Necessary Furniture Company Limited by Guarantee Trustees. Annual Report (Incorporating the Director's Report) Year ended 31 March 2024 The trustees. who are also the directors for the purposes of company law, present their report and the unaudited financial ststements of the charity for the year ended 31 March 2024. Reference and administrative details Registered Charity namo Necessary Furniture Charity registration number 1091602 Company registration number 03886547 Principal office and registered 22-26 Bank Street office Heme Bay CT6 SEA Kent The trustees C.C Gay MBE G.A. Glover S. Edridge T. Wallace-sims W. Rhys-Jones J. Kennett R.D. Meredith Independent examiner Maxine Gambrill FCCA 22-26 Bank Street Herne Bay Kent CT6 SEA Structure, governance and management The organisation is a charitable company limited by guarantee and registered as a charity. The Directors ( whose liability is limited to £1 ) are also Trustees. The Directors meet regularly as a Management Committee. Management is govemed by a Memorandum and Articles of Association in accordance with the Companies Acts. Objectives and activities NeSSary Furniture is a charitable organisats'on set up to provide fumiture and household goods for the disadvantaged wthin the cornrnunity and to redu the volume of useable gdS going to landfill. Achlevements and perfomiance NSSary Furniture (in partnership with the relevant agencies) provides worthwhile jobs and work experience for unemployed people.
Necessary Furniture Company Limited by Guarantee Trustees. Annual Report (Incorporating the Directorfs Report) (continued) Year ended 31 March 2024 Financial revlew Our current priority És closely to monitor income and expenditure to keep the Charity on a sound footing. Recent initiab'ves agreed include the clearance of redundant stock to make way for attractive display areas and asking donors of furniture. as well as recipients. to make a donation towards running costs. Small company provislon5 This rep3rt has been prepared in accordan with the provisK>n5 applicable to companies entitled to the small companies exemption. The trustees, annual report was approved on 29 July 2024 and signed on behalf of the b3ard of trustees by: C.C Gay MBE Trustee
COMPANY REGISTRATION NUMBER: 03886547 CHARITY REGISTRATION NUMBER: 1091602 Necessary Furniture Company Limited by Guarantee Unaudited Financial Statements 31 March 2024 Chartered CertifEd Accountants 22-26 Bank Street Herne Bay Kent CT6 SEA
Necessary Furniture Company Limited by Guarantee Financial Statements Year ended 31 March 2024 Page Trustees, annual report (incorporating the directorfs report) Independent examinerfs report to the trustees Statement of financial activities (including income and expenditure account) Statement of financial position Notes to the financial statements The following pages do not form part of the financial statements Detailed statement of financial activities 16 Notes to the detailed statement of financial activities 18
Necessary Furniture Company Limited by Guarantee Statement of Financial Activities (including income and expenditure account) Year ended 31 March 2024 2024 Unrestricted funds Total funds Total funds 2023 Note Income and endowments Donations and legacies Charitable actr'vits'es Other trading activities Investment income 3.102 405,501 1,934 3,941 3,102 405.501 1.934 3,941 2,721 339,675 973 841 Total income 414,478 414,478 344,210 Expenditure Expenditu on raising funds: Costs of other trading activities Expenditure on charitable activities Other expenditure Total exp•ndituro 21,900 366,607 589 21,900 366,607 589 18.026 314.206 762 10 11 389.096 389,096 332,994 Net income and net movement In funds 25,382 25.382 11,216 Reconciliation of funds Total funds brought forward Total funds carried forward 180,860 206,242 180,860 169,644 206,242 180,860 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditu derive from contr'nuing activities. The notes on pages 7 to 14 forni part of these financlal statements.
Necessary Furniture Company Limited by Guarantse Statement of Financial Position 31 March 2024 2024 2023 Note Fixed assets Tangible fixed assets 16 22,489 34,696 Current assets Debtors Cash at bank and in hand 17 14,657 215.678 230,335 21,356 163,175 184,531 Creditors: amounts falllng due wlthln one year Net current assets 18 46,582 183,753 206,242 38,367 146,164 180,860 180,860 Total assets less current Ilabilities Net assets 206,242 Funds of the charity Unrestricted funds 206,242 180,860 180,860 Total charity funds 20 206,242 For the year ending 31 March 2024 the charity pS entitled to exemption from audit under section 477 of the Companies Act 2006 relab'ng to small companies. Directors, responsibilities.. The members have not required the company to obtain an audit of its financial ststements for the year in question in accordance wth section 476; The directors acknowledge their sponSIbl11eS for complying with the requirements of the Act with respect to accounts'ng records and the preparation of financial statements. These financial ststements have been prepared in accordan with the provisions applicable to companies subject to the small companies. regime. These financial statement5 were approved by the board of trustees and authorised for issue on 29 July 2024, and are signed on behalf of the board by: C.C Gay MBE Trustee The notes on pages 7 to 14 forni part of these financial statements.
