Registered number: 05743618 Charity number: 1113837 ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) UNAUDITED TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Armstrongwatson, Accountants, Business & Financial Advisers
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) CONTENTS Page Reference and Administrative Detalls of the Company. its Trustees and Advlsers Trustees. Report Independent Examlner's Report Statement of Flnancial Activitie8 Balance Sheet 10-11 Notes to the Flnancial Statements 12-26
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2024 Trustees Mr P Grove, Trustee Mr S Hemm, Trustee Mr R Johnson, Trustee Mr D White, Trustee (resigned 21 March 2024) Mr S J Round, Trustee Mr l Macpherson (appointed 8 October 2024) Company registered number 05743618 Charlty registered number 1113837 Registered office Eskdale Mill Boot Holmrook CA19 1TG Accountants Armstrong Watson LLP Carlelon House 136 Gray Street Workington Cumbria CA14 2LU Page 1
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The Trustees present their annual report together with the financial statements of the Company for the year 1 January 2024 to 31 December 2024. The Annual Report serves the purposes of both a Trustees, report and a directors, report under company law. The Trustees confirm that the Annual Report and financial statements of Ihe charitable company comply with the currenl statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS102) (effective 1 January 2019). Since Ihe Company qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Stralegic Report and Directors, Report) Regulations 2013 has been omitted. Objectlves and actlvlties a. Prlnclpal objectlves The principal objects of Eskdale Mill & Heritage Trust {"the Trust") are the preservation and development, for Ihe public benefit, of the 16th century Eskdale Water Corn Mill at Bool. The Mill being of historic 2nd archilectural interest and to advance the education of the public in the history, heritage, geography and geology of Eskdale, so as to increase the underslanding of the built and natural environment. In accordance with section 17 (5) Charities Act 2011, in exercising their powers and duties, the trustees have regard to the Charily Commission's guidance on the public benefit objective. b. Operations 4790 visitors visited the Mill in 2024, only 760/0 of the budget target. Where possible the Mill opened for five days per week, usually Sunday to Thursday. Traditionally Friday and Saturday are quieter days in Eskdale. In total, the Mill was open for 158 days. Admission prices were increased from £5 (£5.50 with GA donation) to £7 with the introduclion of an 'Annual Pass, for all paying adults. Children, 16 years and under, were given free admission for the first time. Reviews from the public continued to be exlremely positive with 117 reviews of Tripadvisor with a 4.5 15 rating resulting in receipt of the 'Traveller's Choice Award,. More significant are the 180 reviews on Google still with a 4.815 rating. Google is now the "go to" review plafform with the Mill being the number 1 attraction in Bootl Links have been established with Wilderness Travel who run tours around the Lake District for visitors from the USA. We have become one of their destinations on a number of their itineraries. During the year 11 core volunteers and local community groups have provided over 1591 volunteer hours in support of the Mill. The Trustees acknowledge the value of this hard work which is integral to the successful operation of the Mill. The Mill could not have performed as well as it did without this volunteer input. The volunteers provided wide- ranging support including gardeningllandscaping, building conservation work, practical mainlenance (indoors and outdoors), management and maintenance of the hydro system, and of course. visitor support from the initial welcome to running reception and by giving talks and demonstrations. The outstanding reviews received from visitors are testament to the excellent service they delivered. As a thank-you and in acknowledgement of their much-valued input, an enjoyable walk was organised in Eskdale to celebrate the culmination of the year finishing with refreshments and the Millwrighting talk at the AGM. National Mills Weekend in May always provides an opportunity to draw in extra interest at the mill. Family friendly meadow activities provided help to survey and record plants and wildlife and the naturalisation of the meadow Page 2
