Smalles Goldie Copy mailes Goldie CHAR TERED ACCOUNT AWTS REGISTERED COMPANY NUMBER: 04017833 {England and Wales) REGISTERED CHARITY NUMBER: 1095652 The Hull & EY Medical Research Centre Consolidated Financial Statements 30 September 2023 buW&ng hff SD-0214331k1-6 ICAEW CHARTEREO ACCOUNTANT5 Smoiles Goldie is a trading nome of Smoiles Goldie Portnership.
The Hull & East yOh1 Medical Res•arth C•ntr• Contents of the Consolidated Financial Staterngnts for the year ended 30th September 2023 Page Rept of the Trust*s 1to5 Repcyl of the Indep8ndent Auditors 6t08 Consdidaled statt of Finala1 AL#Nities CSlated Balance Sheet 10 Charity Balance Sheet Consolidated Cash Fl(M Statement 12 Notes lo the Consolidated Cash Flow Statement 13 Nole5 to the ConsolKlated Finanaal Statents 14to23
The Hull & East Yorkshire Medical Research Centre Report of th• Trustèes for the year ended 30th SePteMr 2023 The Iruslees, who are also direclwJ of the tharity for the purposes of the Companies Acl 2006, present their report wth the financial statements of the charity for the year ended 30th September 2023. The trustees have a¢Jopled the prOvisn5 of Accounting and Reporting by chan1$. Statent of RecMmended Practice applicable lo charities preparing their acrUt5 in acoNdarte wlh the Finanaal RewiirvJ Standard applicable in the UK and Republ of Irdand (FRS 102) (effecaive 1 January 2015). REFERENCE ANO ADMINISTRATIVE DETAILS Registered Company number 04017833 (England and Wales) Registered Charity TrUmr 1095652 Rogistefed office The Daisy Building Castle Hill Hospital Castle Road Cottingham East Yorkshire HU16a Trustgos tk A Allam- deceased 02 12 2022 Mr T S E Boanas Prof P E er Ms K M Guest Mr D C Heuck Mrs V R Heuck Mr S Howey Prof M J Lind Df C A Rowland-Hill Prof N D Slafford Company S•¢r•tsry Prof N D Slafford Auditors .Smailes.Goldie Chartered Accountants Statutory Auditor Regent's Court Princess Street Hull East Yorkshi HU2 88A Solicitors Gordans LLP RNerside West Whitehall Road Leeds West Yorkshire LS14AW Gosschalks Queens Garden5 Hull HU1 3DZ Page 1
Th• Hull & East Yorkshlre Ilediul Res•ar¢h C•ntr• Report of th? Trusteeg for the year •nded 30th S•ptemb¢r 2023 REFERENCE AND ADMINtsTRAmvE DETAILS {Conllnued) Bankers Handelsbanken First Floor, Westcott House Hesslewood BunesS Park Hessle East YorkshKe HU13 OPF N'onal Westminster Bank plc The Square Willerby East Y(kshe HU10 7XW Virgin Money 10-12 Paragon Street Hull HUI 3ND Beverley Building &Kiety 57 Market Place Beverley HU17 8AA OBJECTIVES AND ACTIVITIES Objectives and activities The company's objectives are to establish and fund the bxovision of medical research facilrties for enquiry into the causes. natural history. pvent)n. <iiagnosis and treatment of illnesses and diseases of all kinés and to disseminate the useful results of such research for the benefit of the public. Such facilities wll be developed for the study of diseases of the heart arKI cancers. th the anlicipatN)n that similar facilities wll be offered lo other specialist areas of medical research as Ihe centre develops and expands. The truslees have considered the Charity Commission's guidance on public benefrt and are of the opinn that it is futfilled by the tharity's continued pursuit of 11$ objectives. Public benefft The directors have reviewed the activitres of the Charty and confthi that th8y are in accord with tts objectives. The dire¢tors also eonfirm that the Charrty's aims and objectives fall within the descriptions of purposes section in the Charities Acl 2011 and are recogni$ as tharitable and carried (yjt for the benefit of the puNic al large. ACHIEVEMENT AND PERFORMANCE Revlew of the year and future strategy The Daisy Building Phase 1, whi¢h was toughl into use in JU 2008. continues lo fl511. al the anticipated level of use, the functions envisaged when the Charty was founded. Siled prominenuy al the NHS Castle Hill Hospital in East Yorkshire. it pro¥eS a fwal point for the Put1¢ pertspbon of the work of the Charity. The Phase 2 Proje¢t is lo provide. in conjunction with the NHS. scanning faclities (Phase 2a) and a Moleojlar Imaging Research Centre (Phase 2b) for both research arKI dinThl applutions. The project involves research cooperation with both the UnNersty of Hull arKI NHS. with the intention of c¥eating a unique. worfd-class facility. The project inwrM)rnles the provision of a PET£T $canniThJ patient Sep41 facility. The provision of this facility, which became fvlly operational in May 2014. now generates income to recover its cost over a period of 40 years and provides additional funding for the future research actIvr( of the charity. The aeernenI with the AllIar MedKal Ltd specif5 defined tvicJs of time for the use of the scanning facility for research purposes. Additionally. there the patnt berfft of an onstle sLe-of-th8-art knlity for clinical trials. as well a5 clinical servKe. ThÉs was not Fyeviousty available in East Yorkshire. Planning for the Phase 2b proiecl (referred to above) commenced in October 2014. Technical pwoject teams from the NHS Tnjsl and Universty of Hull are led by three senior employees from those organisalions: one of whom has taken the role of Proiecl Director. Extemal speualists are engaged to assist as neSsary. The Melocular Imagine Research Centre has been almost completed and cyclotron has been instslled although il is Tr)1 yet operational. This 1$ disappointing from the Charws point of view and the delay has arisen due to issues with the installatK)n of ducling work thin the building and the supply of other ancillary equipment. It is"anticipated that a full handover of the building, wll tske place in the thrd quarter of 2024. Tesllng and commissioning of the equipment will take place after handover. Page 2
