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2021-12-31-accounts

REGISTERED COMPANY NUMBER: 02046356 (England and Wales) REGISTERED CHARITY NUMBER: 1117457

Giroscope Limited

Report of the Trustees and

Financial Statements

for the Year Ended 31st December 2021

cbaSadofskys Statutory Auditors Princes House Wright Street Hull East Yorkshire HU2 8HX

Giroscope Limited

Contents of the Financial Statements for the year ended 31st December 2021

Page
Report of the Trustees 1 to 5
Report of the Independent Auditors 6 to 9
Statement of Financial Activities 10
Balance Sheet 11 to 12
Cash Flow Statement 13
Notes to the Cash Flow Statement 14
Notes to the Financial Statements 15 to 24
Detailed Statement of Financial Activities 25 to 26

Giroscope Limited

Report of the Trustees for the year ended 31st December 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st December 2021. The trustees have adopted the provisions of 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).

A MESSAGE FROM THE ACTING CHAIRMAN

2021 was another positive, yet challenging year for Giroscope, as we finally began to move out of the restrictions placed upon us by the pandemic.

We were able to purchase three properties over the course of the year. Two of these are adjoining properties, in a street off Hessle Road and have been empty for over 20 years. They require considerable works to bring them back into use. Renovation works are now well underway.

The second property was a large 4 bed house that required very little work and was soon occupied by an existing Giroscope tenant in need of a larger house. Evidence suggests that there is a clear shortage of larger properties available for social rent, so this represents an important acquisition for the charity.

In October Giroscope commenced work on proposals for a new loan facility with our bank (Handelsbanken). The intention would be to refinance an outstanding loan with our social investment partner (SASC), leaving a balance to purchase three more properties.

In September of 2021 Giroscope acquired the former Premiere Bar on Anlaby Road, Hull. This building, built as a cinema in 1914, has been a large, empty, eyesore for over a decade, on one of the main approach roads to the city. Giroscope acquired the building on lease from Hull City Council and have agreed to take over the freehold once certain remedial works have been completed. We are working with our partners, Integreat Plus and Lonsdale Community Centre, to bring this building back into use. As part of Giroscope's practical strategy for non-residential empty buildings we have found a 'meanwhile' use for the building as a temporary home for the Giroscope furniture project.

Giroscope's ongoing other non-residential project, the refurbishment of the former St Matthews Church began to gather pace in 2021. Progress has been made in the areas of design, planning, procurement and funding (Garfield Weston). Preparatory groundworks were completed in order that the full works can commence in 2022. Repairs to the ground floor leaded glass windows were completed by a local firm (Harrap) and the organ was carefully dismantled and removed to be reused in other churches around the world.

The three timber framed Community Self-Build houses under construction on land to the rear of Giroscope's HQ on Coltman Street, were brought to near completion in 2021. As 2021 came to an end the houses were being painted and snagged with a view to the first tenants moving in, early in 2022. We will still have external and landscape works to finish in 2022. This has been an exciting project for Giroscope as well as providing a steep learning curve! We hope we can continue to develop the house building arm of Giroscope in future years.

Giroscope welcomed several new staff members into the team in 2021. Becky joined our Housing Support team and Kay came on board to run Secure Futures (a joint project with Vulcan Learning Centre). In November 2021 we welcomed Sarah to manage and develop our Volunteer Programme.

As part of the European funded project to develop the former St Matthews Church into community enterprise space, we recruited Govind, to provide business support and development with new and existing enterprises in the neighbourhood, including those occupying Giroscope workshops and offices. Giroscope now has full time reception cover following the recruitment of Christina (initially on a Kickstart placement) and the return to work of Elener after maternity leave. This has led to a far more efficient office, and an improved service for people accessing our organisation.

2021 saw the continued development of two new Giroscope projects, namely the furniture project and the Giroscope cooking project. Oscar, who runs the cooking project went from part-time to full-time in August 2021. Giroscope commenced its healthy food delivery service to tenants, volunteers and other vulnerable people in our community as part of our response to the continuing pandemic.

