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2022-03-31-accounts

Charity Registration No. 1104867

Company Registration No. 05065046 (England and Wales)

ROUNDABOUT (WEST MIDLANDS) LIMITED

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

PAGES FOR FILING WITH REGISTRAR

ROUNDABOUT (WEST MIDLANDS) LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Secretary

G Falkiner K Barnes B Darwood S Yates G Hill

S Yates

(Appointed 28 April 2022)

Charity number 1104867 Company number 05065046 Registered office 7a Blackminster Business Park Blackminster Evesham Worcestershire United Kingdom WR11 7RE

ROUNDABOUT (WEST MIDLANDS) LIMITED

CONTENTS

Page
Trustees' report 1 - 3
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7 - 14

ROUNDABOUT (WEST MIDLANDS) LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Objectives and activities

  1. The protection and preservation of the environment by reusing donated furniture and other household items that might otherwise go into landfill.

  2. To relieve financial hardship by reusing and distributing the same to such persons who are in conditions of hardship or need within the areas of Worcestershire, Gloucestershire and Warwickshire.

  3. To provide volunteering opportunities and to assist people with disabilities by the provision of vocational training in a work setting that develops work ethic, confidence and social skills.

Public benefit

In planning the activities for the year, the trustees kept in mind the Charities Commission's guidance on public benefit at the trustee meetings.

The focus of the activities remains the relief of poverty by recycling donated furniture, equipment and effects and distributing these to those in financial need. However, the Trustees are also increasingly aware of the public benefit of this work in reducing the amount of waste sent to landfill sites and reusing and recycling goods wherever possible.

Charitable activities

At the end of the third national Covid-19 close down in April 2021, Roundabout reopened fully and welcomed back the volunteers whose dedication and commitment continue to ensure Roundabout is a success.

During the first quarter of the financial year there was a strong demand in respect of retail sales however requests for furniture to be supplied via our referral process was significantly less in comparison with the same period in 2019 when the situation was normal. Even though the close down had ended many of our referral agents were still working from home and so were probably unable to identify the needs of their clients in person. By the second quarter referral requests had started to return to normal levels.

During this financial year Roundabout collected 7024 items of donated furniture in the form of 1252 collections, which is over twice the amount as the previous year showing a significant increase on the performance of the previous year. Roundabout completed 303 referrals (deliveries) of furniture and other essential items to those in need across Worcestershire, North Gloucestershire and West Warwickshire.

Volunteers

The charity gratefully acknowledges the outstanding efforts of its many volunteers, without whom it would not be possible to continue the work.

ROUNDABOUT (WEST MIDLANDS) LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance Financial review

Principal funding sources

During the period under review, the charity’s principal funding came from voluntary donations from the public. The charity additionally received Covid-related local authority funding during the period under review.

Reserves policy

Reserves are required in order to provide a buffer should there be a downturn in fundraising and to provide staff security of employment.

The Roundabout trustees have directed that a minimum of 6 month’s operations costs which equates to £60,000, plus an additional £25,000 should be held in reserve for the financial year. This is the maximum amount which can be invested and protected by the Financial Services Compensation Scheme. This money has been invested with United Trust Bank.

The trustees have directed that £30,000 is to be designated from the charity general reserves toward the replacement cost of a delivery vehicle.

The trustees have directed that £1,000 is to be designated from the charity general reserves towards a discretionary payment fund for referral clients.

The trustees have directed that an additional £50,000 is held in reserve for exceptional circumstances, such as the COVID lockdown and any future dilapidations liability arising from Roundabout’s occupancy of its current leasehold premises.

The reserves policy is updated annually.

Structure, governance and management

Governing document

The charity was originally formed as an unincorporated association. On 5 March 2004 Roundabout (West Midlands) Limited, a company limited by guarantee, was formed and the work of the charity was transferred to this new company on 1 October 2004. Its objectives and regulations are registered by the memorandum and articles of association of the company, as amended 2019 by special resolution.

Trustees

The members of the trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Ms M J Sale (resigned 28.04.22)

Ms G Falkiner K F Barnes B D Darwood S Yates P J Smart (resigned 01.07.21) G Hill (appointed 28.04.22)

Company Secretary

S Yates

Recruitment and appointment of new trustees

Additional trustees may be appointed at the discretion of the Trustees.

ROUNDABOUT (WEST MIDLANDS) LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Induction and training of new trustees

New trustees are briefed on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making processes and the financial situation of the charity.

Related parties

There were no related parties during the period under review.

Reference and Administrative Details

Registered Company number

05065046 (England and Wales)

Registered Charity number

1104867

Registered office

7a Blackminster Business Park Blackminster Evesham Worcestershire WR11 7RE

The trustees' report was approved by the Trustees.

S Yates

Dated: 19 December 2022

ROUNDABOUT (WEST MIDLANDS) LIMITED

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF ROUNDABOUT (WEST MIDLANDS) LIMITED

I report to the trustees on my examination of the financial statements of Roundabout (West Midlands) Limited (the charity) for the year ended 31 March 2022.

