.
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
| Group | Group | Company | Company | |
|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |
| £ | £ | £ | £ | |
| General donations | 61,680 | 17,192 | 1,161,680 | 1,219,988 |
5 Income from other trading activities
| Trading activities Turnover - clinical trials Other income |
Group 2023 2022 £ £ 18,686,389 17,276,417 - 55,200 18,686,389 17,331,617 |
Company 2023 2022 £ £ - - - - - - |
Company 2023 2022 £ £ - - - - - - |
|---|---|---|---|
| - |
24 | P a g e
North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2023
6 Income from investments
| Income from investments | |||
|---|---|---|---|
| Bank interest Income from listed investments |
Group 2023 2022 £ £ 85,234 40,929 140,355 106,490 225,589 147,419 |
Company 2023 2022 £ £ 10,558 152 16,642 16,301 27,200 16,453 |
|
| 16,453 |
7 Expenditure on charitable activities
| Promotion of research Research grants to institutions Grants to individuals Travel costs Donations Governance costs Legal and professional fees Auditors remuneration Sundries Bank charges |
Company 2023 2022 £ £ 2,052,618 1,514,477 - 1,026 9,787 2,395 19,644 3,287 2,082,049 1,521,185 Company 2023 2022 £ £ 5,000 5,000 10,900 9,900 5,074 6,132 314 212 21,288 21,244 |
Company 2023 2022 £ £ 2,052,618 1,514,477 - 1,026 9,787 2,395 19,644 3,287 2,082,049 1,521,185 Company 2023 2022 £ £ 5,000 5,000 10,900 9,900 5,074 6,132 314 212 21,288 21,244 |
|---|---|---|
| 21,244 |
25 | P a g e
North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2023
8 Analysis of grants
The majority of grants are made to institutions in furtherance of the charitable objectives as detailed in the Trustees Report. Most of the grants awarded by the company during the year were 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.
Where awards have been granted and not claimed within the award period any remaining funds are credited back to the company following expiry of the award period and deducted from the value of new awards during the year.
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 |
2023 £ 721,940 1,358,077 (5,208) (22,191) - 2,052,618 |
2022 £ 690,701 822,889 - - 886 |
|---|---|---|
| 1,514,476 |
| The nature of projects supported during the year are as follows; Research projects Salary awards Fellowship awards Purchase of equipment and consumables |
2023 £ 916,241 785,980 (22,191) 372,588 2,052,618 |
2022 £ 989,327 389,374 120,000 15,775 |
|---|---|---|
| 1,514,476 |
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 2022 New funding awards approved during the year Unused amounts reversed during the year Movement from non-current to current Amounts paid during the year Closing balance at 31 March 2023 |
Current liabilities £ 1,562,752 1,335,355 ( 413,873 ) 375,830 (476,339 ) 2,383,725 |
Non- current liabilities £ 976,747 1,131,136 - ( 375,830 ) - 1,732,053 |
Total £ 2,539,499 2,466,491 ( 413,873 ) - (476,339 ) |
|---|---|---|---|
| 4,115,778 |
26 | P a g e
North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2023
10 Auditors remuneration
| 10 Auditors remuneration | |||
|---|---|---|---|
| Fees payable to the Charity's auditor for the audit of the Charity's annual accounts Fees payable to the charity's auditor in respect of non -audit services not included in the above. 11 Taxation Current tax: UK corporation tax Deferred tax Tax on net income UK Corporation tax has been charged at 19% (2022 19%) |
2023 £ 6,000 4,900 2023 £ (371,223) 28,960 (342,263) |
2022 £ 6,000 4,930 2022 £ (337,588) (21,580) |
|
| (359,168) | |||
Reconciliation of tax credit included in the Consolidated Statement of Financial Activities
| 2023 £ Net income before taxation 4,408,458 Profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 19%) 837,607 Effects of: Expenses not deductible for tax purposes 63,934 Income not taxable for tax purposes - Depreciation in excess of capital allowances 2,378 Capital allowances in excess of depreciation (551) Research and development tax claim (1,277,339) Deferred tax adjustment 28,960 Other tax adjustment 2,748 Total tax credit (342,263) |
2022 £ 4,693,190 891,706 60,629 (47,269) 17,079 - (1,283,427) (21,580) 23,694 |
|---|---|
| (359,168) |
27 | P a g e
North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2023
12 Net income
| 2 Net income | ||
|---|---|---|
| Group | ||
| Net income is stated after charging/(crediting): | 2023 |
2022 |
| £ | £ | |
| Operating lease rentals | 51,314 | 47,841 |
| Depreciation - owned assets | 245,222 | 241,246 |
| (Profit) /loss on disposal of fixed assets | 83,881 | 25,248 |
13 Trustees remuneration and expenses
The trustees neither received nor waived any remuneration during the year (2022 £Nil).
