Company registration number: 5365585 Charity registration number: 1113818 Axminster Heritage Limited (A company limited by guarantee) Annual Report and Financial Ststements for the Year Ended 29 February 2024 WESTCOTTS CHARTERED ACCOVNTANTS I BUSINESS ADVISERS
Axminster Heritage Limlted Contents Referen and Administrative Details Trustees, Report 2to3 Independent Examinerfs Report Statement of Financial Activities Balance Sheet 6t07 Notes to the Financial Statements 8t019
Axminster Heritage Llmited Reference and Administrative Details Chairnian Mr L Hitchcock Trustees Mr A T Moulding Ms R Green Mr S Holt Mr D Knapman Mr S Courtman Secretary Mrs J Richardson Charity Reglstration Number 1113818 Company Reglstration Number 5365585 Reglstsred Offlce Thomas Whity House Silver Street Axminster Devc EX13 SAH Independent Examiner Westcotts (SW) LLP Timberfy South Street Axminster Devon EX13 SAD Accountants Westcotts Timberly South Str88t Axminster Devon EX13 SAD Page 1
Axminster Heritage Limited Trustees, Report The trustees, 0 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 29 February 2024. Objectives and activitles Objects and ain The objective of the charity is the provision of a community building and museum of national Importan in Axminster. The company commenced its activity on 7 September 2006 followng the gaining of charitable status. Public benefft The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. Financial review The charity received total income of £34.116 (2023.. £34,393) during the year, of which £- (2023: £-) was restricted income. Expenditure and unrealised lo&ses on investments for the year totall8J £134,514 (2023: £112,384), of lch £80,638 (2023: £81,996) was restricted, resulting in a deficit of £91,078 (2023 deficit £80,145) for the year. At the year*nd the charity held £994,990 in reserves, of lch £101,210 was held in general reserve and £893,780 in the restricted reserve. Policy on reseftves The Trustees have considered the scale, complexity and risk to Axminster Heritage Centre. Considering the Heritage Centre's high level of self-generated income, it has decided that the company should aim to hold unrestricted current assets reserves of an amount, allowng it to operate v4tthnirt Any inrnmp from its charitable activities for up to one year. Structure, governance and management Axminster Heritage Limited is a company limited by guarantee governed by its Memorandum and Articles of Association. It is a registered charity (registration number 1113818). The directors of the charitable company and throughout this report are collectively referred to as trustees, have the power to co-opt further directors to serve as trustees during the accounting year. Such appointment(s) are subsequently ratified by the members at the Annual General M&ting. Risk management Risk is minim11 by (inter alia) prudent budgeting based on an assessment of likely income, and putting in place procedures and associated Volunteer training to reduce adverse operational outcomes. Axminster Heritage is in the prOsS of transitioning to Charitable IncorForated Organisation (CIO) status, and our Risk Register and associated procedures are under review, and being consolidated, as part of that pr¢xess. Page 2
Axminster Heritage Limited Trustses. Report Statement of trustees. responsibillties The trustees {0 are also the directors of Axminster Heritage Limited for the purposes of company law) are responsible for preparing the trustees, report and the financial statements in accordance wth applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland" The report and accounts have been prepared in accordan with the provisions in the Companies Act 2006 relating to small companies. 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 the incoming resources and application of resources, including its income and expenditure, of the charitable company 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. stste whether applicable accounting standards, comprising FRS 102 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 proper accounting records that can disclose with reasonable accuracy at any time the financial position of the charitsble company and enable them to ensure that the financia 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. The trustees are responsible for the Maintenan and integrity of the corporate and financial information included on the charitAhlf.a r.r)mpany's wp.hsite. Legislation governing the preparation and dissemination of financial statements may differ from legislation in otherjurisdictions. Small companies provision statement This report has been prepared in accordance with the small companies regime under the Companies Act 2006. The annual report was approved by the trustees of the charity on beha by: and signed on its Mr L Hitchcock Chairman T Moulding Trustee Page 3