The furniture project continued to provide services to Giroscope especially to our supported tenants as well as providing a valuable furniture recycling scheme to the neighbourhood.

Page 1

Giroscope Limited

Report of the Trustees for the year ended 31st December 2021

Although the pandemic of 2020/21 provided many challenges for our organisation, Giroscope remained open the whole time and was able to respond quickly and effectively to the needs of our service users and the wider community.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The company's objects and principal activities were those of the purchasing, renovation and modernisation of housing in poor condition and the renting out of these houses to the unemployed and other disadvantaged groups in society.

ACHIEVEMENT AND PERFORMANCE

In 2021 Giroscope completed the renovation of three newly acquired properties. At the end of the year Giroscope owed a total of 120 properties comprising 135 residential units (108 houses and 27 flats), 2 small enterprise parks (consisting of offices and workshops), the former St Matthew's church, a community shop unit, a café/restaurant premises and our offices at 69 Coltman Street.

As the year came to an end the Volunteer Programme finally got back to full strength following the global pandemic. Giroscope continue to participate in wider discussions at a local, regional and national level on topics including community-based approaches to regeneration, affordable housing, empty homes, innovative approaches to shared living and self-help housing.

Giroscope continues to offer guidance and support to new and emerging organisations interested in developing projects, bringing empty properties back into use, providing affordable housing and support and those offering volunteer and training opportunities.

FINANCIAL REVIEW

Principal funding sources

The principle funding source of the charity are the rents received from the tenants, including Enhanced Housing Benefit (supported tenants) on thirty of our tenancies.

The staff and Management Committee seek funding to support the purchase and renovation of empty properties, the provision of additional support to our beneficiaries and the regeneration of our neighbourhood.

Giroscope received funding from the Hull Community Led Local Development (European Social Fund and European Regional Development Fund), social prescribing funding from the NHS, and the Bettys and Taylors Family Fund. These contributed to Giroscope's volunteer programme, work experiences and other training. Garfield Weston contributed towards the capital costs of refurbishing the former St Matthew's Church.

The capital work renovating empty properties and the new construction of the Community Self Build project was funded by social investment from Social and Sustainable Capital blended with grant funding from Power to Change, and Hull City Council's Right-to-Buy Replacement Grant Fund.

The Hull and East Riding Charitable Trust continued to support Giroscope's Emergency Fund that provides small grants for our tenants and volunteers.

The charity received a small amount of funding via the Government's job retention scheme (furlough scheme).

Investment policy and objectives

Aside from retaining a prudent amount in reserves, each year most of the charity's funds are spent in the short term so there are few funds for long term investment. Having considered the options available, the Management Committee has decided to invest the small amount it has available in an interest-bearing account.

Page 2

Giroscope Limited

Report of the Trustees for the year ended 31st December 2021

FINANCIAL REVIEW

Reserves policy

The Management Committee will be examining the charity's requirements for reserves in light of the main risks to the organisation.

It will establish a policy whereby the unrestricted funds not committed or invested in tangible fixed assets held by the charity should not exceed 6 months of expenditure.

The reserves are needed to meet the working capital requirements of the charity, and the Management Committee are confident that at this level they would be able to continue the current activities of the charity in the event of a significant drop in funding.

FUTURE PLANS

The charity plans to continue it's activities outlined in the forthcoming years, subject to satisfactory funding arrangements. In addition, it will look to develop other projects to help regenerate Giroscope's neighbourhood, increase the opportunities and/or provide better support for people living there. These will include:

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The organisation is a charitable company limited by guarantee, incorporated on 13th August 1986 and registered as a charity on 4th January 2007. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

Recruitment and appointment of new trustees

The directors of the company are also charity trustees for the purposes of charity law and under the company's Articles are known as members of the Executive Committee. Under the requirements of the Memorandum and Articles of Association the members of the Management Committee will be elected to serve a period of three years after which they must be re-elected at the next Annual General Meeting. (Resolution of Annual General Meeting November 2006).

