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← Hospitality Action

2023-12-31-accounts

Hospitality Action

Annual Report and Consolidated Financial Statements

31 December 2023

Company Limited by Guarantee Registration Number 04914871 Charity Registration Number 1101083

Contents

Reports

Reference and administrative information 1
Trustees’ report 5
Statement of Trustees’
responsibilities 17
Independent auditor’s report 19
Accounts
Consolidated statement
of financial activities 23
Statement of financial activities
(charity only) 24
Balance sheets 25
Consolidated statement
of cash flows 26
Accounting Policies 27
Notes to the financial statements 31

Hospitality Action

Reference and administrative information

Board of Trustees William Baxter CBE (Chairman) (resigned 6thJune
2023, deceased 18thOctober 2023)
Jonathan Raggett (Chairman) appointed Chairman
6thJune 2023
Jon Dee ACA (Treasurer)
Kevin Charity
Simon Esner
Ringo Francis
Chris Garside
Andrew Guy MBE
Matt Johnson (resigned 6thJune 2023)
Simon Jones (resigned 15thSeptember 2023)
Tim Jones
Andrew Latham
Kate Nicholls OBE
Danny Pecorelli
Ian Sarson
Andrew Selley
David Walker MBE
Chief Executive Mark Lewis
Company secretary Greg Minter
Principal office 62 Britton Street
London
EC1M 5UY
Charity registration number 1101083
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Bankers Royal Bank of Scotland
Brooklands Close
Sunbury on Thames
TW16 7DX
Investment managers Cazenove Capital Management
1 London Wall Place
London
EC2Y 5AU

Hospitality Action 1

Reference and administrative information

Solicitors H3 Solicitors Ltd Suite 1, The Old Pig Styes, Brighthams Farm, Bines Road, Partridge Green, West Sussex, RH13 HEQ Company number 04914871

Hospitality Action 2

Reference and administrative information

The Board of Trustees thanks the Chairpersons and Committee members who gave so generously of their time during 2023:

Finance and Investment Jon Dee ACA (Chair) Lizi Hills (appointed January 2022) Tim Doubleday Tim Jones Grants and Advisory Andrew Latham (Chair) Valerie Barrow Flavia Gapper Dawn Jackson Jane Morris Ian Sarson

Hospitality Action 3

Reference and administrative information

The Board of Trustees thanks its Patrons, whose ongoing patronage brings credibility, authority and brand awareness to the charity. These are:

Patrons Jason Atherton
Raymond Blanc OBE
Heston Blumenthal OBE
Michael Caines MBE
Jeremy Goring
Angela Hartnett OBE
Nigel Haworth
Paul Heathcote MBE
Tom Kerridge
Atul Kochhar
Donald Macdonald OBE
Sinead Mallozzi
Anton Mosimann OBE
Harry Murray MBE
Chantelle Nicholson
Jamie Oliver MBE
Craig Prentice
Alain Roux
Michel Roux Jr
Vivek Singh
Cyrus Todiwala
Pervin Todiwala
Phil Vickery MBE
The Viscount Lord Thurso
Brian Turner CBE
Robert Walton MBE

Hospitality Action 4

Trustees’ report Year ended 31 December 2023

The Trustees, who are also the directors, present the annual accounts for Hospitality Action for the year ended 31 December 2023 prepared in accordance with the Statement of Recommended Practice for Charities (SORP) 2019 and the Companies Act 2006. The reference and administrative information on pages 1-4 forms part of this report.

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

The Charity is a Benevolent Society whose objects are for the relief of persons who work or have worked in the hotel, catering and/or hospitality industries and the widows, widowers, partners, orphans and other dependants of such persons by the provision of monetary grants and/or advice, assistance and support and/or education and training.

Hospitality Action was founded in 1837 as unincorporated and for much of that time it was known as the Hotel and Catering Benevolent Association (HCBA). The charity was incorporated in 2003 as Hospitality Action having taken over the majority of the assets of the unincorporated charity.

The principal activities undertaken by the Charity in pursuance of its objects relate to the provision of:

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities and setting the grant making policy for the forthcoming year.

Chief Executive

Mark Lewis had his sixth full year as Chief Executive.

Hospitality Action 5

Trustees’ report Year ended 31 December 2023

ACHIEVEMENTS AND PERFORMANCE

2023 was a strong year for Hospitality Action. Through organic fundraising and employee assistance programme (EAP) revenue growth, we were able to deliver the second highest inyear income in the Charity’s history, surpassed only by the anomalous success of 2020. Total income for the year reached £3,038,586, which was +£23k versus the previous year.

Our EAP grew materially, both in terms of income and scale, and we successfully migrated service provision to a new partner. Income rose by £157k from £813k at year-end 2022 to £970k at the end of 2023. The number of lives served by the programme rose from 182,000 to 194,000.

This income-generating success enabled us to spend £914k on grants disbursement, which was +£164k versus budget and, again, second only to 2020 as our highest ever in-year grants expenditure total. This planned overspend on grants accounted for our closing 2023 with an operating deficit of £169,786.

Fundraising

Through 2023, we continued to focus on a blend of proprietary fundraising initiatives and inperson events, and third-party and institutional fundraising.

Our market’s appetite for participating in challenge events remained undiminished, with our Summer Challenge and Walk for Wellbeing activities driving combined revenue of £176k. While 2023 was a fallow year for our biannual Back to the Floor dinner event, it saw the (unbudgeted) return of our autumn Cotswold polo event (income: £58k), and a major dinner at London’s Nobu Hotel (income: £92k).

Meanwhile, third-party fundraising continued to gather momentum, with many more hospitality operators choosing to support our work by adopting us as their chosen charity, launching ‘pound on the bill’ initiatives, featuring our Invisible Chips activation on their menus, or finding other miscellaneous ways to raise funds for us. Income from ‘pound on the bill’ initiatives, for example, grew by £16k year on year.

The growth in awareness of our charitable work that we have achieved since 2020 contributed to several specific fundraising instances of note. These included the Spirit of Hospitality rowing challenge, which saw two foodservice workers, Chris Mitchell and Robbie Laidlaw, raise £88k for us by rowing the Atlantic, with more income due in 2024. We also benefitted from two fundraising activities conceived and run by AB InBev via its Stella Artois brand, which together raised £70k.

Finally, the Procter England Bancroft Fund was established in support of our charitable works and made an initial donation of £50k.

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Trustees’ report Year ended 31 December 2023

ACHIEVEMENTS AND PERFORMANCE (continued) Services

In 2023, we continued to support the welfare of the sector we serve through a blended service spanning financial support, employee assistance programme provision, signposting and advice, and pastoral support for retirees.

