Company registration number: 05051134 Charity registration number: 1108974
## Third Text Ltd.
(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 March 2021
Accountancy Advantage Limited Unit 7 Fordwater Industrial Estate Ford Road Chertsey KT16 8HG
## **Third Text Ltd.**
## **Contents**
|Reference and Administrative Details|1|
|---|---|
|Strategic Report|2|
|Trustees' Report|3|
|Statement of Trustees' Responsibilities|4|
|Independent Examiner's Report|5|
|Statement of Financial Activities|6|
|Balance Sheet|7 to 8|
|Notes to the Financial Statements|9 to 16|
## **Third Text Ltd.**
## **Reference and Administrative Details**
**Trustees** Mrs Felicity Allen Dr Alice Correia Mr Simon Tegala Dr Voon Pow Bartlett **Secretary** Richard Dyer **Registered Office** Enclave Studios, Unit 6 50 Resolution Way Deptford London SE8 4AL **Company Registration Number** 05051134 **Charity Registration Number** 1108974 **Independent Examiner** Accountancy Advantage Limited Unit 7 Fordwater Industrial Estate Ford Road Chertsey KT16 8HG
Page 1
## **Third Text Ltd.**
## **Strategic Report for the Year Ended 31 March 2021**
The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 31 March 2021, in compliance with s414C of the Companies Act 2006.
The strategic report was approved by the trustees of the charity on 30 December 2021 and signed on its behalf by:
......................................... Mr Simon Tegala Trustee
Page 2
## **Third Text Ltd.**
## **Trustees' Report**
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2021.
The annual report was approved by the trustees of the charity on 30 December 2021 and signed on its behalf by:
......................................... Mr Simon Tegala Trustee
Page 3
## **Third Text Ltd.**
## **Statement of Trustees' Responsibilities**
The trustees (who are also the directors of Third Text Ltd. for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe the methods 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 to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees of the charity on 30 December 2021 and signed on its behalf by:
......................................... Mr Simon Tegala Trustee
Page 4
## **Third Text Ltd.**
## **Independent Examiner's Report to the trustees of Third Text Ltd.**
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2021 which are set out on pages 6 to 16.
## **Respective responsibilities of trustees and examiner**
As the charity’s trustees of Third Text Ltd. (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of Third Text Ltd. 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 your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the 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:
1. accounting records were not kept in respect of Third Text Ltd. as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
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 accounts to be reached.
......................................
Yasar Khan Accountancy Advantage Limited
Unit 7 Fordwater Industrial Estate Ford Road Chertsey KT16 8HG
30 December 2021
Page 5
## **Third Text Ltd.**
## **Statement of Financial Activities for the Year Ended 31 March 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)**
|**Note**
**Income and Endowments from:**
Voluntary income
3
Interest received
4
**Expenditure on:**
Charitable activities
Total expenditure
Net expenditure
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
14
**Note**
**Income and Endowments from:**
Voluntary income
3
Interest Received
4
Total income
**Expenditure on:**
Charitable activities
Total expenditure
Net expenditure
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
14|**Unrestricted**
**£**
89,464
409
(90,826)
(90,826)
(953)
(953)
82,401
81,448
**Unrestricted**
**£**
14,144
387
14,531
(88,978)
(88,978)
(74,447)
(74,447)
156,848
82,401|**Restricted**
**£**
-
-
-
-
-
-
6,001
6,001
**Restricted**
**£**
-
-
-
-
-
-
-
6,001
6,001|**Total**
**2021**
**£**
89,464
409
(90,826)|
|---|---|---|---|
||||(90,826)|
||||(953)|
||||(953)
88,402|
||||87,449|
||||**Total**
**2020**
**£**
14,144
387|
||||14,531|
||||(88,978)|
||||(88,978)|
||||(74,447)|
||||(74,447)
162,849|
||||88,402|
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 14.
The notes on pages 9 to 16 form an integral part of these financial statements. Page 6
## **Third Text Ltd.**
## **(Registration number: 05051134) Balance Sheet as at 31 March 2021**
|**Note**
**Fixed assets**
Tangible assets
9
**Current assets**
Debtors
10
Cash at bank and in hand
11
**Creditors: Amounts falling due within one year**
12
**Net current assets**
**Net assets**
**Funds of the charity:**
**Restricted income funds**
Restricted funds
**Unrestricted income funds**
Unrestricted funds
**Total funds**
14|**2021**
**£**
759
1,400
90,593
91,993
(5,303)
86,690
87,449
6,001
81,448
87,449|**2020**
**£**
949
1,457
89,306|
|---|---|---|
|||90,763
(3,310)|
|||87,453|
|||88,402|
|||6,001
82,401|
|||88,402|
For the financial year ending 31 March 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The notes on pages 9 to 16 form an integral part of these financial statements. Page 7
## **Third Text Ltd.**
## **(Registration number: 05051134) Balance Sheet as at 31 March 2021**
The financial statements on pages 6 to 16 were approved by the trustees, and authorised for issue on 30 December 2021 and signed on their behalf by:
......................................... Mr Simon Tegala Trustee
The notes on pages 9 to 16 form an integral part of these financial statements. Page 8
## **Third Text Ltd.**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **1 Charity status**
The charity is limited by guarantee, incorporated in 2004 , and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
The address of its registered office is: Enclave Studios, Unit 6 50 Resolution Way Deptford London SE8 4AL
These financial statements were authorised for issue by the trustees on 30 December 2021.