Necessary Furniture Company Limited by Guarantee Notes to the Financial Statements Year ended 31 March 2024 General infomiation The charity is a public benefft enkn'ty and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 22-26 Bank Streel Heme Bay, CT6 5E& Kent. Statement of compliance These financial statements have been prepared in Complian with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland,. the Statement of Recommended Practi applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charits'es SORP (FRS 102)) and the Companies Act 2006. Accounting pollcles Basis of preparation The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilib'es and investment properties measured at fair value through income or expenditure. The financtal ststements are prepared in sterling, which is the functional currency of the entity. Going concern There are no material unrtaIntieS about the charity's abilty to continue. Judgements and key sources of estimatlon uncertalnty The preparation of the financial ststements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Fund accounting Unrestricted funds a avaitable for use at the discrets'on of the trustees to further any of the charity's purposes. Designated funds are unstrICted funds earmarked by the trustees for parkncular future project or commitment. Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal. and fall into one of knvo sub<lasses.' restricted income funds or endowment funds.
Necessary Furniture Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2024 Accounting pollc5es (conflnuedj Incoming resources All incoming resources are included in the statement of financial activities when entitlement has passed to the charity." it is probable that the economic benefits associated wth the transaction will flow to the charity and the amount can be liablY measured. The following specific policies a applied to particular categories of income- income from donations or grants is recognised when there is evidence of enb"tlement to the gift, receipt is probable and its amount can be measured reliably. legacy income is recognised when rlpt is probable and entidement is established. income from donated goods is measured at the fair value of the goods unless this is impracb'cal to measure reliabty, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and servi$ are recognised in the accounts when received if the value can be reliab]y measured. No amounts are included for the contribution of general volunteers. income from contracts for the supply of services is recognised with the delivery of the contracted seNice. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular PUTpose and retumed if unspenL in which case it may be regarded as restricted. Resources expended Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fulty recovered. and is dassified under headings of the statement of financial activities to which tt Telates.. expenditure on raising funds includes the costs of all fundraising %tivrties. events, non- charitsble trading activities, and the sale of donated goods. expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitsble aims for the benefit of its beneficiaries, including those support costs and costs relating to the governan of the charity apportioned to charitsble activities. other expenditu includes all expenditure that is neither related to raising funds for the charity nor part of its expenditu on charitabte activits'es. All costs a allocated to expenditure categories reflecting the use of the soUr. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activiti'es they contribute to on a reasonable, justifi'able and consistent basis. Tangible a&8ets Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciab'on and impairment kjsses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Necessary Furniture Company Limitsd by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2024 Accounting policies (con&nu0d) Tanglble assets (continued) An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the ststement of financial activib'es. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, expt to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities. Depreclation Depreciation is calculated so as to write off the cost or valuation of an asse( less its residual value, over the useful economic life of that asset as follows: Fixtures and fittings Motor vehicles 25% reducing balan 25% Straht line Impalrment of fixed assets A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount. the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impaiment testing, when it is not possible to estimate the recoverable amount of an individual asset, an esb'mate is made of the recoverable amount of the cash- generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash infiows that largely independent of the cash inflows from other assets or groups of assets. For impaiment testing of goodwill. the goothyill acquired in a business combination is, from the acquisition date. allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilib'es of the charity are assigned to those units. Flnancial instruments A financial asset or a financial liability is recognised only when the charity becomes a paty to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs. Current assets and current liabilities are subsequentty rneasured at the cash or other consideration expected to be paid or reiVed and not discounted. Debt instruments are subsequently measured at amortised cost
