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2024-03-31-accounts

REGISTERED COMPANY NUMBER: 04349015 (England and Wales) REGISTERED CHARITY NUMBER: 1093845

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

FOR

HONEYCROFT

(A COMPANY LIMITED BY GUARANTEE)

Chariot House Limited Chartered Accountants

44 Grand Parade Brighton East Sussex BN2 9QA

HONEYCROFT

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

Page
Report of the Trustees 1 to 4
Independent Examiner's Report 5
Statement of Financial Activities 6
Balance Sheet 7 to 8
Notes to the Financial Statements 9 to 15

HONEYCROFT (REGISTERED NUMBER: 04349015)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2024. 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).

OBJECTIVES AND ACTIVITIES Objectives and aims

The Charity's objectives and principal activity, as defined by the Memorandum and Articles of Association, are:

Honeycroft provides services to meet its objects through a range of activities based at the centre in Hove. This includes a nursery and crèche facilities. An after school club provides for children from 5 years up until 11 years for both after school and holiday times, and a Volunteering Project provides opportunities for parents, carers and others to become involved in all aspects of the services. The Centre provides a a range of partnership projects based on current funding and need including male carers stay and play sessions, intergenerational yoga project and multiple births coffee mornings.

Public benefit

In shaping our objectives and planning our activities for the year, the Trustees have given consideration to the duties set out in section 17(5) of the Charities Act 2011 to have due regard to public benefit. In particular, the Trustees have considered how the planned activities will contribute to the overall aims and objectives that they have set

The Trustees believe that the paragraphs, specifically on the "Objectives and Activities" and "Achievements and Performance" for the year, relate in detail the benefit that the charity provides to the public.

Volunteers

The work of the charity is greatly assisted in the fulfilling of its objects through the work of volunteers. Volunteers are active in all levels of the running of Honeycroft and without their labour and regular input the charity would have been able to make the achievements it has. Honeycroft continues to attract volunteers mainly through word of mouth or access through childcare courses.

Page 1

HONEYCROFT (REGISTERED NUMBER: 04349015)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

ACHIEVEMENT AND PERFORMANCE

Charitable activities

We have had a solid and stable year although, recruitment has remained an ongoing challenge. However, we have recruited a Learning & Development Manager, who also takes on the deputy nursery manager role and, who as a graduate, enables us to access the additional quality supplement for having a qualified teacher leading the curriculum offer in the nursery.

We have not yet picked up any new letting/hiring/use of space, other than our ongoing main martial arts user based at the centre 4 days per week. Use of the space for courses and adult classes is now unlikely to returned to the level before the pandemic, due to changes to organisation's business plans e.g. teaching online, and the closure of some courses.

We have had successful Summer and Christmas events to engage with the wider community and to raise funds for the upgrade of the soft play space, which took place in February 2023, after lots of planning. Monthly inclusion stay & play sessions continue, supported by our inclusion trustee, as a wider offer to reach local families with children with additional needs. In addition, in Summer 2023 we received funding from Brighton and Hove HAF scheme to offer free holiday club places for children eligible for means tested free school meals.

We have successfully changed our invoicing system to complement the accounting system in place, which now also combines the childcare part of the business; from registration to assessment and includes all parent communication.

We have now identified a replacement for Keith as finance trustee and Keith has started the process of hand overing so everything will be in place for change of person by next AGM. We continue to look for new trustees to lead on HR and legal to join the established team.

FINANCIAL REVIEW

Financial position

The figures from our draft Accounts are;

£ 174,658 total unrestricted funds and £nil total restricted funds as at 31/03/2024.