The Hull & East Yorkshir• M•dical Research C•ntr• Report of the Trustees for the y•ar •nd•d 30th September 2023 ACHIEVEMENT AND PERFORMANCE Revlew of the year and future stratryy The charity, with legal advitk from its so111$, ha5 in pl&e all the rttessary propety, financial and conslruclton agreements and contrxts. The directors {Iruslees) are satisfied that this project fulfils the Ob1Ve and Activitw as defined in the Memorandum of Association. The Mole¢ular Imaging Research Centre referred to above will kyovide research beneffts. as well as having dinical applications. It is. however, dependenl on the sonniTrJ fxilits to enable it to achieve ils full research potential. The site for this new building is adjacent to the Scannirvj Centre. The close woximity enables the rnanufaclure an(1 delivery of innovative trac$ for injecting into PatnIS. Some of these tracers have a short lrfe (measured in minutes) before ttw become ineffective. They enable the provish?n of very high-definilion imaging. and hence patient benefils, whth are not possible at the present bme. The applications incorporate cancer. cardiac. dementia and Azheims KlentfficalKm and treatment. The development al Castle Hill Hospital will provide a unique opportunity for a truly tranat)n research wogramme in PET£T imaging. The Opern9 of the Scanning Centre and plans for Phase 2b. with its attendant wblicty. continues lo have a very positive effect on the chartys region profile. Principal risks and uncertainlies The construction of the Molecular [mng Researth Centre rs now alrnost complete. The cost of the project stands al £8.7 million and the charity's assets a ¢ufrenUy in excess of £7 Milln. therefore the main risk to the charity is bridging this shortfall. It Still ha5 8 number of opk*xtunities to pursue in term5 of fvndraising from various individuals and institutions and one of the trustees has commltted to underwrits.ng the residual funding gap that rnight exist in 2024-25when the charity is due to pay ts balance on both the tryJilding and the cyclotron and ancillwy equipment. The Iruslees have a duty lo identify and review the risks to which the chanty is exposed and to ensure appropriate controls are in place to provKle reasonable assurance against fraud and error. FINANCIAL REVIEW Reserves and Investment pollcy Total reseNes of £13.839.716 12022: £12.570,3611 were held by the charity at 30 September 2023. The balance held as unrestricted funds was £10.811.579 (20Z2.. £9.616.916) of whsch £562,813 is regarded a$ free reserves, after allowing for fvnds relating to tangibk fLxed assets and investment property. The balan¢e held as restr¢cted fijnds was £3.028.137 (2022: £2,953,445) ofwhich £34.057 is regarded as free reserves. after allowing for funds relating to tangible fed assets. Reserves are accurnulaled until suth time as eXJitUre is requwed for capital projects andlor fesearch grant funding. As in previous years and for the foreseeable fUre. all monie$ will be invested as deposits wilh banks and building societies. i.e. lthv ris Page 3
Tho Hull & Easl Yorkshlre Medi¢al Rewrch C•ntre Roport of thè Trust8eg for the year ended 31)th Soptember 2023 STRUCTURE. GOVERNANCE AND MANAGEMENT Goveming document The Hull and East Yorkshire Medical Researcth Centre is a registered and a company limited by ' guarantee, Vrfilhout share PItal. The Charity's g)verning dctumenl is ils Memorandum and Articles of Assoaation. This restricts its operatsons to dl such lawtul acts as are necessary or incidenlal to the attainment of its objectives. Membots of the charltable company Members of the company. vtho are directors for the purpose of ctynpany law and trustees for the purpose of charity law. who served during Ihe year and up to the dale of this repcwt are set (Lrt on page 1. Members ol the charitatle C(panY guarantee to contrilNJle an amount not ex(%eding £10 each lo the assels of the charitable company in the event cl a winding up. The told rwmber of such guaranlees al 30 September 2023 was 9 and al 2022 was 10. R•crultsnent and appointrnent of new trustoes The dire¢tors of the company a apw)inted in aCC(Kdan wth the goveming dMent. the MpanY'S Memorandum aTKI Arbdes of ASKlati(. The direclcys are all experienced wofessionals of varyirYJ disciplines, all of which are relevant to the Chanvs aLaivities and requirements. Policies and Procedurns for the Inductlon and training of n•v Int The charity provides all new trustees wlh the follwng iluCtion material: the Charity's LThJvernin9 docLsmenl and financial inforrnab'on. indudin9 Up-tctrdale atx¥xJnls. together with exanatOry material and recent rninutes from trustee meetings. The charity provides supEhJrt and regularfy reviews the devdopment needs of the trustee board to make sure that all Iruslees are fully acquainted with all matters relating to chanty finan. governance and propriety. Organlsatlonal structurn The company's directors meet on a quarterfy basis. wtth addition meeting5 convened where circumstsnces diclale. They are responsitle fty the slrate9ic dlS)n$ and pN)li(aes of the Charity. At the present time there are 9 members from rnedical. business and professional backgrounds. Remunerat1 pollcy All Iruslees give their lime fredy and no trustee renKIna110n was paid in Ihe yew. Details d trustees, expenses and rdated p¥ty transac11S are disdosed in note 25 lo the ae£ounts. Related parties The under-mentIon dtrectofs (trustees) are anploy&Y by." The University of Hull Prof M J Lind The re1alK5hlP rdates to the research grant awarded to the University aThJ the use andlor potential use of the Oaisy Researth Facility for charitsble purp05e5. Hull and East Yorkshire Hospitals NHS Trust Dr C A RowAaryJ-Hill The relationship relate5 to the use andlor potential use of the Research Facility for charitsble purposes.