Travel expenses amounting to £6,118 (2022 £2,395) were reimbursed to one of the trustees during the year and conference expenses amounting to £522 (2022 £nil) were reimbursed to one of the trustees during the year.
14 Staff costs and employee benefits
| The average number of employees during the year was as follows: Admin Clinical The total staff costs and employee benefits were as follows: Wages and salaries Social security Other pension costs |
Group 2023 2022 83 67 79 73 162 140 Group 2023 2022 £ £ 6,397,750 5,910,124 701,382 588,202 234,103 220,457 7,333,235 6,718,783 |
Company 2023 2022 - - Company 2023 2022 £ £ - - - - - - - - |
Company 2023 2022 - - Company 2023 2022 £ £ - - - - - - - - |
|---|---|---|---|
| - |
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 | |||
| 2023 | 2022 | 2023 | 2022 | |
| Number | Number | Number | Number | |
| £60,001- £70,000 | 3 | 3 | - | - |
| £70,001 - £80,000 | 1 | - | - | - |
| £80,001- £90,000 | - | 1 | - | - |
| £90,001 - £100,000 | 1 | - | - | - |
| £100,001- £110,000 | 0 | 2 | - | - |
| £130,001- £140,000 | 1 | 1 | - | - |
| £170,001 - £180,000 | 1 | 0 | - | - |
| £210,001- £220,000 | 1 | 1 | - | - |
28 | P a g e
North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2023
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 CROS Solutions Limited whose employee benefits totalled £387,070 (2022: £388,331).
15 Comparatives for the company statement of financial activities
| Note INCOME Donations and legacies 4 Other trading activities: Income from investments 6 TOTAL INCOME EXPENDITURE Expenditure on raising funds: Investment management fees 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 movement in funds Total funds brought forward at 1 April 2022 Total funds carried forward at 31 March 2023 |
Unrestricted fund 2022 £ 1,017,193 16,453 1,033,646 12,540 1,371,185 21,244 1,404,969 (371,323) (571) (371,894) 312,586 (59,308) |
Restricted fund 2022 £ 202,795 - 202,795 - 150,000 - 150,000 52,795 - 52,795 654,287 707,082 |
Total funds 2022 £ 1,219,988 16,453 |
|---|---|---|---|
| 1,236,441 | |||
| 12,540 1,521,185 21,244 |
|||
| 1,554,969 | |||
| (318,528) (571) |
|||
| (319,099) | |||
| 966,873 | |||
| 647,774 |
29 | P a g e
North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2023
16 Tangible fixed assets
| Group Cost At 1 April 2022 Additions At 31 March 2023 Depreciation At 1 April 2022 Charge for the year At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022 |
Short Leasehold £ 5,497,683 414,255 5,911,938 1,541,043 130,329 1,671,372 4,240,566 3,956,640 |
Plant and Machinery £ 797,152 146,913 944,065 686,065 79,259 765,324 178,741 111,087 |
Fixtures and fittings £ 530,548 28,198 558,746 395,256 35,553 430,809 127,937 135,292 |
Motor Vehicles £ 6,959 - 6,959 6,959 - 6,959 - - |
Computer equipment £ 247,288 - 247,288 247,208 80 247,288 - 80 |
Total £ 7,079,630 589,366 |
|---|---|---|---|---|---|---|
| 7,668,996 | ||||||
| 2,876,531 245,221 |
||||||
| 3,121,752 | ||||||
| 4,547,244 | ||||||
| 4,203,099 |
30 | P a g e
North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2023
17 Fixed asset investments
| 17 Fixed asset investments | ||||
|---|---|---|---|---|
| Listed | Unlisted | Total | ||
| Group | investments | investments | ||
| £ | £ | £ | ||
| Cost or valuation | ||||
| At 1 April 2022 | 7,140,323 | 1 | 7,140,324 | |
| Additions | 2,320,338 | - | 2,320,338 | |
| Disposals | (2,113,254) | - | (2,113,254) | |
| Movement in valuation | (421,513) | - | (21,513) | |
| At 31 March 2023 | 6,925,894 | 1 | 6,925,895 | |
| Market value | ||||
| At 31 March 2023 | 6,925,894 | 1 | 6,925,895 | |
| At 31 March 2022 | 7,140,323 | 1 | 7,140,324 | |
| Shares in group undertakings |
Listed investments |
Total | ||
| Company | ||||
| £ | £ | £ | ||
| Cost or valuation | ||||
| At 1 April 2022 | 1,656 | 880,359 | 882,015 | |
| Additions | - | 97,199 | 97,199 | |
| Disposals | - | (56,679) | (56,679) | |
| Movement in valuation | - | (85,091) | (85,091) | |
| At 31 March 2023 | 1,656 | 835,788 | 837,444 | |
| Market value | ||||
| At 31 March 2023 | 1,656 | 835,788 | 837,444 | |
| Market value | ||||
| At 31 March 2022 | 1,656 | 880,359 | 882,015 | |
| Subsidiary undertakings | ||||