This represents an increase of £ 8,729 which demonstrated our growth and larger recovery from the impact of the pandemic. Childcare strands continued to increase and return to pre pandemic levels. Even after the increases again to the National Minimum Wage, the drop of eligibility to 21 years old and the final increase to quarterly rent, we have managed to make a small profit of £ 8,729. the nursery and out of school offer continues to be popular and we continue to work to staffing capacity. We had sufficient reserves in place to allow us to weather any further challenges, however we are aware after previous reductions in our reserves, we continue to look for ways to increase our revenue and whilst reviewing the fee scales to ensure that we remain competitive and in line with our objectives as a charity.

Reserves policy

It is the policy of the Charity to maintain unrestricted funds, which are the free reserves of the Charity, at a level which provides sufficient funds to cover management, administration and support costs. Our aim is to achieve a level which will enable the charity to achieve its long-term objectives.

FUTURE PLANS Aims for the year ahead

To ensure we look at funding revenues to ensure we can maintain the balance of costs, and increase to utilities, rent & wages.

To look at alternative premises or to stay in the current premises - lead by Steve McGeough 2024/5 Project To continue to upgrade electrics and make improvements and repairs to the building

To review the staff structure with a focus on staff recruitment to be able to develop and extend childcare offer. To review the marketing and publicity of Honeycroft To continue to develop our well-being support

Page 2

HONEYCROFT (REGISTERED NUMBER: 04349015)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Charity was incorporated, as a company limited by guarantee, on the 8 January 2002 but was dormant until 1 September 2002 when, following the granting of charitable status, took over the responsibilities of Honeycroft Under 5's Centre an unincorporated association. The governing document is the Articles and Memorandum of Association.

As the Charity is limited by guarantee, there is no share capital. At the year end, each member has undertaken to contribute to the Charity's assets, in the event of the Charity being wound up, such amount as may be required, not exceeding £1.

Recruitment and appointment of new trustees

New Trustees join the Board at the invitation of the Board and are chosen with the view to ensuring that the Board contains an appropriate balance of experience relevant to the operations of Honeycroft. Trustees are briefed on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the decision making processes, the business plan, policies and financial procedures and the recent financial performance of the charity.

Organisational structure

The activities of the charity are advised and monitored by the Board of Trustees who meet regularly to set the strategic direction of the organisation and for establishing policy. They also ensure that the charity fulfils its objectives and complies with the requirements of the Charities Commission.

The day-to day management of the charity is delegated by the Board of Trustees to the Centre Manager, Natasha Silsby, who attends the Trustees meetings to update the Trustees on developments and issues and to obtain instruction on the management of the charity.

Health and Safety

The charity is always concerned to ensure health and safety at work and within its services, to this end it has a full range of policies which are reviewed and updated regularly.

Risk management

The board of Trustees have conducted its own review of the major risks to which the Charity is exposed and systems have been established to mitigate those risks.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

04349015 (England and Wales)

Registered Charity number

1093845

Registered office

St Barnabas Hall Sackville Road Hove East Sussex BN3 3WF

Trustees

S Gaston C Brady K W Bonner (resigned 1/4/2024) S McGeough

Company Secretary

A R Silsby

Page 3

HONEYCROFT (REGISTERED NUMBER: 04349015)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

REFERENCE AND ADMINISTRATIVE DETAILS

Independent Examiner

Dr Shona F Wardrop C.A. Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA

Bankers

Metro Bank plc One Southampton Row London WC1B 5HA

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

........................................................................ C Brady - Trustee

Page 4

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HONEYCROFT

Independent examiner's report to the trustees of Honeycroft ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2024.

Responsibilities and basis of report

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

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants of Scotland, 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:

  1. accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts 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 fair view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Dr Shona F Wardrop C.A. The Institute of Chartered Accountants of Scotland

Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA

Date: .............................................