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Objectives and activities (contlnued) following the Tentergarth development. Whitehaven Academy outdoor education groups continue to offer practical help with a range of conservation tasks in the meadow each term. Promotional and sales stalls were again taken at the Gosforth and Eskdale Shows, which generated a good degree of interest. The Lakeland 100 Fell Race once again used the Mill as a checkpoint In July and generated a welcome donation to the Trust funds. At the end of the year, Ihe Mill had 558 followers on Facebook. 721 on X and 153 on Instagram representing an increase of roughly 20°/0 over 2023 figures. c. Strategies for achieving objectives The strategy for achieving the objectives was to maximise the number of visitors from the public. They would learn about the hislory, heritage, and the built and natural environment during their visit to the mill facilitated by informed guides and by following the award-winning interpretation displays in each of the rooms. The aim was to cover the operating costs and produce income lo be set aside as a reserve. In addition to the admission income, plans were made to increase the income through the shop and via gift aid. The areas of expenditure were reviewed to see where savings may be possible. d. Actlvltles undertaken to achleve objectives In order to improve income from admissions a new pricing scheme was agreed. Admissions were increased to £7 per adult {from £5 or £5.50 depending on whelher Gift Aid was given). The Trustees were concerned that the continuing cost-of-living pressures may have a negative impact on visitor numbers, so il was decided to admit children for free to encourage family visits. The Gift Aid arrangement was also altered to take advantage of the option of giving 12 months free return for visitors. This simplified the cost structure as everyone would pay Ihe same amount, and it was expected that it would encourage more visitors to Gift Aid their visit as there was no extra cost involved. Membership fees were always a multiple of the admission fee, so they were increased pro rala to the new admission cost. It was agreed that members should also be offered a 100/9 discount on shop sales to compensate for all visitors being offered free return entry. The marketing programme was enhanced to extend our reach to a wider demographic by engaging a social media marketing company to regularly post content on the main platforms.. Facebook. X and Instagfam. It was agreed that the shop should be reorganised in order to boost sales. The two large A frame interpretive panels were dismantled and the panels hung on the walls. This provided a much better space to display a range of shop ilems, such as Cumbrian stoneground flours, branded items and greeting cards. It was planned to include refreshment sales in the shop, namely ice-cream and hot and cold drinks. Ice cream sales commenced in July with other refreshments sales postponed until April 2025. The operation of the shop was stream-lined by introduction of a point-of-sale till to allow sales to be recorded quickly and speed up customer processing. The Customer Relationship Management software in the till would provide a detailed analysis of sales. The recording of customer details for Gift Aid via the till meant the elimination of the hand-written gift aid slips and the manual transfer of the information into a spreadsheet for submission to HMRC. This meant that gift aid claims could be made. and monies received during Ihe year. Xero financial management software was purchased so that the management accounts could be more easily produced in a limely manner during the year. These ilems all added cost to the bank charges cost centre, so it was important to mitigate these increases. This was planned by moving the Trust's bank account to the Coop Bank (where there are no bank charges for charities) and by negotiating much better rates for bank card Page 3
ESKDALE MILL AND HERITAGE TRUST {A Company Limited by Guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Objectives and actlvltles (contlnued) transactions and card reader rental by moving to a new provider. The website was refreshed to make it more easily accessible and coherent, following advice provided through Cumbria CVS. One of the drivers for the increase in admission fee was Ihe availability of the reclaimed Tentergarth area for people to visit. The project was compleled for Ilie slarl of the visitor season wlth the installation of pathways, the wildlife pond, heritage fruit tree planting and interprelation boards to extend the education of the public. The funding for the Tentergarth Project was coming to an end in March so it was recognised that further funding would be required during the year lo Continue to provide travel expenses for volunteers working at the mill. In addition, other funding was sought to help cover ongoing costs. The income from the Feed-in-Tariff from hydro electricity generation was maximised through a continuing preventative maintenance programme and also by reacting to and resolving developing problems. Work to preserve the fabric of the building was planned as it was note(f thal the main support beam in the bakehouse was rotten at each end and needed replacement. The 5-yearly statutory inspection of the electrical installation and any remedial repairs was required during the year. Approaches were made to other local businesses to explore how we may be able to work together for our common benefit in attracting more visitors to our sites. Achievements and performance a. Main achievements of the Company The number of visitors was well below the target (only 76 % ). The shortfall was constant throughout the year. As a result, this meant that other expenditure had to be limited. There was no money to set aside as a reserve. The changes lo the admission costs, the Gift Aid arrangement and the shop improvements were successful in that they resulled in the following increases in income per person