Axminster Heritage Limited Independent Examinerfs Report to the trustees of Axminster Heritage Limited ('the Company.) I report to the charity trustees on my examination of the accounts of the Company for the year ended 29 February 2024. Responsibilities and basis of report As the charity's trustees of the Company (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 20C6 {'the 20C6 Act,). Having satisfied myself that the accounts of the Company 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 carying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. Independent examinerfs statement I have completed my examination. I confimi 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 Axminster Heritage Limited 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 accordan wth the methc(Js and principles of the Statement of Recommended practi for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applitsaLJlg iii Iliè UK dl Id RgyubliL uf Iielo411LI (FRS 102)]. I have no concerns and have come across no other matters in connection Vth the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Robyn Gifford-England ACA Timberly South Street Axminster Dev¢Jn EX13 SAD Date: Page 4
Axminster Heritsge Limited Statement of Financial Activities for the Year Ended 29 February 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestricted funds Restricted funds Totsl 2024 Total 2023 Note Income and Endowments from: Donations and legacies Charitable activities Investment income 2.543 17.348 14,225 2,543 17,348 14,225 2.180 12.884 19,329 Total income 34,116 34,116 34,393 Expenditure on: Charitable activities (53,876) (80.638) (134.514) (112,384) Total expenditure GaIn(lO$ses) on investment assets (53,876) (80.638) (134,514) (112.384) 9,319 9,319 2.154 Net expenditure Net movement in funds 10,441 180,638 91,079 80,145 (10,441) (80,638) (91,079) {80,145) Reconciliatlon of funds Total funds brought forward Total funds carried forward 20 111,651 974,418 1,086,069 1,166,214 101,210 893,780 994,990 1,086,CE9 All of the charitys activities dertve from continuing operations during the above two periojs. The funds breakdown frjr ?n?2 18 qhnvm in note 20. The notes on pages 8 to 19 fonn an integral part of these financial statements. Page 5
Axminster Heritage Limited (Registration number: 5365585) Balance Sheet as at 29 February 2024 2024 2023 Note Flxed assets Tangible assets Investments 13 14 903,977 79,517 951,623 115,198 1.066,821 983,494 Current assets Stccks Debtors Cash at bank and in hand 15 16 17 1,000 2,675 11,543 1,000 3,442 14,806 19,248 15,218 Creditors: Amounts falling due within one year Not current assets 18 (3,722 11,496 19,248 Net assets 994,990 1,086,069 Funds of the charlty: Restricted income funds Restricted funds 893.780 974,418 Unrestricted income funds Unrestricted funds 101.210 111,651 Totsl funds 20 994,990 1,086,069 For the financia year ending 29 February 2024 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 acknedge their responsibilities for complyir@ wth the requirements of the Act with respect to accounting records and the preparation of accounts. These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 20c. The notes on pages 8 to 19 form an integral part of these financial statements. Page 6
Axminster Heritage Limited (Registration number: 5365585) Balance Sheet as at 29 February 2024 The Inancia statements on pages 5 to 19 V4Ere approved by the trustees, and authorised for issue on rtt signed on their behalf by: Mr L Hitchcock Chair an MrA T Mould. Trustee The notes on pages 8 to 19 fomi an integral part of these financial statements. Page 7
Axminster Heritsge Limited Notes to the Financial Ststements for the Year Ended 29 February 2024 I Charlty status The charity is limited by guarantee, incorporated in . and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exedIng £10 towards the assets of the charity in the event of liquidation. The address of its registered Offi is.. Thomas Whitty Hou Silver Street Axminster Devc EX13 SAH 2 Accounting policies Summary of significant accountlng 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 othem stated. Statement of compliance The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practi (applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) and the Companies Act 2006. Basis of preparation Axminster Heritage Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otheiSe stated in the levant accounting policy notes. Going concern The trustees consider that there are no material UnrtaIntieS about the charity's ability to continue as a going concern nor any significant areas of uncertainty that afft the carrying value of assets held by the charity. Exemption from preparing a cash flow ststement 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 8
