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2021-01-31-accounts

Charity Registration No. 1110645

Company Registration No. 5328976 (England and Wales)

SAFE HAVEN LONDON

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021

SAFE HAVEN LONDON

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr N F Markham
Mr E J Chesterman
Mr J Kerr
Mr M C Patton
Mr S J Woodland
Charity number 1110645
Company number 5328976
Registered office Thorncroft Manor
Leatherhead
Surrey
KT22 8JB
Auditor CBW Audit Limited
66 Prescot Street
London
E1 8NN
Bankers Bank of Ireland
36 Queen Street
London
EC4R 1HJ

SAFE HAVEN LONDON

CONTENTS

Page
Trustees' report 1 - 4
Independent auditor's report 5 - 8
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Notes to the financial statements 12 - 22

SAFE HAVEN LONDON

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JANUARY 2021

The Trustees who are also directors of the charitable company for the purposes of the Companies Act have pleasure in submitting their report and the financial statements of the charitable company for the year ended 31 January 2021.

The financial statements have been prepared in accordance with the accounting policies set out in Note 1 to the accounts and comply with the Charity’s governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019).

Reference and administrative details

Safe Haven London is a company limited by guarantee, incorporated on 11 January 2005, governed by its Memorandum and Articles of Association and with the Company number 5328976. It is a charity registered with the Charities Commission on 29 July 2005, with the Charity number 1110645. The Charity’s registered address is:

Thorncroft Manor Thorncroft Drive Leatherhead Surrey KT22 8JB

The Trustees, who are also the directors for the purpose of company law, and who served during the year were:

Mr N F Markham Mr E J Chesterman Mr J Kerr Mr M C Patton Mr S J Woodland

Objectives and activities

Safe Haven London was formed for the purpose of providing housing to local government bodies for people requiring assistance to find accommodation. Safe Haven London’s activities were intended initially for the benefit of tenants of the London Borough of Ealing, but also potentially tenants of other London boroughs.

On 18th October 2005 the charitable company entered into agreements with the London Borough of Ealing to acquire properties suitable for their social housing requirements and with the Bank of Ireland and Partnerships UK plc to finance the acquisitions.

The charitable company completed a programme of repayments which repaid approximately half of the term debt within twelve years from the commencement of the leases out of the net income of the charitable company.

On 6 th July 2016 the charitable company entered into agreements with Plexus (First Project) Limited to start to realise its intention to move the stock from temporary to permanent social housing.

In October 2019 the Charity commenced the next phase of a pilot scheme for a shared ownership project named AnyNest. The Charity engaged Co-Ownership, a Northern Irish Housing Association as its operational partner for the pilot scheme.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.

SAFE HAVEN LONDON

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

Achievements and performance

The remaining additional funds raised by the Charity from Bank of Ireland in 2016 were ear-marked for two initial projects, firstly, to refurbish the properties and bring them back to Decent Homes Standard and, secondly, to allow the charity to extend its leasehold interests in these properties to secure their availability for the Charity’s objectives for the long term. These first two projects have now largely been completed.

The Charity is planning to look at ways to realise the accumulated capital gains from ownership of the existing portfolio in order to expand its operations and to provide relief to a greater number of homeless families and those living in housing poverty. In support of this aim, the charity changed its charitable objects in order to widen its catchment area and to include part-rent, part-buy accommodation.

As of 31 January 2021, the Charity has been unaffected by the Covid-19 pandemic. In addition, Brexit is not expected to have a material impact on the Charity as a solely UK-focussed social enterprise.

Financial review

The charitable company currently has a deficit of £492,640 (2020: £137,409 deficit). The net assets of the charity were £28,317,731 (2020: £28,810,371).

It is the policy of the Charity that unrestricted liquid funds which have not been designated for a specific use should be maintained at a level equivalent to between three- and six- month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Post balance sheet events

The Charity has identified a buyer for the property portfolio and is seeking to complete a disposal during the final quarter of 2021. In support of this process, the Charity’s bank facilities have been rolled over into early 2022.

The Charity has continued to develop a pilot scheme for a shared ownership project. To this end, the Charity incorporated a subsidiary company limited by guarantee. The Charity is the guarantor. It is intended that the Charity extend a loan to the subsidiary for the pilot scheme. The launch of the pilot commenced in September 2021.