compared to 2023 of 190/0, 310/0 and 70 % for admission. Gift Aid and shop sales respectively. Ice-cream sales were successfully introduced during the year (contributing £358 to shop profit). The freezer was provided by the supplier who also restocked when required. The provision of hot and cold drinks and snacks was deferred until the following year as overall income was below plan and expenditure was needed to purchase the equipment. The introduclion of the point-of-sale till and SOfare transformed the reception and shop operations and provided easy analysis of performance throughout the year. It was particularly important as the Gift Aid recording management functionality allowed the gift aid to be collected during Ihe same calendar year, something that has not previously been possible. In total almost £4700 was received during the year. The extra payments for the till and software and the management accounts software were offset by the elimination of charges for the bank account and by negotiation of favourable term for the card reader and transactions. The Tentergarth Project was completed on time and budget, and all the monies were released by the funders on receipt of our reports. This area has provided a valuable extension to the visitor experience in terms of learning, Page 4
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Achievements and performance (continued) enjoyment and value for money. The pond is particularly impressive, and the habitat will continue to develop and attract even more wildlife. It is planned that the area will be used to host music and other performance events in the future. Part of the funding for the Tentergarth had provided travel expenses for volunteers coming to the mill. The funding ended at the end of March and as il had not been possible to obtain replacement funding the decision was taken to reduce the mileage rate paid to volunteers to one third of the previous amount. Eventually, from 1 st May, £4000 funding, spread over 2 years, was secured for volunleer expenses (but not travel). During the year the funding received was £4000, over years, for volunteers (from South Copeland GDF Community Partnership), £500 from Lake District Eslates for machinery repair and a bequest of £1500 from Joy Hutchins for the restoralion of the bakehouse. In addition, we will be able to benefit from mill repair work carried out through the Millwright Apprenticeship Scheme being run through Heron Mill and funded by the National Heritage Lottery Fund. Dialogue continued with the Ravenglass and Eskdale Railway about joint working on events. but nothing came to fruition. The Trust also began exploring partnership opportunities with the Beacon Museum in Whitehaven and Florence Mine. These discussions are continuing. We also made an approach to the National Trust to explore whether they may be able to help safeguard the future of the mill in view of the limited resources available to the Trust. The local Estate Manager had left so any discussions were deferred until 2024, after the appointment of a new Manager. Hydro electricity generation was at a record level for the year at 8700kWh which in turn produced a record income for the Feed-in-Tariff of almost £6800. There was preventative maintenance carried out to replace the deterioraling flexible coupling and reactive maintenance to identify and then correct a fault causing intermittent tripping of the control system. Other repairs that were required were unjamming the control sluice, stopping the launder catching the wheel and getting a fractured chain link repaired. Unfortunately, there was a complete chain failure in November, causing a loss of 2 months generalion. The cause of the repeated chain failures is the main priority for resolution and the chain has been sent lo Ihe supplier for analysis. Huge thanks are again due to Andy Feaver, our consultant engineer who travelled to the mill to carry out the flexible coupling change and has worked tirelessly with Renold (the chain supplier) to push for analysis of the chain failures and search for a solution. The main periods of lost generation were 2 weeks due to the tripping fault, a month for the fractured chain link and two months for the broken chain. There has been another complaint from a neighbour about noise from the hydrowheel. The Council Environmental Health Officer has commissioned a noise survey to be carried out once the wheel becomes operational again. b. Plans for the futur• It's clear that at current levels the 'trading' income of the Charity (admissions and shop sales) is not enough to cover expenses. The Trust will continue to drive down costs by scrutinising expenditure and cutting out any unnecessary expenditure. The Trust will also continue to build relationships and closer cooperation with local businesses such as the Ravenglass & Eskdale Railway, the Beacon, Florence Mine and Muncaster Castle for mutual benefit and to encourage an increased footfall to all the organisations. Marketing reach will be extended to attract more visitors to the mill e.g. using social media. The items for sale in the shop will be extended to include more items produced by local artists and drinks and Page 5