Responsibilities and basis of report

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

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

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

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

Stuart Christy FCA Azets Statutory Auditors and Accountants 93 High Street Evesham Worcestershire WR11 4DU

Dated: 20 December 2022

ROUNDABOUT (WEST MIDLANDS) LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted Unrestricted
funds funds
2022 2021
Notes £ £
Income and endowments from:
Donations and legacies 3 15,912 10,406
Charitable activities
Charitable activities 4 18,705 8,850
Other trading activities 5 131,494 57,338
Investment income 6 1,650 1,665
Other income 7 14,281 24,143
Total income 182,042 102,402
Expenditure on:
Charitable activities
Bedding and furniture purchased 8,373 5,984
Other 23,058 13,887
Information technology 967 421
Governance 121,446 83,202
Total charitable expenditure 153,844 103,494
Net income/(expenditure) for the year/
Net movement in funds 28,198 (1,092)
Fund balances at 1 April 2021 235,895 236,987
Fund balances at 31 March 2022 264,093 235,895

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

ROUNDABOUT (WEST MIDLANDS) LIMITED

BALANCE SHEET

AS AT 31 MARCH 2022

Notes
Fixed assets
Tangible assets
10
Current assets
Stocks
11
Debtors
12
Investments
13
Cash at bank and in hand
Creditors: amounts falling due within
one year
14
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds
Designated funds
15
General unrestricted funds		 2022
£
691
27,148
89,766
141,644
259,249
(3,622)
166,000
98,093		 £
8,466
255,627
264,093
264,093
264,093		 2021
£
2,630
20,665
88,136
116,432
227,863
(2,482)
90,000
145,895		 £
10,514
225,381
235,895
235,895
235,895

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2022.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees on 19 December 2022

S Yates

Trustee

Company Registration No. 05065046

ROUNDABOUT (WEST MIDLANDS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

Charity information

Roundabout (West Midlands) Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 7a Blackminster Business Park, Blackminster, Evesham, Worcestershire, WR11 7RE, United Kingdom.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees has a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

ROUNDABOUT (WEST MIDLANDS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

1.5 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Improvements to property 33% straight line Plant and equipment 20% reducing balance Fixtures and fittings 20% reducing balance Computer equipment 20% reducing balance Motor vehicles 25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.6 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.7 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

ROUNDABOUT (WEST MIDLANDS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Gift Aid 15,140 7,885
Donations and gifts 772 2,521

ROUNDABOUT (WEST MIDLANDS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

4 Charitable activities

Charitable Charitable
activities activities
2022 2021
£ £
Referrals 11,027 4,522
Recycling credit scheme 7,678 4,328
18,705 8,850

5 Other trading activities

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Sales 131,494 57,338
6 Investment income
Unrestricted Unrestricted
funds funds
2022 2021
£ £
Interest receivable 1,650 1,665
7 Other income
Unrestricted Unrestricted
funds funds
2022 2021
£ £
Other income 14,281 24,143

8 Trustees

Other than as disclosed at Note 17 Related Party Transactions, none of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year (2021 - none).

ROUNDABOUT (WEST MIDLANDS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

9 Employees

The average monthly number of employees during the year was:

2022 2021
Number Number
8 7
Employment costs 2022 2021
£ £
Wages and salaries 78,995 42,487
Other pension costs 732 435
79,727 42,922

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

The total amount of employee remuneration received by key management personnel in the year was £26,501 (2021 - £26,501).

ROUNDABOUT (WEST MIDLANDS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

10 Tangible fixed assets

Improvements
to property
Plant and
equipment
Fixtures and
fittings
Computer
equipment
Motor vehicles
£
£
£
£
£
Cost
At 1 April 2021
2,444
5,940
17,271
21,416
51,746
Additions
-
-
-
260
-
At 31 March 2022
2,444
5,940
17,271
21,676
51,746
Depreciation and impairment
At 1 April 2021
2,444
4,030
15,153
17,981
48,695
Depreciation charged in the year
-
382
424
739
763
At 31 March 2022
2,444
4,412
15,577
18,720
49,458
Carrying amount
At 31 March 2022
-
1,528
1,694
2,956
2,288
At 31 March 2021
-
1,910
2,118
3,435
3,051		 Total
£
98,817
260
99,077
88,303
2,308
90,611
8,466
10,514

ROUNDABOUT (WEST MIDLANDS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

11
Stocks
Finished goods and goods for resale
12
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
13
Current asset investments
Other
Current asset investments represent a cash charity bond.
14
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Accruals and deferred income		 2022
£
691
2022
£
9,780
15,450
1,918
27,148
2022
£
89,766
2022
£
865
819
1,938
3,622		 2021
£
2,630
2021
£
3,931
14,735
1,999
20,665
2021
£
88,136
2021
£
920
220
1,342
2,482

ROUNDABOUT (WEST MIDLANDS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

15 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement Movement
in funds in funds
Balance at Incoming Balance at Incoming Balance at
1 April 2020 resources
1 April 2021		 resources 31 March
£ £ £ £ 2022
£
Six months' operating costs 60,000 - 60,000 25,000 85,000
Replacement cost of delivery vehicle 30,000 - 30,000 - 30,000
Referral client discretionary payment
fund - - - 1,000 1,000
Exceptional circumstances reserve - - - 50,000 50,000
90,000 - 90,000 76,000 166,000

16 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2022
£
-
72,979
72,979		 2021
£
2,819
3,700
6,519

17 Related party transactions

During the year the charity employed the daughter of a Trustee as an administration apprentice. The amount of salary paid during the year amounted to £5,305 (2021 - £nil). All decisions taken in connection with the employee's appointment as apprentice were made and approved by the Board of Trustees, with the Trustee connected to the employee absenting himself from related discussions and decisions.

There were no other disclosable related party transactions during the year (2021 - none).