In spending £914k on grants disbursement, much of our focus was on providing financial relief for hospitality households that had accrued historic debt or arrears during the pandemic and preventing evictions and homelessness. The sustained increase in applications for financial support we’ve experienced since 2020 continued, with many applicants at imminent risk of homelessness. As well as providing financial aid, we sought to give applicants practical guidance on financial management and resilience via digital assets on our online Advice Hub. This content was supported by the Savoy Educational Trust. We also offered means-tested counselling, where appropriate.

The employee assistance programme served 194k hospitality workers by the end of 2023. This is a commercial programme which trades under a subsidiary company. Hospitality companies are charged a fixed amount per employee per year when they sign up to the programme. Profits are gifted to the charity. The programme had its official industry launch in January 2013. By December 2023, 468 companies had signed up to the programme.

In July, we migrated the service to a new programme partner, Spectrum.Life. This move allowed us to offer a range of new wellness products to our clients, including an app and Digital Wellbeing platform, regular wellness webinars, and Hospitality Essentials - an online platform offering discounts at hundreds of retailers.

Meanwhile, we continued to provide moral and pastoral support to our Golden Friends community of some 2,500 industry retirees and their partners.

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Trustees’ report Year ended 31 December 2023

ACHIEVEMENTS AND PERFORMANCE (continued)

CHIEVEMENTS AND PERFORMANCE(continued) CHIEVEMENTS AND PERFORMANCE(continued)
The year’s achievements in numbers
2023 2022
Review of achievements in 2023
Beneficiary grants 914,433 824,589
Number of persons awarded grants 859 827
Number of employees covered by the
EAP		 194,472 181,822
2023 2022
Top up grants 34 beneficiaries Grants
£43,000		 34 beneficiaries Grants
£49,000
Crisis grants 32 beneficiaries Grants
£38,000		 21 beneficiaries Grants
£39,000
Essential needs grants 134 beneficiaries Grants
£99,000		 270 beneficiaries
Grants £145,000
Other grants 1,370 beneficiaries Grants
£734,000		 1,502 beneficiaries
Grants £592,000

NB figures above reflect the fact that many beneficiaries received more than one grant.

Review of the year and future plans

We anticipate demand for our services, and particularly our provision of financial support, to continue to grow through and beyond 2024. In January 2024, we received the most applications in a calendar month in the charity’s 188-year history (excepting the period in Spring/Summer 2020, when we opened our Covid emergency grant portal). By April, this record had been broken again.

In the face of this demand, we need to continue to expand and diversify our fundraising efforts, evolve our product offering, and identify operational efficiencies.

We will undertake a Trustee-sponsored strategic review in 2024, leading to a three- to fiveyear strategy plan. Future fundraising models, wellbeing product development, and new and disruptive ideas will all be within the project’s scope, and we expect its outputs to include recommendations on targeted capital investment funded by our reserves.

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Trustees’ report Year ended 31 December 2023

Review of the year and future plans (continued)

Fundraising

In 2024, we will continue to work to a blended fundraising model that spans third party fundraising (devolving fundraising to hospitality operators, their customers, and guests, through ‘pound on the bill’-style programmes and other at-source activations), margin-rich supporter events and institutional funding from major donors.

Our fundraising product set is strong, and our focus remains upon providing a roster of inperson and virtual events that people around the sector we serve actively enjoy attending or participating in. However, we will scrutinise current fundraising concepts, to identify those with longevity, and those that are ready to be retired.

We will continue our ongoing strategic shift towards deriving a greater proportion of income from regular, multi-year or subscription-based income streams with potential to deliver a more scalable revenue base. These include our Employee Assistance Programme, which we view as a Trojan Horse, both in terms of its value in promoting our brand and work more widely, and because it encourages clients to participate in our fundraising activities as a way of driving awareness and usage of the programme around their workforces.

We will also look to diversify our fundraising streams, for example by driving greater traction for our legacies offer, trialling the Pennies micropayment platform, and broadening our work to identify and access institutional fundraising.

Services

We expect our strategic review to focus in large part upon our charitable services. As beneficiaries’ needs evolve, so, too, must our support.

We have budgeted to spend a minimum of £1m on grants disbursal in 2024; and we are committed to building this metric year on year. As in previous years, we will look to evolve our grant streams to answer the changing needs of our beneficiaries.

As well as providing financial support, in 2024 we will lay foundations for a nascent advocacy service, through which we will offer guidance on financial resilience, accommodation and benefits. To this end, we will refer beneficiaries to our partners Payplan and Shelter+ for advice on financial matters and issues relating to accommodation, respectively; and we will appoint an in-house benefits advocacy advisor early in the year, who will be tasked with helping beneficiaries to unlock benefits for which they are eligible. The benefits advocacy advisor will also create content aimed at helping industry professionals negotiate the complexities of the welfare landscape, which we will add to the growing library of free-to-view digital fact sheets on our website.

Our Golden Friends outreach scheme will continue to support hospitality retirees at risk of loneliness or isolation, and we will aim to grow membership through promoting the scheme to our EAP clients. We will continue to focus on benefits that are available to all scheme members.

After the switch to a new employee assistance programme partner in mid-2023, in 2024 we will begin to explore adding new wellbeing products and services to our existing provision, for

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Trustees’ report Year ended 31 December 2023

Review of the year and future plans (continued)

Services (continued)

example Digital GP, and ADHD and autism assessments. Our employee assistance programme provides our most scalable means to improve the lives of hospitality workers, and we will focus hard on new client acquisition.

Operations

The unprecedented demand we’re experiencing is due partly to the current economic climate and challenges; and partly due to the exponential rise in brand awareness we have achieved since the start of the pandemic. This rise in awareness has inevitably led to growing pains, and we’ll address these, in 2024. The comprehensive process mapping exercise we conducted in 2023 has given us a forensic view of our operational strengths and areas for improvement. In 2024, we will use this insight to introduce a new CRM platform, fill several key new roles on the team, and tighten our operational procedures. By so doing, we will be able to futureproof our operational capacity.

To sustain the surge in awareness of our work that we’ve experienced since 2020, we plan to engage the services of a specialist hospitality PR agency, whose work will feed into our paidfor social media advertising. Our new CRM platform will facilitate the development of more structured lead generation and customer acquisition and relationship programmes.

Governance

Hospitality Action is committed to demonstrating and encouraging equality, diversity, and inclusion among its workforce, in its day-to-day work and in its beneficiary support, and to eliminating unlawful discrimination of any kind. We have a duty to make a positive impact on our people, our beneficiaries and service users, our stakeholders, and the wider world.

We are fully committed to making a positive contribution to the world, one that goes in tandem with our charitable work. We will keep this commitment in sharp focus in 2024 and beyond.