Axminster Heritage Limited Notes to the Financial Statements for the Year Ended 29 February 2024 Donatlons and legacies Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performan by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these Conditions wll be fulfilled in the reporting Investment income Dividends are recognised On the dividend has been declared and notification has been reiVed of the dividend due. Expendlture All expenditure is recognised On 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 ntral 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 activib'es and services for its beneficiaries. It includes both costs that can be allocated directly to such activikn'es and those costs of an indirect nature neSSary to support them. Taxation Tl'i¥ Llidiily is wnsidered to pass the tests set out in Paragraph 1 Schedule o of the Pinan 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. Tangible flxed a&sets Individual fixed assets costing £100.00 or more are initially recorded at cost, less any subsequent accumulat&J depreciation and subsequent accumulated impainnent losses. Depreciation and amortlsation Depreciation is provided on tangible fix 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 Building Renovations Fixtures and Fittings Website Depreciation method and rate 40/0 Straight line 10 % straight line 20°/o Straight line Page 9
Axminster Heritage Limited Notss to the Financial Ststements forthe Year Ended 29 February 2024 Fixed asset investments Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the differen betrn sales pr*dS and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financia Activities in the period of disposal. Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end. Stock Stock is valued at the lower of cost and estimated selling pri less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO). 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. Borrowings Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing b)rrowrngs are subsequently carried at amortised cost, with the difference belAvn the proedS, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Interest expense is re¢ognised on the basis of the efflIve interest method and is induded in interest payable and similar charges. Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Fund structure Unrestricted income funds are general funds that are available for use at the trustees discretion in furtheran 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 purpo. Financial instruments Classification Financial assets and financial liabilities are reCognid when the charity becomes a party to the contractual provisions of the instrument Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities. Page 10
Axminster Heritage Limited Notes to the Financial Statements for the Year Ended 29 February 2024 Racognltion and measurement All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is nomially the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction. the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measur1 at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective eviden of impairment at the end of each reporting date. If there is eviden of impairmen( an impairment loss is recognised in the statement of financial activities immediately. 3 Income from donations and legacies Unrestricted funds General Total 2024 Grants and donations Membership subscriptions 1.414 1,129 2,543 Unrestrlcted funds General 1,414 1,129 2,543 Total 2023 Grants and donations Membership sUbriptIOnS 1,157 1,023 2,180 1,157 1,023 2,180 4 Income from charitable activitles Unrestricted funds General Totsl 2024 Events Visitor income Merchandise other activities 9,461 4,922 2,919 9.461 4,922 2,919 46 17,348 17.348 Page11
Axminster Heritage Limited Notes to the Financial Statements for the Year Ended 29 February 2024 Unrestricted funds General Total 2023 Events Visitor income Merchandise Other activities 7,129 3,648 1,987 120 7.129 3,648 1.987 120 12,884 12,884 5 Investment income Unrestricted funds General Total 2024 Interest reiVed Income frcKn nts 1.710 12,515 14,225 1,710 12,515 14,225 Unrestricted funds General Total 2023 Interest received Income from rents 2.159 17.170 19.329 2,159 17,170 19,329 6 Expenditure on charitable activities Unrestricted charitable activities Total 2024 Total 2023 Raising Funds Property Costs General Expenses 1,579 335 complian costs Insurance Printing, postage and stationery Marketing and promotional materia Merchandise for rvsale Event running costs Training and volunteer expenses Museum and collection costs 1,579 3,245 1,472 4,640 2,910 15 15 143 3.685 5,223 3.820 3,685 5,223 3,820 2,597 1,014 3,639 100 3,897 3,897 909 Page 12
Axminster Heritage Limited Notes to the Financial Statements for the Year Ended 29 February 2024 Unrestricted charitable activltles Total 2024 Total 2023 Raislng Funds Property Costs 25,112 General Expenses Property running costs Website costs Other expenses 25,112 1,445 4,121 11,968 1,637 2,269 1,445 4,121 12,743 28,022 52,142 30,388 Restrfcted charitable actlvlties Total 2024 Total 2023 Raising Funds Property Costs General Expenses 17,383 Staffing Building renovation depreciation Fixtures, fittings depreciation Website depreciation 17,383 17,119 36,536 36,536 36,536 26,719 26.719 28,089 252 36,536 44,102 80,638 81.996 7 Analysis of support costs Support costs allocatsd to charltable activities Other iippnrt Costs Governance costs Finance Total funds Charitable activities 1,579 1,000 3,121 5,700 8 Net Incomingloutgolng resources Net outgoing reSoUrS for the year include: 2024 2023 Depreciation of fixed assets 63,255 64,877 9 Trustees remuneration and expenses No trustees. nor any persons connected with them, have received any remuneration from the charity during the year (2023: Nil). No trustees have received any reimbursed expenses or any other benefits from the charity during the year (2023: Nil). Page 13