| The following were subsidiary undertakings of the charity at 31 March | 2023. | |||
| Name | Registered Office Address | Class of share |
Holding | |
| Medicines Evaluation Unit Limited | The Langley Building, Southmoor Road, | Ordinary 'A' | 84.92% | |
| Wythenshawe, Manchester M23 9QZ | ||||
| CROS Solutions Limited | 2C South Stage Michigan Avenue, | Ordinary 'A' | 69.87% | |
| Salford, M50 2GY |
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North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2023
18 Debtors
| 8 Debtors | ||||||
|---|---|---|---|---|---|---|
| Group | Company | |||||
| 2023 | 2022 | 2023 | 2022 | |||
| £ | £ | £ | £ | |||
| Trade debtors | 2,879,967 | 3,453,729 | - | - | ||
| Amounts recoverable on contracts | 3,225,955 | 1,241,021 | - | - | ||
| Other debtors | 287,950 | 473,681 | - | - | ||
| Directors' current accounts | 92,376 | - | - | - | ||
| Tax | 1,258,688 | 887,465 | - | - | ||
| Called up share capital not paid | 110,916 | - | - | - | ||
| Prepayments and accrued income | 395,806 | 13,466 | - | 636 | ||
| 8,251,658 | 6,069,362 | - | 636 |
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 |
Group 2023 2022 £ £ 47,285 36,140 - - 47,783 126,025 - 344,976 2,383,725 1,564,433 5,502,662 3,029,661 7,981,455 5,101,235 |
Company 2023 2022 £ £ - - - - - - - - 2,383,725 1,564,433 23,563 21,732 2,407,288 1,586,165 |
Company 2023 2022 £ £ - - - - - - - - 2,383,725 1,564,433 23,563 21,732 2,407,288 1,586,165 |
|---|---|---|---|
| 1,586,165 |
20 Creditors – Amounts falling due after more than one year
Other creditors
| one year | |||
|---|---|---|---|
| Group | Company | ||
| 2023 | 2022 | 2023 | 2022 |
| £ | £ | £ | £ |
| 1,732,053 | 976,747 | 1,732,053 | 976,747 |
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North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2023
21 Provisions for liabilities and charges
| Group 2023 2022 Deferred tax £ £ Accelerated capital allowances 70,439 41,479 Deferred Tax Group £ Balance as at 1 April 2022 41,479 Transfer to Statement of Financial Activities 28,960 Balance as at 31 March 2023 70,439 22 Leasing commitments Total future minimum lease payments under non-cancellable operating leases are as follows: 2023 2022 £ £ Not later than one year 108,985 113,737 Later than one year and not later than five years 245,535 249,315 In more than five years 285,973 338,768 640,493 701,820 23 Reconciliation of cash generated from operations 2023 2022 Group £ £ Net incoming resources before taxation 3,432,788 4,693,191 Depreciation charges 245,222 241,246 (Profit)/loss on disposal of fixed assets 32,743 25,248 (Gain)/loss on valuation of investments 421,513 (286,245) Governments grants - - Finance costs - - Finance income (225,589) (147,419) 3,906,677 4,526,021 Decrease/(increase) in trade and other debtors 148,169 (3,894,733) Increase /(decrease) in trade and other creditors 1,990,492 4,615,295 Cash generated from operations 6,045,338 5,246,583 |
Group 2023 2022 Deferred tax £ £ Accelerated capital allowances 70,439 41,479 Deferred Tax Group £ Balance as at 1 April 2022 41,479 Transfer to Statement of Financial Activities 28,960 Balance as at 31 March 2023 70,439 22 Leasing commitments Total future minimum lease payments under non-cancellable operating leases are as follows: 2023 2022 £ £ Not later than one year 108,985 113,737 Later than one year and not later than five years 245,535 249,315 In more than five years 285,973 338,768 640,493 701,820 23 Reconciliation of cash generated from operations 2023 2022 Group £ £ Net incoming resources before taxation 3,432,788 4,693,191 Depreciation charges 245,222 241,246 (Profit)/loss on disposal of fixed assets 32,743 25,248 (Gain)/loss on valuation of investments 421,513 (286,245) Governments grants - - Finance costs - - Finance income (225,589) (147,419) 3,906,677 4,526,021 Decrease/(increase) in trade and other debtors 148,169 (3,894,733) Increase /(decrease) in trade and other creditors 1,990,492 4,615,295 Cash generated from operations 6,045,338 5,246,583 |