The Charity intends to continue to re-invest any realised gains and reserves from ownership of its existing portfolio in activities that generate a surplus in furtherance of the objects in the Charity’s Constitution.

Structure, governance and management

The structure of the Charity, its Charity and Company numbers, its principal advisors and the names of its trustees are set out in the Legal, Reference and Administrative sections of this Annual Report and Financial Statements. Details of the staff employed in furtherance of the objects of the Charity are provided in the Notes to the Financial Statements.

Mr N F Markham Mr E J Chesterman Mr J Kerr Mr M C Patton Mr S J Woodland

SAFE HAVEN LONDON

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

A Trustees’ appointment may cease automatically upon the happening of certain events as set out in the Articles. The trustees are entitled to appoint and remove further trustees by unanimous resolution. Every trustee must sign a declaration of willingness to act as a trustee of the charitable company before he or she is eligible to vote at any meeting of the Trustees. Trustees are not obliged to retire by rotation. None of the trustees has any beneficial interest in the charitable company.

N F Markham has several years’ experience in local government and E J Chesterman is a property consultant and therefore both have the appropriate skills and knowledge for their role as trustees.

In 2019, the Charity appointed three additional trustees, James Kerr, Mark Patton and Stephen Woodland. Mr Kerr is a property consultant, Mr Patton has a track record of commercial experience and Mr Woodland has over 16 years of experience in public benefit entities.

There is no formal policy in place but the Trustees intend that any future appointments be persons of suitable commercial experience.

The members of the charitable company guarantee to contribute £1 in the event of a winding up.

The charitable company has a close relationship with the London Borough of Ealing to whom it provides the properties for social housing purposes by way of a nomination agreement which expires in 2076.

Funds held as custodian trustee

Neither the Charity, or its trustees, act as custodians of funds on behalf of others.

Statement of Trustees' responsibilities

The Trustees, who are also the directors of Safe Haven London for the purpose 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 Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

In accordance with the company’s articles, a resolution proposing that CBW Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

SAFE HAVEN LONDON

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

Disclosure of information to auditor

Each of the directors has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information.

Exemptions from disclosure

The Charity does not have, nor has requested, any exemptions from disclosure from the Charity Commission.

The Trustees' r eport was approved by the Board of Trustees.

Mr M C Patton

Dated: 15 November 2021

SAFE HAVEN LONDON

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF SAFE HAVEN LONDON

Opinion

We have audited the financial statements of Safe Haven London (the ‘Charity’) for the year ended 31 January 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) .

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees 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:

SAFE HAVEN LONDON

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SAFE HAVEN LONDON

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 d irectors ' r eport included within the Trustees' r eport.

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:

Responsibilities of Trustees

As explained more fully in the s tatement of Trustees' r esponsibilities, the Trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the 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 Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .

SAFE HAVEN LONDON

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SAFE HAVEN LONDON

We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. The laws and regulations applicable to the company were identified through discussions with directors and other management, and from our commercial knowledge and experience of Safe Haven London. Of these laws and regulations, we focused on those that we considered may have a direct material effect on the financial statements or the operations of the company, including the Charities Act , Companies Act 2006, Coronavirus Act 2020, data protection, anti-bribery, employment and environmental legislation. The extent of compliance with these laws and regulations identified above was assessed through making enquiries of management and inspecting legal correspondence. The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

SAFE HAVEN LONDON

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SAFE HAVEN LONDON

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Woosey (Senior Statutory Auditor) for and on behalf of CBW Audit Limited

15 November 2021

Chartered Accountants Statutory Auditor

66 Prescot Street London E1 8NN

SAFE HAVEN LONDON

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JANUARY 2021

Unrestricted Unrestricted
funds funds
2021 2020
Notes
£		 £
Income and endowments from:
Charitable activities 3 2,127,619 1,962,712
Investments 4 6,425 10,555
Other income 5 - 722,850
Total income 2,134,044 2,696,117
Expenditure on:
Charitable activities 6 1,884,485 1,839,252
Net incoming resources 249,559 856,865
Other recognised gains and losses
Revaluation of tangible fixed assets (742,199)
(994,274)
Net movement in funds (492,640)
(137,409)
Fund balances at 1 February 2020 28,810,371 28,947,780
Fund balances at 31 January 2021 28,317,731 28,810,371

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

All income and expenditure derive from continuing activities.