Necessary Furniture Company Limited by Guarantee Notes to the Financial Ststements (continued) Year ended 31 March 2024 Accountlng policies (conflnued) Flnanclal instruments (continued) Where investments in shares are publicly traded or their fair value can otherwise be measured reliably. the investment is subsequenUy measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently rneasud at cost less impairment. Other financial instruments, including derivab'ves. are InitllY recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrumenL Other financial instruments are subsequently measured at fair value. with any changes recognised in the ststement of financial actbvib'es, with the exception of hedging instruments in a designated hedging relationship. Financial assets that are measured at cost or amortised cost are reviewed for objective eviden of impairment at the end of each reporting date. If there is objective eviden of impaiment, an impairment loss is recogni5ed under the appropriate heading in the statement of financial acts"vities in which the initial gain was recognised. For all equity instruments regardless of significan, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characterisb'cs. Any reversals of impairment are recognised immediately, to Ihe extent that the reversal does not result in a carrying amount of the financial asset that exdS what the carying amount would have been had the impairment not previously been recognised. Deflned contribution plans Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related servi, the liability is measured on discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises. Llmlted by guarantee The company is limited by guarantee of members and does not have a share capitsl. The liability of members is limited to £1.00. 10
Necessary Furniture Company Limited by Guarantee Notes to the Financial Statements [ntinued) Year ended 31 March 2024 Donations and legacies Unrestricted Total Funds Unrestricted Total Funds Funds 2024 Funds 2023 Donations Don8b'ons 3,102 3.102 2,721 2,721 Charitable activlties Unrestricted Total Funds Unrestricted Total Funds Funds 2024 Funds 2023 Sale of goodslservices as part of direct charitsble activits-es 405.501 405.501 339,675 339,675 Other tradlng actlvltles Unrestricted Total Funds Unrestricted Totsl Funds Funds 2024 Funds 2023 Auctionlrecycle credits Other income 250 1,684 250 1.684 1.934 973 973 1,934 973 973 Investment incomo Unrestricted Total Funds Unrestricted Total Funds Funds 2024 Funds 2023 Bank interest receivable 3.941 3,941 Costs of other trading activities Unrestricted Totsi Funds Unrestricted Totsl Funds Funds 2024 Funds 2023 Costs of other trading activilies - Shop costs 21,900 21,900 18.026 18,026 10. Expenditure on charitable actlvftles by fvnd type Unrestricted Total Funds Unrestricted Total Funds Funds 2024 Funds 2023 Wages and overheads 366,607 366.607 314,206 314,206 11
Necessary Furniture Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2024 11. Other expendituro Unrestricted Total Funds Unrestricted Totsl Funds Funds 2024 Funds 2023 Other expenditure - bank charges 589 589 762 762 12. Net income Net income is stated after chargingl(credtting): 2024 2023 Depreciation of tangible fixed assets 12.207 5,451 13. Independent examination fees 2024 2023 Fees payable to the independent examiner for. Independent examination of the financial ststements 950 950 14. Staff costs The total staff costs and employee benefts for the porting period are analysed as follows: 2024 2023 Wages and salaries Employer contributions to pension plans 243.191 4,748 247,939 210,907 4,089 214,996 The average head count of employees during the year was 9 (2023: 9). The average number of full-time equivalent employees during the year is analysed as follows: 2024 No. 2023 No. Number of staff No employee received employee benefits of more than £60.000 during the year (2023: Nil). 15. Trustee romunorntion and •xp•ns No remuneration or other benefits from employment wth the charity or a related entty we received by the trustees. 12
Necessary Furniture Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2024 16. Tangible fixed assets Fixtures and fitb'ngs Motor vehicles Total Cost At 1 April 2023 and 31 March 2024 Depreciation At 1 April 2023 Charge for the year At 31 March 2024 5,230 47,851 53,081 4.253 244 14,132 11,963 18,385 12,207 4.497 26,095 30,592 Carrylng amount At 31 March 2024 733 21,756 22,489 34,696 At 31 March 2023 977 33,719 17. Debtors 2024 2023 Trade debtors Prepayments and accrued income Other debtors {731) 10,987 4,401 812 10,982 9,562 14.657 21,356 18. Credltors: amounts falling due within one year 2024 2023 Bank loans and overdrafts Trade creditors Accruals and deferred income Social security and other taxes Other creditors 1.829 10.576 1.140 6,366 26,671 10,039 1,140 12,687 14,501 46,582 38,367 19. Pensions and other post retlrement benefrts Defined contribution plans The amount recognised in income or expenditure as an expense in relatj'on to defined contribution plans was £4,748 (2023.. £4.089). 13
