REGISTERED GHARITY NUMBER: 1107412 Report ol thp Trustees and FlnanGlal Statements for thg Year Ended 31 March 2023 for THE MICHAEL AND BETTY UTTLE TRUST
THE MICHAEL AND BETTY LITTLE TRUST Contents of the Flnanclal Statements fortho Yoar Ended 31 March 2023 Pagg Reference and Admlnlstratlvè Dotall8 Report of the TNstee8 Report otthe Independent Audltors 8 10 11 Statement of Flnaneial Actlvltl88 12 statement of Flnancial Positlon 13 statemont of Ca8h Flows 14 Notes to thg Statom6nt of Cash Flows 15 Notes to the Flnanclal Statements 16 10 25
THE MICHAEL AND BErrY urrLE TRUST Reforen¢8 and Admlnlstratlve Deta118 for the Year Endod 31 March 2023 TRUSTEES Peter Litt18 Hilary Graham Dr Helen Little Lucy Blackgrove Martin Little Elizabeth Moore Christopher Little Katherine Shipl¢n PRINCIPALADDRESS 12 Stanton Drlve Chichestgr Wesl Sussex P019 5QN REGISTERED CHARITY NUMBER 1107412 AUDITORS Knox Cropper LLP Chartered Accountants and Slatulory Auditors Office Sulle 1 Haslemere House Lower Street Haslemere Surrey GU27 2PE BANKERS C. Hoare & Co. 37 Fleet Street London EC4P 4DQ FINANCE ADV18ER8 LGT Veslra LLP 14 Cornhill L¢Thdon EC3V 3NR IQ Capital Partners LLP 95 Regent Street Cambridge CB2 1BQ Page 1
THE MICHAEL AND BETTY LITTLE TRUST Report of the Trusteos for the Year Ended 31 March 2023 The trustees pres1 their report wh the finanaal stgtemenls of the Gharily for thg year ended 31 March 2023. The Irustoes have adopted the provisions of Accounting and Reporting by Charilie$'. statement of Recommended Practice applicable lo oharities preparing their acc¢unl$ in aecordance with the Flnancial Reporting Standard applicab1& in the UK and Republic ol Ire18nd IFRS 1021 leffeclive 1 January 2019}. OBJECTIVES AND ACTIVITIES Oblectlv•s and alms Alms The aims of The Michael and Betty Lllll& Trusl are under the discretion of the Trustees lo make grants for Gharilable purpo$e$ to individuals, other ChltieS or voluntary bodies wlth an emph8sis on sickness. distre88, education, human rights and religion. Objects The objects ol the charity are.. To further 5uGh ¢haritable purposes in the UK or overseas by Relleving those in financial need, hardship or dlstr&ss', Relieving the sick and protacting and preserving public health., Advancing education.. Promoting human rights., Advan¢ing such of the world'8 religlons as are rec(nISed under English Charlty taw. The long term alms of the charity are lo expend It8 resources in the pursuit of these objects. Publlc beneflt The Trustees confirm that they have eonsidered the general guldance issued by the Charity Commission In Connection with public benerrt in setting the objeclives of the charity and in particular they have consldered how planned activities further the charity's objects. Page 2
THE MICHAEL AND BErrY LIThLe TRUST Report ol tho Trustees for the Year Ended 31 March 2023 OBJECTSVES AND ACTIVITIES Grant Maklng PolScy The Trust has e81ablished ils grant making policy lo achieve ils objects for the public bongfrt. The tru81ee3 fecognise that the Tru$l's objectives wlll often require the pTovi$ion of health, education. basic needs an other related provision to those in need. The grant making policy wll be reviewed annually by Ihg Iruslees and may be changed in accordance with the Iruslees, vièws of the m03t effective applicatlon of available funds lo ensure that rt reflects the charity's objects and advances public benefrt. ApproaGh The Michael & Betty Llllle Trust delivgrs ils key objectives through the following granl-making vehicles.. M4Jor Grants The Iruslees acknovledge the valu¢ of working with trusted third parties lo deliver projects in line with lis priorities to maximise lh¢ impact of Ils support and wheTe other organlsalions have greater exportise. Small Grants The Iruslees will, from lime to time. ¢h¢)ose lo make small grants- normally one-off - lo trusted third parties by which lo further the Trust's Objects, Proposals for support from the Trust are made vla the Trustee8 at their m•etings. Trusleos must be in agreement ihat Ihè grant meets one or more of the Trust'5 objeclNe8. Geographlcal Arga The trustees wish lo support ¢au8es in both the UK and overseas, In rsspecl of overseas prolects. Due Dlllgence All grants ¥fvlll be subject lo tho Tru5Vs Due Diligence Polloy having begn undertaken. Recognisin9 their duty to safeguard ¢hadtsble ass818, trustees confirm that any Ihlrd party organisatlon receiving SUPPOrt from Ihe Tru81 musl be., a UK registered charty., or, an organisallon that carries out activities that are consislenl with charity objectives. In respect of organisations outslde of the UK, th8 Trust will ensure that such organisations are glther registered with the appropriate local regulator or publi¢ aLrthorili8s andlor have in place appropriate governance and fin8t)cial handling policies and procedures lo ensure tho appropriate safeguarding and use of the Trust's ¢harilable fund8. ACHIEVEMENT AND PERFORMANCE Achlevomgnt and Performance The Michael and Betly Little Trust commenced operallons In 2004, as the residual beneliGiory of the eslalg of Michael Little. and received further donations from Trustees in 2015. 2018, 2020, 2021 and 2023. The Trustees have made various grants in line wllh the objects of the Charity (iuring Ihe year. These are detailed in note 5 to the Financial Stslemenls. The Trust 11 monitor the p¢rformance of it5 grants programme using report$ from grant recipients. The8e reports. including the Financial Statements of reoiplent Inslilutions, will influenGe whether or not further grants will be made to that body. Page 3