We continue to work hard to ensure that our cohort of Trustees, patrons and ambassadors reflects and represents the ethnic diversity of the workforce we serve. Our ongoing aim is to continue our journey to embodying a truly diverse and inclusive charity.

Having overhauled and enhanced our risk register in 2023, we will continue to focus hard on identifying and mitigating threats to our status as a going concern – in particular, cyber-attacks and fraud.

Hospitality Action 10

Trustees’ report Year ended 31 December 2023

FINANCIAL REVIEW

Income for the year was £3,038,586 (2022: £3,015,551) and expenditure £3,208,372 (2022: £2,851,495) giving rise to an operating deficit of £169,786 (2022: surplus of £164,056). The year witnessed the second highest income in the charity’s history, second only to 2020.

Third-party and institutional fundraising remained strong, as did our challenge initiatives and in-person events. Highlights included Walk for Wellbeing (£95k), Summer Challenge (£81k), Northcote’s Obsession season (£72k), and the return of our annual polo day (£58k). We reported income of £115.5k from the Worshipful Company of Innholders; and £50k from the Procter England Bancroft/Hospitality Action Fund. We benefited from the Spirit of Hospitality Atlantic rowing challenge (£88k). Our employee assistance programme saw strong income growth, ending £70k ahead of income target at £970k.

Expenditure of £3,208,372 was up £356,877 from £2,851,495 in 2022. Expenditure on charitable activity associated with grants, advice and support was £2,220,104, an increase of £290,209 from £1,929,895 in 2022.

The related charity, the unincorporated charity also known as Hospitality Action (Charity Number 208855), disposed of 2 Sycamore House, its sole remaining asset, in December 2023, with gross proceeds of £305,000. The net proceeds are reflected as a creditor in the incorporated charity’s accounts. The net proceeds will be formally donated to the incorporated charity in 2024.

After gains on investments of £224,256 the overall result for the year was a surplus of £54,470 resulting in a corresponding increase in the balance of funds which stood at £7,521,128 as at 31 December 2023.

Reserves policy and financial position

The total funds held by the group at the end of the year were £7,521,128 (2022: £7,466,658).

Of the above total £69,105 (2022: £47,490) related to restricted funds not available for the general purposes of the Charity. As at 31 December 2023 £221,521 of funds were held within the subsidiary company (2022: £251,842). All of the remaining funds of the Charity totalling £7,226,502 (2022: £7,167,326) have been set aside in a designated fund by the trustees.

The Charity’s reserves safeguard its ability to operate and provide essential services to its beneficiaries in the case of unforeseeable reductions in fundraising income. To ensure that the charity can sustain its capacity to provide support to the sector it serves in perpetuity, the Trustees' policy is to seek to maintain the approximate current levels of reserves after allowing for fluctuations in the value of its investment portfolio, and to direct any income it generates to the Charity’s current account for working capital or charitable purposes.

The reserves are also available for investment in opportunities that may have an enduring benefit to the Charity and its beneficiaries. In 2024, we will build out a three- to five-year strategy plan, which may yield recommendations on future products requiring investment from the reserves.

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Trustees’ report Year ended 31 December 2023

FINANCIAL REVIEW (continued)

Reserves policy and financial position (continued)

From 2024, the Charity has defined a base rate of grants expenditure at £1m; and aims to increase its level of charitable activity in each future financial year.

From time to time the Charity has needed to draw on the capital of the investment portfolio to meet working capital or charitable obligations where fundraising income has not been at expected levels. Such drawdowns require the approval of the Finance and Investment Committee. As a result, the Charity does not currently maintain any free reserves, as it is possible to meet any requirement for free reserves from the designated fund if required.

The Charity is aiming to reach a position where any such drawdown is not required and free reserves can be maintained separately from the designated fund. We have not drawn down cash from our investment portfolio since early 2020, and our intention remains to maintain sufficient cash reserves to avoid future drawdowns. Since the investment portfolio’s year-end valuation of £5.935m, we have seen its value fluctuate through the early part of 2024 between a high of £6.090m in March and a low of £5.853m in January, much less volatile than the early months of 2023. As at 28th May the portfolio stood at £6.242m.

The investment portfolio is monitored daily, and reserve balances are reported to the Finance and Investment Committee each quarter.

The Finance and Investment Committee is required to review this reserves policy annually.

Going Concern

Hospitality Action serves an industry sector that continues to suffer the fallout from the socioeconomic factors that has defined the past four years. Hospitality operators continue to face soaring rent, energy, and produce prices, diminished out-of-home spend, and staff shortages. We have seen numerous hospitality business closures in the first months of 2024, and expect this trend to continue.

Counter-intuitively, against this backdrop, Hospitality Action has achieved record levels of income and expenditure and has seen a rapid scaling of its employee assistance programme, as operators have looked to build in their employee benefits to keep staff attrition rates in check. We have also grown awareness of our work, which has led to more widespread takeup of our various fundraising activations.

And we are benefitting from a ‘virtuous circle’ effect, whereby increasing numbers of employee assistance programme clients are engaging with fundraising efforts as a means to promote the programme to their employees. Our Trustees are satisfied that the charity is wellpositioned to continue as a going concern for the next twelve months and beyond. Reasons for this confident outlook include:

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Trustees’ report Year ended 31 December 2023

FINANCIAL REVIEW (continued)

Going Concern

Investment policy

Under the Constitution the Trustees have general powers to invest in any trust funds or in the purchase of land or buildings. The agreed investment objectives were to achieve an annual income of 3.5% with the preservation of capital in real terms over the long term. The investment objectives are supported by an agreed asset allocation that is socially, environmentally, and ethically sound, and which is approved by the Finance and Investment Committee and Trustees. The Investment Managers meet periodically with the Charity's Finance and Investment Committee to review investment performance against agreed indices.

Grant Policy

The charity provides financial assistance, support and advice to serving, former and retired workers in the hospitality industry. Qualification for assistance financial is as follows:

Applicants or the supporting agent from a referring organisation (with the consent of the applicant) are required to complete a Hospitality Action application form and provide appropriate supporting documentation to evidence their hospitality employment and household financial position. For any former hospitality employees that do not have seven years employment, we endeavour to offer guidance and signposting.

Hospitality Action 13

Trustees’ report Year ended 31 December 2023

GOVERNANCE, STRUCTURE AND MANAGEMENT

Legal status and governing document

Hospitality Action is a charitable company limited by guarantee, incorporated in England and registered with Companies House. It is also registered with the Charity Commission in England and Wales.

It is governed by its memorandum and articles of association which are publicly available via www.companieshouse.co.uk

Structure

Hospitality Action has a wholly-owned subsidiary, Hospitality Action (Trading) Limited, (registered company 03332706 – England and Wales), which administers the Employee Assistance Programme. The results and net assets of the subsidiary are consolidated into these accounts.