Axminster Heritage Limited Notes to the Financial Statements for the Year Ended 29 February 2024 10 Staff costs The aggregate payroll costs were as follows: 2024 2023 Staff costs durlng the year wer6: Wages and salaries 17.383 17,119 The monthly average number of persons (including senior management I leadership team) employed by the charity during the year was as follows.. 2024 No 2023 No The average headcount of employ*s during the year No employee received emoluments of more than £60,000 during the year (2023.. Nil). 11 Independent examinerfs remuneration 2024 2023 Fees payable to the independent examiner for. Independent examination of the financial statements 647 602 12 Taxation The charity is a registered charity and is therefore exempt from corporation tax on its charitable activities. Page 14
Axminster Heritsge Limited Notss to the Financial Statements forthe Year Ended 29 February 2024 13 Tangible fixed assets Furniture and equipment Building renovation works Land and buildings Website Total Cost At 1 March 2023 Additions 200,000 280,924 17,343 5.760 913,390 1,400,074 17,343 At 29 February 2024 200.000 298,267 5,760 913,390 1,417.417 Depreciation At 1 March 2023 Charge for the year 158,041 5,760 284,650 448,451 28,453 36,536 64,989 At 29 February 2024 186,494 5,760 321,186 513,440 Net book value At 29 February 2024 200,000 111,773 592,204 903,977 At 28 February 2023 200,000 122,883 628,740 951,623 The freehold property is shown at its cost. It is subject to restrictions of use and sale and its subject to a legal charge in favour of the National Heritage Memorial Fund. Page 15
Axminster Heritsge Limited Notes to the Financial Statements forthe Year Ended 29 February 2024 14 Flxed asset investments COIF Investments Total Cost or Valuation At 1 March 2023 Revaluation Disposals 120,000 4,517 {45,000) 120.000 4,517 45,000 At 29 February 2024 79,517 79,517 Net book value At 29 February 2024 79,517 79,517 At 28 February 2023 115,198 115,198 All investments are held at valuation. Investments are revalueA to their fair value at each year end date. The fair value has been determined by 3rd party valuations as provided by asset managers. 15 Stock 2024 2023 Stocks 1,000 1,000 16 Debtors 2024 2023 Trade debtors 2,675 3,442 17 Cash and cash equivalents 2024 2023 Cash on hand Cash at bank 50 11,493 50 14,756 11,543 14,806 Bank overdrafts (23) 11,520 Cash and cash equivalents in statement of cash flowE 14,806 Page 16
Axminster Heritage Limited Notes to the Financial Statements forthe Year Ended 29 February 2024 18 Creditors: amounts falling duo wlthin oneyear 2024 Bank overdrafts Other creditors Accruals 23 3.698 3.722 Page 17
Axminster Heritage Limited Notes to the Financial Statements for the Year Ended 29 February 2024 19 Contingent liabilities A legal charge is held by the National Heritage Memorial Fund on the freehold property of the charity, exercisable only if the charity fails to carry out its obligations under the Grant Contract undertaken. Trustees do not anticipate ceasing activity or selling the property in the foresable future. 20 Funds Other gains l(losses) 29 February 2024 1 March 2023 Incoming Resources resources expended Unrestricted funds General General Funds 111,651 34,116 (53,876) 9,319 101,210 Restrlcted funds Restricted Funds 974,418 {80,638) 893,780 Total funds 1,086,069 34,116 134,514 9,319 994,990 Other gains l{lossos) 28 February 2023 1 March Incoming Resources 2022 resources expended Unrestrfcted funds General General Funds 107,646 34,393 (30,388) 111,651 Restricted funds Restricted Funds 1,058,568 81,996 2,154 974,418 Total funds 1,166,214 34,393 112,384 (2,154) 1.086,069 The restricted reserve is specifically provided for the acquisition and refurbishment and fitting out of the building and associated matters. 21 Analysis of net assets between funds Page 18
Axminster Heritage Limited Notes to the Financial Statements for the Year Ended 29 February 2024 Totsl funds at29 February 2024 Unrestrfcted funds General Restrlcted funds Tangible fixed assets Fixed asset investments Current assets Current liabilities 15.609 79.517 9.806 (3,722) 888,368 903.977 79,517 15,218 (3.722) 5.412 Total net assets 101,210 893,780 994,990 Total funds at28 February 2023 Unrestricted funds General Restricted funds Tangible fixed a&sets Fix&l asset investments Current assets 951.623 22.795 951,623 115,198 19,248 92,403 19.248 Total net assets 111,651 974,418 1,086,C69 22 Related party transactions There were no related party transactions in the year (2023.. Nil). Page 19