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← The Highbury Centre

2023-12-31-accounts

THE HIGHBURY CENTRE (A company limited by guarantee and not having a share capital)

ANNUAL REPORT

FOR THE YEAR ENDED 31ST DECEMBER 2023

Company number: 05422555 Charity number: 1113000

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THE HIGHBURY CENTRE (A company limited by guarantee and not having a share capital)

ANNUAL REPORT

FOR THE YEAR ENDED 31ST DECEMBER 2023

Contents Page
Trustees' Report 1-5
Report of the Independent Auditor’s 6-8
Statement of Financial Activities 9
Balance Sheet 10
Statement of Cashflows 11-12
Notes to the Financial Statements 13-21

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THE HIGHBURY CENTRE

(A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 05422555)

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST DECEMBER 2023

The trustees present their report and the financial statements for the charity for the year ended 31st December 2023 which have been prepared in accordance with accounting policies set out in Note 1 to the financial statements and comply with the Charity’s Articles of Association, the Companies Act 2006 and ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)’ (effective 1 January 2019).

Reference and administrative information

The company is a registered charity and a company limited by guarantee with no share capital (Charity number: 1113000, Company number: 05422555, incorporated in England and Wales). The company’s registered office is 20-26 Aberdeen Park, Highbury, London N5 2BJ.

Trustees:

The following served during the year and appointed for the following year:

Mr P Brenells Mrs J Campbell Mr I Feltham Miss E A McPherson Mr J Barr (Appointed 2[nd] November 2023) Mr H L M Du Plessis (Appointed 26[th] January 2023) Rev P Thankachan (Appointed 14[th] June 2023)

Company Secretary Mr C M Thompson

Key Management Personnel: Chair of Trustees Mr H L M Du Plessis (Appointed 27[th] July 2023) Manager Mrs S Scalora (To 2[nd] November 2023) Acting Manager Miss H Kovalchuk (From 8[th] November 2023) Manager Mr C Cherrill (From 1[st ] July 2024) Our advisers: Bankers Barclays Bank plc PO Box 3474 London NW1 7NQ Solicitors Pothecary Witham Weld 70 St George’s Square London SW1 3RD Investment advisers RBC Brewin Dolphin 12 Smithfield Street London EC1A 9LA Auditors Caladine Limited Chantry House 22 Upperton Road Eastbourne East Sussex BN21 1BF

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THE HIGHBURY CENTRE

(A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 05422555)

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST DECEMBER 2023 (continued)

Structure, Governance and Management

The charity is a company limited by guarantee, incorporated on 12[th] April 2005 with the name The Foreign Missions Club 2005 and it was registered with the Charity Commission on 15[th] February 2006. The company is now governed by its Articles of Association, as amended on 27[th] July 2023, which established the objects and powers of the charitable company and governs its activities. In the event of the company being wound up members are required to contribute an amount not exceeding £10.

On 1[st] September 2006 the company took over the assets, undertaking and employees of the Foreign Missions Club (Charity number: 227866). On 6[th] August 2008 the company changed its name to The Highbury Centre.

Appointment and induction of trustees

Trustees are appointed by a majority vote of the board of trustees. The Articles of Association provides for a minimum of three trustees and a maximum of fifteen. (The trustees for the purposes of company law are directors of the company).

New trustees undergo an induction to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the Board and the decision-making processes and the recent performance of the charity. They meet key employees and the other trustees.

Risk Management

The trustees have during the year re-assessed all the major risks to which the charity is exposed and are satisfied that systems remain in place to mitigate their exposure to the major risks.

Financial sustainability remains the major financial risk and a key element in the management of this risk is a quarterly review of the marketing strategy which includes the charity’s website, visitor statistics and management accounts and other financial information including cash flows and budgets. The trustees are pleased to see the end of the pandemic, occupancy rates have now returned to their pre-pandemic levels, however with recent inflation rates concerns remain over the costs of running the Centre.

Attention has also focussed on non-financial risks arising from health and safety of guests, fire and food hygiene. These risks are managed with the assistance of professional advisers, having robust policies in place and regular awareness training for all staff.

