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2020-12-31-accounts

Annual report of the Trustees Resurgo Trust 2020

confident accomplished positive optimistic fearless understood motivated proud resilient encouraged happy supported valuable

How trainees described themselves after the Spear Progarmme in 2020.

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Contents

Welcome from the Chair, Founder and Chief Executive Welcome from the Chair, Founder and Chief Executive Page
**1. ** Mission & Purpose 3
2. Activities for public beneft, achievements and performance 4
2.1
The Spear Programme		 6
2.2Re-Work 7
2.3Resurgo Ventures 7
2.3.1Impact Consultancy 7
2.4
Corporate Partnerships		 8
2.4.1Corporate Partnerships Team 8
2.4.2Resurgo Consulting 9
3. Fundraising 10
4. Organisational updates 10
5. Governance and management 11
6. Financial results for the year 11
7. Risk management and reserve policy 11
8. Provision of support 12
9. Statement of trustees’ responsibilities 12
10. Auditors 12
11. Independent auditor’s report to the members of Resurgo Trust 13
12. Consolidated statement of fnancial activity 17
13. Consolidated balance sheet 18
14. Balance sheet Resurgo Trust 19
15. Notes to the fnancial statements 20

Company Registered No. 4670794

Charity Registered No.

1100885

Registered Office

Resurgo Trust St Paul’s Place Macbeth St London W6 9JJ

Trustees

Carolyn Longton Nigel Mapp (Chair) Seema Paterson Clementine Read Thomas Shippey

Bankers

Lloyds Bank 21-25 King Street London W6 9HW

Auditors

Haines Watts (City) LLP New Derwent House 69-73 Theobalds Road London WC1X 8TA

Welcome

From the Chair of Trustees

I am delighted to present our Annual Report and Financial Statements for the year ending 31 December 2020.It was a year like no other as we navigated the challenges and opportunities that the Global Pandemic presented.

This extraordinary year saw Resurgo rise to the challenge and the team worked incredibly hard to enable vital support for young people, who have been disproportionately impacted by the pandemic, to continue as the Spear Programme moved online.

We wanted to do more though to help those affected by the pandemic, and drawing on our experience and with an amazing effort from the team our coaching and employment experience has been deployed to create Re-Work. Re –work has been designed and is now available to help anyone of any age who finds themselves unemployed. This is now running nationally, and initial pilots are showing promising results.

We also worked with HTB to help launch and support Love Your Neighbour and seconded Tom Jackson our Founder and Executive Chairman to help them serve and help those who needed it most during the pandemic.

Resurgo Consulting continued to provide coaching services to businesses and other organisations. It also largely moved online, continues to provide an income stream and is working to help others improve what they do.

I am proud and humbled by the Resurgo team, our volunteers, funders and everyone else connected with the organisation. Their generosity and dedication to the cause is hugely inspiring, and is helping us emerge from the pandemic stronger, wiser and with ever more determination to help those in need.

Yours,

Nigel Mapp, Chair of Trustees

From the Founder and Chief Executive

The challenges of 2020 cannot be understated, not least for many of the young people we serve through The Spear Programme. As it became clear that the pandemic would not be short-lived, the team rose to the task of moving our key offerings online. We have been both surprised and pleased at the brilliant outcomes achieved through the online programme.

We felt compelled to use our expertise in employability to reach those who found themselves newly unemployed due to Covid. Our newest programme, Re-Work, delivered in partnership with churches, is now running in 17 locations across the UK and equips those who are out of work with the skills, mindset and confidence they need to find a job.

Resurgo Consulting faced a challenging year in 2020, needing to move all programmes online while clients were themselves facing the challenges of the pandemic. As with the Spear Programme and Re-Work, we have been delighted with the success of the online programmes and a number of fruitful client relationships were built. This places Resurgo Consulting in a strong position for 2021.

The pandemic also gave pause for reflection on how we work to support social entrepreneurs. We were delighted when the team who ran the Resurgo Ventures Accelerator started a newio organisation called Impact Central. We are excited to partner with them as they build on the work of Resurgo Ventures to provide a broad suite of support to early-stage social entrepeneurs.

Income over the year grew by 6%, while expenditure decreased by 14%, due to the rapid deployment of the Job Retention Scheme in April 2020 while we regrouped for four months and took our work online. A robust final quarter further strengthened our reserves position, despite the challenges faced by Resurgo Consulting, and we entered the New Year looking forward to opening a further two Spear Centres at a vital moment for the growing number of unemployed young people. 2021 will require even more innovation from the team who are working hard to identify ways to further scale our work. Our reserves will be important in enabling us to invest in accelerated growth.

We are very grateful for the hard work and dedication of our team this year, and we are especially thankful to all those who have so kindly and generously supported us and joined us in our mission.

Rev’d Tom Jackson MBE, Founder & Jo Rice, Chief Executive

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1.

Mission & Purpose

Resurgo means to ‘rise up again’. We believe that everyone has a role in the transformation of society. If we each play our part, society will flourish.

So, we use our expertise in coaching and impact management to equip and empower businesses, charities, churches and individuals to transform society.