THE MICHAEL AND BErrf LITTLE TRUST Roport of the Trustees forthe Y8ar Ended 31 March 2023 ACHIEVEMENT AND PERFORMANCE Investment pollcy and performance Llsted Inv&siments are managed under th8 t8rm3 of an Investment management agreemènt with LGT Vfjslra LLP. The investment manager is required to make investrnent8 on behalf of the Trust in line wllh benchmark5 that have b8&n sot and against which performance is measured. Thè portlolio was tran8f8rred to the management ol LGT Vestra in January 2020. Investment perfomiance 18 reviewed by the Trustees, who recelve periodic reports on matters pertinent lo Ils invtrslment policy. Trustees have adopted a strategy of generating income from inve$llng in a r8ngo of assets with a lowlmedium risk profile. Thi8 should typically provide mod¢st capital growth, with a predominant focus on in¢ome generating assel8. Th8 following illuslralgs the current weightings 8xpressed in percentages ol the Trust's investment funds.. Overseas Equities 77.970kn12022.' n.30%1 UK Equities 2.420A {2022'.7.20%1 UK Sovereign 3.010kn12022-. NIL) Oversea3 Bonds 11.029k {2022.' 8.72%) Cash 5.58°h12022'.6.78tl/o) For the perl¢d from 11h January 2022 to 31st March 2023, the portfolio lolal tUrn amounted lo -17S.95% 12022,. -5.23OAI. Unllsted Investmonts ar? managed by IQ Capital Growth Fund l LP whlch focuses on Investments Into growlh-stage inve818es. The Michael and Belly Little Trust tol81 commitmerst lo the Fund is Z3m. As of 31 $1 March 2023 the total contribution is £2.18m12022'.£1.2ml. Th& Trust'8 total Fair Market Value IFMV) Capital AoUnt at year end is t3.983,782 12022.. £3.323,6281 INole 91 of which.. £1,962,16S represents th8 share of Investmenls made by the Fund {81 Cosl)12022'. £1.348,3251 and £1,936,153represents the unrealised Gain of Inve81menl12022.. £2,123,973) unrealised Investment FV IQ Capital Growth Fund ILP lotsl FMV sland8 at £fj29.94m at year end12022'. £115.7ml, represented by., BMLL IFMV £10.08ml. Speechmalics IFMV £10.01 Ml, Thought Machine IFMV £92.2ml, CausaLens (FMV £5ml, Nyoboll IIFMV £5ml, and Paragraf IFMV £7.3m}- Social Invostments Century-Tgch Ltd. The Trust holds 162886 A Ordinary Shares and 202684 Ordlnary Shares at a cost of £2m12023,' £1m: 2022.. £1 ml. These investments art a mixed motive inveslmenl a5 11 has the objective of supportlng education, in line with the Charity's objectives, as well 8s investment return with a Nil Fair Value as of 31 sl March 2023. Tlme to Spare Llmltsd The Trust invested £50,000 lo acquire 320,202 Ordinary Shares in thè enterprise investment scheme Time to Spare Limited use(i lo raise £386,94911,781.531 lolal new Ordinary Shares). T1me to Spore Llmiled is a new company building the operating system for the charKy sector. Th& tru8t decision lo inve81 Is lo.. 1 Isupport other charities and 21 Increase the Impact of d)aritable giving belief. The Dacapo MuslG Foundatlon Llmlted The Trust irsvesled £40,000 lo acquire 4,000.000 new ordinary shares of £0.1 each. Irusl's agrment to invest is lo aid th6 provisicffl lo train leachers lo lèach music lo slud8nls on a non selective an inclusive basis. promoting and advancing education and as such falls thIn the 8tsted oble¢tivè of the Charlty. Page 4
THE MICHAEL AND BErrY urrLE TRUST Report of the Trustees forthfryear End 31 March 2023 ACHIEVEMENT AND PERFORMANCE Programrn& Rfjlated Invo¥tmènt Mlsslon Houslng Llmltgd The Trust acquired an equity loan linked lo property "93 Mary Datchelor Close, London" acquired for £460.000. The Loan is interest free and the term8 are lor 5 yaars th a rnalurty repayment dale 09th June 2027. Loan Dlgital Identlty N¢t U.K Llmlted The Trust hold8 200,000 shares under the EIS fvndraising 8ch8m8 launched October 2022 al £5 per $hare = £1 m invested in the year, FINANCIAL REVIEW Flnanclal posltlon The Trust's WO is entiraly reliant on donated InCe and investment retums. Investment Income in the year amounted to £63.392 12022. £103.487). This enabled the charty lo dèvelop ils grant making poltcy. £573.832 of donatfjon$ were made to the Trust in the year {2022.. NIL). The Charlty's lolal income for the y8ar amounted lo £658,837 12022.. £103,58n. Re80ur¢8s expended amounted lo £1,760,625 12022.. £1,220,278 1 and in addition there were unrealised losses of £1.930,016 12022,. £936,055) and realls8d Iossgs 01 £706,730 (2022, r891ised galn £319,262). The Balance She81 record6 unreslricled funds of £7,086,04012022.. £10,824.5741. The Assgls comprised the Investment Portfolio amounting to £6,985,584 12022.. £10.793,794) and Net Current Assets of £100,456 {2022'. £30,780). Reserv•s pollcy The Charity seeks lo m8inlain an investment portlolio ¢apable ef pro¢uc4ng a lolal relum to SUPPOrt Trustees. objectives in grant making in line with the Charity'8 objects, Total funds held by the Charity at 318t March 2023 amounted lo £7,086,040 All funé8 are unreslricled, GoSng concern The Trustees have a reasonable expectation that the charity ha5 adequate resources lo continue operations for the foreseeable futur8. The going concem basis has thèrefore continued lo be used In preparing Ihg financial slalemenls. The Board ha8 eonsidered the irnpact of Covid-19 on the short and long term health of the charity and is contant that the measure8 taken by the charity, together with a robu9t investment portfolio. provide8 assurance that the going concem basis is appropriate in prep8ring the financial slalements, FufuRE PLANS The Truste85 will be focusing on.. Contlnuing lo support thg Gharilies and causes identified by Trustees., Monitoring the investment monies and considerfng opportunities for increased retums., Keep administration expenditure to a minlmum. STRUCTURE. GOVERNANCE AND MANAGEMENT Governlng document The Michael and Betty Little Trust is an Unin¢orporal8d Charity governed by a Trust Deed dated 20th Decomber 2004. Re¢rultment and appolntmènt of new trust•88 The Michael and Betty Little Trust IS governed by a Board of Truslees whose memb8rs are elected as thè need ari888. The Trustees who have sorved during the period are set out above. Page 5