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

SAFE HAVEN LONDON

BALANCE SHEET

AS AT 31 JANUARY 2021

Notes
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
16
Net assets
Income funds
Unrestricted funds
General unrestricted funds
Revaluation reserve		 2021
£
£
43,001,735
45,000
43,046,735
1,204,525
8,194,576
9,399,101
(92,966)
9,306,135
52,352,870
(24,035,139)
28,317,731
14,878,142
13,439,589
28,317,731
28,317,731		 2020
£
£
43,558,605
45,000
43,603,605
908,253
8,384,949
9,293,202
(207,821)
9,085,381
52,688,986
(23,878,615)
28,810,371
14,628,583
14,181,788
28,810,371
28,810,371

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

The financial statements were approved by the Trustees on 15 November 2021

Mr M C Patton

Trustee

Company Registration No. 5328976

SAFE HAVEN LONDON

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JANUARY 2021

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
20
Investing activities
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed
assets
Investment income received
Net cash (used in)/generated from
investing activities
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
£
(11,090)
(185,708)
-
6,425
(179,283)
-
(190,373)
8,384,949
8,194,576		 2020
£
£
293,948
(573,762)
1,273,847
10,555
710,640
-
1,004,588
7,380,361
8,384,949

SAFE HAVEN LONDON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021

1 Accounting policies

Charity information

Safe Haven London is a private company limited by guarantee incorporated in England and Wales. The registered office is Thorncroft Manor, Leatherhead, Surrey, KT22 8JB.

1.1 Accounting convention

The financial statements have been prepared under the historical cost convention.

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

The accounts have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

1.2 Going concern

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

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

The charity does not operate any restricted or endowment funds.

1.4 Income

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

Turnover is measured at the fair value of the consideration received or receivable and represents lease income in respect of properties let out to the London Borough of Ealing and Plexus (First Project) Limited for social housing. Income is recorded net of discounts, VAT and other sales related taxes.

1.5 Expenditure

Resources expended are recognised when they fall due, unless the benefit derived from incurring an expense spans more than one year; in which case such costs are apportioned over the period to which they relate.

Costs of activities in furtherance of the charity's objectives include all costs associated with the management and financing of the properties. Expenditure includes any VAT that cannot be recovered.

The charity has only one activity and therefore costs are not allocated in any way across different activities.

SAFE HAVEN LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

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

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

Buildings 50 years Computers 15% straight line

Freehold land is not depreciated.

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

The Charity's policy is to maintain leasehold properties to a 'decent homes' standard. The trustees have decided not to depreciate these assets in view of the fact that the assets concerned are to be included in the accounts at market value.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.

1.8 Impairment of fixed assets

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

1.9 Cash and cash equivalents

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

1.10 Financial instruments

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

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

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

Basic financial assets

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

SAFE HAVEN LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

1 Accounting policies

(Continued)

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

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

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

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

Derecognition of financial liabilities

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

1.11 Employee benefits

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

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

1.12 Retirement benefits

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

1.13 Loan facility fees

Costs incurred in arranging new loan facilities are treated as transactions costs and are netted off against the loan when accounting for it under the amortised costs basis.

2 Critical accounting estimates and judgements

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

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

SAFE HAVEN LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

3
Charitable activities
Charitable rental income
4
Investments
Interest receivable
5
Other income
Other income		 Lease
income
Lease income
2021
2020
£
£
2,127,619
1,962,712
UnrestrictedUnrestricted
funds
funds
2021
2020
£
£
6,425
10,555
TotalUnrestricted
funds
2021
2020
£
£
-
722,850

Other income represented surplus on sale of several properties during 2020. No properties were sold during the year end 31 January 2021.

