## **INTER-VARSITY PRESS** 

# **FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022** 



**INTER-VARSITY PRESS** 

## **FINANCIAL STATEMENTS** 

## **FOR THE YEAR ENDED 30 APRIL 2022** 

## Contents 

Information .................................................................................................................................................. 1 Report Of The Trustees .......................................................................................................................... 2 Independent Auditor’s Report To The Members Of Inter-Varsity Press ..................................... 8 Statement Of Financial Activities ......................................................................................................... 12 Balance Sheet ............................................................................................................................................ 13 Statement Of Cash Flows ...................................................................................................................... 14 Notes To The Financial Statements .................................................................................................... 15 



## **INTER-VARSITY PRESS Company Number: 05202650 Charity Number: 1105757** 

## Information 

## **Trustees of the Charity** 

The Rt Revd M Beasley Mr F J R Catford (Chair) Prof. S Halliday  (Vice-Chair) Mr E Thompson The Society for Promoting Christian Knowledge 

## **Key Management Personnel** 

Trustees of the Charity 

## **Solicitors** 

Wedlake Bell LLP 71 Queen Victoria Street London EC4V 4AY 

## **Auditors** 

Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton Surrey SM1 2SW 

## **Bankers** 

Barclays Bank PLC 1 Churchill Place London E14 5HP 

1 



## **INTER-VARSITY PRESS** 

## Report Of The Trustees 

The trustees, who are also directors for the purposes of company law, present their annual report and the audited financial statements for the year ended 30 April 2022, which have been prepared in accordance with the Companies Act 2006, the Charities Statement of Recommended Practice (Charities SORP FRS 102) and Financial Reporting Standard 102 (FRS 102). The annual report serves the purposes of both a Trustees’ Report and a Directors’ Report under company law. 

## **Objectives and activities** 

The objectives of the charity are the advancement of the evangelical Christian faith among students, graduates, other former students and members of the growing worldwide Church. The charity achieves this through publishing and distribution of books and other materials which are true to the Bible and which will communicate the gospel, develop discipleship and strengthen the Church for its mission in the world. 

## **Structure, governance and management** 

The charity is a company limited by guarantee; it operates in accordance with its memorandum and articles of association. It is governed by a trustee body whose members meet three times per year. Day-to-day control has been handed to the parent charity The Society for Promoting Christian Knowledge (SPCK). IVP itself does not employ any staff. 

## **Trustee selection, appointment and competence** 

Directors are appointed by the Governing Body of SPCK, and will typically include the Chair of SPCK, the Vice-Chair of SPCK, and the Chair of the IVP Publishing Board, who is a member of the Governing Body of SPCK. 

The directors receive a comprehensive induction pack to acquaint them with policies and practices, management and governance. Regular updates to this information pack are provided. All trustees are informed of their responsibilities under charity law, with particular reference to Charity Commission guidance publications. Training opportunities are provided. 

## **RISK MANAGEMENT** 

The directors have considered the major risks to which the charity, as part of the SPCK Group, is exposed and confirm that systems are in place to mitigate those risks. These major risks are captured in the Risk Register of the parent charity SPCK, as encapsulated below: 

_Governance risks_ , mitigated by trustee training, trustee skills audits, use of professional advisers, regular meetings of board and committees, and register of disclosed interests. 

_Operational risks_ , mitigated by Business Continuity Plan, emergency action plans relating to IT issues, notice periods, succession planning and insurance. 

_Financial risks_ , mitigated by financial controls, budgeting, reporting, investment management policy, reserves policy, credit control, and engagement with Church of England Pensions Board supported by expert legal, actuarial and financial advice. 

2 



## Report Of The Trustees (continued) 

_Legal risks_ , mitigated by HR and legal advice, staff handbook with regular review, and work with solicitors. 

_Reputational risk_ , mitigated by editorial review process, media training and communications planning. 

In addition, the directors have identified specific risks relating to IVP: 

## _**Sales not performing to expectations**_ 

Mitigations: There is a weekly performance meeting, and key performance indicators, including sales compared with budget and prior year, are shared with the trustees monthly. Book sales are diversified across a large range of titles, publishers and territories, and 80% of sales are from the backlist so we are not overly reliant on new titles; IVP also has strong rights income and sales commission revenue streams. 