Through our employability programmes, Spear and Re-Work, we help church communities to deliver life transforming services that equip those facing barriers to work in their communities with the necessary life skills and mindset to overcome them and find the contribution they want to make through their work.

And through Resurgo Consulting, we deliver group coaching to teams, helping them to work together more effectively and to identify and pursue the meaningful social change they can create in their communities.

Our work has a tangible and measurable impact.

Resurgo is a Christian organisation working with all, irrespective of faith background, to achieve our shared vision more effectively.

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2.

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2.1 The Spear Programme

The Spear Programme is a year-long programme helping young people facing barriers to work into sustainable employment.

Spear delivers award-winning, impact-led coaching, focussing on the attitudes and behaviours that are holding young people back from entering the workforce. Attendees are aged between 16 and 24 and are accepted regardless of background, faith, gender or any other personal circumstance. 90% of trainees have one or more barriers to employment i.e. 61% from UKME (UK Minority Ethnic) backgrounds, 50% received free school meals and 13% care leavers. There is no financial charge for young people attending the Spear Programme.

The Spear Programme consists of an initial high intensity six-week phase, Spear Foundation, focusing on workreadiness coaching, followed by lower intensity longterm support for the remainder of the year, which is shaped according to each young person’s specific needs. Once in work, coaches continue to provide support tailored to individuals, helping to iron out any issues that may arise to ensure they sustain their role.

In response to Covid we adapted the in-person Spear Programme to online delivery. Through providing trainees access to WiFi dongles and making the programme accessible via phone (through Zoom meetings), we have maintained enrolment figures with young people from our target population.

We have adapted to the changing labour market, directing trainees into new employment outcomes such as social care, while also supporting them into education, or upskilling through digital training with other providers.

We continue to see trainees enter sustained employment, education and training; pre-Covid the Spear Programme maintained contact with 90% of beneficiaries and 75% entered EET after 12 months ongoing support. Our most recent 12-month data shows that we were in touch with 93% of completers 12 months after the foundation phase, and 63% of them were in work or education. At 3 months, we are in touch with 99% of our trainees, of whom 53% are in work or education. Although our 12-month outcomes has dropped as a result of Covid, our 3-month outcome is only slightly below our pre-Covid outcome.

The programme is also growing; Spear has now worked with more than 7,000 young people across ten sites; eight in London and a further two in Brighton and Leeds. Two more centres are planned for 2021 in Bournemouth and Bristol.

We are also exploring whether we can open Spear centres at a lower cost enabling us to reach poorer areas of the UK where there is high need. We are keen to pilot Re-Work with young people facing barriers to employment to measure it against the Spear Programme content and see the lowest possible ‘dosage’ by which we can achieve the impact we want to see. We are hoping that we can create a new hybrid model that is easier and more cost effective to run that still generates impact, alongside continuing to run our existing Spear centres on our current partner model.

93%

We were in touch with 93% of completers 12 months after the foundation phase.

7000

young people now supported across ten Spear centres.

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2.2 Re-Work

During 2020, we developed a second employability programme: Re-Work, launched in response to the pandemic.

Re-Work equips unemployed adults from all backgrounds with the skills, mindset and confidence to re-enter the workplace. This lighter touch, volunteer-led programme has now been piloted in 17 churches, and we have an annual partnership with 13 churches,It is too early to evaluate the outcomes of the programme, however the coach-led pilot programme saw 69% of individuals get into work or further training within 6 months.

people enrolled on a Re-Work programme 220 across 17 churches

2.3. Resurgo Ventures

Resurgo Ventures helps emerging entrepreneurs create significant social impact through scalable revenuegenerating business models.

At the start of 2020, our highly successful Social Impact Accelerator programme was put on hold to allow us to assess how best to support our vision of empowering organisations and businesses to make a social impact. The pandemic gave further pause, and the accelerator did not re-start in 2020.

However, we saw a number of our Resurgo Ventures enterprises quickly adapt to the changing economic and social environment in response to the pandemic.

Bankuet have been instrumental during the coronavirus pandemic in helping more than 85 foodbanks to support their local communities. They have grown rapidly, with a more than 5,000% increase in online food donations since the coronavirus outbreak in the UK.

Recognised continue to be stocked in and host pop-up stores at John Lewis, leading to an ongoing partnership, and good online sales championing a variety of causes.

2.3.1 Impact Consultancy

In 2020 we were able to deliver bespoke impact consultancy to a range of organisations, helping them re-develop their programmes to maximise their social impact.

We have deepened our partnership with Church Revitalisation Trust , focusing on the specific contexts and challenges of the church’s social impact. In 2020, this work centred around Love Your Neighbour, an initiative set up to mobilise the UK church’s response to Covid. Our impact consultancy work has helped Love Your Neighbour measure and define its social impact. In 2020, Love Your Neighbour delivered 3 million meals to those most in need as well as facilitating the launch of a range of other services to combat hunger, debt, unemployment and loneliness funded in part through match funding from the Department of Culture, Media and Sport.

Luminary Bakery continues to thrive, with two café locations. As well as training 53 women in 2020 and employing more than 40 staff, the team supported 63 current and past trainees remotely during the pandemic. In September 2020 their new training centre was opened by the Duchess of Sussex.