Page 5

HONEYCROFT

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Charitable activities
Nursery provision
326,731
Other trading activities
2
12,552
Investment income
3
483
Total
339,766
EXPENDITURE ON
Charitable activities
4
Nursery provision
331,037
NET INCOME/(EXPENDITURE)
8,729
RECONCILIATION OF FUNDS
Total funds brought forward
165,929
TOTAL FUNDS CARRIED FORWARD
174,658
Restricted
funds
£
-
-
-
-
-
-
-
-
2024
Total
funds
£
326,731
12,552
483
339,766
331,037
8,729
165,929
174,658
2023
Total
funds
£
279,732
13,402
146
293,280
308,240
(14,960)
180,889
165,929

The notes form part of these financial statements

Page 6

HONEYCROFT (REGISTERED NUMBER: 04349015)

BALANCE SHEET

31 MARCH 2024

Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
10
17,109
CURRENT ASSETS
Debtors
11
15,746
Cash at bank and in hand
148,375
164,121
CREDITORS
Amounts falling due within one year
12
(6,572)
NET CURRENT ASSETS
157,549
TOTAL ASSETS LESS CURRENT
LIABILITIES
174,658
NET ASSETS
174,658
FUNDS
13
Unrestricted funds
TOTAL FUNDS
Restricted
funds
£
-
-
-
-
-
-
-
-
2024
Total
funds
£
17,109
15,746
148,375
164,121
(6,572)
157,549
174,658
174,658
174,658
174,658
2023
Total
funds
£
12,934
22,415
136,956
159,371
(6,376)
152,995
165,929
165,929
165,929
165,929

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2024 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The notes form part of these financial statements

continued...

Page 7

HONEYCROFT (REGISTERED NUMBER: 04349015)

BALANCE SHEET - continued

31 MARCH 2024

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

............................................. C Brady - Trustee

The notes form part of these financial statements

Page 8

HONEYCROFT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future, and on that basis the charity is considered to be a going concern.

The financial statements are prepared in sterling which is the functional currency of the entity, and are rounded to the nearest £1.

The charity meets the definition of a public benefit entity as defined by FRS102.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Donations and Grants

Income from donations, and grants, is included in incoming resources when these are receivable, except as follows:

When donors specify that donations and grants are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable.

Nursery Fees

Fee income for provision of nursery services is included in incoming resources when the service has been provided, or, if amounts invoiced relate to services both before and after the period end, then in proportion to services provided, with the balance being deferred.

Other Income

Other income is recognised in the period in which the Charity is entitled to the receipt and the amount can be measured with reasonable certainty. Income is deferred only when the Charity has to fulfil conditions before becoming entitled to it, or where the donor has specified that the income is to be treated as the funding of a future period.

continued...

Page 9

HONEYCROFT

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

1. ACCOUNTING POLICIES - continued

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property - 10% on cost Plant and machinery - 25% on reducing balance

The Charity does not capitalise assets costing under £500.

Recognition and measurement

Fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK Corporation Tax purposes. Accordingly the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Operating Leases

All leases are treated as operating leases. Their annual rentals are charged to the Statement of Financial Activities on a straight-line basis over the term of the lease.

Judgements and key sources of estimation uncertainty

In the application of the charity's accounting policies, the charity is required to make judgments, estimates and assumptions about the carrying value 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 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both the current and future periods.

continued...

Page 10

HONEYCROFT

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

1. ACCOUNTING POLICIES - continued

There are no estimates and assumptions that are considered to have a significant risk of causing a material adjustments to the financial statements in a future period.

Financial instruments

The charity has only financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and are subsequently measured at their settlement value with the exception of bank loans which are measured at amortised cost using the effective interest method.

Financial Assets

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any discounts due.

Financial Liabilities

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any discounts due.

2. OTHER TRADING ACTIVITIES

OTHER TRADING ACTIVITIES
2024 2023
£ £
Rent received 9,544 12,238
Other income 3,008 1,164
12,552 13,402
INVESTMENT INCOME
2024 2023
£ £
Deposit account interest 483 146
CHARITABLE ACTIVITIES COSTS
Direct
Costs (see Support
note 5) costs Totals
£ £ £
Nursery provision 180,703 150,334 331,037

3. INVESTMENT INCOME

4. CHARITABLE ACTIVITIES COSTS

continued...