THE MICHAELAND BETTY LITTLE TRUST Report of tho TrustO85 for the Year Endod 31 Mareh 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Oryanlsational structure The Board of Trustees adminlslers the charify. The Board moets on a regular basis, The day to day operallons of the charity ar8 administered by the Trustees. To fac1.18t0 effective operations, individual Trustees have delegated authority, whhln term8 of delegation approved by the Tru$lees. for opgralional matlgrs induding linan¢o. Inductlon and tralnlng of new trustee5 New Trustees will b8 provided with detailed information on their legal obligations under charity law and what the role will 2ntail, Their training neefts will be assessed, and Irainlng provided if required. In addition. new Trusle?s wll be provided wth copies of.. the Deed of the Charity Board papers from the last year including the accounts ere necessary Trustees will be encouraged to allend appropriate extern81 training events where these will facililale the undertakiro of their role. Key management remuneratlon No mUneratIon, directly or indireclty, was paid or is payable for the period lo any Trustee. Th8re are no other key management personnel. Rlsk managgment Consideration is given to the major rtsks to which the charlly Is exposed, as Identified by th• Trustees. The Tru81ees consider variability of investment returns lo conslilulg the charily's major financial risk. This risk lo mitigated as far as is wssible through regular reviews with the Investmt Management advisors. The rl$k of bank failure followng the financial crisis was con$ldered by the Trustee8 and upon review il was consid@r@d that the banking and investment $ervice8 are seGura, bul the situation should be monitored regularfy. STATEMENT OF TRUSTEES, RESPONSIBILITIES The Iruslees are responsible for preparing the Report of tho Trustees and the finan¢ial stalemonls in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice} including Financial Rèporting Standard 102 'The Financial Reporting Sl8ndard applicable in the UK ind Republic of Ir81and". The law applicable lo charitles in Enyland and Wales, the Charilles Act 2011, Charity {ACCnIS and Reports) Regulations 2008 and the provisions of the trust deed r8quire8 the trustees lo prepare financl81 slalemenls for each flnancial year which give a true and falr view of the slate ¢f affairs of the charity and of the incoming resources and applic81ion of resources, in¢luding the income and expenditure. of the charity for that period. In preparing those financlal $lalemenls, the trust9¢5 are required to select suil8ble accounting policie5 and then apply them consistently., observe the methods arKi principlos in the Charity SORP,. make judgements and eslimales that 8re raasonable and prudent- stale whether applicable accounting standards have been followed, subje¢t lo any material departures di8c108ed and explained in the finanual slalemenls., preparè the financial slal8menls on the going concern basis unless il is inappropriate to presume that the charity will contlnue In buslness. The Iruslggs are responsible for keeping prop8r accounllng records which dis¢lt)se with reasonable accuracy al any time the financial position of the charity and lo enable them to ensure that the financial 5tstemen15 comply wlth the Charities Act 2011, the Charity (Accounts and Reports) Regulatlons 2008 and the provisiorss of the trust deed. They are also responsible for safeguarding thfr assets of the charity and hen¢¢ for taking reasonable steps for the prevenllon and detection of fraud and other irrogularilies. Page 6
THE MICHAEL AND BETTY LirrLE TRUST Report of the Trustees forth• Yoar Ended 31 March 2023 Approved by order of Ihe board of trustees on 17 September 2Q24 and signed on its behalf by.. Peter Little - Trustee Page 7
Report of the Indop8nd8nt Auditors to thg Trustoes of The M5ohael and Betly Llttle Trust Oplnlon We have audited the financial stalennIS of The Michael and Betty Little Trust Ilhe 'charity? for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Statement of Financial Poshion. tho Statement of Cash Flows and notes lo the financlal slalemenls, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation 1$ applicable law and United Kingdom Accounting Standards (Uniled Kingilom Generally Accepted Accounting Practice). including FinancAal Roporting Standard 102 'Th8 Financial Reporting Standard applicable in the UK and Republic of Ireland.. In our opinion the financial stslemenls,, give a true and lair view of the slate of the charty's affairs as al 31 March 2023 and of its inGoming resources and application Df rewurces, for Ihe year then ended.. have bean properly prepared in accordance with United Kingdom Generally Accepted Aceounling Praclice, including Financial Reporting Siandard 102 'The Financial Reporting Standard applicable in the UK and Republi¢ of Irgland,: and have been prepared in accordance whh the requirements ol the Charitie8 Act 2011. Basls for oplnlon Wa ¢onducled our 8udit in 8ccordance with International Standards on Auditing {UK) (ISAS IUK)18nd applicable law. Our responsibilities under those slandards ar8 further described in the Auditors, responsibllilies for the audit of the financial slalem8nts section of our report. We are independent of thè Gharily in accordance with the ethical requirements that are relevant lo our audll of the financial slalements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other elhlcal respongibililies in accordance with these requirements. We believe that the audit evidence we have obtained is $ufficienl and appropriate to provide a basls for our opinion. Concluslons rolatlng to golng concern In auditing the financlal stalemenls. we have concludèd that the Irustee3' use of the going concern basis of accouniing in the prepaTalion of the finanaal statements is appropriate. Based on the work we have pèrformed. we have nol idenllffied any material uncertair)lies relating lo events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of al least twelv8 months from when the financial stslements are aulhorised for issue. Our responslbilitSe8 an(1 the responsibllitie8 of Ihe trusteès wilh respect lo going Gon¢ern are d8sGribed in the rel&vanl sections of this report. Emphasls of matter We draw atlonlion to Note 14, which discloses a Contingent lax liability relating to the treatment of the charlly's sociab investmènts as qualifying inveslm?nts for lax purposes. Our opinion is not modified in respect cf this m8tt8r. Other Infomiatlon Thg Iruslees