New Ground Coffee continued to operate a roastery, as well as offering a coffee subscription service, which thrived in lockdown 1. The company is the primary supplier to over 15 independent cafés and employs three ex-offenders.

The successful launch of Impact Central represents the start of a new season for our partnership with social enterprises. While we will not be running an accelerator in the same format, we are delighted to have formalised our partnership with Impact Central in Spring 2021. This has involved the transfer of equity in the Resurgo Ventures accelerator businesses to Impact Central so that they may enjoy the support of that community. In return Resurgo has received a stake in Impact Central.

Resurgo will also be contributing to the new programme, bringing its expertise in coaching and impact management.

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2.4 Corporate Partnerships

Our Corporate Partnerships help us engage the corporate world to further our charitable objectives.

2.4.1 Corporate Partnerships Team

Resurgo’s Corporate Partnerships Team seeks to build strong relationships with the corporate sector to drive engagement across our various initiatives and raise charitable funds. Our corporate partners support us not only financially, but also with their time and expertise. For some, this takes the form of volunteering, such as mock interviewing, for others, it might be welcoming a Spear young person into their workplace.

2020 looked very different to previous years. Due to furlough and a smaller team, we managed a smaller portfolio of 24 corporate partners, with £324,847 in corporate philanthropic income (a 2% decrease compared to 2019).

In addition to existing partnerships with Eight Roads, EQ Foundation, Findlay Park Partners, GMS Estates, Informa, Jude’s Ice Cream, Knight Frank, Landsec, MAPP, NBCUniversal, Spencer Stuart, SR Group, State Street, TowerBrook, Unilever and Wellington Management, we were pleased to welcome new partners, Discovery, PJT Partners and Baird. We also received donations from staff fundraising on behalf of Forrester Partners and Gate One.

Our volunteer engagement opportunities moved online in 2020 and while we were unable to host company visits for most of the year, 75% of our corporate partners participated in online mock interviews or industry panels.

We also held our second-annual International Women’s Day event in March 2020 hosted by NBCUniversal. The theme, Pursuing Fulfilment at work: relationships impact and growth, featured speakers Jo Rice (CEO, Resurgo), Seema Paterson (COO, ThisWorks), Yetunde Ekuntuyi (Former Spear Trainee and now Spear Graduate Coach), Anneka Wallington (CEO and Founder, Recognised) and Iona Ledwidge (Executive Director of the Spear Programme). We’d like to thank our headline sponsor, MAPP; Unilever for their additional support; and Luminary Bakery, Jude’s Ice Cream and ThisWorks for providing gifts for our 75 guests.

We’re so grateful to our loyal corporate partners who have continued to support us over the past year, even in the midst of change and uncertainty, and we wouldn’t be able to achieve our impact without their contribution.

We’d like to thank the following organisations for their generous support in 2020:

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2.4.2 Resurgo Consulting

Resurgo Consulting transforms people’s experience of the workplace through coaching that enables teams to relate well, perform at their best and resolve conflict.

Given the constraints of the pandemic, in 2020 Resurgo Consulting transformed their offering from in-person to online, while retaining the elements that are so valued in our coaching approach: light on theory, heavy on practice, lots of time for discussion and application.

The Consulting team ran in person and online ‘Coaching for Leadership’ programmes, welcoming clients from a range of organisations across the corporate, non-profit and public sectors. In addition, Resurgo Consulting ran 12 tailored programmes for clients from sectors ranging from global insurance and recruitment consultancy, hospitality and PR, financial services and publishing, to social ventures, churches and charities. Tailored programmes included modules on developing trust, using behaviour preference profiles to understand yourself and others better, and engaging in healthy conflict.

Positive feedback from a number of clients has led to repeat business and we are now developing an even more robust approach to measuring the impact of the programmes on behaviour change and organisational culture.

Resurgo Consulting’s work generated £138,510 of revenue for a subsidiary company – ‘Resurgo Consulting Limited’ in 2020, with costs of £151,371. The loss carried forward is a direct result of the Covid pandemic, however we are confident that this loss has already been offset by subsequent profitable trading secured by the Consulting team for 2021. Resurgo Consulting Limited is solely owned by Resurgo Trust.

“It is difficult to take a topic like ‘giving and receiving feedback’ and try to work on it as a whole firm. Resurgo were able to engage across the whole firm at different levels and to deliver really useful, structured interactions. It was really energising and impactful for our business. Would certainly recommend them to others.”

Wol Kolade, Managing Partner, Livingbridge

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3. Fundraising

We are grateful to our wonderful supporters who stood with us in 2020, as well as those who joined us for the first time to ensure we could continue providing life transforming support to hundreds of young people and others who found themselves struggling to get into work due to the pandemic. Our supporters helped us to raise an amazing £1,698,000 towards our work, enabling us to adapt the Spear Programme to be delivered online so that we could continue to reach young people across the UK facing barriers to work and to launch the Re-Work programme in response to the increasing number of adults facing unemployment. It is only with the ongoing commitment and generosity of the many individuals, corporate partners and Charitable Trusts & Foundations that we have been able to achieve this.