Tho Hull & East YOh1r Ml¢al Rosearch Cgntro Report of the Trustees for tho year •nd•d 30th S•)t0mber 2023 STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees (who are also the directors of The Hull & East Yckshire Medi¢al Research Centre for the purposes of company lawl a responsible for preparing the Repryt of the trustees and the finan¢ial ststements in accordance with applicable law and Unried Kingdom AujnI1ng Standards (Unit&J Kingdom Generally Ac£epted Accounting Practice). Company law requires the trustees to prepare finarJaI statements for each financial year which give a true and fair view of the stale of affairs of the charitable cg)mpany and of the incoming resources and application of resoLtrces, induding the income and expenditure. of the charitsble o)mpany that pericrfl. In preparing those financial statemenis, the trustees are required to select suitable acc£Juntin9 pICieS and then apply them LVlSiStenUy' observe the methods and prinoples in Charity SORP," make judgements and eslimales that are reasonable and Frudent. ppare the financial staierrents on the gJing concern basis unless il is inapproprrale to presume that the charitable company 11 continue in business. The Iruslees are respM)nsible f(Y keeF4ng Fryer a(£wntirvJ rec(wds wthich disclose reasonable accuracy at any time the finanoal position of the chariiable company and lo enable them to ensure that the financial statements comply with the Companies Act 20C. Ttw are also responsible for safeguarding the assets of the charitable company and henc for taking reasonable steps for the preventKn and detectK)n of fraud and oth irregularities. STATEMENT AS TO DISCLOSURE OF INFORMATICX4 TO AUDITORS In so far as the Irustees are awe.. there is no relevant audit informatmm of the charilable c(Jmpany's auditors are unaware,. and the trustees have tsken all steps that they oughl io have laken to make themsdves aware of any rdevanl audit information and lo e5tabli5h that the auditors are avrare of that inf(Kmation. AUDITORS The auditors, Smalles Gold, wll be prop(wJ fw re-appointn*nt al the f(¥thcx)ming AnThJal General'meeting. Approved by wder of the trf)ard of trustees on 27 June 2024 and signed on its behatf by". D.C. Heuck- Trustee Page 5
Report of the Independent Auditors to the Members of The Hull & East Yorkshire Medical Research Centre Oplnlon We have audited the finan(aal statements of Hull & East Yorkshire Medical Research Centre Ithe'charrtable company'} and its SUbsrarieS (the 'group') for the year ended 30th September 2023 which comprise the Consolidated Slalement of Financial AcIN1t, Balance sheet, Consolidated Cash Fl¢Jw Statement and notes lo the financial slalemenls. irKJuding a summary of signrfunl ac£ounb'ng pdicies. The financial reptIng framework that has been apPld in their preparatn is applicable law and United Kingdom Accounting sndards (United Kin9Jn Generally Accepted Ar£wnting PraGtKe). In our opinion the financial slatemenls.. gwe a true and fair view of the slate of the group and charitsble rA)mpany's affairs as at 30th September 2023 and of its incomiro resources and application of resources, induding its income and expenditure. for the year then ended. have been proOy prepared in acC(Xdare *ith United Generalty Ac£epted Accounting Practice:. and have been prepared in accordance with requirements crf the Companies Act and Charities Act 2011. Basis for opinion We conducted our audit in accordance with Intemational Standard5 on Auditing (UK) IISAS (UKI) and applble law. Our responsibilities urKler those standards are further described in Ihe AUdit¢S responsibilities for the audit of the financial slalemenls section of (Jjr report. We are independent of the group in accordan with the elhical requirements thal are relevant lo our audit of the finanryal statements in the UK. including the FRC'S Ethical Standard, and we have fulfilled rAJr (ther ethical responsibili(ies in accordance wlh these requirements. We believe that the audit evidence have obtain&J is 5Lrfficient and appropriate to provide a basis for opinitin. Conclusions relating to going nCeM We have nothing lo report in respect of the folky••ing matters in relatM)n to which the ISAS (UK) require us to report to you where". the trustees. use of the goi eoncem basis of aC(nI in the preparation of the financial stslements is not appropriate,. or the trustees have not disclosed in the financial staleffents any identified material uncertaint$ that may cast signrficant doubl atx)ul the grwp and charitsble cMPanY'S ability lo continue to adopt the g(MrKJ concern basis of accounting for a period of at least Iwelve months frcrfn the date when the financial slalements are authwse(I for issue. Other inforniation The truslees are reswnsible l(¥ the other information. The cAher infom)alion comwises the informab included in the Ret of the Trustees. other than the finanryal statements arml our Report of the independent audilor's thereon. Our opinion on the financial slalements does not cover the other information and. except to the extent otherwise expliutly staled in our report. we do not express any fwn of assurance condusion Ihereon. In connection with twr autjil of the finanoal stalemenls, (wr responsi.1 is lo read the other infomiation arNI, in doing so. consider whether the other infomiation is materially Innsistent wth the financial statements or our knovledge obtained in the audit IN olhewse appears to be materially misstated. If we ¢denlfy suth material in¢onsislencies or apparent material misstatements. are required to determine whether there is a material misstalemenl in the financial StatentS or a material misstatement of the other information. If, based on the work we have performed, we eondude that there is 8 material misstalemenl of this other information, we are required to report that fact. We have nothing to repc¥t in this regard. Opinions on other mattevs prescribed by the Companies Act 2006 In our opinion. based on the work undertaken in the ctyjrse of the audit-. the infomiation given in the Report of ihe Trustees for the finarKaal year for which the financial statements are prepared is consistent with the financial slalements., and the Report of the Trustees has been prepared in accKKdance with applicable legal requirements. Page 6