The Management Committee is made up of a mix of traditional business skills from their own particular area of responsibility. In an effort to maintain this broad skill mix and in the event of particular skills being lost due to retirements, individuals are approached to offer themselves for election to the Committee.

Organisational structure

Giroscope Limited has an Executive Committee of 3 members who meet quarterly and are responsible for the strategic direction and policy of the charity. At the end of the financial year the Management Committee had three members. These members are from a variety of backgrounds relevant to the work of the charity.

A scheme of delegation is in place and day to day responsibility for the provision of the services rests with the Co-ordinator. The Management Committee is responsible for ensuring that the charity pursues its Aims and Objectives as well as setting strategic policy. The Co-ordinator has responsibility for the individual supervision of the staff team and also ensuring that the team continue to develop their skills and working practices in line with good practice.

Page 3

Giroscope Limited

Report of the Trustees for the year ended 31st December 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Induction and training of new trustees

All of our trustees are already familiar with the practical work of the charity and are encouraged to familiarise themselves with the staff and volunteers within the organisation.

Additionally, new trustees are invited and encouraged to attend an introductory meeting with the Chair of the Management Committee and familiarise themselves with the charity and the context within which it operates. This meeting covers:

A Trustees induction pack has also been prepared drawing information from the various Charity Commission publications signposted through the Commission's guide 'the Essential Trustee' as an 'aide memoir'. This is distributed to all new trustees along with the Memorandum and Articles and the latest financial statements.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The charity has a Risk Register which identifies the risks to which the charity is exposed. Systems and procedures have been established to mitigate and manage the risks the charity faces. The Risk Register is reviewed as and when necessary, at a minimum at the quarterly Board Meetings.

Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects.

Procedures are in place to ensure compliance with health and safety for all staff, volunteers, clients and visitors to Giroscope.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

02046356 (England and Wales)

Registered Charity number

1117457

Registered office

69 Coltman Street Hull East Yorkshire HU3 2SJ

Trustees

A Brocklehurst Accountant R Amesbury Director Ms H R Galbraith Architect

Page 4

Giroscope Limited

Report of the Trustees for the year ended 31st December 2021

REFERENCE AND ADMINISTRATIVE DETAILS

Auditors

cbaSadofskys Statutory Auditors Princes House Wright Street Hull East Yorkshire HU2 8HX

STATEMENT OF TRUSTEES' RESPONSIBILITIES

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

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

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

AUDITORS

The auditors, cbaSadofskys, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 9th September 2022 and signed on its behalf by:

R Amesbury - Trustee

Page 5

Report of the Independent Auditors to the Trustees of Giroscope Limited

Opinion

We have audited the financial statements of Giroscope Limited (the 'charitable company') for the year ended 31st December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 charitable company'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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Page 6

Report of the Independent Auditors to the Trustees of Giroscope Limited

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes 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 charitable company'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.

Page 7

Report of the Independent Auditors to the Trustees of Giroscope Limited

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 a Report of the Independent Auditors 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:

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:

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

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

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the 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 for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 8

Report of the Independent Auditors to the Trustees of Giroscope Limited

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

cbaSadofskys Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Princes House Wright Street Hull East Yorkshire HU2 8HX

9th September 2022

Page 9

Giroscope Limited

Statement of Financial Activities

for the year ended 31st December 2021

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
Renovation and letting of housing
Investment income
3
Other income
Total
EXPENDITURE ON
Charitable activities
5
Renovation and letting of housing
Net gains on investments
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
1,056
116,090
855,780
-
972,926
808,176
920,712
1,085,462
3,729,773
4,815,235		 Restricted
fund
£
-
66,351
-
-
66,351
61,564
-
4,787
-
4,787		 2021
Total
funds
£
1,056
182,441
855,780
-
1,039,277
869,740
920,712
1,090,249
3,729,773
4,820,022		 2020
Total
funds
£
924
184,956
736,140
504
922,524
707,150
-
215,374
3,514,399
3,729,773