Appointment and training of trustees

Trustees are elected at the annual general meeting and serve for two years when they may offer themselves for re-election for two further terms of office. Trustees are drawn from senior management across the industry, retired members of the industry and those with specialist skills pertinent to the aims and objectives of the Charity. All new trustees go through a formal induction process with the Chief Executive and are issued with an induction pack that includes the memorandum and articles of association of the charity, a Charity Commission summary of responsibilities of charity trustees, a copy of the annual accounts and a formalised outline of the role of a trustee. Trustees meet quarterly.

Chief executive and staff

The Chief Executive, Mark Lewis, is responsible for the day to day operations of the Charity. Staff remuneration including that of Key Management is set to be competitive for the roles in the charity sector and based in London.

The trustees are responsible for ensuring we keep proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the relevant Charity (Accounts and Reports) Regulations and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Hospitality Action 14

Trustees’ report Year ended 31 December 2023

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Risk management, and principal risks and uncertainties

The Trustees continue to review and identify the major risks faced by the Charity and have implemented systems and controls to mitigate the risks wherever practicable.

The Board of Trustees and Finance and Investment Committee periodically review the major risks to the charity and have implemented systems and controls to mitigate these risks wherever practicable. The charity’s risk register was overhauled and enhanced in 2023 to enable us to better monitor risks on an ongoing gross and net basis, and therefore track the impact of the steps being taken to mitigate them. The register keeps issues around financial fraud in sharp focus. And we continue to work with other charities to share best practice in this area.

We continue to see unprecedented demand for financial support. Our policy of restricting public access to the grants application portal periodically to manage the volume of cases ensures that we are not overwhelmed by demand, and that we can limit spend on beneficiary services to what our cash reserves allow. It also allows us to manage applicants’ expectations of when they might receive support. (During periods of restricted access, we direct anyone seeking support to contact our grants team, to discuss their circumstances in more detail. The team identifies their primary need and level of urgency and, if they meet our top priority criteria, invites them to apply immediately. For any enquirer whose circumstances do not meet our top priority criteria, we invite them to contact us again in the future and offer signposting to other organisations that may be able to assist them with advice or support in the interim.)

In response to the charity’s growth in scale since the pandemic struck, in 2023 we undertook a process, systems, and technology mapping review to futureproof our operational resilience and improve operational capacity. As a result of this work, we have identified and introduced operational efficiencies. The work also produced a requirements document that formed the basis of our selection of a new CRM partner, whose platform we will onboard in 2024.

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Trustees’ report Year ended 31 December 2023

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Equal Opportunities Statement For Employees

Hospitality Action complies fully with all statutory requirements and has robust policies regarding what it expects of its staff and trustees. The charity has given consideration to the Charity Governance Code, in particular the latest updates to the Code surrounding equality, diversity and inclusion. This is of particular relevance in recruiting new trustees and new members of staff and ensuring all personnel are treated equally and fairly.

Hospitality Action is strongly committed to equal opportunities for all. Every possible step will be taken to ensure that individuals are treated equally and fairly and that decisions on recruitment, selection and training of employees are based on solely objective and role related criteria regardless of their age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation.

Our policy is to respect both the spirit and the letter of the laws regarding equality of opportunity and non-discrimination in Hospitality Action’s activities and to value the diversity of individuals throughout the community. We consider this to be an integral part of our ethos when recruiting employees to Hospitality Action.

This commitment extends to all areas, both within the working environment, as well as in relation to social and recreational programmes.

No employee or potential employee will be disadvantaged by any conditions of employment or requirements that cannot be justified as necessary on operational grounds.

Decisions about appointments, training, developments and promotion will be made on the basis of merit or ability.

All employees and volunteers are expected to support and co-operate in these efforts to ensure equal opportunity for all.

Any complaints of discrimination will be dealt with under Hospitality Action’s Complaints Procedure.

Any employee who conducts himself or herself in a discriminatory manner (whether on the grounds of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation) towards another employee, beneficiary or member of the public will be subject to disciplinary action for gross misconduct.

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Trustees’ report Year ended 31 December 2023

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Fundraising Statement

We continue to receive donations, event bookings and Regular Giving payments via our website. We host an annual Summer Challenge and another in person 20k walk at hosted cities across the UK using a new platform, Enthuse. We also use Enthuse to receive funds raised by third parties alongside JustGiving and we use Givergy to host online auctions and raffles. Our guest-pays activation, Invisible Chips, is still live, with all participating operators instructed in how to pay in funds and manage any VAT implications. No moneys are raised via public, on-street collections. When collecting monies, we at all times adhere to GDPR best practice guidelines. We renew our PCI DSS Compliance annually. We adhere to the conditions that credit card details should not be stored or sent electronically and are to be destroyed as soon as a payment is processed. We do not store credit card details in any form. And as soon as the fundraising team has processed a credit card payment, they destroy the card details. Our compliance requirements are relatively light since any receipts via our website are through Stripe and GoCardless and we are not an e-commerce provider.

We are members of the Association of Charitable Organisations (ACO) and the Fundraising Regulator and follow and track their fundraising due diligence recommendations and code. Hospitality Action has not received any complaints about its fundraising activities.

Trustees’ Responsibilities

The Trustees, who are also the directors for the purposes of Company Law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the trustees 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 incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

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Trustees’ report Year ended 31 December 2023

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Trustees’ Responsibilities (continued)

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors also confirm that:-

Approved by order of the board of Trustees and signed on its behalf by

Chairman - Jonathan Raggett

Approved by the board of trustees on

4[th] June 2024

Hospitality Action 18

Independent auditor’s report Year ended 31 December 2023

Independent auditor’s report to the members of Hospitality Action

Opinion

We have audited the financial statements of Hospitality Action (the ‘charitable parent company’) and its subsidiary (the ‘group’) for the year ended 31 December 2023, which comprise the consolidated statement of financial activities, the charity-only statement of financial activities, the consolidated and charity-only balance sheets, the consolidated statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable 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.

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Independent auditor’s report Year ended 31 December 2023

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustee’s Annual Report and financial statements, other than the financial statements and our auditor’s report 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 course of 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 group and the charitable parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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Independent auditor’s report Year ended 31 December 2023

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the charitable parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s 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 an auditor’s report 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:

Hospitality Action 21

Independent auditor’s report Year ended 31 December 2023

Auditor’s responsibilities for the audit of the financial statements (continued)

We did not identify any irregularities, including fraud.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 auditor’s report.