SAFE HAVEN LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

6 Charitable activities

Insurance
Plexus set up costs: annual release
Repairs and Maintenance
Project Management Fees
Interest Payable and Similar Charges
Rent
Telephone and Fax
Printing Postage and Stationary
Sundry Expenses
Travel and Subsistance
Ground Rent
Service Charges
Other charitable expenditure
Share of support costs (see note 7)
Share of governance costs (see note 7)
Support costs
Support
costs
Governance
costs
£
£
Staff costs
-
94,379
Depreciation
380
-
Audit fees
-
19,800
Accountancy
-
4,895
Legal and professional
-
130,827
Bank charges
-
46
380
249,947
Analysed between
Charitable activities
380
249,947		 2021
£
94,379
380
19,800
4,895
130,827
46
250,327
250,327		 Direct
activities
2021
£
8,465
40,328
21,495
249,893
861,911
39,129
1,593
190
1,829
82
3,356
243,054
162,833
1,634,158
380
249,947
1,884,485
Support
costs
Governance
costs
£
£
-
120,386
651
-
-
16,200
-
909
-
35,898
-
47
651
173,440
651
173,440		 Direct
activities
2020
£
9,230
40,328
123,407
176,080
854,420
40,860
1,364
175
12,597
349
4,232
239,713
162,406
1,665,161
651
173,440
1,839,252
2020
£
120,386
651
16,200
909
35,898
47
174,091
174,091

7 Support costs

Governance costs includes payments to the auditors of £ 13,500 (2020- £ 12,000 ) for audit fees.

SAFE HAVEN LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

8 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.

9 Employees

The average monthly number employees during the year was:

Administration
Employment costs
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was £60,000 or
more were:
Band: £70,000 - £80,000		 2021
Number
2
2021
£
87,155
5,711
1,513
94,379
2021
Number
-		 2020
Number
2
2020
£
108,860
9,651
1,875
120,386
2020
Number
1

10 Taxation

The company is a registered charity and is, therefore, exempt from taxation.

SAFE HAVEN LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

11
Tangible fixed assets
Cost or valuation
At 1 February 2020
Additions
Revaluation
At 31 January 2021
Depreciation and impairment
Depreciation charged in the year
At 31 January 2021
Carrying amount
At 31 January 2021
At 31 January 2020		 Buildings
£
43,556,491
185,708
(742,199)
43,000,000
-
-
43,000,000
43,556,491		 Computers
£
3,253
-
-
3,253
1,518
1,518
1,735
2,114		 Total
£
43,559,744
185,708
(742,199)
43,003,253
1,518
1,518
43,001,735
43,558,605

Land and buildings with a carrying amount of £4 3,000,000 were revalued on October 2021 by Jones Lang LaSalle Limited (JLL), an independent professional services firm specialising in real estate services. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties, as adjusted for the properties undergoing refurbishment works to conform to the ‘decent homes standard’ prior to being sub-leased to Plexus, an independent social housing provider. The Trustees consider that this value applied at the year-end date.

At 31 January 2021, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been approximately £24,236,069 (2020 - £24,770,656).

The revaluation reserve represents the following movements:

Balance as 1 February 2020
Refurbishment

Lease extensions
Disposals
Balance at 31 January 2021		 £14,181,788
-
(£185,708)
-
£13,996,080

The refurbishments works represent costs that were actually incurred by the charity in improving the properties to a "decent homes" standard. The valuation of £44,400,000 carried out by JLL in 2016 was based on the assumption that these costs would have been incurred. Accordingly, when they are incurred, they are capitalised within fixed assets but are immediately netted against the revaluation reserve as the costs are already reflected in the carrying value of the properties.

SAFE HAVEN LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

11 Tangible fixed assets

(Continued)

Freehold land and buildings with a carrying amount of £44,400,000 ( 2020 - £44,400,000 ) have been pledged to secure borrowings of the Charity . The Charity is not allowed to pledge these assets as security for other borrowings .

12 Fixed asset investments

Cost or valuation
At 1 February 2020 & 31 January 2021
Carrying amount
At 31 January 2021
At 31 January 2020
13
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
14
Loans and overdrafts
Bank loans
Payable after one year		 Unlisted
investments
£
45,000
45,000
45,000
2021
2020
£
£
248,950
39,883
74,067
73,947
881,508
794,423
1,204,525
908,253
2021
2020
£
£
24,000,000
24,000,000
24,000,000
24,000,000

The long-term loans are secured by fixed and floating charges over the undertaking and all properties and assets of the charitable company.