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Achievements and performance (continued) snacks will be put on sale. Specific events will be organised (musical and performance) to attract paying visitors to the site, making use of the Tentergarth space. There will be an ongoing requirement for repair and refurbishment of the buildings and machinery so external ruiidirig will be sought to cover any large capltal costs. At present the bakehouse needs some work and within 2 years the lower wateNheel shaft will need replacing. Financial revlew a. Financlal revlew The Trust continues to be a going concern, making a small loss of £465 in the year. During the year the trust received total income of £56,942 {2023 £59,571) this was made up of Operating income and non-operating income streams. Operating income streams.. Admission charges of £27,580 {2023 £24,286), in addition, shop income was £6,309 {2023 £4,344) and donations and memberships totalled £1,156 (2023 £1,900). Sale of electricity generated by the hydro system created income of £6,779 (2023 £5,166). Gift aid income was £5,013 (2023 £3,324). Non-operating income was from the Tentergarth funding £3,210 (2023 £13,017). It should be noted that Ihe Trust has significant reserves with a cash balance of £69,572 at the year end. The Trust has done reasonably well to meet the day-to-day running costs of the Mill, whilst enhancing the operation and despite the poor visitor numbers. but it has not yet been able to generate excess funds to put aside for future capital costs and pay for employeeslcontractors to keep the Mill open an extra day or help in other ways. Structur•* governance and management a. Governance and Management The Trustees held seven management meetings to monitor and review the operation of the Trust and the Mill. These meetings were held online to maximise attendance of Trustees and Advisors. An Annual General Meeting was held on the 13th December 2024 at the King George IV Inn in Eskdale. This meeting provided an opportunity for members to ask queslions of the Trustees and attendees were treated to fascinating talk, by Stuart Hobbs from Heron Mill, about millwrighting. There has been pressure on the organisation throughout the year as we have been operating with a limited number of Trustees several of whom have changed throughout the year. David White and Liz Bates both resigned as Trustees in March. Liz had only been appointed for a short time. We welcomed Steven Round, firstly as an Advisor and then as a Trustee in May. Steven brought wide knowledge and experience ranging from quanlity surveying, to insurance, to technical IT and videolaudio systems. He also has a background in Safeguarding requirements. He has kindly taken on the role of Chair of the Trust. lan MacPherson joined as a Trustee in October. lan brings with him a valuable experience of project and operations management and leadership at a senior level in a large organisation. In July we were very pleased to welcome Peter Frost-Pennington as a patron of the Trust. Page 6
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Structure, governance and management (continued) The Trustees are, as ever, grateful to our hard-working volunteers for their contribution and dedication to the mill. We would especially like to acknowledge the hard work and dedication of our Mill Manager, Kate Hughes, who is central to the life and running of the Mill. As the public face of the mill, she plays a huge part in attracting our visitors, liaising with our volunteers and trades people, undertaking essential maintenance, delivering projects, managing funding applications and building a valuable neIOrk of relations with our local businesses and attractions. Our Secretary and acting Treasurer, Steve Hemm is paramount in keeping the Mill and Trustees on track and working towards our aims and missions. A mention is also due to our newest Trustee, lan MacPherson who along with one of our Advisors, Molly Campion, is currently working on building and extending our connections with other businesses and attractions in the wider area. We have already seen encouraging results from their hard work, and we are very grateful for this. There are continuous challenges, in the tourism sector within Cumbria and as a Trusl we constantly work to meet and adapt our methodology and models to embrace these changes. Stat•m•nt of Trustees, responslbllltles The Trustees (who are also the directors of the Company 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. 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 slate of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistently- observe the methods and principles of the Charities SORP (FRS 102)., make judgments and accounting estimates thal are reasonable and prudent., state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements., prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by order of the members of the board of Trustees and signed on their behalf by: Mr S Hemm Date.. 4£ log115 Page 7