Organisational policy

The operations of the charity are conducted through the Manager or Acting Manager in accordance with the policy and strategy approved by the trustees. The trustees assist the Management by being involved in practical support of the work, and in the area of the spiritual ministry of the Centre. The Manager and Acting Manager report directly to the trustees and regularly meets formally with the full board of trustees to review the financial status and progress of the charity. During the year the Manager, Mrs Sue Scalora, after over 30 years’ service to the Centre, retired and the trustees did, until a new Manager was recruited, appoint the Assistant Manager, Miss Halyna Kovalchuk as Acting Manager. On 1[st] July 2024 Mr Chris Cherrill was appointed as the new Manager. As part of her brief, Miss Kovalchuk also continued to provide the trustees with key performance information to help in this regard and keep the website updated as appropriate.

The key management personnel of the charity include the above and are in charge of directing, controlling, running and operating the charity on a day-to-day basis. All trustees give of their time freely and no trustee received any remuneration in the year. Details of trustees’ expenses and related party transactions are disclosed in Notes 13 and 17 to the financial statements.

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THE HIGHBURY CENTRE

(A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 05422555)

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST DECEMBER 2023 (continued)

The pay of senior staff is reviewed annually and normally increased in accordance with average earnings. In view of the nature of the charity’s activities, the trustees try to benchmark pay levels in other Centres and local guest houses. The other staff are paid the National Living Wage.

Objectives and activities

The objects of the charity are the provision of guest houses for the reception, accommodation, boarding and maintenance of foreign and home missionaries and Christian friends with the interest and object of maintaining such guest houses as Protestant Evangelical guest houses and for the promotion of other religious or charitable purposes as the trustees think fit.

Since 1[st] September 2006 the charity has run the Highbury Centre London which exists to provide attractive accommodation for missionaries, Christian workers, overseas visitors, students and others in London. This includes bed and breakfast, and conference accommodation. The Centre has 40 rooms and 16 of the rooms provide en-suite accommodation. To facilitate all of this it is important that the buildings are well maintained and remain welcoming to guests.

When reviewing the provision of facilities and services to guests for the year, the trustees have considered the Charity Commission’s guidance on public benefit. In addition, management keeps under review methods to save energy and being more environmentally sustainable, including looking to recycle wherever possible.

In addition to providing all guests and students with the chance to experience opportunities for spiritual development, pastoral care and the opportunities to meet and network with others, one of the many other benefits provided to guests is through discounted rates for missionaries, Christian workers and to a lesser extent, students.

Achievements and performance

As already noted previously the trustees are pleased to see that since the ending of the pandemic, occupancy rates have now returned to their pre-Pandemic levels. The ever-increasing cost base continues to cause concern. With the significant increases in the National Living Wage and other salaries due to the erosion of differentials, as well as the increase in utility costs, other cost of living increases and overheads, control of costs takes up a significant part of management’s time.

Missionaries and Christian workers, as well as students, have continued to benefit from discounted rates. Visitor numbers increased to 15,686 visitor nights in 2023 as compared with 12,110 in 2022. This compares very well with the 14,676 achieved in 2019, the last full year before the pandemic. The number of Missionaries and Christian workers were well above those in 2019 whilst the student group occupancy was slightly below that achieved in 2019. A net income of £78,543, before the revaluation adjustments of fixed assets, was achieved as compared with a net income of £17,481 in 2022, which the trustees regard as satisfactory in the circumstances.

Financial review

The amounts receivable from visitors and staff was £770,576 (2022: £556,396), of which £768,491 (2022: £613,846) was spent on direct charitable activities, and total expenditure in the period was £776,416 (2022: £622,186). This resulted in funds carried forward of £2,841,475 (2022: £2,746,155) which in the Balance Sheet are principally represented by investments and the amount spent on the refurbishment in prior years. The part of these funds held in realisable investments had a value of £436,810 (2022: £424,108) at year-end. The trustees have also set aside £20,000 (2022: £20,000) to provide a bursary fund which is available to enable guests with limited resources to enjoy the facilities the Centre provides and £45,000 (2022 - £45,000) for ongoing cyclical maintenance so that the buildings can continue to be well maintained.