Report of the Independent Auditors to the Members of The Hull & East Yorkshire Medical Research Centre atters on which w¢ aro required lo report by exception In the light of our knedge arKI understanding of the grojp and charilable company and its environment obtained in the course of the audit. have not Iden1rf malerBI misslatements in the Report of the Trustees. We have nothing lo report in respect of the fdlowing matters in relatN)n to Vthh the Companies Aci 21YJ6 and the Charities Act 2011 requires us lo repNI to you rf. in wr opinion.. adequate and sufficient accounling reoyds have not been kept by the parent charitsble company, or returns adequate for our audit have rK)t been reIVed frorn brarthe5 not visited by us: or the parent charitable company's finanryal statements are not in agreement with the accounting CordS and tUrnS- or certain disdosures of truslees. remuneration specffied by law are not made.. or we have not receNed all the information and explanations require for our audit. Responsibilities of tvustees As explained more fijlly in the Statement of Trustees. Responsibililies set out on page fNe. ihe trustees (who a also the directors of the charitable company fcK the purposes of rnpanY lawl are responsible for the preparatn of the finanaal statements and for being satisfied that they gTve a true and fair view, and for such internal control as the tnjstees detennine is necessary to enable Ihe preparation of finala1 statements that are free frLYn malerhql misstalemenL due to trd or err(Y. In preparing the finanoal statements, the trustees are re5ponsitAe for assessing the grryjp and the charitable company's ability to continue as a going concern. disclosing. as appluble. matters rdaled lo going concern arKI using the going concern basis of accounting unless the trustees either intend to liquidate the group andlor the charitable tsjmpany or to c&8se operal)ns. or have no realistic allemative but to do so. Our responsibilities for the awlit ol the financial statements Our objectives are lo obtain reasonable assurance atxxjt whether thefinanci81 statements as a whole are free from material misslalemenL whether due to fraud or error. ar to issue an auditor's repcrt that includes our opinion. Reasonable assurance is a high level of assurance, I1 is rrf)t a guarantee that an audit conducted in accordance wilh ISAS (UK) will aws detect a material misslatemert when it exists. Misstatements can arise from fraud or err and are considered material if. individually or in the aggregate, they rUld reasonably be exed to influence the economic decisions of users taken on the basis of these finanoal statements. The extent to Nthich wr woeedures are capatAe of delting irregularit, induding fraud are detailed below.. Our approach to idenlfying aThJ assessing Ihe risks of material misstaternent in respect of irregularities, induding fraud and non-com lar with laws and regulations. vras focused on specific laws and regulations whth we considered may have a direct maIal effect on the tharty onfy and consolKlaled financial statements or the operations the tharitable company and the grtyJp. induding the Companies Acl 2Th)6, the CharitS Act 2011, data protection, anli-bribery, employment, fvndraising regulations. health and safety legislation, health and social care regulations and childcare regulations. An understanding of these laws and ulalions and the extent of compliance was oblained through discuss>) with managenl and inspecling legal and regulatory oyrespondence. We asse&8ed the susceptibility the thariiable company's and cA)nsolated finanual statements to material mi5Staternent, inclu(Jing obtainirrfJ an understanding of how fraud might cttur. by makn'ng enquiries of management and considering the intemal LtrOlS in place to mitigate risks of fraud and non-complian with laws and regulations. To address the risk of fraud through management bias and override of controls. we performed analytical procedures to idenlfy any unusual or unexpected rdationships- tested journal entries lo identfy unusual transactions; assessed Wheth judgements and assumptions made in delwmining the auntIng estimates were indicative of potential bkts. and invesb"gated the rationale behind siwificant or unusval transaction Page 7
Report of the Independent Auditors to the Members of The Hull & East Yorkshire Medical Research Centre . In response to the risk of irregulariti'es aThJ non-clpIlance wth laws and regulations. we designed procedures Whti induded. but were not limited lo agreeing charity only and Consolated financkql statement disclosures to underlyiThJ supporting dLKyJmenlalion," reading the minutes of ffleelings of those charge{1 wth governan. enquiring of management as to aclual and potential liligalM)n and daim5.' arKI reviewng CdenCe with HMRC. relevant regulators and the charitatle CpanY5 legal advisors. Due lo the inherent limitations of an audrt. there is a risk that we wll not detect all irregularitie5, induding those leading lo a material misstaternenl in the financial slalements or nork-complpnce wth regulatson. This risk increases the more that ojmpliance 7Mth a law or relation is removgj from the events and transactions refiecled in the financial Statements. as we will be less likdy to become aware of instances of non-compliance. Auditing Standards a150 lirnit the audit procedures required to Klentfy non-compfiance with laws and regulatsons lo enquiry of the dyectors aThJ olher management arKI the inspectbon of regulal(ry and legal correspondenc*. if any. The risk is also greater regarding irregularitses rrIng due to fraud rather than error, as fraud invdves intentional