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 Independ8nt Examiner's Report to the Trustees of Eskdale Mlll and Heritage Trust {'the Company.) I report to the charity Trustees on my examination of the accounts of the Company for the year ended 31 December 2024. Responsibillties and Basis of Report As the Trustees of the Company (and its directors for the purposes of company law) you are responsible for the preparation of the accounls in accordance with the requirements of the Companies Act 2006 {'the 2006 Act,). Having satisfied myself that the accounls 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 the Companvs accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act,). In carrying out my examination I have followed the Directions given by the Charily Commission under section 145(51(b) of the 2011 Act. Independent Examlner's Statement I have completed rny examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe.. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Acl,. or the accounts do not accord with those records., or the accounts do not comply wilh 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 the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities lapplicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102)]. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. This report is made solely to the Company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Company's Trustees those matters l am required lo state to them in an Independent Examiner's Report and for no other purpose. To the fullest extenl permitted by law, I do not accept or assume responsibility to anyone other than the Company and the Companys Trustees as a body, for my work or for this report. Signed.. Dated. 11.01.1 Steven Kirkbride FCA BFP ATT MA4T Armstrong Watson LLP, Workington Page 8
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2024 Unrestricted funds 2024 Restricted funds 2024 Total funds 2024 Total funds 2023 Note Income from: Donations and legacies Charitable activities Investments Other income 6,169 33,889 787 6,779 6,108 3,210 12,277 37,099 787 6,779 5,224 48,793 388 5.166 Total Income 47,624 9,318 56,942 59,571 Expenditure on: Charltable activities 47,607 9,800 57,407 57,946 Total expendlture 47,607 9,800 57,407 57,946 Net Incomel(expenditur•) Transfers beeen funds 17 {482) (176) {465) 1,625 14 176 Net movement In funds 193 (658) (465) 1,625 Reconcillatlon of funds: Total funds brought forward Net movement in funds 172,825 193 6.217 (658) 179,042 (465) 177,417 1,625 Total funds carried fOard 173,018 5,559 178,577 179,042 The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 12 to 26 form part of these financial statements. Page 9
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) REGISTERED NUMBER: 05743618 BALANCE SHEET AS AT 31 DECEMBER 2024 2024 2023 Note Flxed assets Heritage assets 108,153 108,153 108,153 108, 153 Current assets Debtors Cash at bank and in hand 12 2,940 69,572 10,213 63,111 72,512 73,324 Creditors.. amounts falling due within one year 13 (2,088) (2,435) Net current assets 70,424 70,889 Total assets le8s current Ilablllti•s 178,577 179.042 Net assets excludlng pen8ion asset 178,577 179,042 Total net assets 178,577 179,042 Charity funds Restricled funds Unrestricted funds 14 5,559 173,018 6,217 172.825 14 Total funds 178,577 179,042 Page10
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) REGISTERED NUMBER: 05743618 BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2024 The Company was entitled to exemption from audit under section 477 of the Companies Act 2006. The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006. The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. Mr S Hemm Date.. 15loJJ25 The notes on pages 12 to 26 form part of these financial statements. Page 11
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 General Information Eskdale Mill and Heritage Trust is a private company limited by guarentee incorporated in England and Wales. The registered office is Eskdale Mill, Boot, Holmrook, Cumbria. CA19 1TG. Accounting pollcles 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP (FRS 102) 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), Ihe Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Eskdale Mill and Heritage Trust meets the definition of a public benefil entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. 2.2 Going ¢oncern At the time of approving the financial statements, the Trustees have a reasonable expectation that the Trust 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. 2.3 Income All income is recognised once the Company has entitlement to the income, It is probable that the income will be received and the amount of income receivable can be measured reliably. The recognition of income from legacies is dependent on establishing enlitlemenl, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Company has sufficient evidence that a gift has been left to them (Ihrough knowledge of Ihe existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy musl be recognised when it is probable that it will be received and the fair value of the amounl receivable, which will generally be the expected cash amount to be distributed to the Company, can be reliably measured. Grants are included in the Stalement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Whefe income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received. Ihe income is accrued. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. 2.4 Expenditure Page 12