Page 11

HONEYCROFT

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

5. DIRECT COSTS OF CHARITABLE ACTIVITIES

DIRECT COSTS OF CHARITABLE ACTIVITIES
Staff costs
Toys, Equipment and Materials
2024
£
175,105
5,598
180,703
2023
£
162,219
446
162,665

6. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2024 2023
£ £
Depreciation - owned assets 4,314 379
Independent Examiner's fee 2,160 2,170
Rent under an operating lease 40,000 40,000

7. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2024 nor for the year ended 31 March 2023.

8. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
2024
£
222,618
7,060
5,285
234,963
2023
£
211,250
6,801
5,492
223,543

The average monthly number of employees during the year was as follows:

Playgroup
Management and administration
2024
16
3
19
2023
15
3
18

No employees received emoluments in excess of £60,000.

Key Management Personnel are considered to be the trustees and the centre manager. During the year remuneration of £38,238 (2023: £41,388) was paid to Key Management Personnel.

continued...

Page 12

HONEYCROFT

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

9.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Charitable activities
Nursery provision
279,732
Other trading activities
13,402
Investment income
146
Total
293,280
EXPENDITURE ON
Charitable activities
Nursery provision
308,240
NET INCOME/(EXPENDITURE)
(14,960)
RECONCILIATION OF FUNDS
Total funds brought forward
180,889
TOTAL FUNDS CARRIED FORWARD
165,929
10.
TANGIBLE FIXED ASSETS
Improvements
to
property
£
COST
At 1 April 2023
240,391
Additions
-
At 31 March 2024
240,391
DEPRECIATION
At 1 April 2023
227,887
Charge for year
2,084
At 31 March 2024
229,971
NET BOOK VALUE
At 31 March 2024
10,420
At 31 March 2023
12,504
Restricted
funds
£
-
-
-
-
-
-
-
-
Plant and
machinery
£
47,357
8,489
55,846
46,927
2,230
49,157
6,689
430
Total
funds
£
279,732
13,402
146
293,280
308,240
(14,960)
180,889
165,929
Totals
£
287,748
8,489
296,237
274,814
4,314
279,128
17,109
12,934

continued...

Page 13

HONEYCROFT

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

11.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Prepayments and accrued income
12.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Social security and other taxes
Other creditors
Accrued expenses
13.
MOVEMENT IN FUNDS
At 1/4/23
£
Unrestricted funds
General fund
165,929
TOTAL FUNDS
165,929
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
339,766
TOTAL FUNDS
339,766
2024
2023
£
£
8,246
11,667
-
871
7,500
9,877
15,746
22,415
2024
2023
£
£
3,299
2,974
1,104
1,232
2,169
2,170
6,572
6,376
Net
movement
At
in funds
31/3/24
£
£
8,729
174,658
8,729
174,658
Resources
Movement
expended
in funds
£
£
(331,037)
8,729
(331,037)
8,729

continued...

Page 14

HONEYCROFT

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

13. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

At 1/4/22
£
Unrestricted funds
General fund
180,889
TOTAL FUNDS
180,889
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
293,280
TOTAL FUNDS
293,280
Net
movement
At
in funds
31/3/23
£
£
(14,960)
165,929
(14,960)
165,929
Resources
Movement
expended
in funds
£
£
(308,240)
(14,960)
(308,240)
(14,960)

14. EMPLOYEE BENEFIT OBLIGATIONS

The charitable company operates a defined contribution pension scheme with contributions being made by both employer and employees at variable rates. Total pension costs in the current year amounted to £5,285 (2023: £5,492). At the year end £1,044 was due to the provider (2023: £1,171).

15. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2024.

16. CONTROL

The company was controlled throughout the current and previous periods by its Trustees by virtue of the fact that each Trustee has a vote at meetings of the Trustees.

Page 15