In particular, the trustees would like to thank the following for their generous support of our work:

We are grateful to all those who supported our summer 2020 match funding appeal, raising more than £80,000 to support our work with young people across London. We would also like to thank the Childhood Trust who ran the campaign in partnership with the Big Give and provided part of the match funding, alongside other generous supporters.

Through our partnership in the Love Your Neighbour initiative, a UK-wide emergency response, Resurgo benefitted from funding from the Department for Digital, Culture, Media and Sport’s Community Match Challenge, providing vital funding towards our Covid response. We would like to thank the Church Revitalisation Trust who facilitated this funding.

We would also like to thank the individuals who took part in our virtual challenge event,’ Go the Distance’. Twenty-six of our supporters cycled, ran or walked their own challenge distance to raise almost £20,000 for Resurgo.

Our partnership with Impetus has continued to provide not only vital funding, but also invaluable expertise and support to Resurgo as we grow. We are hugely grateful for our partnership with them, and, in particular for the support of our Investment Director, Chiku Bernardi.

This year we were unable to hold our usual annual fundraising party, but instead gathered long-standing supporters for a ‘Quiet Night In’ over Zoom. Whilst celebrating the achievements of the young people we worked with over the year, generous supporters helped us to raise an incredible £200,000 to enable the lives of even more young people to be changed in the year ahead.

4. Organisational updates

At the end of 2020 Resurgo employed 41 FTE staff and has responsibility to line manage an additional 22 coaching staff who are employed by Spear Trusts at our partner churches.

During 2020, Tom Jackson was seconded to HTB to head up the Love Your Neighbour Project, as part of the pandemic response. In 2020, his salary has been largely reimbursed by the Church Revitalisation Trust (CRT), who run Love Your Neighbour.

Resurgo made the decision to furlough 32 staff at various points during the year, to protect the charity’s outgoings while our core activities were suspended. We brought staff back from furlough as soon as possible once our online activities had launched. Furlough enabled a saving on staff costs of £199,323 during the year, and this is reflected in our high end of year reserves.

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5. Governance and management

The directors of the company are also the trustees of the charity and there are no other trustees. The Board has the power to appoint additional trustees as it considers fit to.

Resurgo Trust is managed on a daily basis by an executive team headed by the Founder Thomas Jackson and Chief Executive Joanna Rice, who are in regular contact with the Board of Trustees.

The following persons served as trustees/directors during the period under review:

There is an induction process for all new trustees including an introduction to the key strategies and policies of the charity and trustees’ responsibilities, and a day in the charity’s head office meeting management and staff and seeing the programmes in action.

The induction includes eligibility checks and a statement of conflict of interest. All trustees are reappointed at the Annual General Meeting each year. In addition, after every three years of consecutive service, the decision to renew an appointment will be determined in light of a meaningful review led by the Chair in consultation with all Trustees. In order for the Trustee to stand for a further three-year period, there will need to be an overall majority supporting the decision.

If there is any doubt, the Chair will make the final decision.

6. Financial results for the year

While facing unprecedented circumstances as a direct result of the Covid pandemic, Resurgo continued to explore opportunities for income growth during 2020. We saw income grow 6% while our expenditure decreased by 14%, this led to an overall surplus of £703,825, which in turn increased our total year end reserves from £2,010,457 in 2019 to £2,714,282.

Restricted funds decreased by 34% from £481,470 in 2019, to £318,378 at year end, with an increase of 57% in unrestricted funds from £1,528,987 in 2019 to £2,395,904 at year end. These funds, whilst unrestricted, are purposed for the delivery, support and operational costs associated with the Spear Programme.

Our reserves position at year end is evidence of our stringent financial response to the pandemic in March 2020. While this places us in a strong cash position at the 2020 year-end, we are anticipating that 2021 could be a challenging year from an income perspective. We have set out a balanced budget for 2021, however we are conducting a strategic review to explore the potential of scaling our employability activities at a greater pace in the coming years to meet the demand the pandemic has created. We therefore anticipate needing to draw on these reserves to invest in this growth strategy once set.

7. Risk management and reserve policy

The trustees continue to review and assess the key operational, governance, compliance and financial risks faced by Resurgo. Systems and procedures assign management responsibility for taking actions to mitigate the major risks identified. Risks to the charity are reassessed on a quarterly basis and appropriate action taken where necessary.

The principal risk is a cash flow deficit should insufficient funds be raised from grants, donations and the annual party to meet the ongoing cost of operations. To this end, the trustees have stipulated that Resurgo should normally operate with a minimum reserve sufficient to fund six months of running costs. At the year end, the charity’s reserves exceeded these minimum reserve levels.

Despite the pandemic, during the year, no significant events occurred that have negatively affected the financial position of Resurgo Trust.

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8. Provision of support

In addition to the financial and other support already recognised above, the trustees would like to thank Haines Watts (City) LLP for their assistance with preparing and auditing the accounts of the charity. The trustees would also like to thank the partner organisations in which the Spear centres are based:

9. Statement of trustees’ responsibilities

The trustees are required by company law to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these financial statements the trustees are required to:

10. Auditors

The auditors, Haines Watts (City) LLP have expressed their willingness to continue in office and a motion will be passed at the Annual General meeting that they be appointed for the ensuing year.