SAFE HAVEN LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

14 Loans and overdrafts

(Continued)

The charity refinanced its existing loan facility on 6 July 2016. The outstanding loan was repaid in full by the new loan facility of £24,000,000 provided by the Bank of Ireland. This is 5 year loan with interest at a fixed rate of 3.56% per annum which is payable quarterly. No capital repayments are due until the end of the term of the loan.

The loan is recorded net of transactions costs comprising loan facility fees of £439,514 and broking fees of £280,000. These are being amortised periodically over the term of the loan. The annual release is shown in the SOFA as "amortisation of loan facility fees: new loan".

15 Creditors: amounts falling due within one year

Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2021
£
1,580
69,172
3,614
18,600
92,966		 2020
£
3,675
175,887
4,019
24,240
207,821

16 Creditors: amounts falling due after more than one year

Notes
Bank loans
14
Other creditors		 2021
£
24,000,000
35,139
24,035,139		 2020
£
24,000,000
(121,385)
23,878,615

The bank loans are secured by fixed and floating charges over the undertaking and all properties and assets of the charitable company.

Amounts shown under 'other creditors' represent the accumulated amortisation of transaction costs that are netted against the bank loan of £24m. These costs comprise loan facility fees of £439,514 and broking fees of £280,000, and are being amortised periodically over the term of the loan. The annual release is shown in the SOFA as "amortisation of loan facility fees: new loan".

17 Financial commitments, guarantees and contingent liabilities

Contingent assets are possible assets whose existence will be confirmed by uncertain future events that are not wholly within the control of the entity.

After the reporting date, the charity became aware that they had undercharged rent during the period. As a result a settlement of £112,500 was agreed to be received by the charity to settle the outstanding rent and was received on 01 July 2021.

SAFE HAVEN LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

18 Events after the reporting date

After the reporting date, the charity incorporated a subsidiary, Safe Haven London (Shared Ownership) Limited.

In addition, the charity's portfolio of properties is in the process of being sold for c£43m. Please refer to the Trustees report for more detail.

19 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2021 2020
£ £
Aggregate compensation 49,962 80,000

None of the Trustees or anyone connected with them received remuneration from the charity in the year.

Transactions with related parties

During the year the Charity entered into the following transactions with related parties:

Entities in which the Trustees have interests 2021
£
77,735
77,735		 2020
£
11,231
11,231
Amounts owed to related
parties
2021 2020
£ £
Entities in which the Trustees have interests 488 326

SAFE HAVEN LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2021

19 Related party transactions

(Continued)

Entities in which the Trustees have an interest include:

  1. Chock Professional Services Limited - a company controlled by two of the trustees. This company paid disbursements of £1,820 on behalf of the charity in the current year (2020: £943). The charity owed the company £488 (2020: £nil) at the year end.

  2. Top up TV Europe Limited - a company controlled by N Markham. This company paid disbursements of £nil on behalf of the charity in the current year (2020: £34).

  3. R2B H - a company controlled by N Markham. This company was paid consultancy fees of £54,829 by the Charity in the current year (2020: £10,201).

  4. Chesterman Consultants Ltd - a company controlled by E Chesterman. This company was paid consultancy fees of £21,000 by the Charity in the current year (2020: £nil).

20
Cash generated from operations
Surplus for year
Adjustments for:
Investment income recognised in statement of financial activities
Gain on disposal of tangible fixed assets
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in debtors
Increase in creditors
Cash (absorbed by)/generated from operations
21
Analysis of changes in net (debt)/funds
At 1 February
2020
£
Cash at bank and in hand
8,384,949
Loans falling due after more than one year
(24,000,000)
(15,615,051)		 2021
2020
£
£
249,559
856,865
(6,425)
(10,555)
-
(722,846)
380
651
(296,273)
79,403
41,669
90,430
(11,090)
293,948
Cash flows
At 31 January
2021
£
£
(190,373)
8,194,576
-
(24,000,000)
(190,373) (15,805,424)

No. 4 Modified Modified By 1511112021 21:37 sppssetviceaccount Client approval Approved status Client approved 1511112021 21=37 date Client approved mark.patton@clgnpostdiagnostics.com name Sign-off status Approved