concealment, forgery, ccAlusM)n. omission. or misrepresentation. A further descfiplion of our respM)nsibililies fcK the audit of the finanual statements is located on the Financial Reporting Council's website at.. https'.IlwM.frc.org.uklOur-WorkJAuditlAudil-and-assurancelStandards-and- guidancelSlandards-and%uidarfOr-aUdrtOT$. This dep1K)n forms part of (xjr auditorfs report. Usè of our r•port This report is made soldy to the charitable company's mernbs. as a body. in aCrdan wrth Chapler 3 of Part 16 of the Cornpan P£1 2CKJ6. Our audit has been undertaken so that we mKJht slate to the charitable company's Iruslees those matters we are rquired to state lo them in an auditor's report and for no other purpose. To the fullest extent permitted by law. do not accept CK assume responsibility to anyone other than the charitable company and the charitable o)mpany's trusleesas a bcKly, for our audit work, for this rert, or for the opmnions have formed. Luke Taylor 8Sc {Honsl ACA {Senior Stalut(ry Audit> For and on beha of Smalles Goldie Chartered Accountants Statulcry Auditor Regent's Court Princess Street Hull East Yorkshire HU2 88A 27 June 2024 Page 8
The Hull & East Yorkshir¢ M•dical Research Centre Consolidated Staternent of Financial Activities {Incorporating an Income and Expenditure account) for the year ended 30th September 2023 2023 Total funds 2022 Totsl funds Unrestricted Restricted fund nds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 503.807 503,807 216.627 Other Iraijing aclivib.es Investment incorne Commwaal trade operations 337 165.617 264.621 337 165,617 2N621 2,758 116,956 250,505 Total 934.382 931382 586,846 EXPENDrruRE ON Raising funds Charitable activlties Medical Research Commercial trade OperatnS 130.948 130,948 124,354 250.520 208.189 64.757 315,277 204,208 215.733 Totsl 589,657 64,757 654,414 544.295 NET INCOMEIIEXPENOITUREI 344.725 {64.7571 279,968 42,551 Gain on investmènt propèrty revaluation 989.387 989.387 471,982 Transfers betwe Funds (139.449) 139.449 NET MOVEMEKf IN FUNDS 1.194,663 74,692 1,269,355 514.533 RECONCILIATION OF FUNDS Total funds brought forward 9.616.916 2.953.445 12.570,361 12.055.828 TOTAL FUNDS CARRIED FORWARD 10 811579 3.028.137 13.839.716 12,570,361 The rM)tes fcvm pari of these financial sialements Page g
The Hull & East YO$hIre MediG4 Research C•ntrn {R¢gistered number. IM017833) Consolldated Balance Sheet At 30th September 2023 2023 2022 Notes FIXED ASSETS Tangible assets Investrnents Investment property 14 9,140,221 8.514,053 16 6,991.574 17 121 182 15,505.627 CURRENT ASSETS Slrtks Debtors Cash al bank 6.735 331.990 1.160.302 1,499 027 17 367,034 1.420.116 1.787, 150 CREDITORS Amounts falling due within one year 18 (1.101.932) {84S.989) NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES 17.518.277 16,446,788 CREDITORS Amount falling due after more than one year 19 13.578.333) 13,798.333) PROVISIONS FOR LIABIUTIES 20 (11J0228> (78,094) NET ASSETS 13.839.718 72 570 361 FUNDS Unrestricted funds Restricted funds 10.811,579 3,028 137 9.616,916 2.953,445 TOTAL FUNDS 13.839.716 12.570,361 These financial Statements have been wepared in accordan the special wovisions of Part 15 of the Companies Act 2006 rdab'ng to small charitatAe (Mpanies. The financial statements approved by the Board of Trustees on 27 June 2024 and were Signed on its behalf by.. N Stafftjrd - Trustee The rK)tes fm part of tl*se finanaal statements Page 10
The Hull & East Yorkshlve Medlcal Research Centre {Registerod number. 04017833 Charity BalanGe Sheet At 30th Septgfflbor 2023 2023 2022 FIXED ASSETS Tangible assets Investments Investments Investment prc4)ety 14 5.284,839 5.019.452 15 16 6.991.574 13,265 801 12,011,027 CURRENT ASSETS Stocks Deblcys Cash al bank 5.099 4.408.185 526,449 4,939,733 17 4,245.360 700.987 4.946.347 CREDITORS Arnounts falling due Vlithin one 18 (1,081788) (822.184) NET CURRENT ASSETS 3.852.945 4,124,163 TOTAL ASSETS LESS CURRENT LIABILITIES 17.118,746 16,135,190 CREDITORS ounls falling dtse after m(xe than i)ne year 19 (3.578.333) {3,798.333) NET ASSETS 13.S40.413 12.336.857 FUNDS Unrestricted funds R8slricled funds 10.512.276 3.028 137 9,383.412 2,953,445 TOTAL FUNDS 13,540.413 12,336.857 These financial statements have been prepared in a¢Crydan wth the special provisions of Part 15 of the Companies Act 2006 rdatsng to Sm1 Charitse compantes. The f1nancial statements were approved by the Board of Tnjstees on 27 June 2024 an(1 were sned its behalf by.. N Slafford - Truslee The notes fom part of these finanoal statements Page11 continued...
The Hull & East yOh•re M1¢ R¢s•arch C•ntre Consolidated Cash Flow Statement for the ygar ended 30th September 2023 2023 2022 Nel cash providqd by oporating activitles 502.287 Cash Ilows from Investlng actlvttles: Purchase of tangible fixed assets Interest received Intere51 paid (808.439) 21.372 13.050,3011 62 137.448 Net cash used In Investlng actlvitles (1.009.655) 13,187,687> Cash flow5 from financing actlvlti•s: Loan drawdown in year Loan repayments in year 2,200.OLKI 201,667 Change In ¢ash and cash equlvalents In the reportlng perlod {259.814J (485,4001 Cash and cash equivalonts at tho b•ginning of the reportlng pedod 1420 116 1.905.516 Cagh and cash equivalents at the end of th• reporting period 1.420 116 The rK)tes forni part of fin*Kial statements Page 12
Th• Hull & East Yorkshir• Medlcal Re¥¢ar¢h Contr• Notes to thg Consolidated Cash Flow Statoment for the y•ar ended 30th Seplember 2023 RECONCILIATION OF NET INCOME TO NEf CASH FLOW FROM OPERATING ACTIVITIES 2023 2022 Net Incoffle for the reportlng perlod {as per the statement of Ilnan¢ial actlvltles) 279.968 42,551 Adjustments for: Depreciation charges Interest received Interest paid (In¢aSeYDe¢rea$e in stock {IncreaseyDecrease in debt¢XS IDeueaseylnGrease in credit(Ys 182.271 (21,372) 222,588 (É.73S) 181,914 1621 137,448 (19,575) 160.011 259.745 Net cash provided by oper*ing activities 951.508 502.287 ANALYSIS OF CHANGES IN NET FUNDS At 01.10.2022 Cash flow Al 30.092023 cash Cash at bank 1,420.116 (259,814) 1.160,302 1,420.116 (259,814) 1,160,302 Debts faiing due wrthin 1 year Debts falling due after 1 year 1201,6671 1.998,333 (18,333) 220,WO (220,000> 1.778,333) 2.2W.IXJO 1,998 333) 779.884 The notes form part of these finarKial statements Page13