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 charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Hugh Swainson (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

09 August 2024

Hospitality Action 22

Consolidated statement of financial activities (including an income and expenditure account) Year ended 31 December 2023

Notes
Unrestricted
funds
£		 Restricted
funds
£		 Year ended
31
December
2023
£		 Unrestricted
funds
£		 Restricted
funds
£		 Year ended
31
December
2022
£
Income and endowments from:
Donations and legacies
Donations
1
Donated services and facilities
1
Members donations
Grants receivable
2
Other trading activities
Fundraising events
Charitable activities
Employee assistance programme
Investments
3
Total
Expenditure on:
Raising funds
Cost of raising voluntary income
Fundraising events and activities
Investment management fees
Sub-total
Charitable activities
Welfare
4, 6
Employee assistance programme
4
Sub-total
Total
4
Net (expenditure) income before net
gains/(losses) on investments
Net gains/(losses) on investments
11
Net income (expenditure)
Transfer between funds
14
Net movement in funds
Reconciliation of funds:
Fund balances brought forward
Fund balances carried forward		 941,135
85,350
5,787
27,500
758,958
969,667
137,689		 —
—
—
112,500
—
—
—		 941,135
85,350
5,787
140,000
758,958
969,667
137,689		 932,535
85,350
11,012
51,500
908,014
812,861
119,279		 —
—
—
95,000
—
—
—		 932,535
85,350
11,012
146,500
908,014
812,861
119,279
2,926,086 112,500 3,038,586 2,920,551 95,000 3,015,551
785,525
182,273
20,470		 —
—
—		 785,525
182,273
20,470		 727,388
173,090
21,122		 —
—
—		 727,388
173,090
21,122
988,268
1,385,073
744,146		 —
90,885
—		 988,268
1,475,958
744,146		 921,600
1,288,966
561,019		 —
79,910
—		 921,600
1,368,876
561,019
2,129,219 90,885 2,220,104 1,849,985 79,910 1,929,895
3,117,487 90,885 3,208,372 2,771,585 79,910 2,851,495
(191,401)
224,256		 21,615
—		 (169,786)
224,256		 148,966
(356,006)		 15,090
—		 164,056
(356,006)
32,855
—		 21,615
—		 54,470
—		 (207,040)
—		 15,090
—		 (191,950)
—
32,855
7,419,168		 21,615
47,490		 54,470
7,466,658		 (207,040)
7,626,208		 15,090
32,400		 (191,950)
7,658,608
7,452,023 69,105 7,521,128 7,419,168 47,490 7,466,658

The notes on pages 31 to 39 form part of these financial statements.

Hospitality Action 23

Statement of financial activities (charity only) Year ended 31 December 2023

Unrestricted
funds
£		 Restricted
funds
£		 Year ended
31
December
2023
£		 Unrestricted
funds
£		 Restricted
funds
£		 Year ended
31
December
2022
£
Income and endowments from:
Donations and legacies
Donations
Gift Aid from subsidiary company
Donated services and facilities
Members donations
Grants receivable
Other trading activities
Fundraising events
Investments
Total
Expenditure on:
Raising funds
Cost of raising voluntary income
Fundraising events and activities
Investment management fees
Sub-total
Charitable activities
Welfare
Sub-total
Total
Net (expenditure) income before net
(losses)/gains on investments
Net gains/(losses) on investments
Net income (expenditure)
Transfer between funds
Net movement in funds
Reconciliation of funds:
Fund balances brought forward
Fund balances carried forward		 941,135
251,842
85,350
5,787
27,500
758,958
137,689		 —
—
—
—
112,500
—
—		 941,135
251,842
85,350
5,787
140,000
758,958
137,689		 932,535
222,002
85,350
11,012
51,500
908,014
119,279		 —
—
—
—
95,000
—
—		 932,535
222,002
85,350
11,012
146,500
908,014
119,279
2,208,261 112,500 2,320,761 2,329,692 95,000 2,424,692
785,525
182,273
20,470		 —
—
—		 785,525
182,273
20,470		 727,388
173,090
21,122		 —
—
—		 727,388
173,090
21,122
988,268
1,385,073		 —
90,885		 988,268
1,475,958		 921,600
1,288,966		 —
79,910		 921,600
1,368,876
1,385,073 90,885 1,475,958 1,288,966 79,910 1,368,876
2,373,341 90,885 2,464,226 2,210,566 79,910 2,290,476
(165,080)
224,256		 21,615
—		 (143,465)
224,256		 119,126
(356,006)		 15,090
—		 134,216
(356,006)
59,176 21,615 80,791 (236,880) 15,090 (221,790)
— — — — — —
59,176 21,615 80,791 (236,880) 15,090 (221,790)
7,167,326 47,490 7,214,816 7,404,206 32,400 7,436,606
7,226,502 69,105 7,295,607 7,167,326 47,490 7,214,816

Hospitality Action 24

Balance sheet Year ended 31 December 2023

2023 2023 2022 2022
Charitable Charitable
Notes Group Company Group Company
£ £ £ £
Fixed assets
Tangible assets 9 899,123 899,123 907,104 907,104
Intangible assets 10 14,758 14,758 21,650 21,650
Investments 11 5,935,394 5,935,394 5,739,357 5,739,357
6,849,275 6,849,275 6,668,111 6,668,111
Current assets
Debtors 12 666,272 423,406 433,647 569,180
Cash at bank and in hand 816,454 532,209 1,037,024 241,190
1,482,726 955,615 1,470,671 810,370
Liabilities
Creditors: amounts falling due
within one year 13 (810,873) (509,283) (672,124) (263,665)
Net current assets 671,853 446,332 798,547 546,705
Net assets 7,521,128 7,295,607 7,466,658 7,214,816
Funds:
Restricted funds 15 69,105 69,105 47,490 47,490
Unrestricted funds:
General funds — — — —
Subsidiary 225,521 — 251,842 —
Designated funds 7,226,502 7,226,502 7,167,326 7,167,326
7,521,128 7,295,607 7,466,658 7,214,816

The notes on pages 31 to 39 form part of these financial statements.