Necessary Furniture Company Limited by Guarantee Notes to the Financial Statements fcontinued) Year ended 31 March 2024 20. Analysis of charltable funds Unrestricted funds At 1 April 2023 At Incorne Expendrture 31 March 2024 General fvnds 180,860 414.478 (389,096) 206,242 At 1 April 2022 At Income Expenditure 31 March 2023 General funds 169,644 344.210 {332,994) 180.860 21. Analysls of net assets between funds Unrestricted Total Funds Funds 2024 Tangible fixed assets Current assets Creditors less than 1 year Net assets 22,489 230,334 (46,581) 206,242 22,489 230,334 (46,581) 206,242 Unrestricted Total Funds Funds 2023 Tangible fixed assets Current assets Creditors less than 1 year Net assets 34,695 184,530 {38,365) 180,860 34,695 184,530 (38,365) 180,860 14
Necessary Furniture Company Llmited by Guarantse Management Information Year ended 31 March 2024 The following pages do not forni part of the financial statements. 15
Necessary Furniture Company Limited by Guarantee Detailed Statement of Financial Activities Year ended 31 March 2024 2024 2023 Income and endowments Donations and legacies Donations 3,102 2,721 Charttable activities Sale of goodslserv1S as part of direct charitable activities 405,501 339,675 other trading activities Auctionlrecycle credits Other income 250 1,684 1.934 973 973 Investment Income Bank interest receivable 3,941 Total Income 414,478 344,210 16
Necessary Furniture Company Limited by Guarantee Detailed Ststement of Financial Activities (continued) Year ended 31 March 2024 2024 2023 Expenditure Costs of other tradlng actlvitles Light and heat Other motorltravel costs Legal and professional fees Telephone Other Offi costs 7,648 460 8.800 1,469 3.523 21.900 4,065 300 9.244 1,394 3.023 18.026 Expenditure on charitable activities Wages and salaries Pension costs Rent Rates and water Repairs and maintenan Insurance Other estsblishment Motor vehicle expenses Vehicle leasinglhire Legal and professional fees Other Offi costs Depreciation 243.191 4.748 47,835 2.173 20,215 5,696 389 24,302 251 950 4,651 12,206 366,607 210,907 4,089 47,840 1.843 9,381 5,222 95 26,165 251 1,021 1,941 5,451 314.206 Other expenditure Other expenditure - bank charges 589 762 Total expenditure 389,096 332,994 Net Income 25.382 11,216 17
Necessary Furniture Company Limited by Guarantee Notes to the Detailed Statement of Financial Activities Year ended 31 March 2024 2024 2023 Costs of other trading activities Costs of other trading activities - Shop costs Shop costs - light & heat Shop costs - other motorrtravel costs Shop costs - legal and professional fees Shop costs- postage. telephone and fax Shop costs - other office costs 7.648 460 8,800 1.469 3,523 4,065 300 9,244 1,394 3.023 21,900 18,026 Costs of other trading activities 21.900 18.026 Expendlture on charitable activilies Wages and overheads Activities undertaken directly Wageslsalaries Pension costs Rent Rates & water Repairs & maintenan Insurance Other establishment Motor vehicle expenses Vehicle leasing Legal and professional fees Advertising & matketing Depreciation 243.191 4,748 47,835 2,173 20.215 5.696 389 24,302 251 950 4,651 12,206 366,607 210,907 4,089 47,840 1,843 9,381 5,222 95 26,165 251 1,021 1,941 5,451 314,206 Expenditure on charitsble activilles 366,607 314,206 18
Necessary Furniture Company Limited by Guarantee Independent Examiner's Report to the Trustees of Necessary Furniture Year ended 31 March 2024 I report to the trustees on my examination of the financial statements of Nece&%ary Fumiture ('the charity,) for the year ended 31 March 2024. Responsibilities and basis of report As the trustees of the company (and also ts directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Acf). Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity's accounts as carried out under section 145 of the Charities Act 2011 {'the 2011 Act'l. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5){bl of the 2011 ACL Independent examinerfs statement Since the charity's gross income exceeded £250.000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confim that l am qualffied to undertake the examination because l am a member of the Association of Chartered Certbfied Accountants, which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Ac( or the finanaal statements do not accord with those records: or the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fairf view which is not a matter considered as part of an independent examination., or the financial statements have not been prepared in accordance wtth the methods and principles of the Staternent of Recommended Practice for accounts.ng and reporting by charities applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republ of Ireland (FRS 102).
Necessary Furniture Company Limited by Guarantse Independent Examinerfs Report to the Trustees of Necessary Furniture (continued) Year ended 31 March 2024 I have no concerns and have come across no other matters in connection viith the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Maxine Gambrill FCCA Independent Examiner 22-26 Bank Street Herne Bay Kent CT6 SEA 29 July 2024