Statement of disclosure to auditors

So far as the Trustees are aware, there is no relevant audit information of which the auditors are unaware. Additionally, the Trustees believe they have taken all the necessary steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Nigel John Godfrey Mapp (Chair) Dated: .........08/09/2021...................

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11.

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Opinion

We have audited the financial statements of Resurgo Trust (the parent company) and its subsidiaries (the group) for the year ended 31 December 2020 set out in pages 17 - 27. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice) and the accounting policies set out therein.

In our opinion the financial statements;

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and the parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

The Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue.

However, not all future events or conditions can be predicted. The Covid viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. We draw your attention to the Covid pandemic disclosures within the going concern disclosure in notes 1 and 10 of the financial statements to highlight that the Trustees are actively monitoring developments closely.

Other information

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

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Trust and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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

Responsibilities of Trustees

As explained more fully in the Statement of Trustees Responsibilities set out on page 12, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, The Trustees’ (who are also the directors of Resurgo Trust for the purpose of company law) are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Trustees’ are responsible for assessing the Trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intends to liquidate the Charity or to cease operations, or has no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Robert Blundell FCA BSC (Hons) Senior Statutory Auditor For and on behalf of Haines Watts (City) LLP Statutory Auditor New Derwent House 69-73 Theobalds Road London WC1X 8TA

Date: .............. 08/09/2021....................

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+1 Ikib 11 li d A*illl 16

12. Consolidated statement of financial activity

(incorporating income and expenditure account)

For the year ended 31 December 2020

Note
Income and endowments from
Grants, Donations and gifts
2
Trading Revenue
JRS Furlough grants
Fundraising events
3
Total income and endowments
Expenditure on
Charitable activities
5
Raising funds
4
Trading subsidiary costs
7
Total expenditure
Net income/(expenditure)
Total funds at 1 January 2020
10
Total funds at 31 December 2020
10		 Unrestricted
funds
2020
£
1,654,705
138,510
199,323
161,115
2,153,653
834,257
301,108
151,371		 Restricted
funds
2020
£
624,902
-
-
-
624,902
692,749
95,245
-		 Total funds
2020
£
2,279,607
138,510
199,323
161,115
2,778,555
1,527,006
396,353
151,371		 Total funds
2019
£
1,905,431
308,036
-
407,300
2,620,767
1,811,176
383,975
204,698
1,286,736 787,994 2,074,730 2,399,698
866,917
1,528,987		 (163,092)
481,470		 703,825
2,010,457		 218,069
1,792,388
2,395,904 318,378 2,714,282 2,010,457

There are no other recognised gains or deficits other than the above.

The notes form part of these financial statements.

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13. Consolidated balance sheet

As at 31 December 2020

Note
Investments
Investments
Fixed assets
Tangible assets
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors:amounts falling due within one year
13
Net current assets
Net assets
Represented by:
Unrestricted funds
10
Restricted funds
10
Total funds		 £
30,298
145,973
2,555,866
2,701,839
( 27,827 )		 2020
£
9,972
30,298
2,674,012
2,714,282		 £
93,509
180,217
1,775,920
1,956,137
( 49,161 )		 2019
£
9,972
93,509
1,906,976
2,010,457
2,395,904
318,378
2,714,282		 1,528,987
481,470
2,010,457

The financial statements were approved by the Board of Trustees on 8 September 2021 and signed on their behalf by:

Nigel Mapp Director

Tom Shippey Trustee

Company Number 4670794

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14. Balance sheet Resurgo Trust

As at 31 December 2020

Note
Investments
Investments
Investment in subsidiary
Fixed assets
Tangible assets
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors:amounts falling due within one year
14
Net current assets
Net assets
Represented by:
Unrestricted funds
10
Restricted funds
10
Total funds		 £
30,298
362,075
2,347,506
2,709,581
( 22,774 )		 2020
£
9,972
101
30,298
2,686,807
2,727,178
2,408,800
318,378
2,727,178		 £
93,509
662,616
1,275,129
1,937,745
( 30,837 )		 2018
£
9,972
101
93,509
1,906,908
2,010,490
1,529,020
481,470
2,010,490

The financial statements were approved by the Board of Trustees on 8 September 2021 and signed on their behalf by:

Nigel Mapp Director

Tom Shippey Trustee

Company Number 4670794

The notes form part of these financial statements.

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15. Notes to the financial statements

For the year ended 31 December 2020

1. Accounting policies

The summary of principal accounting policies, all of which have been applied consistently throughout the year and the preceding year, is set out below:

a. Basis of preparing the financial statements

The consolidated financial statements of the charity and it’s subsidiary, which is a public benefit entity under FRS102, have been prepared in accordance with the Charities SORP (FRS 102) ‘Accounting and Reporting by Charities:Statement of Recommended Practice and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

The basis of allocation of salaries between Resurgo and Resurgo Consulting Limited equates to 100% of the Resurgo Consulting team’s cost of running the entity, as based on the time used to facilitate the income generated in each entity.

b. Significant judgements and estimates

In applying the trustees’ accounting policies, the trustees are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The trustees’ judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.