are responsible lor the olh8r information. The other information conwrisès the information included In th8 Annual Report. other than the finan¢ial statements and our Report of th8 Ind8P8ndent Auditors thereon. Our opinion on the financial statemonls do8s not cover the other informatlon and, except to the extsnl otherwise explicitly staled in our report. we do not express any form of 8ssurance conclusion Ihereon. In ¢onneclion with our audit of Ihe financial slatemenl8, our re5F<)nslbllily 1$ lo read the other information and, in doing so, considèr whether the other informatlon is materially inconsistent with the financi81 slalements or our knowledge obtained in the audrt or otheIse appears lo b6 maleTially misstated. If we Identify such mg18rial inconsistencies or apparent material misslal8m8nt5, we are raquired lo delermlne whether this gives rise to a material misslalemenl in the financial statements themselves. If, b85ed on the work we have perfomied, we conclude that there is a material misstaloment of this other information. we are required to report th81 fact. We have nothing lo report in this regard. Pagè 8
Report of the Independent Audltors to the Trustegs of The Michaél and Betty Llltle Trust Mattors on whlch we are requlrod to report by exceptlon We hav& nothing lo report in respect of th8 followng matters where the Charllle8 (Accounts and Repotts) Regulation$ 2008 requires us lo report to you If. in our opinion,, the infomiallon given in the Report of the Trustees is inconsistent in any material respect wlh tha financial slalemenls., or sulfficient accounting records have not been kept,. or the financial Statements are not in agreement with the accounting rècords and ralums., or we have not received all the information and explanations we r8quire for our audit. Re$pon$lbSlltlas of trustegs As explained more fully in the Statement of Trustees, Responsibililie5, the trustees are responsible for the preparallon of the financial Stslemenls which give a trug and fair vi8w, and for such Internal control as the Iruslee3 determine is necessary lo enaNe the preparation of financial slalements that are free from material mlsstalemenl, whether due lo fraud or 8rror. In preparing the financial slalemenl8, th8 Iruslees are responsible for assesslng the charity'$ ability lo ¢onlinue as a golng concern, disclosing. as applicable, maller5 related lo going con¢grn and using the going concem basls of accounting unless the trustees either intend lo liquldal& the charity or to cea8e operations, or have no realistic allemalive bul lo do so. Page g
Report of the IT•pondent Audltors to the Trustees of The Mlchael and Betty Llttle Tru8t Our responslbllitle8 for the audlt of the flnanclal statements Wg hav8 been 8ppolnled as auditors under Section 144 of th8 Char(ties Act 2011 and report in accordan th the Act and relevant regulations made or having effoct Ihereunder. Our objectives are to obtain reasonable ossurance about whether the financial slalemenls as a whole aro free from matgrial misslatemenl. whether due lo fraud or error, and to i58ue a Report of the Independent Auditors that includes our opinion. Reasonoble assurance is a high level of assurance, but 5$ not a guarantee that an audit conducted in accordance with ISAS {UKI will always detect a material mlssla18menl when il exists. Misststemenls can arise from fraud or error and are considered material if, individually or in the aggregate, they could rea50rRbly be expected lo influence Ihe economic decisions of users taken on the basis of those financial slalemenls. The exlenl to which our procodures are capable of detecting irregularities, including fraud is detailed below.. We obtained an under$landing of the legal and regulatory framework$ th314re 4ppll¢able lo the Char and dolermined that the most significant are the Slalement of Recommended Practice Accounting and Reporting by Charib'es, ISORP), In accordance with the Financial Reporting Standard applicable in the UK (FRS 1021. The Charity is required Ic comply with charity law and. based on our knowledge of 118 aclivi1108. we idenlifrdd that the legal requirement lo accurately account for restricted funds was of key significance. We underslood how the charity 1$ complying with those frameworks via ¢ommuni¢allon with th08e charged with governance, together with the review of the charity's documented policie$ and procedures. We asses8ed the suseeptibillly of the charitls financial statements to material misstatement, including how fraud might occur by considering the key rfsks impacting the financlal statements. Th8se included risks as30cialed with Revenue Recognition. and Managemnl Override of Controls. whlch were discu88erJ and agreed by the audit team. Our approach cluded agreeing the charity's recognrtion of In¢omo lo the terms of the undedying licensgs lo occupy and assodated corre5pofbdence, the review of journal entries processed in the accounting records and the investigation of signlfl¢anl and unusual transactions identified from our ieview of the accounling records. Our approach was 81s0 lo check that all reslrlcled income was properly identified and separately accounted for. Thls included reviewing journal adjuslmenls and unusual Irans8clion8. Based on this understanding we designed our audil procedures lo identify non-compliance with such law8 and regulallon$. Our procedures involved review of the reporting to the trustees with respect lo the 4pplicalion of the documented policies and procedures and r8vlew of the financial slalements lo ensu compliance with the reportir)g requiremgnls of the Gharily. Therg are inherent limitats'ons in the audit procedures de8crlbed above and, the ffijrther removed nonwcompli8nce with laws and regulatnS Is from the evenl$ and transactions reflected in the financial statements. Ihe18ss likely we would becoma awar@ of it. Th8 risk of not delecling a material misslalemenl due lo fraud is higher than the risk of not detectin9 one resulting from error, as fraud may Involve Ilellberate concealmenl by, for gxample, forgery or inlenlion81 misrepresentations. or through colluslon. A further des¢riplion of our respon8ibllitl88 for the audit of the financial slalemfynls is located on the Financial R8POrting Council's webslte al ,frc.org.UklaudiIorSespQnSlbi119s. This description fomis part of our Report of the Indapendent Auditors. Page 10