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Accounting policies (continued) Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs atlributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. 2.5 Taxatlon The Company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charilable company for UK corporation tax purposes. Accordingly, the Company is potentially exempt from taxalion 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. 2.6 Herltage assets Where heritage assets have been purchased, they are initially recognised at cost. After recognition, under the cost model, heritage assets are measured at cost less any accumulated depreciation and any accumulated impairment losses. 2.7 Debtors Trade and other debtors are recognised at the settlement amount after any Irade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 2.8 Cash at bank and in hand Cash at bank and in hand includes cash and short-term highly liquid inveslments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Page13
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Accounting policies (continued) 2.9 Liabilities and provlslons Liabilities are recognised when there is an obligation al the Balance Sheet dale as a result of a past event, it is probable Ihat a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligalion. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost. 2.10 Financial Instruments The Company only has financial assets and financial 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 2.11 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restriclions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fund. Page 14
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Income from donations and legacies Unrestricted Restricted funds funds 2024 2024 Total funds 2024 Donations and gifts Legacies Grants Gift aid reclaimed 1,156 1,156 1,500 4,608 5,013 1,500 4,608 5,013 6,169 6,108 12,277 Unrestricted funds 2023 Total funds 2023 Donations and gifts Gift aid reclaimed 1,900 3,324 1,900 3,324 5,224 5, 224 Income from charltable actlvlties Unrestrlcted Restricted funds funds 2024 2024 Total funds 2024 Admissions Shop sales Tentergarth income Hydro-refurb income SPAB Mill Repair Fund income 27,580 6,309 27,580 6,309 3,210 3,210 33,889 3,210 37,099 Page15
ESKDALE MILL AND HERITAGE TRUST (A Company Limlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Income from charitable activities {contlnued) Unrestricted funds 2023 Restricted funds 2023 Total fvnds 2023 Admissions Shop sales Tentergarth income Hydro-refurb income SPA8 Mill Repair Fund income 24, 286 4,344 24,286 4.344 13,017 6, 624 522 13,017 6, 624 522 28, 630 20,163 48, 793 Invostmant Income Unrestricted funds 2024 Total funds 2024 Interest receivable 787 787 Unrestricted funds 2023 Tot81 funds 2023 Interesl receivable 388 388 Other incoming resources Unrestricted funds 2024 Total funds 2024 Hydro-electricty income 6,779 6,779 Page 16
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Other Incoming resources (continued) Unreslricted funds 2023 Total funds 2023 Hydro-electricity income 5,166 5,166 Analysis of expendlture by activitie8 Actlvltles undertaken directly 2024 Total funds 2024 Unrestricted expenditure Restricted expenditure 47.607 9,800 47,607 9,800 57,407 57,407 Activities undertaken directly 2023 Total funds 2023 Unrestricted expenditure Restricted expenditure 40,191 17,755 40,191 17,755 57,946 57,946 Page 17
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Analysis of expenditure by activities (continued) Analysis of direct costs Total funds 2024 Unrestricted Restrlcted 2024 2024 Staff costs Heat and light Rates Insurance General expenses Advertising Repairs and maintenance Waterwheel costs Legal fees Bank charges Tenlergarth project expenditure Stock Telephone AIM Grant Expenditure South Copeland GDF Comm Expenditure 19,252 3,252 2,484 4,789 3,362 1,693 5,993 926 1,542 591 19,252 3,252 2,484 4,789 3,362 1,693 5,993 926 1,542 591 9,251 9.251 2,727 996 108 2,727 996 108 441 441 47,607 9,800 57,407 Page 18
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Analysis of expenditure by activities {continued) Analysis of direct costs (continued) Total funds 2023 Unrestricted 2023 Restricted 2023 Staff costs Heat and light Rates Insurance General expenses Advertising Repairs and mainlenance Waterwheel costs Legal fees Bank charges SPAB Mill Repair Fund expenditure Tentergarth project expenditure Hydro refurb expenditure Stock Telephone 17,063 1,182 1,741 4.812 2,018 2,211 4,657 99 1, 752 1,124 17,063 1,182 q,741 4,812 2,018 2,211 4,657 99 1, 752 1,124 502 9,406 7,847 2,501 1,031 502 9,406 7,847 2,501 1,031 40,191 17,755 57,948 Staff costs 2024 2023 Wages and salaries 19,252 17,063 19,252 17,063 The average number of persons employed by the Company during the year was as follows.. 2024 No. 2023 No. Average number of employees Page 19
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Staff costs (continued) No employee received remuneration amounting to more than £60,000 in either year. Trustees. remuneration and expensos During the year, no Trustees received any remuneration or Other benefits (2023 - £NIL). During the year ended 31 December 2024, no Trustee expenses have been incurred (2023- £NIL). 10. Tangible fixed assets Offlce equlpment Cost or valuation At 1 January 2024 703 Al 31 December 2024 703 Depreclatlon At 1 January 2024 703 At 31 December 2024 703 Net book value At 31 December 2024 At 31 December 2023 Page 20