## **2 Accounting policies**
## **Summary of significant accounting policies and key accounting estimates**
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## **Statement of compliance**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
## **Basis of preparation**
Third Text Ltd. meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **Exemption from preparing a cash flow statement**
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
## **Income and endowments**
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Page 9
## **Third Text Ltd.**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
## _**Charitable activities**_
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 costs of an indirect nature necessary to support them.
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **Depreciation and amortisation**
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
|**Asset class**|**Depreciation method and rate**|
|---|---|
|Plant and machinery|20% on reducing balance|
|Computer equipment|33% on cost|
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
## **Hire purchase and leasing commitments**
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
Page 10
## **Third Text Ltd.**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **3 Income from donations and legacies**
|Regular giving and capital donations
**Total for 2021**
**Total for 2020**
**4**
**Investment income**
Interest receivable and similar income;
Interest receivable on bank deposits
**Total for 2021**
**Total for 2020**
**5**
**Net incoming/outgoing resources**
Net outgoing resources for the year include:
Depreciation of fixed assets
Other operating lease|**Unrestricted**
**funds**
**General**
**£**
89,464
89,464
14,144
**Unrestricted**
**funds**
**General**
**£**
409
409
387
**2021**
**£**
190
8,941|**Total**
**funds**
**£**
89,464|
|---|---|---|
|||89,464|
|||14,144|
|||**Total**
**funds**
**£**
409|
|||409|
|||387|
|||**2020**
**£**
237
7,432|
## **6 Trustees remuneration and expenses**
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 March 2021.
## **7 Staff costs**
The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:
Page 11
## **Third Text Ltd.**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
|The average monthly number of employees|**2021**
**No**
1|**2020**
**No**
1|
|---|---|---|
**8 Taxation**
The charity is a registered charity and is therefore exempt from taxation.
Page 12
## **Third Text Ltd.**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **9 Tangible fixed assets**
|**Cost**
At 1 April 2020
At 31 March 2021
**Depreciation**
At 1 April 2020
Charge for the year
At 31 March 2021
**Net book value**
At 31 March 2021
At 31 March 2020
**10 Debtors**
Prepayments
Other debtors|**Furniture and**
**equipment**
**£**
11,317
11,317
10,368
190
10,558
759
949|**Furniture and**
**equipment**
**£**
11,317
11,317
10,368
190
10,558
759
949|**Computer**
**equipment**
**£**
2,500||**Total**
**£**
13,817
13,817
12,868
190
13,058
759
949
**2020**
**£**
57
1,400|
|---|---|---|---|---|---|
||11,317||2,500|||
||10,368
190||2,500
-|||
||10,558||2,500|||
||759||-|||
||949||-|||
||||**2021**
**£**
-
1,400
1,400|||
||||||1,457|
Page 13
## **Third Text Ltd.**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **11 Cash and cash equivalents**
|Cash on hand
Cash at bank
**12 Creditors: amounts falling due within one year**
Other taxation and social security
Accruals
**13 Leasing agreements**
The total value of future minimum lease payments was as follows:
In two to five years|**2021**
**£**
-
90,593
90,593
**2021**
**£**
5,303
-
5,303
**2021**
**£**
10,000|**2020**
**£**
19
89,287|
|---|---|---|
|||89,306|
|||**2020**
**£**
2,737
573|
|||3,310|
|||**2020**
**£**
10,000|
## **14 Funds**
Page 14
## **Third Text Ltd.**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
|**Unrestricted funds**
General
**Restricted funds**
**Total funds**
**15 Analysis of net assets between funds**
Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Total net assets|**Balance at 1**
**April 2020**
**£**
82,401
6,001
88,402|**Incoming**
**resources**
**£**
89,873
-
89,873|**Resources**
**expended**
**£**
(90,826)
-
(90,826)
**Unrestricted**
**funds**
**General**
**£**
759
91,993
(5,303)
87,449
**Unrestricted**
**funds**
**General**
**£**
949
90,763
(3,310)
88,402|**Balance at 31**
**March 2021**
**£**
81,448
6,001|
|---|---|---|---|---|
|||||87,449|
|||||**Total funds at**
**31 March**
**2021**
**£**
759
91,993
(5,303)|
|||||87,449|
|||||**Total funds at**
**31 March**
**2020**
**£**
949
90,763
(3,310)|
|||||88,402|
Page 15
## **Third Text Ltd.**
## **Notes to the Financial Statements for the Year Ended 31 March 2021**
## **16 Analysis of net funds**
|**16 Analysis of net funds**||||
|---|---|---|---|
|Cash at bank and in hand
Net debt
Cash at bank and in hand
Net debt|**At 1 April**
**2020**
**£**
89,306
89,306
**At 1 April**
**2019**
**£**
162,765
162,765|**Financing cash**
**flows**
**£**
1,287
1,287
**Financing cash**
**flows**
**£**
(73,459)
(73,459)|**At 31 March**
**2021**
**£**
90,593|
||||90,593|
||||**At 31 March**
**2020**
**£**
89,306|
||||89,306|
Page 16