Report of the Independent Audltors lo the Trustees 01 The Mlchagl and Betly Llttle Trust Usg of our report This report is made solely to the charity's trustees, as a body, In accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might stale lo the charity's Iruslees those mallers we are required lo slate lo them in an auditors. report and for no other purpose. To the fullest extent permilled by law, we do not accept or assume respon5ibilty to anyone other than the charity and the charity'8 trustees as a body, for our audit work, lor this report, or for the oplnlons we have formed. Knox Cropper LLP Charlgred Accountants and Statutory Auditors Office Suite 1 Haslemere House Lower Street Haslemere Surrey GU27 2PE Date., 2111 October 2024 Page 11
THE MICHAEL AND BETTY UTTLE TRU8T Statement of Flnanclal Actlvltle5 forthe Year Ended 31 March 2023 2023 unrtrICt0d fund 2022 Total funds Note8 INCOME AND ENDOWMENTS FROM Donations and legacles 573,832 Inveslment income Other income 63,392 103,487 loo Totsl 658 837 103,587 EXPENDITURE ON Raising funds 63,136 70,762 Charltable actlvltles Grants Governance Costs 1,687,040 1,145,217 Total 1760 825 1,220 278 Nel gainslllossesl on investments 2 636.746 1 255 317 NET INCOMEI(EXPENDITUREI 13,738.S341 138,626 RECONCILIATION OF FUNDS Total funds brought forward 10.824,574 10,685,948 TOTAL FUNDS CARRIED FORWARD 7 086 040 10 824.574 The notes form part of thes@ financial slalemenls Pag6 12
THE MICHAEL AND BETTY LITTLE TRUST Statement of Flnanclal Posltlon 31 March 2023 2023 Unrestrlcted fund 2022 Total fvnds Notes FIXED ASSETS Investment5 Investments Soclal Investments 6,787,984 10,793,794 197 600 10 6,986,584 10,793,794 CURRENT ASSETS Debtors Cash at bank and in hand 11 85,444 24,612 2,500 187 930 110,056 190,430 CREDITORS Amounts falling due within one year 12 (9,600) 1159,6501 NET CURRENT ASSETS 100 468 30,780 TOTAL ASSETS LESS CURRENT LIABILITIES 7,086,040 10,824.574 NET ASSETS 7 086 040 10 824,574 FUNDS Unreslricled funds 7 086 040 10,824.574 TOTAL FUNDS 7 086 040 10 824,574 The financial statements were approved by the Board of Trustees and aLrthorised for issue on 17 September 2024 and were signed on Sls behalf by.. Peter Little - Trustee The notes form part of the8@ financial statements Page 13
THE MICHAEL AND BErrY LITTLE TRUST ststem8ntof Cash Flow5 for the Year Ended 31 March 2023 2023 2022 Note5 Cash flows from operatlng actlvltlg8 Cash gen¢rated from operation$ 1 249 5041 1,214 908 Net cash US in operating 8Ctivilies 1249 5041 12149081 Cash flows from Investlng actlvliiÈ9 Purchase of fixed asset investments Purchase of social investments Sale of fixed as8el investments Interest received Dividends received 12,731.0261 12,190,000) 8,177,933 993 12.738.044) 3,593.650 103487 Nat cash provided by investing activities 1,320 300 959 093 Cash flows from flnancSng actlvltles New loans in year Loan repayments in year 185,4441 14B 670 148,670 Net cash (used inllpTovided by fi'nancing aclivi118S 234 114? 148 670 Change In cash and cash oqulv41¢nts In the reportlng perlod Cash and cash equlvalents at the beglnnlng of the reportlng perlod 1163.318 1107.1451 187.930 295 075 Cash and cash equtvalents at thè end of tho reportlng p¢rlod 24.612 187930 The Th)les form parl ol these flnancial slalemen18 Page 14
THE MICHAEL ANO BETTY LITTLE TRUST Notes to the Stal¢m&nt of Cash Flows for tho Year Endgd 31 March 2023 RECONCILIATION OF NET (EXPENDITUREIIINCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 2023 2022 Net {expendlture}Ilncome for the reportlng porfod las per the Statement of Flnanclal Actlvltlesl AdJustments for: Loss8sllgainl on investments Inleresl received Dividends rec8iv8d Ilncreaselldecrease in debtors IDecrea8ellincrea8e in creditor8 (3,738.5341 138,626 2,636,746 19931 162,3991 182,9441 11,255,317) 1103,4871 1,490 Net cash used In operatlons 1 249 5041 1214.9081 ANALYSIS OF CHANGES IN NET FUNDS At 1.4.22 Cash flow At 31.3.23 Net cash Cash at bank and in hand 187930 163,3181 187930 163 318 Dgbt Dgbts falling due wlhin 1 y&ar 148 6701 148 6701 Totsl 14,6481 The notes form part of the8e financi81 statèments Page15
THE MICHAEL AND BETTY LITTLE TRUST Notes to thè Flnanclal Statemènts forthe Year Endod 31 Mah 2023 ACCOUNTING POLICIES Basls of prgparlng th¢ finan¢lal statemènts The fin8ncial slalements of th8 charity, which Is a public benefit entity under FRS 102, have been prepared in accordance with the Charitie8 SORP {FRS 1021 'AccDunling and Reporting by Charilie8- Sialemenl of Recommended Practice appliEable lo charities preparing ther accounts in accord8ncg with the Financial Rgporting Stand8rd applicable in th8 UK and Republlc of Ireland IFRS 1021 leffe1ve 1 January 20191.. Financial R8POrting Starard 102 'The Financlal Reporting Standard applicable in the UK and Republic of Ireland. and the Charities Act 2011. Tho financi21 ststements have been prepared under the hislorlcal cost convention, with the exceptlon of investments whlch are included al m8rkel value, as modified by the revaluation of certain assets. The Trustees conslder that there are no uncgrtainties aboul th& Ch8rity'S abillty lo continue as a gclng carrn. Crltlcal accountlng ludgem&nts and key sour¢¢$ of estlmatlon uncertalnty The application of accounlinu $landards and policles requires the TTuslaes lo make esllmatas and agsumplion8 about future events that directly affect the charills reported financial condition and operating performance. The accounting eslimales and assumptions discussed are those that the Trustees consider to be most CliCal to the financial slalemenls. An accounting estimate 18 considered crili¢al if both lal the nature of estimates or assumptlons is material due lo the level of $ubjeclivily and ludg8menl involved. and