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THE HIGHBURY CENTRE

(A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 05422555)

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST DECEMBER 2023 (continued)

Further details of the financial results for the year are given in the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows, and the accompanying notes.

Reserves Policy

It is the trustees’ policy to function with maximum ‘free’ reserves of £1,000,000 to fund developments and capital expenditure projects, phased over a number of years, required at the Centre’s premises in connection with improved dining facilities and accommodation. At present the free reserves are significantly less than this target level. The trustees consider that improving the annual surplus through targeted marketing efforts will result in increased occupancy rates and this is the best way to achieve their reserve policy. This will also provide the resources in the medium to longer term to pay off the loans.

The operational reserves, which after taking out the investment property revaluation reserve, currently stands at approximately £450,000. This is also after allowing for those resources designated for the improvement of the premises and ongoing cyclical maintenance to keep the Centre as a first-class facility which are detailed in note 11 of the accounts.

Investment policy

The trustees have continued to use RBC Brewin Dolphin as investment managers. The policy adopted, is one of a medium risk strategy based on maximising income and the investment managers are working towards the target return discussed with the trustees. Due to market conditions at the beginning of the year the target return for the year was 2.7%. The trustees consider the return achieved of 3.0% on the investments in the year to be satisfactory. The trustees also continue to monitor the performance of the investments in light of current market conditions. The charity has made such investments to generate a return and has made no social investments.

Plans for the future

The trustees remain positive about the future and following the return of occupancy rates achieved in the past look forward to modest surpluses in the next few years. Future developments remain difficult to predict and occupancy rates and cash flows will continue to be closely monitored. With the continuingly high real rates of inflation in some costs and salaries, these continue to be of concern and will also continue to be monitored very closely. The trustees continue to look at ways of widening the Centre’s purposes and providing day conference facilities and other similar activities so that increased occupancy will provide a greater contribution to meeting the increasing costs.

As there is no a necessity to hang onto the Charity’s investment property, 98 Aberdeen Park, London N5 and the interest on the loans and management costs were now well in excess of the rents received from the property, the trustees took the decision on 9 May 2024 to sell the property. Following taking appropriate advice and securing a Charities Act Report and valuation from Copping Joyce the trustees are now looking to market the property in the forthcoming months.

Statement of trustees’ responsibilities

The trustees (who are the directors of The Highbury Centre for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of affairs of the company and of its incoming resources and application of resources, including the income and expenditure, of the company for that period. In preparing these financial statements, the trustees are required to:

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THE HIGHBURY CENTRE

(A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 05422555)

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST DECEMBER 2023 (continued)

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website.

In so far as the trustees are aware:

This report is prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE TRUSTEES

20-26 Aberdeen Park Highbury London N5 2BJ

Mr H L M Du Plessis Trustee

2024-09-10 Date:

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THE HIGHBURY CENTRE

(A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 5422555)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE HIGHBURY CENTRE FOR THE YEAR ENDED 31[ST] DECEMBER 2023

Opinion

We have audited the financial statements of The Highbury Centre (the ‘Charity’) for the year ended 31 December 2023 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice)

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:

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THE HIGHBURY CENTRE

(A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 5422555)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE HIGHBURY CENTRE (continued) FOR THE YEAR ENDED 31[ST] DECEMBER 2023

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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THE HIGHBURY CENTRE

(A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 5422555)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE HIGHBURY CENTRE (continued) FOR THE YEAR ENDED 31[ST] DECEMBER 2023

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

Audit response to risks identified

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 Trustees 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: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Mr Colin James Dadswell (Senior Statutory Auditor) For and on behalf of Caladine Limited

Chartered Certified Accountants Statutory Auditor

Chantry House 22 Upperton Road Eastbourne East Sussex BN21 1BF

2024-09-11

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THE HIGHBURY CENTRE (A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 05422555)

STATEMENT OF FINANCIAL ACTIVITIES (including income and expenditure account) FOR THE YEAR ENDED 31ST DECEMBER 2023

Note
Income from:
Donations and legacies
Investments
2
Charitable activities:
Amounts receivable for accommodation, meals and conferences
Other sources:
CJRS grants
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
3
Net income before net losses on investments
Net gains/(losses) on investments
5
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
10		 Unrestricted Funds
2023
2022
£
£
2,580
1,557
81,803
79,047
770,576
556,396
-
2,667
854,959
639,667
7,925
8,340
768,491
613,846
776,416
622,186
78,543
17,481
16,777
(63,463)
95,320 ( 45,982)
2,746,155
2,792,137
2,841,475
2,746,155

None of the charitable activities were acquired or discontinued during the year. There are no recognised gains or losses other than the result shown above.