The notes form part of these financial statements

Page 10

Giroscope Limited

Balance Sheet

31st December 2021

Notes
FIXED ASSETS
Tangible assets
11
Investments
Investments
12
Investment property
13
CURRENT ASSETS
Debtors
14
Cash at bank
CREDITORS
Amounts falling due within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
16
NET ASSETS
FUNDS
19
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
funds
£
48,287
4,999
8,213,536
8,266,822
112,555
665
113,220
(439,231)
(326,011)
7,940,811
(3,125,576 )
4,815,235		 Restricted
fund
£
-
-
-
-
4,787
-
4,787
-
4,787
4,787
-
4,787		 2021
Total
funds
£
48,287
4,999
8,213,536
8,266,822
117,342
665
118,007
(439,231)
(321,224)
7,945,598
(3,125,576 )
4,820,022
4,815,235
4,787
4,820,022		 2020
Total
funds
£
48,011
4,999
6,956,806
7,009,816
171,614
107,138
278,752
(234,472)
44,280
7,054,096
(3,324,323 )
3,729,773
3,729,773
-
3,729,773

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2021.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for

These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.

The notes form part of these financial statements

continued...

Page 11

Giroscope Limited

Balance Sheet - continued

31st December 2021

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

The financial statements were approved by the Board of Trustees and authorised for issue on 9th September 2022 and were signed on its behalf by:

R Amesbury - Trustee

The notes form part of these financial statements

Page 12

Giroscope Limited

Cash Flow Statement

for the year ended 31st December 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Purchase of investment property
Sale of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
New loans in year
Loan repayments in year
Net cash provided by financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
2
Cash and cash equivalents at the end of
the reporting period
2		 2021
£
328,461
(112,364)
216,097
(2,695)
(336,018)
-
-
(338,713)
2,701,120
(2,689,989 )
11,131
(111,485)
107,138
(4,347)		 2020
£
364,986
(116,139)
248,847
(3,939)
(477,987)
1,010
4
(480,912)
427,500
(126,876)
300,624
68,559
38,579
107,138

The notes form part of these financial statements

Page 13

Giroscope Limited

Notes to the Cash Flow Statement for the year ended 31st December 2021

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2021
£
Net income for the reporting period (as per the Statement of Financial
Activities)
1,090,249
Adjustments for:
Depreciation charges
2,419
Losses on investments
(920,712)
Profit on disposal of fixed assets
-
Interest received
-
Interest paid
112,364
Decrease in debtors
54,272
(Decrease)/increase in creditors
(10,131)
Net cash provided by operations
328,461
2.
ANALYSIS OF CASH AND CASH EQUIVALENTS
2021
£
Notice deposits (less than 3 months)
665
Overdrafts included in bank loans and overdrafts falling due within one year
(5,012)
Total cash and cash equivalents
(4,347)
3.
ANALYSIS OF CHANGES IN NET DEBT		 2020
£
215,374
1,904
-
(504)
(4)
116,139
12,030
20,047
364,986
2020
£
107,138
-
107,138
At 1/1/21 Cash flow At 31/12/21
£ £ £
Net cash
Cash at bank 107,138 (106,473) 665
Bank overdraft - (5,012) (5,012)
107,138 (111,485) (4,347)
Debt
Debts falling due within 1 year (132,436) (209,878) (342,314)
Debts falling due after 1 year (3,324,323 ) 198,747 (3,125,576 )
(3,456,759 ) (11,131) (3,467,890 )
Total (3,349,621 ) (122,616) (3,472,237 )

The notes form part of these financial statements

Page 14

Giroscope Limited

Notes to the Financial Statements

for the year ended 31st December 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property - not provided
Plant and machinery - at variable rates on reducing balance
Fixtures and fittings - at variable rates on reducing balance
Motor vehicles - 25% on reducing balance

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in market value is transferred to a fair value reserve.

Related party exemption

The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Taxation

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

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Page 15

continued...

Giroscope Limited

Notes to the Financial Statements - continued

for the year ended 31st December 2021

1. ACCOUNTING POLICIES - continued

Government grants

Government grants are recognised using the accruals model. Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.

Grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the assets to which they relate.