The Hull & East Yorkshirè mlea7 Research Centre Notes to the Fin•¢ial Ststornents for the year ended 30th Septwnb¢r 2023 ACCOUNTING POLICIES Group and Charity Accounllng Policies Basis of preparing the financial slatements The Hull and East Yorkshire Medul Researth Centre is a private company, limited by guarantee. registered in England ano Wales. The company's registered number and registered office address is gNen on page 1 of these financial ststements. The financial statements of the tharitatAe CL)mpany. vthich is a Publ benefit entity under FRS 102. Have been ppared in accordance with the Charities SORP IFRS 102) 'AccounliThJ and Reporting by charit.. Stalwnent of Recrneded Practice applicable lo charit preparing their aeeounls in accordan wlh the Financial Reporting SlarKJard in the UK and Republic of Ireland IFRS 102) (effective 1 January 2019).. Finanual Rep(Kting Standard 102 'The Financial Reporting Standard applicable in the UK and RebI of Ireland, and the Companies Act 2CM)6. The financial slatements are wepared on a going basis under IF hist(Yical cost convention. mcKIrfEd lo indude Certain items at fair value. The financial stateffnls are presented in sterling which is the fvndional rrencY of the dwity and rned lo the nearest pound. The si9nfficant aco)unling Fxjlicies applied in the preparati(wt of these financial ststemenls are sel out below. These [1cleS have been consislenuy applied to all Fericrfjs WeSent unless otherwise stated. The charitable cunpany adopted FRS 102 in the oJrrent year and there has been no effect on Iransilion. Basis of consolidation The gr(NJp financ1 statements consc4idate Ihe finanrial statements of the Charity and ils subsidiary undertaking. Daisy Medical Research Limited, at 30 September 2023 using acqUi110n accountsng. Going concem The trustees. having ¢onsidwa the forecgsts for the peric#J lo 30 September 2025. have a reasonable expectation that the cornpary has adequate SoUr to continue in operational existence for a period of 12 months from the dale of approval of these fInar01 stalements and therefore have prepared the financial statements on a going COnM basis. Income l income is recognised in the Statement of Finanaal Activities once Ihe charity has enlrtlemenl lo the fvnds, il is probable that the inc4)me wdl be recaved and wtn the anTh)unl can be measvred reliably. Donation5 and legacies Donations and gifts are induded in full in Statement of Financial Activities when r1vable. The value of serVIS provi¢Yed by vdunteers has nol teen induded. Donat&J g(M>Js are induded at the donated ValUatn by the Grants receivable Grants, including grants for the purchase of fixed assets, are recognised in full in the Statement of Financial Activities in the year in which they are Nable. Inv•stm•nt income Inrnming resources from investmwrts are induded wtsn l¥able. Expenditure Expenditure is recognised as SO as is a legal (Y construdive OlgatiOn LX)mmitting the charity to that expenditure. il is probable thal a Iransfer of economic benefrts wll be required in settlement and the amount d the otigatiOn can be measured reliaiAy. Expenditure is a¢counled fcy on an accruals basis and has bn da$srf under headings Ihat aggregate all expense5 related to the catewry. Where expenses cannot be direclly attributed lo particular headings, they have been allocated to activities on a basis consistent Yh the use of reswrces. Irrecoverable VAT is charg&l as an expense against the actNity for which ts expenditure was incJJrred. Page 14
Tho Hun & East Yorkshire Medical Research Centre Notes to the Financial Staternents- continued for the year ended 30th Septefflber 2023 ACCOUNTING POUCIES- conllnued Exp•ndityre- Mnlinued Grants offered subject to conditions which have rnt t*en mei at the year-erKI date are noted as 8 commitment bul not acczued as expenditure. Support costs are those functions that assist the work of the eharity but do not direclly undertake charitable activities. Support costs include office costs. finance. personnd and governance costs which support the charities adivities. These ojsls have be all(ted beiween cost of raising fund5 and expenditure charilable activits. Tangible fixed assets Tangible fixed assels are staled at c£tst less aLvJmulated depreciation and acoJmulate(l impairment 105se5. C05t indudes costs directly attributsble to makirKJ the asset capae of operating as intermjed. Depreciation is provided al the fOFlovry annual rates in order to vffite off each asset over its estimat1 useful lrfe. Plant and machinery ele - straight line over &10 years Inv•stmont property Investment proFerty for which fair value can be reliabty measured are measured at ils fair value at each rewting date wlh changes recognised in the statemwl of financial aciivities. Taxation The charity is exempl from (xxporatK)n tax on its tharitable actrrfities. Fund accounting Unrestricted funds are dalOn5 and other incoming reswrces receNae or generated for the objects of the charily wilhoul fvrther specrfied kxlrpose and are available as genera funds to be used in accordance with Ihe charitable rtijerAives at the discretion of the trustees. Restricted fijnds only be used for particJJlar re5trirXed purposes wthin the objects of the charity. Restrictions arise when Specrfl by donor or when funds a ratsed for particular restricted purposes. Further exFAanation of the nature and wrrM)se of each fuThJ is Ided in the notes to the financial slalemenls. Debtovs and creditors receivable I payable wlthln one year Debt( and credrtors th no slate(l inleresl raie and receivable or payable within ce Yeara rerded al Iransaction pyice. Any105ses arising fr(Kn impairrrent are renIsj in expenditure. Concessionary loans COns1Onary loans include those payable to third parties which are interest free or below market interest rates and are made to advance charitable wrposes. Loans are accounted for in accordance with the terms of the loan agreement. DONATIONS AND LEGACIES 2023 Total fvnds 2022 Total Funds Unyestricled Restricted funds funds DonatlQll5 Legacies 118.146 385.661 118.146 385.661 133.384 83,243 503.807 216,627 Page 15