Ibl the impact wthin a reasonable range of outcomes of the estimates and assumptions is material lo the charitls linancial condition or operallng rforrnance. The Trustees have considered the risk of e81im81ion.uncgrtainly Gau$ing a material adjustment to the carryin9 amounts of assets and liabllits'es within the next financial year. and consider there lo be no signrficanl judgements or 8slimales in the accounts. Income All income is recogni8 onco the charfty ha8 enti118menl lo thg income, il 1$ probable that the income will be received. and the amount of income re1vable can bè measured reliably. Donations are recognised whon the Trust has been notified in writing of both the amount and selllemenl date. If 8 donallon Is subject lo conditions that require a level of performance before the charity is entitled to the funds. thé income Is deferred and not recognised until either those conditions 8re fully mel, or the fulfilmenl of these conditions is wholly within the control ol the charity, and il 18 probable that those ¢onéllions will be fulfilled in the reporting p8riod. Lggacy grfts are recognised on a ca8e-by-case basis followng the gr8nting of probate when the admini51ralorlexecutor for the eslale has communicated in writing both the 8mount 8nd settlement dale. In the event that the glft is in the form of an asset other than cash. or a financial asset traded on a recognised stock exchange. recognition is Subject lo the value of the gift being reliably measurable wlh a degree of reasonable accuracy and the lille to the asset having been transferred lo tho charity. Interest on funds held on deposf( is included when Tèceivable and the amount Gan be measured rellably by the ch8rlly.' this 18 normally upon rsotrficalion of the interest pald or payable by the bank. Dividends are recognised on¢e the dividend has been (leclared and notification ha8 been recgwed of e dlvidend due. This is normally upon notification by our investment advisor of the dlvidend yield of the investrnenl porifolio. Expendlture Liabilities a recognl$èd as èxpenditure a8 soon as there Is a legal or constructive obligation commilling the charity lo that expenditure, il is probable that settlement will be required, and the amount of the obligation Gan b8 measured reliably. All expenditure 18 account8d for on an accruals basis. All expen5e5 Including support costs and governance cost8 are allocated or apportloned to the applicable expenditure headings. Page 18 continued...
THE MICHAELAND BErrY LirrLE TRUST Notes to the Flnanclal Slatements - cDntlnu?d for the Year Ended 31 March 2023 ACCOUNTING POLICIES- contlnued Expendlture Grants payable are payments made to third parties in thè furtheranca of the charitable obje8 of the Trust. In the case of an unconditional grant offer this is accrued orKe the recipient has been notified on the grant award. Tho notification give$ the recipient a reasonable expectation that they will recgive the one-year or mulli-year grant. Grants awards that are sublecl lo the recipient fuwilling performance conditions are only accrued when the recipionl has been notified of Ihe gr8nl and any remaining unfulfilled condition attaching lo thal grant is outside of the control of the Trust. Provlslons for grants are made when the intention to make a grant has been communicate¢J to the reciplenl but there 18 uncertainty os to thellming of the grant or the amount of grant payable. The provision for a mulli-ye8r grant is recognis8d at its present value where settlement is due over more than one yeor from the dale of the award. there are no unfulfilled performance conditions und&r the control of the Trust Ihal would pemiit Ihè Trust Ic avoid making lh8 fvlure paymentls). selllemenl is probable. and tho effect of discounting Is material. The discount rate used is the average rale ol investment y18 in the year in which the grant award is made. The discount rate Is regarded by the trustees as providing the rnosl current available estimate of the opportunity cost of money refflecting the time valug of money lo the Twsl. Ralslng funds The cos18 of gen8faling funds consi81 gf investment management co$1$ and certaln legal fges. Charltable actlvltles Costs of charitable aCtivleS include grants made, govemance costs and an apportionment of support costs. Allocatlon and apportlonment of costs Support costs have been allocated between govemance costs and other support costs. Governance CO8ls coP[l$e all St8 involving the public a¢counlability of the charity and ils compliance wlh regulation and good practice. These costs includ& costs related to slalulory audit and legal fees together with an appOOnMent of overhead and support costs. Investments LISTED INVESTMENTS Listed Investmen15 are a form of basic financial inve$lm&nl and are inilialty recognised al their transaction value and subsequenly measured al lair valu8 IFW as al the balance sheet dale using the closing quoted market pri. The statement of financial activitles Includes the net galns and losses arising on revaluations and disposals throughout the year. Realised gains and losses cn listed investments are calculated as tho Qifferen¢e between Sales proceeds and ther opening carrying valuo or their purchase value if a¢quired 8ubs8qu8nl lo the first day ol the financial year. Unreali$ed gains and Ioss88 are calculated as the drfference beeen the fair value at tha y88r ond and their carrying value. Llsled Investsnenls are managed undgr tho terms of an investment management agreement with LGT Vestra LLP. The investment manager is required to make investments on behalf of Ihe Trust in line th benchmarks that have been sel and against which perfomi8nco is measured. Investment performance is reviewed by the Iruslees., who receive perlodlc roport8 on matters pertinent lo its investment policy. Trustees have adopted a strategy of generating Income from invesling in a range of assets with 8 lowlmèdium risk profile. This Should typically piovide modest capital growth, with a predominant fwus on income 9eneraling a$8els. Pag& 17 continued.