A grant that becomes receivable as compensation for expenses or losses already incurred, or for the purpose of giving immediate financial support to the company with no future related costs, is credited to income in the period in which it becomes receivable.

2. DONATIONS AND LEGACIES

Donations
3.
INVESTMENT INCOME
Rents received
Deposit account interest
4.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Grants
Renovation and letting of housing
Other income
Renovation and letting of housing
Other capital grants received during the year are:
Capital Grants received
Power To Change Grant
Hull City Council Right-To-Buy Replacement Grant
Architectural Heritage
Garfield Weston Foundation
War Memorials Trust
Community Led Local Development (ERDF project)		 2021
£
1,056
2021
£
855,780
-
855,780
2021
£
78,076
104,365
182,441		 2020 2020
£
924
2020
£
736,136
4
736,140
2020
£
108,967
75,989
184,956
2021 2020
£ £
- 62,500
230,987 41,911
- 7,570
30,000 -
- 2,453
18,879 -
279,866 114,434

Page 16

continued...

Giroscope Limited

Notes to the Financial Statements - continued for the year ended 31st December 2021

4. INCOME FROM CHARITABLE ACTIVITIES - continued

Grants received, included in the above, are as follows:

Hull and East Riding Charitable Trust
Lloyds Bank Foundation
Hull Community Led Local Development
Tudor Trust
Bettys and Taylors Family Fund
Land Aid
Martin Lewis Coronavirus Emergency Fund
Good Things Foundation
Duke of Edinburgh Award Scheme
Tesco Bags of Help Covid-19 Communities Fund
Rank Foundation
Leftfield - Fix your bike voucher scheme
Job retention scheme
Hull City Council Kickstart scheme
NHS Social Prescribing Grant
Sport England
5.
CHARITABLE ACTIVITIES COSTS
Renovation and letting of housing
6.
SUPPORT COSTS
Renovation and letting of housing
7.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Auditors' remuneration
Depreciation - owned assets
Surplus on disposal of fixed assets		 Direct
Costs
£
727,249		 2021
2020
£
£
4,500
4,500
-
23,200
26,054
16,493
2,000
12,000
16,665
16,665
-
8,318
-
7,755
-
5,600
-
550
-
500
-
486
-
150
9,725
12,750
7,147
-
8,715
-
3,270
-
78,076
108,967
Support
costs (see
note 6)
Totals
£
£
142,491
869,740
Governance
costs
£
142,491
2021
2020
£
£
3,780
3,780
2,419
1,904
-
(504)		 2020 2020
£
4,500
23,200
16,493
12,000
16,665
8,318
7,755
5,600
550
500
486
150
12,750
-
-
-
108,967
2020
£
3,780
1,904
(504)

continued...

Page 17

Giroscope Limited

Notes to the Financial Statements - continued

for the year ended 31st December 2021

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st December 2021 nor for the year ended 31st December 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31st December 2021 nor for the year ended 31st December 2020.

9. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2021
£
273,291
10,637
5,214
289,142		 2020
£
207,101
14,743
4,032
225,876

The average monthly number of employees during the year was as follows:

Management and administration
Support
No employees received emoluments in excess of £60,000.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL
INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Renovation and letting of housing
Investment income
Other income
Total
EXPENDITURE ON
Charitable activities
Renovation and letting of housing
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward		 ACTIVITIES
Unrestricted
funds
£
924
184,956
736,140
504
922,524
707,150
215,374
3,514,399		 2021
6
9
15
Restricted
fund
£
-
-
-
-
-
-
-
-		 2020
5
7
12
Total
funds
£
924
184,956
736,140
504
922,524
707,150
215,374
3,514,399

10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

continued...