The Hull & East Yorkshire Medical Research Centre Notes to the Financlal Statements - continued for thè year ended 30th Seplember 2023 OTHER TRADING ACTMTIES 2023 Tolal funds 2022 Total funds Unrestricted Restricted funds funds Fundraising events SW income 1.967 791 337 337 337 337 2.758 INVESTMENT INCOME 2023 Total funds 2022 Total funds Unrestricled R•strict•d funds funds Rents received Deposit account interest Legacies interest 144245 6,649 5,357 144245 116,894 62 5,357 156.251 116.956 INCOMEI{EXPENDITURE) FROM COMMERCIAL TRADE OPERATIONS 2023 2022 TURNOVER Administrative expenses 264.621 250,503 OPERATING PROFIT Interest re1vable and similar income 78.566 ,063 PROFIT ON ORDINARY ACTMTIES BEFORE TAXATION Tax on profit on ordinary activities 87,933 66,C3 PROFIT FOR THE FINANCIAL YEAR The principal activity of the subsidiary urMlertaknNJ in the year under reviewwas that of medical research and medical treatment. RAISING FUNDS Raising donations and lagacies 2023 Totsl funds 2022 Total Funds Unrestricted Restricted funds funds Sundries 274 274 274 Other trading actlvities 2023 Total funds 2022 Total funds Unrestrlcted Restricted funds funds Purchases PR costs Closing Stock 1.033 45.138 5.099 1.033 45.138 17,358 30,064 47.422 Page 16
The Hull & East Yorkshire Medi¢al Resèarch C•ntrn Notes to the Finallcial Statements- continued for the year ended 30th Sèplember 2023 RAISING FUNDS- continued Inv¢slment managgmgnt sts 2023 Totsl funds 2022 Total funds Unrestrlcted Restrlcled funds furKIs Administrative expenses Maintenance charges 36.050 53,552 36.050 $3.552 23.981 52.677 89.602 89.602 76.658 Aggregate amnts 130.948 130.948 124,354 CHARITABLE ACTMTIES COSTS Grant fvnding of activitifts Support Direct costs Total (So• nots 8) Medral Research 313.$06 315.277 SUPPORT COSTS Infomiatson Governance Flnance Technology Costs PAanayement Totsl Medical Research 29,186 223.487 313.506 NET INCOMEI(EXPENDtTURE) Net intA)mel(expenditure) is stated after drgin(Cr1tlng)'. 2023 2022 Auditors. remuneralion - audil sep4ices Auditors, remuneratDn- non-audil seThiws Depreciation- (hvned assets 11.501 9.001 182.271 10.235 6.051 181,914 10. TRUSTEE REMUNERATION AND BENEFITS There was no Iruslees. remuneration Lv Oth berfrtS for the year ended 30th September 2023 ncf for the year ended 30th September 2022. Truslee expenses There were no tfuslee expenses paid for the year end&J 30th September 2023 for the year ended 30th September 2022. Pa9e 17
The Hull & East Yorkshire Medl¢al Research Centre Notes to the Financial Statements- continued for the year ended 30th September 2023 11. STAFF COSTS Group and Charity 2023 2022 Wages and salaries Social seTty costs 28.877 25,852 28.877 25.852 The average number of wnployees durir•J the year ended 30th Septernber 2023 was 1 (2022: 11. No employee reNed emduments in excess of £60,(IXI. 12. NET INCOMING RESOURCES OF PARENT CHARrrY As perrnitted by Sedion 408 of the Companies Act 20(. the Statement of Finantsal Activities of the parent charity is not presented as part of these finanaal stslements. The parent charity's net incoming resources for the year ended 30 September 2023 totalled £214.169 (2022.. £7.778). 13. COMPARATIVES FOR THE CONSOUDATED STATEMENT OF FINANCIAL ACTIVITIES Unrnstricted Restricted fund funds Total funds INCOME AND ENDOWMENTS FROM Donations and legac 216.627 216.627 Other trading acltvities Investment Inrne Commeroal trade Operan5 2.758 116.956 250,505 2.758 116.956 250.505 $86.846 Total EXPENDITURE ON Raising funds Charitable aclivilios Medical Research Commercial trade operatK)ns 124.354 124.354 134.215 215,733 69.993 215,733 Total 474.302 69.993 NET INCOMEI{EXPENDtruRE) 112.$44 (69.993) 42.551 Gain on investment propety revaluati 471.982 471,982 Transler bewn funds (473.564) 473.564 NET MOVEMENT IN FUNDS 110.962 403.571 514,533 RECONCILIATION OF FUNDS Total funds brought forward 9,505,954 2,549,874 12 055.828 TOTAL FUNDS CARRIED FORWARD 9.616.916 2.953.445 12,570,361 Page 18
The Hull & East Yorkshire med11 Research Centre Notes to the Financbal Statements- continued for the year ended 301h September 2023 1& TANGIBLE FIXED ASSETS Property under construction Plant and machinery Total GROUP COST At 1st October 2022 Additions 5.018.180 264.507 5.554.541 543.932 10.572.721 808,439 At 3(Xh September 2023 5282.687 6,098.473 11.381.160 DEPRECIATION At 1st October 2022 Charge for year 2.058.66B 182.271 2,058,668 182.271 At 30th September 2023 2.240.939 2.240,939 NET BOOK VALUE At 30th September 2023 5.282.687 3.857.534 .140,221 At 301h September 2022 S.018.180 3.495.873 8,514,053 CHARITY COST At 1 st October 2022 Addil¢ons 5.018.180 264.507 545.718 2.650 5.563.898 267,157 At 30th September 2023 5,282,687 548.368 5.831.055 DEPRECIATION At 1st October 2022 Charge for year 1,771 1.771 At 30th September 2023 546.216 546,216 NET BOOK VALUE AI 30th September 2023 5282.667 2,152 S.284.839 At 30th September 2022 5.018.180 1.273 5,019,453 Page 19
The Hull & East Yorkshirè Medical Research Cent Notes to tho Financial Stat•rn•nts - cmtinued for the year ended 30th Soplombgr 2023 15. FIXED ASSET INVEs[MEPS Shares in group undortakings CHARITY MARKET VALUE At 1st October )22 and 30th Sepiwnber 2023 NET BOOK VALUE At 30th September 2023 At 301h September 2022 The charity's investrnents at the balance sheet dale in the share capital of companies comprise the followng.. Daisy Medical Research Llmited Nature of business.. Medral researth and treatsnent Class of share.. Ordinary holdlng 100 2023 2022 Aggregate caixtal and reserves Profit for the year 299.301 65,798 233,503 16. INVESTMENT PROPERTY GROUP AND CHARITY ARKET VALUE Al 1st October 2022 Revaluations 6.991.574 989.387 At 30th September 2023 7.980.961 NET 800K VALUE At 301h September 2023 7,980,961 At 30th Septernber 2022 0.991.574 The market value of investment was assessed by the trustees al 30 September 2023 and is based on valuatn$ undertaken by the Hull and East Yorkshire Hospitals NHS Trust as al 31 March 2023. Page 21