The financial statements were approved and authorised for issue by the board of the Trustees and signed on their behalf by:

Chairman - Jonathan Raggett Approved on: 4[th] June 2024

Treasurer - Jon Dee ACA

Chief Executive - Mark Lewis

Company number 04914871

Hospitality Action 25

Consolidated statement of cash flows Year ended 31 December 2023

Notes
2023
£		 2022
£

(206,789)
124,279

(14,883)
1,895,002
(1,875,073)
129,325

(77,464)
1,114,488
1,037,024
Net cash flows from operating activities:
Net cash used in operating activities
A
Cash flows from investing activities:
Investment income
Payment to acquire tangible and intangible fixed assets
Proceeds from sales of investments
Payments to acquire investments
Net cash provided by investing activities
Change in cash for the year
Cash at bank and in hand at the start of the year
Cash at bank and in hand at the end of theyear
B
(366,733)
137,689
(19,745)
2,037,471
**(2,009,252) **
146,163
(220,570)
1,037,024

816,454

A Reconciliation of net income/(expenditure) to net cash used in operating activities

2023
£		 2022
£
Net income (expenditure)
Depreciation and amortisation
(Gains) losses on investments
Investment income
Increase in debtors
Increase in creditors
Net cash used in operating activities		 54,470
34,618
(224,256)
(137,689)
(232,625)
138,749
(366,733)		 (191,950)
49,539
356,006
(124,279)
(400,791)
104,686
(206,789)
Analysis of cash 2022
£
1,037,024		 Cash flow
£
(220,570)		 2023
£
Cash at bank and in hand 816,454

B Analysis of cash

C Analysis of changes in net debt

At
1 January
£		 Cash flows
£
(220,570)
(497,193)
(717,763)		 At 31
December
£
Cash at bank and in hand
Cash held by the investment manager
Total net debt		 1,037,024
728,777		 816,454
231,584
1,765,801 1,048,038

Hospitality Action 26

Accounting policies Year ended 31 December 2023

Basis of accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP (FRS 102)), and with the Financial Reporting Standard applicable in the UK and Republic of lreland (FRS 102).

The financial statements are presented in sterling and rounded to the nearest pound.

The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value. Investments are restated at fair value at the balance sheet date.

All transactions are derived from continuing activities. All recognised gains and losses are included in the Statement of Financial Activities. These accounts consolidate the results, assets and liabilities of Hospitality Action's subsidiary company on a line by line basis.

Critical accounting estimates and areas of judgement

There are no areas of material estimation uncertainty affecting the accounts and no significant areas of judgment affecting the figures, aside from the following:

Going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect of a period of one year from the date of approval of these financial statements.

The trustees have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. With regard to the next accounting period, the year ending 31 December 2024, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the trustees report for more information).

Hospitality Action 27

Accounting policies Year ended 31 December 2023

Fund accounting

Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the Trustees in furtherance of the general charitable objectives. Restricted funds comprise monies raised for, and their use restricted to, a specific purpose, or donations subject to donor imposed conditions. Designated funds represent those funds which the trustees have earmarked for specific purposes and include the carrying value of the charity's fixed assets.

Income

Income is recognised on a receivable basis and principally comprises grants, events income, income from the delivery of services and donations receivable. Any income received which is not attributed to the year of receipt, is included within deferred income in creditors. Donated services and facilities (gifts in kind) are included in the financial statements at the best estimate of the value to the charity. Legacy income is recognised when the criteria of entitlement, probability and measurability have been met.

Expenditure recognition

Expenditure including irrecoverable VAT is charged to the Statement of Financial Activities on an accruals basis. Expenditure is classified as either costs of raising funds (which includes fundraising and events costs as well as investment manager’s fees) or charitable activities costs being the costs the charity incurs in furthering its charitable objectives. Direct costs are allocated to the activity headings to which they relate. Support costs relate to indirect costs including the costs of governance. These are directly allocated where possible and otherwise apportioned on a consistent basis.

Grants

Grants expenditure is recognised when there is a constructive obligation to pay monies to a beneficiary, that is, when the charity has notified the beneficiary of the payment of the grant. It includes the payment of monetary grants to beneficiaries, expenditure made in providing beneficiaries with goods and services and the costs of distributing and administering such direct provision. The cost of such provision, and that in respect of monetary grants in particular, is recognised as it becomes payable according to the Charity's rules.

Tangible fixed assets

Tangible assets are shown at cost less provision for depreciation. Provision is made for depreciation on all tangible assets at rates calculated to write off the cost, less estimated residual value over their useful lives which are estimated to be:

Leasehold property over the length of the lease Furnishing 20% straight line Office refurbishment 10% straight line Computer equipment 33% straight line

Hospitality Action 28

Accounting policies Year ended 31 December 2023

Intangible fixed assets

Intangible assets are shown at cost less provision for amortisation. Provision is made for amortisation on all intangible assets at rates calculated to write off the cost, less estimated residual value over their useful lives which is estimated to be four years.

Investments

Investments are restated at fair value as at the balance sheet date. Investment gains and losses are disclosed in the Statement of Financial Activities.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Pension costs

The Charity operates a stakeholder pension scheme. Contributions are charged to expenditure as they fall due.

Financial instruments

The charity only holds basic financial instruments as defined by FRS102. The financial assets and liabilities of the charity are as follows:

Financial assets – donations due and trade debtors are basic financial instruments and are debt instruments measured at amortised cost. Investments are basic financial instruments held at fair value. Accrued income and prepayments are not financial instruments. Cash at bank and short term deposits are classified as basic financial instruments and measured at face value.

Hospitality Action 29

Accounting policies Year ended 31 December 2023

Financial instruments (continued)

Financial liabilities – trade creditors, grants payable, and accruals are financial instruments and are measured at amortised cost. Social security and other taxes are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability as the cash settlement has already taken place and there is no obligation to deliver services rather than cash or another financial instrument.

Hospitality Action 30

Notes to the financial statements Year ended 31 December 2023

1 Donations

Donations
2023
£		 2022
£
Unrestricted
Bidfood
Country Range
Corinthia Hotel
D&D Group
Disney +
Gleneagles Hotel
GoodGood
Heartwood Collection
Hilton
Home Grown Hotels
Iconic Hotels
In-Bev
Knight Frank
Lenore England Fund
Mechline Developments
Navarac
Provenance Inns
Red Cat Pub Company
Sir Richard Sutton Ltd
Sketch
Society of Golden Keys
Super Skills
The Belfry
The Coaching Inn
The Fat Duck
The Ned
Uber Eats
Whitbread
Z Hotels
Other donations
Total unrestricted donations
Restricted
Total donations
Donated services and facilities
The Caterer
Staff Canteen, Dewberry, H2O
Totalgifts in kind		 26,044
21,694
1,261
31,292
10,000
12,500
—
15,911
2,735
—
4,734
70,000
—
50,000
6,000
5,610
—
5,000
5,000
54,403
11,855
—
5,478
18,460
1,821
—
5,000
175,000
—
401,337		 36,307
25,000
5,282
16,728
—
12,500
5,003
—
16,262
6,804
11,320
162,000
5,000
—
—
12,719
10,311
—
5,500
44,016
5,235
5,000
—
8,000
5,209
7,675
5,000
175,000
10,000
336,664
941,135 932,535
— —
941,135 932,535
29,500
55,850		 29,500
55,850
85,350 85,350