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 current and future periods.

c. Critical judgements in applying the company’s accounting policies

The critical judgement that the directors have made in the process of applying the company’s accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below:

(i) Assessing indicators and impairment

In assessing whether there have been any indicators or impairment of assets, the trustees have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience or recoverability. There have been no indicators or impairments identified during the current financial year.

(ii) Key sources of estimation uncertainty

Due to the straight forward nature of the activities of the charity, the trustees do not believe that there are any estimation uncertainty’s that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

d. Funds structure

Unrestricted and can be used in accordance for the charitable activities at the discretion of the trustees. Restricted funds are donations made to Resurgo for specific projects or segments of work.

e. Donation income recognition

Charitable income is recognised on a cash received basis other than where an accruals basis provides a more accurate basis or will give a fairer representation of the underlying nature of the transaction. Income is recognised so far as there is entitlement to the income, there is certainty of its receipt and the amount is quantifiable.

f. Expenditure Recognition

Resources expended are included in the Statement of Consolidated Financial Activities on an accruals basis, inclusive of VAT which cannot be recovered.

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.

20

Notes to the financial statements - continued

For the year ended 31 December 2020

Expenditure on charitable activities includes all costs incurred by the charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.

g. Provisions

Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past event, it is probable that the obligation will be required to be settled, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting taking into account the risks and uncertainties surrounding the obligation. Provisions are discounted when the time value of money is material.

h. Financial instruments

Financial assets and liabilities are recognised when the company becomes party to the contractual provisions of the financial instrument. The company holds basic financial instruments which comprise cash at bank, trade and other receivables and trade and other payables.

i. Financial assets and liabilities - classified as basic financial instruments

(i) Cash at bank and in hand

Cash at bank and in hand include cash in hand, deposits held with banks, and other short-term highly liquid investments with original maturities of three months or less.

(ii) Other receivables

Other receivables are initially recognised at the transaction price, including any transaction costs. Amounts that are receivable within one year are measured at the undiscounted amount of the cash expected to be received, net of any impairment.

At the end of each reporting period, the company assesses whether there is objective evidence that a receivable amount may be impaired. A provision for impairment is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of the estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised immediately in profit or loss.

(iii) Other payables

Other payables are initially measured at the transaction price, including any transaction costs, and subsequently measured at amortised cost using the effective interest method. Amounts that are payable within one year are measured at the discounted amount of the cash expected to be paid.

j. Going concern

After making enquiries, the trustees believe that Resurgo has adequate resources to continue in operational existence for the foreseeable future. For this reason, the trustees have continued to adopt the going concern basis in preparing the financial statements.

k. Cashflow statement

The Company has taken advantage of the exemption in Financial Reporting Standard No 1 from producing a cash flow statement on the grounds that it is a small company.

l. Depreciation

Depreciation is charged on all tangible fixed assets over their estimated useful lives as follows: Computer equipment - 33% per annum on a straight line basis.

Furniture and equipment - 25% per annum on a reducing balance basis.

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2. Grants and donations

Grants, donations and gifts breakdown
Trusts & foundations
Corporate (philanthropic)
Major Donors and individuals
Statutory
Partnership income
Other
Trading Revenue
Consulting
Ventures
Restricted funding breakdown
Contribution to salaries
Contribution to running costs of centres (incl. salaries)
Contribution to Growth
Contribution to Resurgo Ventures		 2020
£
1,061,107
324,847
636,893
116,721
112,038
28,001
2,279,607
138,510
-
138,510
2020
£
124,860
450,885
47,861
-
623,606		 2019
£
983,837
331,120
414,724
45,000
124,750
3,000
1,902,431
307,708
328
308,036
2019
£
104,847
450,659
-
1,000
556,506

During the year Resurgo was awarded several multi-year grants which form part of our active pipeline. Below is a list of funding, in excess of £15,000, that we have already secured for 2021/22:

£ £
Corporate Partnerships 25,000 Trusts and Foundations 22,500
Corporate Partnerships 25,000 Trusts and Foundations 25,000
Corporate Partnerships 50,000 Trusts and Foundations 20,000
Corporate Partnerships 17,142 Trusts and Foundations 20,000
Major donors 100,000 Trusts and Foundations 100,000
Major donors 15,268 Trusts and Foundations 50,000
Major donors 15,000 Trusts and Foundations 50,000
Major donors 27,970
Statutory 49,507
Statutory 15,000
Strategic partnership 37,500

3. Activities for generating funds
3. Activities for generating funds
Income generated from fundraising events		 2020
£
161,115		 2019
£
407,300
Unrestricted
2020
£
272,333
28,775		 Restricted
2020
£
95,245
-		 Total
2020
£
367,578
28,775

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5. Expenditure on charitable activities

Summarised by activity Spear Re-Work Ventures Total Total
2020 2020 2020 2020 2019
£ £ £ £ £
Direct charitable activities 1,039,377 75,386 64,414 1,179,177 1,294,218
Support costs 338,209 - - 338,209 511,444
Expenditure on raising funds 396,353 - -
396,353		 383,975
Governance costs 9,620 - - 9,620 5,515
____ ____ ____ ____ ____
Total 1,783,559
__
__		 75,386
__
__		 64,414
__
__		 1,923,359
__
__		 2,195,152
__
__

Direct charitable activities excludes the direct salaries and operational expenditure of our Spear Partner Trusts and Re-Work Church Partners, however it does include the costs to manage, train and recruit their staff.