## _**Loss of key IVP relationships**_ 

Mitigations: Publishing and distribution agreements are in place with key organisations such as, IVP USA, and Keswick Ministries. IVP continues to work closely with these and maintains close relationships with UCCF and LICC and is seeking to strengthen ties with other organisations, for example, the Evangelical Alliance and Word Alive. An increased focus on direct-to-consumer sales across the organisation will reduce reliance on particular sales relationships. The IVP Publishing Director and the SPCK CEO meet regularly with key existing and potential partners. 

## _**Loss of confidence among the IVP target market**_ 

Mitigations: The IVP publishing board continues to have a veto over books coming out under the IVP brand to ensure our books continue to represent the theology our target market will expect; the acquisition of Lifebuilders and the investment in the NIV Bible Speaks Today Bible and ESV Search The Scriptures Bible show evidence of SPCK’s investment in IVP. The merger with Lion Hudson and the SPCK Group trading name in use also help the case that SPCK is an appropriate home for IVP. We maintain close contact with IVP USA, whose titles can sometimes be confused with our own but may come from a wider range of theological viewpoints. 

## _**Reacting too slowly to changes in the marketplace**_ 

Mitigations: The SPCK Group’s new merger with Lion Hudson brings in a new team with deep understanding of the marketplace, and creates a combined organisation able to invest in the upgrade required. 

## _**Covid-19**_ 

Mitigations: Parent company has secured strong cash position; day-to-day expenses being tightly controlled; performance and cash being monitored on a monthly basis; increased range of titles available on print on demand and audio to reduce reliance on any particular supply chain; new title, Healthy Faith, commissioned and published in response to the crisis. 

3 



## Report Of The Trustees (continued) 

Any of the above could potentially impact on IVP’s ability to repay money owed to SPCK, or SPCK’s ability to continue to support IVP. Currently, SPCK has a growing cushion above its target reserves, and both its current budget and five-year projections see the reserves level increasing. Management and trustees will continue to monitor performance against these plans. 

## **RESERVES POLICY** 

The trustees have considered the reserves as at 30 April 2022. 

The charity needs reserves to enable it to develop its long-term aims, as well as to ensure the continuation of its current activities. In particular, the charity needs reserves to invest in the production of new books and authors. In order to meet their responsibilities and to ensure that the charity continues to operate on a going concern basis, the trustees have reviewed the requirements and risks it faces both in the short term and medium term. With the transfer of the company to SPCK, there is an on-going commitment from SPCK to support these aims and underwrite the current deficit in the reserves of IVP of £1,579,000 (2021: £1,115,000). 

The future projections of IVP and SPCK envisage IVP being able to repay the money it owes to SPCK, as well as to meet all other financial commitments, including management charges from SPCK. The trustees recognise that IVP reported a deficit of £464,000 (2021: £316,000) for the year ended 30 April 2022 but are aware that plans are underway to improve profitability of the whole organisation (including IVP) and to review the existing organisational setup with a review to reducing complexity around the inter-company loan and management charge. 

## **ACHIEVEMENTS AND PERFORMANCE** 

2021-22 has been a year of significant change for IVP, as with all the SPCK Group. Changes in the IVP editorial team and in other departments have meant both sadness at saying goodbye to colleagues, and excitement at the new teams coming into place. We have been working hard to ensure that projects and relationships have been handed over well, and to build on them for the future. Improving our focus has meant pulling back from certain series and projects in order to do less but better, which we trust will make us more fruitful for the longterm. 

IVP books aim to help people **Know, Grow, Go** and **Show** , and here are some recent highlights: 

**Know** God and the Bible 

- _ESV Search the Scriptures_ – for the first time, the much-loved _Search the Scriptures_ Bible reading plan is available integrated alongside the Bible text, to help people discover the Bible for themselves 

- _New Studies in Biblical Theology and commentaries_ – we’ve published several new studies on Bible themes and books, including NSBTs _From Prisoner to Prince_ by Samuel Emadi 

4 



## Report Of The Trustees (continued) 

and _The Glory of God and Paul_ by Christopher Morgan, plus Nicholas Perrin’s Tyndale Commentary on _Luke_ and the ongoing reissues of the _Bible Speaks Today_ series 

**Grow** in the Christian life 

- _My Treasured Possession_ by Terry Virgo, a well-trusted leader of the Newfrontiers movement, taking us through the life of Moses 

- _40 Women_ by Ros Clarke, a Lent devotional exploring women’s stories in the Bible from Eden to Easter, which has been our big hit of the season 

- _Powerful Leaders?_ by Marcus Honeysett, exploring power, abuse and what healthy church culture looks like 

**Go** and share the Good News 

- _A Place for God_ by Pete Nicholas, with a foreword by Tim Keller, exploring the big questions being asked by today’s generation 