Hospitality Action 31

Notes to the financial statements Year ended 31 December 2023

2 Grants receivable

Grants receivable
2023
£		 2022
£
Unrestricted:
Worshipful Company of Innholders
Master Innholders
Others
Total unrestricted grants
Restricted fund:
Drug and Alcohol awareness programme/welfare
Savoy Educational Trust
Worshipful Company of Innholders
Excel Trust
Total restricted grants
Totalgrants		 17,500
—
10,000		 10,000
25,000
16,500
27,500 51,500
13,000
98,000
1,500		 5,500
88,000
1,500
112,500 95,000
140,000 146,500

3 Investment income

Investment income
2023
£		 2022
£
From listed investments
Interest on cash deposits		 135,359
2,330		 118,574
705
137,689 119,279

4 Expenditure

Expenditure
Analysis of 2023 expenditure
Notes
Grants		 Other direct
costs
£		 Support
costs
£		 Total
2023
£
Raising funds:
Cost of raising voluntary income
Fundraising events and activities
Investment management
Charitable activities:
Welfare
6
Employee assistance programme
Total		 —
—
—

914,433
—		 519,405
182,273
20,470
305,847
676,341		 266,120
—
—
255,678
67,805		 785,525
182,273
20,470
1,475,958
744,146
914,433 1,704,336 589,603 3,208,372
Analysis of 2023 support costs Expenditure
on raising
funds
£		 Expenditure
on charitable
activities
£		 Total
2023
£
Staff costs
Office rent and shared office costs		 207,975
58,145		 255,281
68,202		 463,256
126,347
266,120 323,483 589,603

Hospitality Action 32

Notes to the financial statements Year ended 31 December 2023

4 Expenditure (continued)

Expenditure(continued)
Analysis of 2022 expenditure
Notes
Grants		 Other direct
costs
£		 Support
costs
£		 Total
2022
£
Raising funds:
Cost of raising voluntary income
Fundraising events and activities
Investment management
Charitable activities:
Welfare
6
Employee assistance programme
Total		 —
—
—

824,589
—		 471,802
173,090
21,122
298,728
495,898		 255,586
—
—
245,559
65,121		 727,388
173,090
21,122
1,368,876
561,019
824,589 1,460,640 566,266 2,851,495
Analysis of 2022 support costs Expenditure
on raising
funds
£		 Expenditure
on charitable
activities
£		 Total
2022
£
Staff costs
Office rent and shared office costs		 202,099
53,487		 247,957
62,723		 450,056
116,210
255,586 310,680 566,266

The allocation of support costs is on a per capita basis, having regard to time spent by staff on either fundraising or charitable activities.

5 Analysis of governance costs

Analysis of governance costs
2023
£		 2022
£
Audit fees
Legal and professional
Trustees’ expenses
Other		 14,640
18,160
663
2,069		 14,096
16,122
1,029
4,640
35,532 35,887

Hospitality Action 33

Notes to the financial statements Year ended 31 December 2023

6 Welfare expenditure

Welfare expenditure
2023
£		 2022
£
Top up grants
Essential needs grants
Short term crisis grants
Christmas grants
Winter fuel grants
Covid-19 grants
TV licence and phone grants
Golden Friends’ scheme
Other grants
Grant management and other beneficiary support services
Total cost ofgrant makingand other beneficiarysupport services		 43,385
99,214
37,927
23,634
72,800
595,042
3,184
15,855
23,392		 48,871
145,164
38,427
25,208
58,410
457,998
3,434
19,020
28,057
914,433
561,525		 824,589
544,287
1,475,958 1,368,876

7 Employees and staff costs

Employees and staff costs
2023
Number		 2022
Number
The average number of persons employed by the Charity during the
year		 19 18
Staff costs were as follows: 2023
£		 2022
£
Wages and salaries
Social security costs
Pension costs		 812,598
89,610
82,643		 758,859
87,395
78,404
984,851 924,658

The number of employees who received remuneration in excess of £60,000 is analysed as follows:

2023
No.
—
1
1		 2022
No.
1
—
1
£70,001 - £80,000
£80,001 - £90,000
£120,001 - £130,000

The charity considers that the Key Management Personnel for financial reporting purposes comprises the trustees and the Chief Executive. The total Key Management Remuneration, including employer’s national insurance and pension contributions, was £155,027 (2022: £148,405).

Trustees’ remuneration and reimbursed expenses

In 2023 £152 was spent on a gift and awards to trustees (2022 - £424), £131 was spent on travel expenses.

Hospitality Action 34

Notes to the financial statements Year ended 31 December 2023

8 Net movement in funds

Net movement in funds
2023
£		 2022
£
This is stated after charging:
Depreciation
Amortisation
Auditor’s remuneration:
. Parent charitable company audit
. Subsidiary company audit
. Other(tax)		 13,417
21,201
12,100
2,040
1,850		 18,898
30,641
11,300
1,800
1,750

9 Tangible fixed assets – group and charitable company

Leasehold
property
£		 Office
refurbishments
£		 Furniture
and fittings
£		 Office and
other
equipment
£		 Total
£
Cost
At 31 December 2022
Additions
Disposals
At 31 December 2023
Depreciation
At 31 December 2022
Charge for the year
On disposals
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022		 863,339
—
—		 116,065
—
—		 38,954
2,828
—		 66,784
2,608
—		 1,085,142
5,436
—
863,339 116,065 41,782 69,392 1,090,578
14,080
880
—		 77,005
5,040
—		 31,975
1,938
—		 54,978
5,559
—		 178,038
13,417
—
14,960 82,045 33,913 60,537 191,455
848,379 34,020 7,869 8,855 899,123
849,259 39,060 6,979 11,806 907,104

The depreciation charge on the long leasehold property reflects the length of the leasehold which is 979 years.

10 Intangible fixed assets – group and charitable company

Intangible fixed assets – group and charitable company
Cost Total
£
At 31 December 2022
Additions
At 31 December 2023
Amortisation
At 31 December 2022
Charge for the year
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022		 129,036
14,309
143,345
107,386
21,201
128,587
14,758
21,650

Hospitality Action 35

Notes to the financial statements Year ended 31 December 2023

11 Investments – group and charitable company

Investments – group and charitable company
2023
£		 2022
£
Market value
As at 1 January
Additions at cost
Disposals
Realised (losses) gains
Unrealised gains (losses)
As at 31 December
Analysed as follows:
United Kingdom investments
Non-United Kingdom investments
Cash and commodities held for investment
Historical cost		 5,739,357
2,009,252
(2,037,471)
(6,736)
230,992		 6,115,292
1,875,073
(1,895,002)

9,687
(365,693)
5,935,394 5,739,357
1,532,153
4,171,657
231,584		 1,832,052
3,178,528
728,777
5,935,394 5,739,357
5,297,397 5,324,743

The following holdings exceed 5% of portfolio value – Vanguard S&P 500 UCITS ETF (15%), HSBC FTSE-All World Index (11%) and the Charities Property Fund (6%). The cash balances are not available for day to day transactions but are for the trading of investment assets.