The Hull & East Yorkshire Medical Research Centre Notes to the Financial Statements - continued for the year ended 30th September 2023 17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group Charity 2023 2023 2W22 2022 Amounts ovRd by grp undertakiros Other debtors VAT Tax Prepayments and accrued income 4.125.219 3,948,037 14,506 1,978 261.392 19,447 41.152 82.438 1,160 258,732 23,074 245.455 45.383 245,455 331.990 367,034 4,408.185 4,245.360 18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group Charity 2023 2022 2023 2022 Trade creditors VAT Accruals and deferred income Swal security and other lax Bank loans Other credito 224.243 12,324 343.976 1.389 220.000 300.1)00 12.384 lo.3 320,621 414 201.667 3CKI.( 224243 12.384 341.156 1.389 220,000 300.000 307.719 414 201,667 300,000 1.101.932 845,989 822.184 Indud&J in the above totsl is a108n of £3(KI.1) (2022". £3(X).(KKI) is unsecured and interest free. The loan is n(M repayable on demarnj. 19. CREDITORS: AMOUNTS FALLING DUE AFfER MORE THAN ONE YEAR Group Charity 2023 2023 2022 2022 Other ueditors Bank loans 1.800.000 1,778,333 1,8TrJ.C 1.998.333 1,800,000 1778,333 1.800.000 1,998,333 3,578.333 3.798.333 3.578 333 3,798,333 Induded in the above total is a loan of £1,8(KJ,(hXJ {2022'. £1.8(M).OCw)) whith is unsred. The loan is repayable in full on 31 December 2035 and interest is payable at 3.5% w annum. Induded in the above and note 18 is a bank loan totallirKJ £1.998.333 {2022." £2.2(KI,000} repayable by Monthly instalmenls over a perK)d of 10 years to 2032. Intet is charged at 3.55% over base. 20. PROVISIONS FOR UABIUTIES Group Charity 2023 2023 2022 Deferred tax 100.228 78.094 Balance at 1 Cttobw 2022 Charge to statement of financial activities during the y Balance at 30 Seplember 2023 78,094 22,134 100.228 Page 21
The Hull & East Yorkshire Medical Research Centre Notes to the Financial Statements . continued for the year ended 30th September 2023 21. ANALYSIS OF NET ASSETS BETWEEN FUNDS 2023 Totsl funds 2022 Total funds Group Unrestricted R•strict•d fund fvnds Fixed assets Investment property cUent assets Liabililies Provisior 3.855.432 9.140.221 8,514,053 7,980,961 7.980.961 6.991.574 1.464.970 34,057 1.499.027 1.787.150 (2.389.$56) (2,290.709) (4.680.265) {4.644.322) 100.228 78,094) 5.284.789 10.811.579 3.028.137 13,839,716 12,570,361 2023 Total funds 2022 Total funds Charity Unrestricted furbd Restricted funds Fixed assets Investments Investment Pfoperty Current assets Liabilities 5,284,789 5384.839 5.019.452 7.980.961 4,905.676 7,980.961 4,939.733 4.66S.121 6.991,574 4,946.347 4,620.517) 057 10.512.276 3.028 137 13.540.413 12.336.857 MOVEMENT IN FUNDS Incoming Resource5 Revaluation Trnnsfe At 01.10.22 resourus expended Gain between At 30.09.23 Unreslricted funds General fund 9.616.916 934.382 {589.657) 989.387 {139,449) 10,811.579 Restricted lunds Medul equrpment Phase 2 34,057 2.919.388 2.953.445 34,057 139,449 2 994,080 139,449 3.028,137 64.757 {64.7571 TOTAL FUNDS 12,570.361 13,839 716 Medical Equipment fvnd - donations recetved for medical equipment lo be purchased and used for research. Phase 2 fund - Funds donat for developrnenl of Phase 2 as explaingj in the tru5tees' port. 934.382 654.414 989.387 Comparative inftxmation in respect d the preceding a$ Id1tr. Incoming Resource5 Revaluation Transfers At 01.10.21 resources expended Gain between At 30.09.22 serves Unrestri¢ted funds Generdl fund 9,505,954 586.846 (474,302) 471.982 (473,564) 9,616,916 Rgstricted funds Medical equipment Phase 2 34,057 2.515.817 2.549.874 34,057 473.564 2,919,388 473.564 2,953,445 69,993 (69,993> TOTAL FUNDS 12.055,828 586.846 544.295 471.982 12,570,361 Page 22
Tho Hull & East Yorkshirg PAfjdical Research Centre Notes to the FInGla1 Statements - continued for the year ended 30th September 2023 23. COMMITMENTS 2023 2022 Research building serie LSts Payable wthin one year 2-5 years Over 5 years 53.552 214.209 321.314 52.676 210.704 316.056 $89,075 579,436 The research building Servi costs are subpcl to an annual irrease in res1 of the Health SeNice cost index. The commitments are covered. exceFI a rdalivety srnall amount of irrecoverable VAT, by rental income rerEwatle C Ihe 2S year lease. At 30 September 2023 the charitable grwp has a capital commilmefil of £3.634.004 (2022.. £574,004) which is conlracled bul not provided for in th8 financial stalernents. This 7MII be funded from the charity's free reserves. LEASING AGREEMENTS The investment pr¢)perty is let out lo tenants under OFaling se5. At the yew end the Committed lease ripts due under non-cancdlable leases are as f(AIcMs". 2023 2022 Falling due.. Within one year Between one and fNe year Over five years 120,605 482.419 2.075.55 114.873 459.493 2.118.37 2.678.5BO 2,692,74 25. OFF.BALANCE SHEEf ARRANGEMENTS In the year. Handelsbanken provK1ed an unlimited Inter-company Composite Guarantee by and between the charity and ils tradiNJ subsidrary. Daisy Medicaj Research Limited. RELATED PARTY DISCLOSURES AI 30 September 2023 the charity owed £3.() (2022: £3W,000), to ? ccwnpary eontrdled by a trustee of the charity. The fcm of this liabilty is an interest free loan, repayable on demand. During the year ended 30 September 2023 £50,68612022.. £36.S33) was donated lo the charity from D Heuck. a tnjstee. During the year ended 30 Sep1ber 2023 £8(NJ (2022.. NIL) was donated to Ihe charity from N Stafford. a trustee. There are no further rdated party transactions requiring di%dosure durin9 the year ended 30 September 2023. Page 23