Group 2023 2022 Deferred tax £ £ Accelerated capital allowances 70,439 41,479 Deferred Tax Group £ Balance as at 1 April 2022 41,479 Transfer to Statement of Financial Activities 28,960 Balance as at 31 March 2023 70,439 22 Leasing commitments Total future minimum lease payments under non-cancellable operating leases are as follows: 2023 2022 £ £ Not later than one year 108,985 113,737 Later than one year and not later than five years 245,535 249,315 In more than five years 285,973 338,768 640,493 701,820 23 Reconciliation of cash generated from operations 2023 2022 Group £ £ Net incoming resources before taxation 3,432,788 4,693,191 Depreciation charges 245,222 241,246 (Profit)/loss on disposal of fixed assets 32,743 25,248 (Gain)/loss on valuation of investments 421,513 (286,245) Governments grants - - Finance costs - - Finance income (225,589) (147,419) 3,906,677 4,526,021 Decrease/(increase) in trade and other debtors 148,169 (3,894,733) Increase /(decrease) in trade and other creditors 1,990,492 4,615,295 Cash generated from operations 6,045,338 5,246,583 |
Group 2023 2022 Deferred tax £ £ Accelerated capital allowances 70,439 41,479 Deferred Tax Group £ Balance as at 1 April 2022 41,479 Transfer to Statement of Financial Activities 28,960 Balance as at 31 March 2023 70,439 22 Leasing commitments Total future minimum lease payments under non-cancellable operating leases are as follows: 2023 2022 £ £ Not later than one year 108,985 113,737 Later than one year and not later than five years 245,535 249,315 In more than five years 285,973 338,768 640,493 701,820 23 Reconciliation of cash generated from operations 2023 2022 Group £ £ Net incoming resources before taxation 3,432,788 4,693,191 Depreciation charges 245,222 241,246 (Profit)/loss on disposal of fixed assets 32,743 25,248 (Gain)/loss on valuation of investments 421,513 (286,245) Governments grants - - Finance costs - - Finance income (225,589) (147,419) 3,906,677 4,526,021 Decrease/(increase) in trade and other debtors 148,169 (3,894,733) Increase /(decrease) in trade and other creditors 1,990,492 4,615,295 Cash generated from operations 6,045,338 5,246,583 |
|---|---|---|---|
| 4,526,021 (3,894,733) 4,615,295 |
|||
| 5,246,583 |
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North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2023
23 Reconciliation of cash generated from operations – continued
| Company Net incoming resources before taxation (Profit)/loss 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 24 Cash and cash equivalents Group Year ended 31 March 2023 Cash and cash equivalents Year ended 31 March 2022 Cash and cash equivalents Company Year ended 31 March 2023 Cash and cash equivalents Year ended 31 March 2022 Cash and cash equivalents |
2023 £ (975,670) (35,608) 85,091 (1,127,200) (2,053,387) 636 1,576,429 (476,322) 2023 £ 22,005,555 2022 £ 17,016,060 2023 £ 2,974,001 2022 £ 2,328,035 |
2022 £ (319,098) 76,734 (76,163) (1,219,249) (1,537,776) - 959,991 (577,785) 2022 £ 17,016,060 |
||
|---|---|---|---|---|
| 2021 £ 13,961,385 |
||||
| 2022 £ 2,328,035 |
||||
| 2021 £ 1,690,332 |
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North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2023
25 Analysis of changes in net funds
| Group At 01.04.2022 Net cash £ Cash at bank and in hand 17,016,060 Company At 01.04.2022 Net cash £ Cash at bank and in hand 2,328,035 26 Movements in funds Group At 01.04.2022 £ Unrestricted funds General funds 27,587,101 Restricted funds 707,082 Total funds 28,294,183 Net movement in funds included in the above are as follows: Incoming resources £ Unrestricted funds General funds 18,973,658 Restricted funds - Total funds 18,973,658 |
Cash flow £ 4,989,495 Cash flow £ 645,966 Net movement in funds £ 3,462,541 (75,000 ) 3,387,541 Resources expended £ 15,511,117 75,000 15,586,117 |
At 31.03.2023 £ 22,005,555 |
|---|---|---|
| At 31.03.2023 £ 2,974,001 |
||
| At 31.03.2023 £ 31,049,642 632,082 31,681,724 Movement in funds £ 3,462,541 ( 75,000 ) 3,387,541 |
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North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2023
26 Movements in funds – continued
General unrestricted funds are available to be utilised in furtherance of the objectives of the charity as determined by the trustees.