THE MICHAEL AND BETfY LITTLE TRUST Notes to the Flnan¢lal Statemènts - contlnued for th8 Year End8d 31 March 2023 ACCOUNTING POLICIES - contlnuod UNLISTED INVESTMENTS Inve$lmgnts Un1181ed Investments are Initially recognised at Ihair transaction value and subsequently moasured al FV al al the balance sheet dale using the Investment management valuation. Unlisted Investments are managed by IQ Capital Growth Fund l LP whl¢h fo¢u$es on investments into growth-slage inveslees. SOCIAL INVESTMENT The Social Inve81menls comprise mixed motive investments which affj valued al cost le88 impairment and a programme related Equity Loan. Mlxgd motlve Investments The Trust held 8 £1m + £60.712 18% inleresll Convertible Loan with Cenlury-Tech Limited in 2021 The Convertible Loan was exercised In the form of shares 8fter the year end (7th May 20211 and has invested a further £1m this reporting year. This year the Tru51 has Invested £50,000 in nme lo Spare Llmited and 8 further £40,000 in the Dac8po Mu8lc Foundatlon Limited. Programme related Equlty Loan The Trust acquired in the year an equlty loan linked lo property.. 93 Mary Dalchelor Clos6 in London. This is a five yaar term loan and represents a 21.73¥A shar6 of the £460,000 purchase prlcg of property. The TruBI doe8 not acquire put options, deTivallves Of Othor complex financial inslrumenls. The main form of financial risk faced by the charity is that of vol81ility in equity markets and investment markets due lo wder economK conditions, the attitude of investors lo investment rfsk. and chanses in senlimenl ffjncerning equities and within particular Sectors or sub sectors. Taxatlon The charity is exempl from tsx on tts charitable aclNlties. Fund aGGounting UnreslriGted funds consist of those funds which the charity may use in furtherance of its charitable objecls at the discretion of the Truste95. Rgstricted lunds exist for siluation$ where a donor requires Ihal a donation musl be spent on a particular purpose or where funds hava been raised for a specific purpose. Debtors Trade 8nd other debtors are recognised at the settlement amount due after any trade discount offergd. Prepaymgnls are valued al th? amount prepaid nel of any trad& dlscounts due. Cash at bank and In hand Cash bank and cash in h8nd includes Cash and short term highly liquid investments wilh a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Credltors and provl$lon$ Creditors and provisions are recognised where the charity has a present oblioalion resulting from past event that will probably result in the transfer of funds lo a third paty and the amount dua to 8elUed the oblig81ion can be measured or estimated reli8bty, Cr8ditors and provisions are normally re¢ognised 8t their selllemenl amount afler allowing for any trade disoounls due. Page 18 onlinLrod...
THE MICHAELAND BETTY LITTLE TRUST Notss to the Flnanclal Statements - contlnued for the Year Ended 31 March 2023 ACCOUNTING POLICIES . contlnugd Flnan¢lal Instruments The Charity only has financlal 88sels and flnanclal Ilablliti8s of a kind th81 qualify as basic financial instruments. Basic financial Instrument$ ar& inltlally recognlseé al transaction value and subsequently measured al Ih8ir selllem8nl valu8 wilh the exception of bank loans which are subsequenlfy measured al amortised cost using the effecllve interest method. DONATIONS AND LEGACIES 2023 2022 DonaliDns 573 832 INVESTMENT INCOME 2023 2022 Income from listed investment Deposit account interest 62.399 993 103.487 103,487 RAISING FUNDS Investment manag•m&nt costs 2023 2022 Inveslinent Managers Fee8 Forelgn Exchange Costs 63.138 66,097 CHARITABLE ACTIVITIES COSTS Grant fundiro of aclivili88 18ee note 61 Support ¢osls (see note 71 Totals Grants Governance Co818 1,687.040 1.6B7.040 1 S87 040 1097 489 Page 19 continued...
THE MICHAEL AND BETTY LITTLETRUST Notes to the Flnanclal Statements - ¢ontlnued forthe Year Ended 31 March 2023 GRANTS PA YABLE 2023 2022 Grants 1687 040 1 145 217 Page 20 continued,..
THE MICHAEL AND BETTY LirrLE TRUST Notes to the Flnan¢ial Statem¢ntg - contlnued for the Year Ended 31 March 2023 GRANTS PAYABLE . contlnued The lolal grants paid lo inslitullons durlng the year was as lollows.. 2023 2022 Alder Trust Crossover Youth Centre Ea$ebown¢ S¢hool First Give Girl's Network, The Home Start King's Am18 Life Centre London Reclaimed Mummy's Star Over the Moon Pacific Dermalok)gy PACSO Rosemary Foundation Relugees al Home Regenerate UK SJP Charity Sussex SnoM%rop Tru81, The Turning Tides Wells Trust Imagine If Trust Sebbys Spa¢e Wast London Welcome Breaslfeeding Network IUK), Th6 Wave Cafe Creative Opllon$ BIGKID Foundation Together with Migrant Children Sam8rilan8 Bognor The Blue Thread Sexpresion',UK Furnishing Futures Service Dogs UK Ameca TTUSI Pedal People Ahoy Centre Fair Shot Bike Project, The Sel88y Community Prison Family Support Love the One Micro Rainbow Volces of Children Law for Change Bud(ly Up Family Firsl Ghana 94,500 15,OQO 25,500 60,000 15.000 25,000 45,000 60.000 50,000 30.000 70,000 25,000 90,000 57,153 50,000 30,000 40,000 50,000 15,000 40,000 40,000 48,000 24,000 30,000 73,000 13,000 30,000 20.000 10,000 59,564 20,000 25,000 100,000 30.000 60,000 105.000 30.000 100.000 50,000 30.000 42,500 15,000 60,000 49,600 25,000 7,600 73,000 22,000 21,000 53,000 10,000 100,000 21,000 35,000 15,000 5,000 10,000 46,000 37,000 40,000 16,000 30,000 120,000 50,000 44,940 25,000 30,000 1687 040 1145217 Page 21 continued...