ESKDALE MILL AND HERITAGE TRUST {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 11. Heritage assets Assets recognised at cost Heritage asset 2024 Total 2024 Carrying value at 1 January 2024 108,153 108,153 108,153 108,153 12. Debtors 2024 2023 Du• wlthln one year Trade debtors Other debtors Prepayments and accrued income 210 2,730 210 5, 726 4,277 2,940 10,213 13. Credltors: Amounts falling dua wlthln one year 2024 2023 Olher taxation and social security Other creditors Accruals and deferred income 540 510 173 7, 752 1.548 2,088 2,435 Page 21
ESKDALE MILL AND HERITAGE TRUST {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 14. Statement of funds Statement of funds - current year Balance at 31 December 2024 Balance at 1 January 2024 Transfers inlout Income Expenditure Unrestrlcted funds Deslgnated funds Designated Funds - all funds 108,153 108,153 General funds General Funds - all funds 64,672 47,624 (47,607) 176 64,865 Total Unr•stricted funds 172,825 47,624 (47,607) 176 173,018 Restrlcted fund8 Tentergarth project SPAB Mill Repair Fund AIM Grant Bequest- J Hutchins South Copeland GDF Comm Lake District Estates 6,197 20 3,210 (9,251) (156) (20) 108 1,500 4,000 500 (108) 1,500 3,559 500 (441 > 6,217 9,318 (9,800) (176) 5,559 Total of funds 179,042 56,942 (57,407) 178,577 Page 22
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 14. Statement of funds (continued) Statement of funds - prior year Balance al 31 DeGemb8r 2023 Balance al 1 January 2023 Transfers in/oul Income Expenditure Unrestrlcted funds Designatèd funds Designated Funds - all funds 108,153 108.153 General funds General Funds - all funds 59, 306 39,408 (40, 190) 6,148 64,672 Total Unrestrlcted funds 167,459 39,408 (40, 190) 6, 148 172,825 Restricted funds National Lottery Heritage Fund Tentergarth project Hydro-refurb SPAB Mill Repair Fund 7, 371 2, 586 (7,371) 13,017 6, 624 522 (9,406) (7, 847) (502) 6,197 1,223 20 9,957 20,163 (17,755) (6, 148) 6.217 Total of funds 177,416 59,571 {57,945) 179, 042 Page 23
ESKDALE MILL AND HERITAGE TRUST {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 14. Statement of funds (continued) The National Lottery Heritage Fund project is for the Trust to provide conservation and improved presenlation of the mill buildings and machinery, and establishmenl of the mill's day to day management, in order to attract more visilors and ensure its long-term substainability. The Tentergarth project is the restoration of the historic meadow behind the miller's cottage. The meadow was overgrown with thick brambles, these have now been mainly cleared to allow native flowers and grasses lo grow. A path will allow vistors to tour the meadow. The hydro refurbishment was a replacement of the chain and sprockets with higher specification componenets which should give an extended life of 5 and 10 years respectively. The SPAB fund was mainly used to repair the jog scry (a vibrating sleeve) which had broken.There were some other minor repairs lo other equipment. The AIM grant was for staff and volunteer training which actually took place at the end of 2023. The bequest from Joy Hulchins was for anything relating to the preservation of the mill or the building or with artefacls that help visitors understand its history. The South Copeland GDF Community Partnership was for volunteer training and activities - welfare, ppe. refreshments, tools, equipment, materials but not travel. Lake District Estates was for milllhydro maintenance August 24 to July 25. 15. Summary of funds Summary of funds - curront year Balance at 31 December 2024 Balance at 1 January 2024 Transf•rs inlout Income Expenditure Designated funds General funds Restricted funds 108,153 64,672 6,217 108,153 64,865 5,559 47,624 9,318 {47,607) (9,800) 176 (176) 179,042 56,942 (57,407) 178,577 Page 24
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 15. Summary of funds (continued) Summary of funds - prior year Balance al 31 December 2023 Balance 81 1 January 2023 Transfers in/oul Income Expenditure Designated funds General funds Restricted funds 108, 153 59, 306 9,957 108. 153 64,672 6,217 39,408 20,163 (40, 190) (17.755) 6, 148 (6, 148) 177,416 59,571 (57.945) 179,042 16. Analysis of net assets between funds Analysis of not assets between funds - current perlod Unrestricted funds 2024 R•stricted funds 2024 Total funds 2024 Herilage assets Current assets Creditors due within one year 108,153 66,953 (2,088) 108,153 72,512 (2,088) 5,559 Total 173,018 5,559 178,577 Analysis of net assets between funds - prior period Unrestricted funds 2023 Restricted funds 2023 Total funds 2023 Heritage assets Current assets Creditors due within one year 108, 153 67,107 (2,435) 108,153 73,324 (2,435) 6,217 Total 172,825 6,217 179, 042 Page 25
ESKDALE MILL AND HERITAGE TRUST (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 17. Related party transactions The Company has not entered into any related party Iransaction during the year, nor are there any outstanding balanS owing between related parties and the Company at 31 Dernber 2024. Page 26