- _So Loved_ by Martin Salter, unpacking John 3:16 in a friendly, accessible way, ideal for churches to buy in bulk for evangelistic events and outreach 

**Show** the relevance of faith for all of life 

- _Why Art Matters_ by Alastair Gordon, showing how art and beauty matter because they matter to our creator God, who created us to ourselves be creative 

- _John Stott on Creation Care_ edited by Laura Yoder with Sam Berry, bringing together Stott’s writings on this urgent issue for the first time 

We are also working hard at being globally-minded in our commissioning and in courting authors who represent the diversity of evangelicalism in today’s world – we have many exciting conversations underway, and look forward to publishing the fruits of them in due course! 

In Christ’s service, for the glory of God alone. 

## **FINANCIAL REVIEW** 

The financial results show that income has stabilised since the closure of IVP’s distribution and retail activities. Income for 2021-2022 was £1,242,000, a decrease on the previous year driven by lower sales in the UK and overseas rights. The overall result is a deficit of £464,000 for the year. We are convinced there are growth opportunities in future years as we develop our partnerships, re-launch key ranges, launch exciting new Bible product, and strengthen our sales in direct and international markets. 

5 



## **INVESTMENT POWERS** 

The directors have discretion on how to invest surplus charity funds. The charity made no social investments during the period. 

## **PUBLIC BENEFIT** 

The trustees confirm that they have complied with the duty in Section 17(5) of the Charities Act 2011 to have due regard to the guidance issued by the Charity Commission on public benefit. The charitable purpose for the charity within the meaning of the Act is enshrined within its objects. The charity’s activities relate directly to our charitable aims and objects. 

Our programmes bring benefit to all parts of the world, and we do not seek to limit our activities to a narrow focus. We operate as a publisher of books and resources in both physical and digital form, providing some materials at subsidised prices. The information we produce is aimed at a very wide spectrum of readers, recipients and consumers, including people who are only potentially interested in Christianity, as well as those on its fringes, in addition to those who are actively involved in church life. 

During the year of the financial year in question, the parent company SPCK completed an acquisition of Lion Hudson’s publishing business, and then embarked on a restructure that has integrated the businesses. From IVP’s perspective, this will deliver improved efficiencies, and also deliver a better in-house understanding of the evangelical marketplace. 

Financial statements are prepared in sterling and rounded to the nearest £’000. 

## **DIRECTORS** 

Members of the Board of Directors, who are directors for the purpose of company law and trustees for the purpose of charity law, who served during the year and up to the date of this report, are shown on page 1. 

6 



STATEMENT OF TRUSTEES. RESPONSIBILITIES
The Trustees (who are also direttors of Inter-Var5iry Press 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).
Company law 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 charitable company and of the
incoming resources and application of resources. including the income and expenditure, of
the charitable company for that period. In prep2ring these financial statements, the trustees
are required to..
select suitable accounting policies and apply them consistently.
observe the method5 and principles in the Charities SORP:
make judgements and estimates that are reasonable and prudent,.
state whether applicable UK Accounting Standards have been followed, subject co any
material departures disclosed and explained in the financial statrments",
prepare the financial statements on the going concern basis unless it is inappropriate
to presume that the charitable company will continue its operations.
The trustees are responsible for keeping proper accounting records which disclose with
reasonable accuracy at any time the financial p051tion of the charitable company and enable
them to ensure that the financial Statements comply with the Cornpanies Act 2006. They are
also responsible for safeguarding the assets of the charitable company and hence for taking
reasonable steps for the prevention of fraud and other irregularities.
DISCLOSURE OF INFORMATION TO THE AUDITORS
Each director has taken all steps that they ought to have taken as a director to make
themselves aware of any relevant audit information and to esttblish that the company's
auditors are aware of that information. The directors confirm that there is no relevant
information of which they are aware and of which they know the auditors are not aware.
SMALL COMPANY
The above report is prepared in accordance with the provisions applicable to companies
subject to the small companies regime within Part 15 of the Companies Act 2006.
BY ORDER OF THE BOARD
James Catford
Chair of Trustees, Intrr-varsity Press
36 Causton Street
London SWI P 4ST
Date.. 22 September 2022

## Independent Auditor’s Report To The Members Of Inter-Varsity Press 

## **Opinion** 

We have audited the financial statements of Inter-Varsity Press (the ‘charity’) for the year ended 30 April 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. 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: 

- give a true and fair view of the state of the charitable company's affairs as at 30 April 2022 and of its incoming resources and application of resources for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **Basis for opinion** 

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

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the directors’ 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 Charity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue. 