THE MICHAEL AND BErrY urrLE TRUST Not8s to thg Flnanclal Stat¢m*nts . contlnued for the Year Ended 31 March 2023 SUPPORT COSTS Governance costs Finance Totsls Govemance Costs 849 £7,200 Governance costs relate lo Audit fees for the year 12022: £3,780 Independent Examination feel. Non-audil remuneration amounted lo £2.400 {2022: £Nill, TRUSTEES, REMUNERATION AND BENEFITS Thera were no IDJ8lees' remuneration or other beneffits for the year ended 31 March 2023 nor for the ygar ended 31 Mar¢h 2022. TfUgt6es' gxpgn8e8 There were no trustee8' expense$ paid for the year endgd 31 M4r¢h 2023 nor for th8 year ended 31 March 2022. FIXED ASSET INVESTMENTS Cosh and sgllloments pending Listed Unli&led inveslmenls Invgslments Totals MARKET VALUE Al 1 April 2022 Additions Disposals Revaluation8 ImpaiTm8nls 7,124,950 2.543,045 {6,306,0271 (592,028) 3,323,628 980,154 {267,702) 345,210 10,793,794 3.523,199 1310,934) 16,884,663) 1592,0281 62 318) 52.3181 Al 31 March 2023 2,769.940 3 983 762 6 787 984 NET BOOK VALUE At 31 March 2023 2 769.940 3.983.762 34,282 6 787 984 Al 31 March 2022 7,124 950 3.323 628 345 216 10.793 794 There are Investment asg81s oulsido the UK. LISTED INVESTMENTS 2023 2022 Bonds l Flxed Inter&st UK Sovereign Overseas Corporate 83,438 306 164 665 815 Totsl Bonds l Flx•d Intore5t 388 602 Equltle8 UK North America Europe Asla Paclfic ex, Japan Global 67,069 550.431 1.116.475 3,532.907 494,922 1,071,694 344.974 950,110 203,312 353.993 Page 22 continued...
THE MICHAEL AND BETTY LITTLE TRUST Notes to thè Flnan¢lal Statemènts - contlnued for the Year Ended 31 March 2023 FIXEO ASSET INVESTMENTS . contlnugd Total Equltles 2 226 752 6459 135 Altgrnatlves I Cash Products Absolute Return Cash Products 119.577 Total Alternatlves I Cash ProduGts 164 S86 6,459 135 TOTAL LISTED INVESTMENTS 2 769 940 7 124,950 UNLISTED INVESTMENTS IQ Capf(al Growth Fund l L,P. UK 3 983,762 3,323.628 The Trust lolal commitment lo IQ Capital Growth Fund l L.P. {IQGF11 is £3m. As of 31 st March 2023 the Trust has invested £2,220.000 lo IQGF1. IQ Capllal Growth Fund l L.P. IlaGF11 is focused on investments into growlh-slage inveBlees of IQ Capital Fund 11 L.P and IQ Cspllal Fund 111 L.P. The final clos¢ was completed on 29th October 2020, with th8 fund reaching119 £100m cap size. As of 318t March 2023 IQ Capitsl Growth Fund l L.P FMV stands 81 £129.9m of which th& Trusts holds a 30A share. represented by.. Thoughlmachine IFMV £92.2ml, Nyoboll IFMV £5m,} CausaLen$ IFMV £5ml. Sp&echmalics (FMV £10.3mland Paragraf {FMV £7.3ml and BBLL {FMV £10.1m}. The historical cost of investment as at 31 $1 March 2022.. Listed investmènt8 £6.494.540 Unlisted investments £1.348.325 10. SOCIAL INVESTMENTS Programme related Inv8slments equity Mixed motive Inve$lmen18 Totals MARKET VALUE Additions Revalu8tlons Impairments 100,000 7,600 2,090,000 2.190,000 7,600 2 000 0001 2,000 0001 At 31 March 2023 197600 NET BOOK VALUE At 31 March 2023 107.6LKJ 197800 Al 31 March 2022 Page 23 conlinuod.
THE MICHAEL AND BETTY UTTLE TRUST Notes to the Flnanclal Statements . contlnued for th• Yoar Ended 31 March 2023 10. SOCIAL INVESTMENT8 - contlnued Cost or valuation a131 March 2023 18 represented by.. Mlxed motlve Invgstmonts Equity Totals Valuatlon in 2021 Valuation in 2022 Valualion in 2023 1,060,712 1,060,712 11,060,712) 11.060,712) 90,000 197 600 107600 107 600 197 600 If social investments had not begn revalued they would have been included at tha following hlstorlc81 2023 2022 Cost 3 150.712 1060.712 Social investments were valued on an open market basis on 31 March 2023 by the amount that would have been obtained. 11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2023 2022 Trade debtor8 GP Fund account 2,500 86,444 2,500 12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2023 2Q22 Other loans (see nol& 131 Accrued expenses 148.670 159 650 Page 24 continued...
THE MICHAEL AND BETTY LITTLE TRUST Notgs to the Flnancl81 Stalements - contlnued for the Yoar Ended 31 March 2023 13. LOANS An analysis of the maturity of loans is given below.. 2023 2022 Amounts lalling due within one year on demand.. IQ Loan 148 670 14. CONTINGENT LIABILITIES A8 8el out in Note 10, the charity has invested in a number of unquoted entllies as part of Ils S[81 investments strategy. The Trustees are satisfied that these sccial investment5 are qualifyin9 investments for tax purposes and therefore no provision has been made in the accounts for lax payable. However, should HMRC determine that thèy are non-qualifying inveslmenls, a lax liability amounting to approximately £156,215 would be payable. This amount is disclosed as a conlingenl liability on the basis that, in the judgment of the Trustees, although not probable, the possibility of a liability arising is not remote. 15. CAPITAL COMMITMENTS The Michael and Belty Little Trust total commitment to IQ Captt21 Growth Fund l LP is £3m. As of 31 sl March 2023 the lolal contribution amounts to £2,220,000 wilh a remalning commitment of £780,000. 16. RELATED PARTY DISCLOSURES UNLISTED INVESTMENTS Richard Little Iformer Trustee to 22nd June 20201 and member of the Little family, which comprise the majority ol the Board of Truslges, is on the advisory board of The IQ Capital Growth Fund l L P. As per note 9, as of 3151 March 2023, the Trust ha5 invesled £2,220,000 in IQ Capitsl Growth Fund. SOCIAL INVESTMENTS Rl¢hard Lhlle is a Dire¢tor at Century-Te¢h Limited In which the Trust has inve81ed £2m lo dale. No in¢ome was received in 2023 or 2022 in respect of these inveslments. DONATIONS AND LEGACIES The Charity r8G8ived £576,331 from the eslate of the late Michael Littk during the year. Page 25