Support costs and Expenditure on Spear Re-Work Ventures Total Total
raising funds broken down by activity 2020 2020 2020 2020 2019
£ £ £ £ £
Support staf costs 180,174 - - 180,174 286,289
Fundraising staf costs 367,579 - -
367,579		 295,407
Annual events 14,250 - -
14,250		 69,737
Media, branding, communications 10,599 - - 10,599 64,539
Facilities and IT 77,535 - - 77,535 76,697
Other administration costs 66,323 - - 66,323 68,593
Depreciation 18,102 - - 18,102 34,157
____ ____ ____ ____ ____
Total support costs
734,562
____		 -
____		 -
____		 734,562
____		 895,419
____
____ ____ ____ ____ ____
Unrestricted Restricted Total Total
2020 2020 2020 2019
Spear £ £ £ £
Direct charitable activities 483,587 555,790 1,039,377 1,245,338
Support & governance costs 210,870 136,959 347,829 383,331
____ ____ ____ ____
Total charitable activities by fund 694,457 692,749 1,387,206 1,928,669
____ ____ ____ ____
Expenditure on raising funds 301,108 95,245 396,353 345,577
____ ____ ____ ____
Total expenditure 995,565
____		 787,994
____		 1,783,559
____		 1,970,467
____
____ ____ ____ ____
Re-Work
Direct charitable activities 75,386 - 75,386 -
Support & governance costs - - - -
____ ____ ____ ____
Total charitable activities by fund 75,386 - 75,386 -
____ ____ ____ ____
Expenditure on raising funds - - - -
____ ____ ____ ____
Total expenditure 75,386
____		 -
____		 75,386
____		 -
____
____ ____ ____ ____
Ventures
Direct charitable activities 64,414 -
64,414		 134,591
Support & governance costs - -
-		 51,695
____ ____ ____ ____
Total charitable activities by fund 64,414 -
64,414		 186,286
____ ____ ____ ____
Expenditure on raising funds -
-
-
38,397
____ ____ ____ ____
Total expenditure 64,414
____		 -
____
64,414
____		 224,683
____
____ ____ ____ ____
____ ____ ____ ____
Total charitable activities by fund 834,257
__
__		 692,749
__
__		 1,527,006
__
__		 2,114,955
__
__
Total expenditure 1,135,365
__
__		 787,994
__
__		 1,923,359
__
__		 2,195,150
__
__

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6. Governance costs

Governance costs
Unrestricted Restricted Total Total
2020 2020 2020 2019
£ £ £ £
Cost of compliance with statutory obligations - - - 15
Auditors remuneration 4,500 - 4,500 3,900
Other accounting services 5,420 - 5,420 1,600
9,920 - 9,920 5,515

7. Trading subsidiary costs

ading subsidiary costs
Consultants
Other costs
Total trading subsidiary costs		 Total
2020
£
109,399
41,972
151,371		 Total
2019
£
152,852
51,695
204,547

8. Surplus for the year

This is stated after charging:
Total
2020
£
Depreciation of tangible assets – owned
40,226
Staf costs
1,494,336
Auditors remuneration
4,500
The average monthly number of Resurgo employees during the year was as follows:
Full time staf
37
Part time staf
9
46		 This is stated after charging:
Total
2020
£
Depreciation of tangible assets – owned
40,226
Staf costs
1,494,336
Auditors remuneration
4,500
The average monthly number of Resurgo employees during the year was as follows:
Full time staf
37
Part time staf
9
46		 Total
2019
£
65,687
1,672,829
3,900
40
6
46
46

At 31 December 2020 there were 41 full time equivalent staff (2019: 40).

During the year, up to 22 (2019: 21) full time staff were paid for by the partner trusts, but line managed by Resurgo staff. This means Resurgo has line management responsibility for on average 63 FTE staff.

During the year there were an average of 30 members of staff who worked directly as coaches across the 11 centres controlled by Resurgo. The remaining 33 members of staff worked in supporting the charity in undertaking its objectives, including staff within the Spear, Re-Work, Consulting, Ventures and Impact teams.

The cost of key management personnel was £358,150 combined, including NI & pension contributions. Tom Jackson is currently on a fixed term secondment to the Church Revitalization Trust to head up the vision of the Love Your Neighbour initiative. We receive reimbursement for both his staffing costs, along with that of his Executive Assistant who is also on staff with Resurgo.