12 Debtors

Debtors
Group
2023
£		 Charitable
company
2023
£		 Group
2022
£		 Charitable
company
2022
£
Fundraising debtors
Trade debtors
Amounts due from trading subsidiary
Prepayments and accrued income		 5,660
204,648
—
455,964		 5,660
—
—
417,746		 16,800
141,280
—
275,567		 16,800
—
279,223
273,157
666,272 423,406 433,647 569,180

13 Creditors: amounts falling due within one year

Group
2023
£		 Charitable
company
2023
£		 Group
2022
£		 Charitable
company
2022
£
Grants approved but unspent at year end
Trade creditors
Taxation and social security
Accruals and deferred income
Amounts due to trading subsidiary
Amounts due to related charity (note 21)		 36,905
26,889
23,646
407,075
—
316,358		 36,905
24,455
23,646
101,952
5,967
316,358		 21,919
94,867
27,333
479,705
—
48,300		 21,919
32,149
27,333
133,964
—
48,300
810,873 509,283 672,124 263,665

Hospitality Action 36

Notes to the financial statements Year ended 31 December 2023

13 Creditors: amounts falling due within one year (continued)

Deferred income comprises:

2023
£
70,340
(69,480)
42,330
43,190
Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of theyear

Income is deferred until the charity has met any performance related conditions attached to the income.

14 Unrestricted funds

Unrestricted funds
Balance at
31
December
2022
£		 Income
£
Expenditure
£		 Transfers
£		 Gains on
investments
£
Balance at
31
December
2023
£
Charity
General
Designated
Subsidiary company
Total		 —
7,167,326
251,842		 1,956,419
—
969,667		 (2,338,723)

(34,618)

(744,146)		 382,304
(130,462)
(251,842)		 —
224,256
—
—
7,226,502

225,521
7,419,168 2,926,086 (3,117,487) — 224,256 7,452,023

Transfers from the subsidiary company fund to the general and designated funds relate to the payment of the company’s profit to the parent charity via a gift-aided donation. Transfers from designated funds to general funds are made to cover the charity’s general day-to-day expenses.

Comparative information

Balance at
31
December
2021
£		 Income
£
Expenditure
£		 Transfers
£		 Gains on
investments
_£ _
Balance at
31
December
2022
£
Charity
General
Designated
Subsidiary company
Total		 —
7,404,206
222,002		 2,107,690
—
812,861		 (2,161,027)
(49,539)
(561,019)		 53,337
168,665
(222,002)		 —
(356,006)
—
—
7,167,326

251,842
7,626,208 2,920,551 (2,771,585) — (356,006) 7,419,168

15 Restricted funds

Restricted funds
Balance at
31 December
2022
£
Income
£		 Expenditure
£		 General fund
Transfers
£		 Balance at
31 December
2023
Total
£
Welfare 47,490
112,500		 (90,885) — 69,105
47,490
112,500		 (90,885) — 69,105

Hospitality Action 37

Notes to the financial statements Year ended 31 December 2023

15 Restricted funds (continued)

Comparative information

Comparative information
Balance at
31 December
2021
£
32,400
32,400		 Income
£		 Expenditure
£		 General fund
Transfers
£		 Balance at
31 December
2022
Total
£
Welfare 95,000 (79,910) — 47,490
95,000 (79,910) — 47,490

Welfare covers three specific programmes: the Golden Friends scheme, Winter Fuel grants and phone line rentals.

16 Pensions obligations

Stakeholder pensions

The Charity operates a stakeholder pension scheme. The assets of the scheme are held separately from those of the Charity, being invested with an insurance company.

2023
£
82,643		 2022
£
Total employer cost 78,404

17 Analysis of net assets between funds

General
funds
£		 Designated
funds
£
913,881
5,935,394
602,748
7,452,023		 Restricted
funds
£		 Total
2023
£
913,881
5,935,394
671,853
7,521,128		 Total
2022
£
928,754
5,739,357
798,547
7,466,658
Fund balances at 31
December 2023 are
represented by:
Tangible assets
Investments
Net current assets
Net assets		 —
—
—		 —
—
69,105
— 69,105

Comparative information

General
funds
£		 Designated
funds
£		 Restricted
funds
£
—
—
47,490
47,490		 Total
2022
£
928,754
5,739,357
798,547
7,466,658
Fund balances at 31 December 2022 are
represented by:
Tangible assets
Investments
Net current assets
Net assets		 —
—
—		 928,754
5,739,357
751,057
— 7,419,168

Hospitality Action 38

Notes to the financial statements Year ended 31 December 2023

18 Financial instruments

Group
2023
£		 Charitable
company
2023
£		 Group
2022
£		 Charitable
company
2022
£
Financial assets held at fair value
Financial assets held at amortised cost
Financial liabilities held at amortised cost		 5,935,394
1,026,762
(89,650)		 5,935,394
537,869
(81,449)		 5,739,357
1,195,103
(174,124)		 5,739,357
257,990
(80,311)

19 Taxation

Hospitality Action is a registered charity and therefore is not liable to income tax or corporation tax on income or gains derived from its charitable activities, as they fall within the various exemptions available to registered charities. Whilst the Charity's trading subsidiary company is not exempt from corporation tax on its taxable profits it is not expected that any taxation will arise as it is the intention of the company's directors to donate any such profits to the parent Charity.

20 Subsidiary undertaking

The subsidiary undertaking is Hospitality Action (Trading) Limited (registered company 03332706) which is incorporated in England and had net assets of £225,531 as at 31 December 2023 (2022: net assets of £251,852). In the year ended 31 December 2023 it had turnover of £969,667 (2022: £812,861) and expenditure of £744,146 (2022: £561,019). It will gift aid its taxable profit to the parent charity in 2024.

21 Related charity

The Charity was incorporated in 2003 and took over the majority of the assets of an unincorporated charity also known as Hospitality Action (Charity Number 208855). On 20[th] December 2023 the unincorporated charity sold a leasehold flat. This had been the sole asset of the unincorporated charity and had been vacated by the longstanding assured tenant in February 2022. The incorporated charity Hospitality Action is holding the proceeds of the sale of the flat for the unincorporated charity, with a total balance of £316,358 due to the related charity at 31 December 2023.

22 Related party

The Charity holds 20% of the shares of 62 Britton Street Ltd, a company, which holds the Charity's interest in the freehold of its premises. There are no outstanding balances between the Charity and the company.

23 Other related party transactions

Owing to the nature of the charity’s operations and the composition of the Board of Trustees being drawn from the hospitality sector, it is inevitable that transactions will take place with organisations in which a member of the Board of Trustees may have an interest. All transactions involving such organisations are conducted at arm’s length and on normal business terms.

Hospitality Action 39