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THE HIGHBURY CENTRE (A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 05422555)

BALANCE SHEET AS AT 31ST DECEMBER 2023

Note
Fixed assets
Tangible assets
4
Investments
5
Current assets
Stocks
6
Debtors
7
Bank

Creditors: amounts falling due
within one year
8

Net current assets/(liabilities)
Total assets less current liabilities
Creditors:amounts falling due
after one year
9
Net assets
Funds
Unrestricted Funds(including Revaluation
Reserve of £1,525,836 (2022: £1,517,528)):
10
Designated funds
General fund		 2023
£
£
1,143,989
2,791,810
3,935,799
2,739
51,726
267,101

321,566
(152,588)

168,978
4,104,777
(1,263,302)
2,841,475
697,330
2,144,145
2,841,475		 2022
£
£
1,187,366
2,779,108
3,966,474
2,120
39,740
156,084
197,944
(256,579)
( 58,635)
3,907,839
(1,161,684)
2,746,155
740,707
2,005,448
2,746,155		 2022
£
£
1,187,366
2,779,108
3,966,474
2,120
39,740
156,084
197,944
(256,579)
( 58,635)
3,907,839
(1,161,684)
2,746,155
740,707
2,005,448
2,746,155

3,907,839
(1,161,684)
2,746,155
740,707
2,005,448
2,746,155

These accounts have been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies.

These financial statements were approved by the trustees on and signed on their behalf by:

2024-09-10

Mr H L M Du Plessis Trustee

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THE HIGHBURY CENTRE (A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 05422555)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2023

Cash provided by operating activities (Note a)
Cash flows from investing activities
Interest received
Dividends received
Payments to acquire investments
Proceeds on disposal of investments
Cash provided by investing activities
Cash flows from financing activities
Interest paid
Payment of mortgage
Cash (used in) financing activities
Net cash inflow
Cash and cash equivalents at 1stJanuary 2023
Cash and cash equivalents at 31st December 2023 (Note b)
a) Cash flows from operating activities
Net movement in funds
Interest paid and discount movement
Interest received
Dividends received
Depreciation
Loss on disposal of investment assets
Unrealised (gain)/loss on investment assets
(Increase) in stocks
(Increase) in debtors
(Decrease)/increase) in creditors
Cash provided by operating activities
b) Cash and cash equivalents
At 31stDecember 2023
Bank
Dealings account		 2023
£
165,106
2,018
12,856
(94,516)
85,267
5,625
( 72,119)
(919)
(73,038)

97,693
181,414
279,107
95,320
94,656
( 2,018)
( 12,856)
43,377
24
(16,801)
( 619)
(11,986)
(23,991)
165,106
267,101
12,006
279,107		 2022
£
187,094
147
12,222
(5,395)
33,240
40,214
(60,671)
(80,251)
(140,922)
86,386
95,028
181,414
(45,982)
88,472
( 147)
( 12,222)
43,377
11,226
52,237
( 64)
( 6,050)
56,247
187,094
156,084
25,330
181,414

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THE HIGHBURY CENTRE (A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 05422555)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2023 (continued)

c) Analysis of changes in net debt

At 1 January
2023
£
Cash
181,414
Loans falling due within one year
( 80,000)
Loans falling due after more than
one year
(1,161,684)
Total
(1,060,270)		 Cash
Non-cash
At 31
flows
changes
£
£
97,693
-
-
80,000
919
(102,537)

98,612
(22,537)		 December
2023
£
279,107
-
(1,263,302)
( 984,195)

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THE HIGHBURY CENTRE (A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 05422555)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

1 ACCOUNTING POLICIES

Company information

The Highbury Centre is a private company limited by guarantee incorporated in England and Wales. The registered office is 20-26 Aberdeen Park, Highbury, London, N5 2BJ.

Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investments. The principal accounting policies are set out below.

Going concern

The charity produces annual budgets and forecasts which take into account expected changes in its performance and 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. On this basis the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Tangible fixed assets

Tangible fixed assets, other than freehold land and buildings held for the charity’s use, are stated at cost less depreciation. Depreciation is provided on major improvements to buildings at 4% per annum on cost, to write off the cost over their expected useful life. Plant, fixtures and fittings costing less than £2,500 are written off as an expense as incurred.

The Charity’s policy is to maintain its freehold property to a high standard through a continual programme of maintenance. The trustees consider that the residual value of the property is such that it renders any depreciation immaterial and consequently no annual deprecation charge is shown in the accounts. Freehold land is not depreciated.

Fixed asset investments

Investments are stated at fair value. Realised and unrealised gains are reflected through the Statement of Financial Activities.

Stocks

Stock comprises provisions and house sundries which are included at a net realisable valuation made by the manager.

Debtors

Amounts due from guests and other debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

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

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THE HIGHBURY CENTRE (A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 05422555)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 (continued)

1 ACCOUNTING POLICIES (continued)

Creditors and provisions

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

Financial instruments

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

Income recognition

Accommodation charges and meals income are accounted for on a receivable basis, net of VAT.

Investment income and bank interest are the amounts received for the year.

Voluntary income and donations (including legacies) are accounted for once the charity has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. The income from fundraising is shown gross, with the associated costs included in fundraising costs. Where material assets are donated to the company for its use, these are capitalised at the estimated market value at the date of the gift and included under income. Assets given for distribution by the charity are received as income when distributed and stated in the accounts at the trustees’ estimated market value at the time of receipt.

Grant income from the Coronavirus Job Retention Scheme (CJRS) is recognised in the period to which the underlying furloughed staff costs relate.

Expenditure

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities. The majority of costs are directly attributable to specific activities. Staff costs are allocated on the basis of time spent by staff on each activity. Office costs, including governance costs, are charged directly to the activity when incurred.

Funds structure

Unrestricted funds are expendable at the discretion of the trustees in the furtherance of the objects of the charity. Designated funds are unrestricted funds set aside by the trustees for specific purposes. The charity doesn’t have any restricted funds.

Pension scheme

The company operates a defined contribution scheme. Contributions payable are charged to the Statement of Financial Activities in the year they are payable.

Operating lease rentals

Rentals under operating leases are charged to the income and expenditure account as incurred.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Page 14

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THE HIGHBURY CENTRE (A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 05422555)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 (continued)

1 ACCOUNTING POLICIES (continued)

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.

2INVESTMENT INCOME
Arising from investment assets held in the UK

Rents receivable
Investments listed on a recognised stock exchange
Bank and stockbroker’s interest		 2023

£
66,929
12,856
2,018
81,803		 2022
£
66,678
12,222
147
79,047

Page 15

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THE HIGHBURY CENTRE (A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 05422555)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 (continued)

3
EXPENDITURE
Establishment expenses
Electricity & gas
Insurance
Rates & refuse collection
Repairs, renewals & improvements:
Premises
Furniture and equipment
Depreciation
Road charges
Housekeeping expenses
Gardening
Hire of equipment
House sundries
Laundry & cleaning
Provisions & purchases for
incidental sales & charges
Staff training
Salaries, wages & pensions (note 11)
Support costs
Advertising
Secretarial salary (note 11)
Bank charges & interest
Computer equipment
& internet charges
Credit card charges
Office telephone & mobiles
Mortgage interest & discount movement
Stationery, postage & sundries
Governance costs
Auditor’s remuneration – statutory audit
Other professional fees
Total expenditure		 Charitable
Raising
activities
funds
£
£
59,376
-
32,610
-
12,758
-
49,664
-
9,178
-
43,377
-
2,230
-
209,193
-
110
-
9,320
-
7,550
-
14,537
-
58,851
-
799
-
318,164
-
409,331
-
-
4,336
6,903
-
466
-
4,557
-
15,843
-
2,337
-
94,656
-
1,483
-
126,245
4,336
5,800
-
17,922
3,589
23,722
3,589
768,491
7,925		 2023
Total
£
59,376
32,610
12,758
49,664
9,178
43,377
2,230
209,193
110
9,320
7,550
14,537
58,851
799
318,164
409,331
4,336
6,903
466
4,557
15,843
2,337
94,656
1,483
130,581
5,800
21,511
27,311
776,416		 2022
Total
£
65,638
29,379
7,437
27,085
9,540
43,377
1,984		 2022
Total
£
65,638
29,379
7,437
27,085
9,540
43,377
1,984
184,440
647
9,542
4,306
8,448
42,294
-
228,667
293,904
3,452
4,327
330
5,670
10,638
2,256
88,472
843
115,988		 3,452
4,327
330
5,670
10,638
2,256
88,472
843
5,711
22,143
27,854
622,186		 5,711
22,143
27,854