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

## **Other information** 

8 



The other information comprises the information included in the annual report, including the directors’ report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. 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. 

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **Opinions on other matters prescribed by the Companies Act 2006** 

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

- the information given in the trustees' report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the directors’ report included within the trustees' report has been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included with 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: 

- adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of directors’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit; or 

- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemptions in preparing the directors’ report and from the requirement to prepare a strategic report. 

9 



## **Responsibilities of directors** 

As explained more fully in the directors’ 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 directors are responsible for assessing the charity’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 directors either intend to liquidate the 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: 

Based on our understanding of the charity, we identified that the principal risks of noncompliance with laws and regulations related to employment and financial reporting legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011. 

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management, considering the internal controls in place and discussion amongst the engagement team. 

We determined that the principal risks were related to management bias in accounting estimates, presentation of separately disclosed items and management override of controls. 

In response to the risks identified we designed procedures which included, but were not limited to challenging significant accounting estimates including those relating to amortisation and stock and work in progress, agreeing financial statement disclosures to underlying supporting documentation, reviewing trustees’ minutes, evaluating the internal controls, and identifying and testing journal entries 

10 



There are inherent limitations In the audic procedures described above. The more removed
that laws and regulations are from financial transactions, the le55 likely it is that we would
become aware of non-cornpliance. 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 Reporcing Council's website at.. http-Ilwww.frc.org.uklauditorsresponsibilities.
This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company'5 members. as a body. in accordance
with Chapter 3 of Part 16 of the Companies Act 2006 and regulations made under that Act.
Our audit work has been undertaken so that we migh¢ state to the charitable company's
members those matters we are required to stste to them in an auditor5, 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 its members as a body, for
our audit work, for this reporL or for the opinions we have formed.
Miriam Hickson FCA (Senior Statutory Auditor)
for and on behalf of Jacob Cavenagh & Skeet
Statutory Auditor
5 Robin Hood Lane
Chartered Accountant$
Sutton
Surrey
SMI 2SW
zzloq/zo

**INTER-VARSITY PRESS** 

## Statement Of Financial Activities 

## **(Incorporating The Income And Expenditure Account)** 

## **For The Year Ended 30 April 2022** 

|**Unrestricted**<br>**Notes**<br>£000<br>**Income From**<br>Charitable activities<br>**2**<br>1,242<br>**Total income**<br>1,242<br>**Expenditure on**<br>Charitable activities<br>1,706<br>**Total Expenditure**<br>**4**<br>1,706<br>**Net (Expenditure)**<br>**3**<br>(464)<br>**Reconcilation of funds**<br>**Total Funds brought**<br>**forward**<br>(1,115)<br>Total Funds carried forward<br>(1,579)|**_Total_**<br>**2022**<br>**£000**<br>**1,242**<br>**1,242**<br>**1,706**<br>**1,706**<br>**(464)**<br>**(1,115)**<br>**(1,579)**|Unrestricted<br>_Total_<br>**2021**<br>£000<br>**£000**<br>1,532<br>**1,532**<br>1,532<br>**1,532**<br>1,848<br>**1,848**<br>1,848<br>**1,848**<br>(316)<br>**(316)**<br>(799)<br>**(799)**<br>(1,115)<br>**(1,115)**|
|---|---|---|



_The notes on pages 15 to 20 form part of these accounts._ 

12 



INTER-VARSITY PRESS
Balance Sheet
As At 30 April 2022
2012
Z022
2021
2021
Notes
1000
£000
£000
£000
Flxed assets
Intangible assets
12
Current assets
Stocks
3S4
313
OebLors
53
Cash at bank and in hand
53
215
Total Current Assets
S26
581
Current liabilities
Amounts fallingijue within one year
12.105}
{1.7081
Net current liabllltles
11.5791
Total assets less current liabi1St4es
11,5791
Net Liabilities
(1,579)
Represented by:
Unrestricted furids
11.5791
Totaj charlty funds
{1,579)
These accounts have been prepared in accordance with the provisions available to companies subjett
to the small companies regime within Part 15 of the Companie5 Act 2006.
BY ORDER OF THE BOARD.
James Catford,
Chair of Trustees, Inter-varsity Press,
Date.- 22 September 2022
Company Number: 05202650
The notes on Pages 15 to 20 form port orthese occounts.