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8. Surplus for the year - continued

Employees who earned more than £60,000 p.a. are as follows:

£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
Pension contributions made on behalf of employees earning over £60,000 p.a.
£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000		 1
-
2
3
1,829
-
5,168
6,997		 1
2
-
3
2,076
4,987
-
7,063

9. Analysis of new assets between funds

Investments
Tangible fxed assets
Cash and bank
Other current assets
Liabilities
Net assets at the end of the year		 Unrestricted
2020
£
10,073
30,298
2,029,128
362,075
( 22,774 )
2,408,800		 Restricted
2020
£
-
-
318,378
-
-
318,378		 Total
2020
£
10,073
30,298
2,347,506
362,075
( 22,774 )
2,727,178		 Total
2019
£
10,073
93,509
1,275,129
662,618
(30,837)
2,010,492

Cash and bank is high at the year end due to the major fundraising event (Resurgo party) occurring at the end of the year. This cash balance gradually depletes over the course of the following year until the next annual fundraising event.

10. Movement in charitable funds

Restricted funds
Total restricted funds
Unrestricted funds
Total funds
Movement in charitable funds		 At 1 Jan
2020
£
481,470
481,470
1,529,022
2,010,492		 Incoming
resources
£
624,902
624,902
2,015,143
2,640,045		 Outgoing
resources
£
787,994
787,994
1,135,365
1,923,359		 At 31 Dec
2020
£
318,378
318,378
2,408,800
2,727,178

Purposes of restricted funds

Restricted funds in 2020 were largely raised to cover Spear Direct Salaries & Operational Costs for Hammersmith & Fulham, North Kensington and Kennington centres as well as IT Infrastructure, and Impact and Quality Development. We also received a significant fund to cover support salaries during the period affected by the Cocivd pandemic, for the remaining skeleton staff that that were not covered by furlough through the Job Retention Scheme.

Our reserves position at year end is evidence of our stringent financial response to the Covid pandemic back in March 2020. While this places us in a strong cash position at the 2020 year-end, we are anticipating that 2021 could be a challenging year from an income perspective. We have set out a balanced budget for 2021, however we are conducting a strategic review to explore the potential of scaling our employability activities at a greater pace in the coming years to meet the demand the pandemic has created. We therefore anticipate needing to draw on these reserves to invest in this growth strategy.

25

11. Taxation

As a charitable trust, the company is exempt from UK Corporation Tax under Section 505 (1) (c) ICTA 1988.

12. Fixed assets
Fixed assets Ofce Computer
Equipment Equipment Total
2020 2020 2020
£ £ £
At cost
At 1st January 2020 55,960 337,750 393,710
Additions - 955 955
Disposals (21,763) (7,011) (28,774)
____ ____ ____
At 31 December 2020 34,197 331,694 365,891
____ ____ ____
Depreciation
At 1 January 2020 25,069 275,132 300,201
Charge for the period 5,470 34,756 40,226
Disposal charge (4,834) - (4,834)
____ ____ ____
As at 31 December 2020 25,705
____		 309,888
____		 335,593
____
____ ____
Net book value
____ ____ ____
As at 31 December 2020 8,492
____		 21,806
____		 30,298
____
____ ____ ____
____ ____ ____
As at 31 December 2019 30,891
__
__		 62,618
__
__		 93,509
__
__

13. Debtors

Trade debtors
Other debtors and prepayments
Amount owed by subsidiaries		 Group
2020
2019
£
£
90,940
110,469
55,033
69,748
-
-
145,973
180,217		 Trust
2020
2019
£
£
60,311
50,579
54,881
69,748
246,883
542,289
362,075
662,616		 Trust
2020
2019
£
£
60,311
50,579
54,881
69,748
246,883
542,289
362,075
662,616
662,616

14. Creditors: amounts falling due within one year

Group Trust
2020 2019 2020 2019
£ £ £ £
Sundry creditors and accrued expenses 27,827 49,161 22,774 30,837

13. Lease obligations

As at 31 December 2020 the Charity was not committed to any non-cancellable lease agreements.

26

16. Unrestricted Funds

Unrestricted funds equate to approximately 12 months of full operating expenditure.

Restricted funds

The balance of £318,378 represents the unspent portion of 12 grants made to the charity, 2 to cover direct salary costs and 10 to cover running and support costs. There are only 2 funds with remaining balances carried over from 2019, all other carried forward funds have been cleared within 2020.

17. Related party transactions

There are no related party transactions to declare in 2020.

18. Legal status

The Charity is a company limited by guarantee and has no share capital. The liability of each member in the event of a winding up is limited to £1.

19. Resurgo Consulting Limited

The Trustees are mindful of the loss carried for Resurgo Consulting in 2020 as a direct result of the Covid pandemic, however are confident that this loss has already been offset by subsequent profitable trading secured in 2021.

20. Post Balance Sheet Disclosure (Resurgo Ventures)

In the Spring of 2021 we created a new partnership with Impact Central. To form the partnership we transferred the equity held within Resurgo Trust for the individual Resurgo Ventures accelerator businesses to Impact Central. In return, Impact Central has issued a 5% shareholding. This exchange in equity will have a nil effect on the Balance Sheet. In addition to this, one of the Resurgo Ventures investee companies, Bankuet, requested to buy out the shares held within Resurgo Trust directly, and this will be concluded in the Autumn of 2021. The funds received as a result of this transfer will be used to support the work of Resurgo Trust in the development of future growth.

27

Resurgo Trust St Paul’s Place Macbeth St London W6 9JJ 020 3327 2070 resurgo.org.uk

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