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THE HIGHBURY CENTRE (A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 05422555)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 (continued)

4
TANGIBLE FIXED ASSETS
Held for charity use
Cost:
At 1stJanuary 2023
Additions
At 31stDecember 2023
Depreciation:
At 1stJanuary 2023

Charge for the year
At 31stDecember 2023
Net book value:
At 31stDecember 2023
At 31stDecember 2022
5
FIXED ASSET INVESTMENTS
At market value:
At 1stJanuary 2023
Additions
Value of disposals
Unrealised gain
Net movement in cash
Management fees paid
At 31stDecember 2023
At cost:
At 1stJanuary 2023

Additions
Cost of disposals
At 31stDecember 2023		 Freehold
Major
Land &
Improvements
Buildings
£
£
511,660
1,084,429
-
-
511,660
1,084,429
-
408,723
-
43,377
-
452,100
511,660
632,329
511,660
675,707
Freehold
Listed
Land &
Investments
Buildings
£
£
2,355,000
424,108
94,516
-
( 85,291)
-
16,801
-
( 9,248)
-
( 4,076)
2,355,000
436,810
920,989
340,591
-
94,516
-
( 90,122)
920,989
344,985		 Total
2023
£
1,596,089
-
1,596,089
408,723
43,377
452,100
1,143,989
1,187,367
Total
2023
£
2,779,108
94,516
( 85,291)
16,801
( 9,248)
( 4,076)
2,791,810
1,261,580
94,516
( 90,122)
1,265,974

The freehold land and buildings, 98 Aberdeen Park, London N5 were valued on an open market value basis at 4[th] February 2021 by Copping Joyce, Chartered Surveyors at £2,355,000.

The listed investments portfolio is structured in direct investments in listed securities on a UK stock exchange, and in the furtherance of the charity’s objectives and is held wholly within the UK.

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THE HIGHBURY CENTRE (A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 05422555)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 (continued)

6
STOCKS
Provisions
House sundries
Stationery
7
DEBTORS
Due from guests
Other debtors
Prepayments
8
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Loan
Trade creditors
Other taxes and social security
Accruals
Deferred income
Other creditors
Deferred income is included within the financial statements as follows:
Deferred income is included within:
Current liabilities
Movement in the year:
Deferred income at 1stJanuary 2023
Released from previous periods
Resources deferred in the year
Deferred income at 31stDecember 2023

Deferred income relates to amounts invoiced for accommodation, meals and conferences for the 2024 financial year and beyond.

9 LOANS

The company has two Suffolk Building Society loans each of £750,000 and both repayable by February 2032. They are secured by way of a fixed charge on the company’s premises, 20-26 Aberdeen Park and 98 Aberdeen Park, London N5 and bear interest, one at a fixed rate of 3.99% from 1[st] December 2021. The other at a variable rate of 0.75% below the Society’s commercial standard variable rate (currently 7.94%) until 31[st] January 2032. The trustees consider the loans to represent significantly less than the value of the secured properties, which have a carrying value of £3,498,989.

There are no plans in place for the charity to make any further capital repayments in the coming year. This is reflected in Creditors: Amounts falling due within one year (note 8).