**INTER-VARSITY PRESS** 

## Statement Of Cash Flows 

## **For The Year Ended 30 April 2022** 

|**Cash (used in) / provided by operating activities (see below)**<br>Net cash (Inflow)/Out flow<br>**Cash and cash equivalents brought forward**<br>**Cash and cash equivalents carried forward**<br>Net expenditure<br>Amortisation of goodwill<br>(Increase) in stocks<br>(Increase) / Decrease in Trade and Other Debtors<br>Increase in Trade and Other Creditors<br>**Cash (used in) / provided by operating activities**|**2022**<br>£'000<br>(162)<br>(162)<br>215<br>**53**<br>(464)<br>12<br>(41)<br>(66)<br>397<br>**(162)**|**2021**<br>£'000<br>129|
|---|---|---|
|||129|
|||86|
|||**215**|
|||(316)<br>12<br>(15)<br>130<br>318|
|||**129**|



_The notes on pages 15 to 20 form part of these accounts._ 

14 



**INTER-VARSITY PRESS** 

## Notes To The Financial Statements 

## **For The Year Ended 30 April 2022** 

## **1 ACCOUNTING POLICIES** 

## **Company information** 

Inter-Varsity Press is a private company limited by guarantee, incorporated in England and Wales. The registered office is 36 Causton Street, London SW1P 4ST. 

The principal accounting policies adopted in the preparation of the financial statements are as follows: 

## **Basis of accounting** 

The financial statements have been prepared under the Companies Act 2006 and 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 FRS102) and Financial Reporting Standard 102 (FRS 102). The financial statements are drawn up on the historical cost basis of accounting. 

Inter-Varsity Press meets the definition of a public benefit entity under FRS 102. The financial statements are prepared in sterling and rounded to the nearest £’000. 

## **Going concern** 

At the time of approving the financial statements, the trustees have a reasonable expectation that thanks to the support of the parent company the charity will have adequate resources to continue in operational existence for the at least the 12 months from signing. Thus, the trustees continue to adopt the going-concern basis of accounting in preparing the financial statements. 

The trustees are exploring the possibility of a corporate restructure in which the Company becomes an IP-holding company and the associated loan to the parent company is therefore satisfied. 

## **Intangible fixed assets** 

In 2017 the Company purchased the Lifebuilder series from Scripture Union and regard this as an intangible asset – the outright purchase has been initially recognised at cost and are subsequently carried at cost less accumulated amortisation and accumulated impairment losses. These costs are amortised to the SOFA using the straight-line method over 5 years, which is the shorter of their estimated useful lives and periods of contractual rights. 

## **Stocks** 

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow-moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs. Items donated for resale or distribution are not included in the financial statements until they are sold or distributed. 

15 



**INTER-VARSITY PRESS** 

## **Debtors** 

Trade receivables and other debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid. 

## **Cash at bank and in hand** 

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit. 

## **Creditors and provisions** 

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

## **Financial instruments** 

The charity has only financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 

## **Income** 

## _**Charitable activities**_ 

Publication income is stated net of Value Added Tax. Royalty income is accounted for on the accruals basis. 

## **Expenditure** 

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer-term liabilities. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates. 

## _**Charitable expenditure**_ 

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those of an indirect nature necessary to support them. They also include governance costs which comprise costs associated with meeting the constitutional and statutory requirements of the charity and include costs linked to the strategic management of the charity. 

## **Exchange gains and losses** 

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date.  All differences are reported in the SOFA. 

16 



## **INTER-VARSITY PRESS** 

## **2 INCOME FROM CHARITABLE ACTIVITIES** 

|**Publishing:**<br>Sales<br>Royalties<br>Commission<br>Other Income|**2022**<br>**£000**<br>**651**<br>**579**<br>**2**<br>**10**<br>**1,242**|**2021**<br>**£000**<br>734<br>698<br>5<br>95|
|---|---|---|
|||1,532|



## **3 NET EXPENDITURE** 

|**3**<br>**NET EXPENDITURE**|||
|---|---|---|
||**2022**|**2021**|
||**£000**|**£000**|
|**This is stated after charging:**|||
|Auditors' remuneration|**5**|9|
|Amortisation|**12**|12|