Restricted funds held are in respect of furtherance of projects specified by the directors of the group’s subsidiary companies and include awards as detailed in the trustees report.
Group
Comparatives for movements in funds
| At 01.04.2021 Unrestricted funds £ General funds 22,861,903 Restricted funds 654,287 Total funds 23,516,190 Net movement in funds included in the above are as follows: Incoming resources Unrestricted funds £ General funds 17,293,433 Restricted funds 202,795 Total funds 17,496,228 Company At 01.04.2022 £ Unrestricted funds General funds (59,307) Restricted funds 707,082 Total funds 647,775 |
Net movement in funds £ 4,725,198 52,795 4,777,993 Resources expended £ 12,568,235 150,000 12,718,235 Net movement in funds £ (900,669) (75,000 ) (975,669) |
At 31.03.2022 £ 27,587,101 |
|---|---|---|
| 707,082 | ||
| 28,294,183 | ||
| Movement in funds £ 4,725,198 |
||
| 52,795 | ||
| 4,777,993 | ||
| At 31.03.2023 £ (959,976) |
||
| 632,082 | ||
| (327,894) |
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North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2023
26 Movements in funds - continued
Company
Net movement in funds included in the above are as follows:
| Incoming resources £ Unrestricted funds General funds 1,188,880 Restricted funds - Total funds 1,188,880 Comparatives for movements in funds At 01.04.2021 Unrestricted funds £ General funds 312,586 Restricted funds 654,287 Total funds 966,873 Net movement in funds included in the above are as follows: Incoming resources Unrestricted funds £ General funds 1,033,646 Restricted funds 202,795 Total funds 1,236,441 |
Resources expended £ 2,089,550 75,000 2,164,550 Net movement in funds £ (371,894) 52,795 (319,099) Resources expended £ 1,405,540 150,000 1,555,540 |
Movement in funds £ (900,670) |
|---|---|---|
| ( 75,000 ) | ||
| (975,670) | ||
| At 31.03.2022 £ (59,308) |
||
| 707,082 | ||
| 647,774 | ||
| Movement in funds £ (371,894) |
||
| 52,795 | ||
| (319,099) |
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North West Lung Centre Notes to the Consolidated Financial Statements For the year ended 31 March 2023
27 Directors’ advances, credits and guarantees
The following advances and credits to directors subsisted during the years ended 31 March 2023 and 31 March 2022;
| 1 March 2022; | ||
|---|---|---|
| D Rogers Balance outstanding at the start of the year Amount advanced Balance outstanding at the end of the year Prof S D Singh Balance outstanding at the start of the year Amount advanced Balance outstanding at the end of the year |
2023 £ - 46,188 46,188 - 46,188 46,188 |
2022 £ - - |
| - | ||
| - - |
||
| - |
28 Related Party Transactions
During the year, total dividends of £234,465 (2022- £182,910) were paid to the directors of Medicines Evaluation Unit Limited and CROS Solutions Limited.
Medicine Evaluation Unit Limited provided a loan of £46,188 to E Batty during the year, the full amount was outstanding at the balance sheet date. E Batty is a shareholder of Medicines Evaluation Unit Limited and a director and shareholder of CROS Solutions Limited.
A Pickering Fellowship award was granted to the Pennine Acute Hospital NHS Trust in 2018 in respect of funding a study undertaken by Dr H Badri prior to her appointment as a trustee of the charity in 2020. The initial award amounted to £162,000 with a final sum of £10,148 paid during the year (2022 - £60,302). The award period ended in March 2022 and unused funds amounting to £22,191 have been reversed in the current year as shown in note 8.
Legal fees of £5,000 (2022 - £5,000) were paid to Eversley Resolutions, a business operated by Mr J Alcock, a trustee of the charitable company. The amount was fully paid during the year and there are no amounts outstanding at the balance sheet date.
The charity incurred costs amounting to £6,462 (2022 - £nil) in respect of a retirement party attended by two of the trustees.
There are no other related party transactions.
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