The loans have been measured at amortised cost using the effective interest rate method. The carrying value of the loans is adjusted each year so that the interest charge is even over the course of the loans.

Page 18

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THE HIGHBURY CENTRE (A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 05422555)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 (continued)

Present value of loans brought forward
Repayment in the year
Movement in discount in the year
Present value of loans carried forward


Loans amount due within one year

Loans amount due after one year
Present value of loans carried forward
 £
1,241,684
( 919)
22,537
1,263,302
£
-
1,263,302
1,263,302

The interest expense, calculated using the effective interest method, for financial liabilities measured at amortised cost is £94,656 (2022: £88,472).

10 FUNDS Unrestricted Designated Funds Designated Funds
Funds Bursary Fund Improvement Refurbish- Total
2023 of premises ment reserve 2023
£ £ £ £
Income 854,959 - - - 854,959
Expenditure (733,039) - (43,377)
-		 (776,416)
Net income/(expenditure) before
investment gains/(losses) 121,920 - ( 43,377) - 78,543
Other recognised gains/(losses) 16,777 - - - 16,777
Net movements in funds 138,697 - ( 43,377) - 95,320
Fund balances brought forward 2,005,448 20,000 675,707 45,000 2,746,155
Fund balances carried forward 2,144,145 20,000 632,330 45,000 2,841,475

Page 19

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THE HIGHBURY CENTRE (A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 05422555)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 (continued)

10 FUNDS (continued)
Unrestricted Designated Funds
Funds Bursary Fund Improvement Refurbish- Total
2022 of premises ment reserve 2022
£ £ £ £
Income 639,667 - - - 639,667
Expenditure (578,809) - (43,377) - (622,186)
Net income/(expenditure) before
investment gains/(losses) 60,858 - ( 43,377) - 17,481
Other recognised gains/(losses) ( 63,463) - - - (63,463)
Net movements in funds ( 2,605) - ( 43,377) - ( 45,982)
Fund balances brought forward 2,008,053 20,000 719,084 45,000 2,792,137
Fund balances carried forward 2,005,448 20,000 675,707 45,000 2,746,155

The Designated Funds were set aside by the trustees as follows:

Bursary fund – money set aside to provide bursaries for less well-off guests.

Improvement of premises fund - money set aside to fund the improvements to the facilities.

Refurbishment reserve- money set aside to maintain the premises in a first class condition.

11
STAFF COSTS
2023
£
Gross salaries
297,410
Social security costs
17,999
Pension costs
9,658
325,067
Average monthly number of employees:
15
No employee received remuneration in excess of £60,000 in the year or preceding year.
Remuneration of key management personnel
Aggregate remuneration
38,042		 2022
£
214,082
10,609
8,303
232,994
13
33,934

12 PENSION COSTS

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounts to £9,658 for the year (2022: £8,303).

Page 20

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THE HIGHBURY CENTRE (A company limited by guarantee and not having a share capital) (Charity number 1113000, Company number 05422555)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 (continued)

13 TRUSTEES

Remuneration and reimbursement of trustees’ expenses

During the year, the trustees received no remuneration (2022 – nil), and there were also no trustees reimbursed for expenses (2022 - £61 reimbursed to one trustee) in connection with the business of the charity.

14 AUDITOR’S REMUNERATION

Fees payable for the audit of the charity’s accounts
 2023
2022
£
£
6,000 5,711

15 FINANCIAL COMMITMENTS

At 31[st] December 2023 the charity had contracted with tenants for the following lease payments:

Within one year 2023 2022
£
£
72,000
72,000

16 COMPANY STATUS

The charity is a company limited by guarantee and therefore has no share capital. In the event of the company being wound up each member is liable for an amount not exceeding the sum of £10.

The company is a registered charity and has taken advantage of the exemption to dispense with word Limited from its name.

17 RELATED PARTY TRANSACTIONS

The charity paid for trustee indemnity insurance of £1,619 (2022: £1,619) on behalf of the trustees as part of its combined insurance policy.

A relative of key management personnel was employed by the charity and received a gross salary of £22,595 (2022: £23,297). Employers’ National Insurance was £1,781 (2022: £2,107).

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