## **4 EXPENDITURE UNDERTAKEN DIRECTLY** 

|**Cost of sales**<br>Cost of Sales<br>Other direct costs<br>**Publishing**<br>Other direct costs<br>Management charges<br>Amortisation<br>**Other costs**<br>Audit fees<br>**Total expenditure**|**Charitable**<br>**Governance**<br>**Total**<br>**Total**<br>**Activities**<br>**Costs**<br>**2022**<br>**2021**<br>**£000**<br>**£000**<br>**£000**<br>**£000**<br>433<br>-<br>**433**<br>493<br>387<br>-<br>**387**<br>522<br>820<br>-<br>**820**<br>1,015<br>-<br>-<br>-<br>(22)<br>869<br>-<br>**869**<br>834<br>12<br>-<br>**12**<br>12<br>881<br>-<br>**881**<br>824<br>-<br>5<br>**5**<br>9<br>-<br>5<br>**5**<br>9<br>**1,701**<br>**5**<br>**1,706**<br>**1,848**|
|---|---|



## **Total expenditure** 

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**INTER-VARSITY PRESS** 

|**5**<br>**INTANGIBLE ASSETS**<br>**6**<br>**DEBTORS**<br>**7**<br>**CREDITORS: Amounts falling due within one year**<br>**Goodwill**<br>£000<br>**Cost or Valuation**<br>Balance 1 May 2021<br>60<br>Additions in year<br>-<br>Balance at 30 April 2022<br>60<br>**Amortisation**<br>Balance 1 May 2021<br>(48)<br>Charge for year<br>(12)<br>Balance at 30 April 2022<br>(60)<br>**Net book value**<br>As at 30 April 2022<br>-<br>As at 30 April 2021<br>12<br>**2022**<br>£000<br>Trade debtors<br>14<br>Other debtors<br>105<br>119<br>**2022**<br>£000<br>Trade creditors<br>36<br>Amounts owed to group undertakings<br>1,805<br>Other creditors<br>259<br>Accruals and deferred income<br>5<br>2,105|**Total**<br>£000<br>60<br>-<br>60<br>(48)<br>(12)|
|---|---|
||(60)|
||-|
||12|
||**2021**<br>£000<br>5<br>48|
||53|
||**2021**<br>£000<br>36<br>1,320<br>345<br>7|
||1,708|



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**INTER-VARSITY PRESS** 

## **8 EMPLOYEE INFORMATION AND RELATED PARTIES** 

## **Employees** 

The company had no employees during the year. All staff working exclusively on IVP titles were employed by the parent company for which IVP was charged £141,000 ( _2021: £138,995_ ) as part of the management charge outlined in note 11. 

## **Directors’ remuneration** 

The directors received no remuneration, and no travel expenses were claimed by them £nil _(2021: £nil, Trustees reimbursed £nil)._ 

## **Key management personnel** 

The total employee benefits of the key management personnel of the charity as listed on page 1 were £nil _(2021: £nil)_ . 

## **Related party transactions** 

During the year, total unrestricted income of £nil _(2021: £nil)_ was received from trustees. 

There were no other related party transactions during the year. 

## **9 ANALYSIS OF FUNDS** 

|**Unrestricted Funds**<br>General Fund<br>**Unrestricted Funds**<br>General Fund|At 1 May<br>At 30 April<br>2021<br>Income<br>Expenditure<br>2022<br>£000<br>£000<br>£000<br>£000<br>(1,115)<br>1,242<br>(1,706)<br>(1,579)|
|---|---|
||At 1 May<br>At 30 April<br>2020<br>Income<br>Expenditure<br>2021<br>£000<br>£000<br>£000<br>£000<br>(799)<br>1,532<br>(1,848)<br>(1,115)|



## **10 MEMBERS’ LIABILITY** 

Each member of the charitable company undertakes to contribute £1. 

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**INTER-VARSITY PRESS** 

## **11 ULTIMATE PARENT CHARITY** 

The Society for Promoting Christian Knowledge (otherwise known as SPCK), a registered charity (No. 231144) in England and Wales, incorporated under Royal Charter in England, and whose head office is 36 Causton Street, London SW1P 4ST, is the ultimate parent body of IVP through its power to appoint or remove the majority of the IVP trustees. The consolidated financial statements of SPCK can be obtained from the Charity Commission. SPCK is a membership organisation, founded in 1698 to promote Christian knowledge through publishing, lending libraries and schools. It has been a publisher and distributor of Christian literature since its inception and helps to resource theological education and ministry on a worldwide basis. 

During the year, the following transactions took place with SPCK: 

|Management charge paid by IVP<br>Amounts owed to SPCK|**2022**<br>**2021**<br>**£000**<br>**£000**<br>869<br>834<br>1,805<br>1,320|
|---|---|



These amounts are unsecured and payable on demand. 

20