Page 18

Giroscope Limited

Notes to the Financial Statements - continued

for the year ended 31st December 2021

10.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES -
Unrestricted
funds
£
TOTAL FUNDS CARRIED FORWARD
3,729,773
11.
TANGIBLE FIXED ASSETS
Improvements
to
property
£
COST
At 1st January 2021
38,474
Additions
-
At 31st December 2021
38,474
DEPRECIATION
At 1st January 2021
-
Charge for year
-
At 31st December 2021
-
NET BOOK VALUE
At 31st December 2021
38,474
At 31st December 2020
38,474
Motor
vehicles
£
COST
At 1st January 2021
7,039
Additions
-
At 31st December 2021
7,039
DEPRECIATION
At 1st January 2021
2,639
Charge for year
1,100
At 31st December 2021
3,739
NET BOOK VALUE
At 31st December 2021
3,300
At 31st December 2020
4,400		 10.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES -
Unrestricted
funds
£
TOTAL FUNDS CARRIED FORWARD
3,729,773
11.
TANGIBLE FIXED ASSETS
Improvements
to
property
£
COST
At 1st January 2021
38,474
Additions
-
At 31st December 2021
38,474
DEPRECIATION
At 1st January 2021
-
Charge for year
-
At 31st December 2021
-
NET BOOK VALUE
At 31st December 2021
38,474
At 31st December 2020
38,474
Motor
vehicles
£
COST
At 1st January 2021
7,039
Additions
-
At 31st December 2021
7,039
DEPRECIATION
At 1st January 2021
2,639
Charge for year
1,100
At 31st December 2021
3,739
NET BOOK VALUE
At 31st December 2021
3,300
At 31st December 2020
4,400		 continued
Restricted
fund
£
-
Plant and
machinery
£
7,370
-
7,370
7,044
64
7,108
262		 continued
Restricted
fund
£
-
Plant and
machinery
£
7,370
-
7,370
7,044
64
7,108
262
Total
funds
£
3,729,773
Fixtures
and
fittings
£
23,464
-
23,464
20,809
387
21,196
2,268
38,474 326 2,655
Motor
vehicles
£
7,039
-
7,039
2,639
1,100
3,739
3,300		 Computer
equipment
£
3,927
2,695
6,622
1,771
868
2,639
3,983		 Totals
£
80,274
2,695
82,969
32,263
2,419
34,682
48,287
4,400 2,156 48,011

continued...

Page 19

Giroscope Limited

Notes to the Financial Statements - continued for the year ended 31st December 2021

12. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£
MARKET VALUE
At 1st January 2021 and
31st December 2021 4,999
NET BOOK VALUE
At 31st December 2021 4,999
At 31st December 2020 4,999

There were no investment assets outside the UK.

The company's investments at the balance sheet date in the share capital of companies include the following:

Giroscope Services Limited

Registered office: 69 Coltman Street, Hull,HU3 2SJ Nature of business: Property and building repairs

%
Class of share:
holding
Ordinary
100
13.
INVESTMENT PROPERTY
FAIR VALUE
At 1st January 2021
Additions
Revaluation
At 31st December 2021
AMORTISATION
At 1st January 2021
and 31st December 2021
NET BOOK VALUE
At 31st December 2021
At 31st December 2020
Fair value at 31st December 2021 is represented by:
Valuation in 2021
Cost		 £
7,156,919
336,018
920,712
8,413,649
200,113
8,213,536
6,956,806
£
920,712
7,492,937
8,413,649

continued...

Page 20

Giroscope Limited

Notes to the Financial Statements - continued for the year ended 31st December 2021

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Rent arrears
Other debtors
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts (see note 17)
Other loans (see note 17)
Trade creditors
Social security and other taxes
Other creditors
Accrued expenses		 2021
£
58,841
58,501
117,342
2021
£
345,660
1,666
43,346
4,792
35,987
7,780
439,231		 2020
£
23,127
148,487
171,614
2020
£
130,770
1,666
67,058
3,995
27,383
3,600
234,472

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

16.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2021
£
Bank loans (see note 17)
3,115,571
Other loans (see note 17)
10,005
3,125,576
17.
LOANS
2020
£
3,312,652
11,671
3,324,323

An analysis of the maturity of loans is given below:

Amounts falling due within one year on demand:
Bank overdrafts
Bank loans
Other loans
Amounts falling between one and two years:
Bank loans - 1-2 years
Other loans - 1-2 years		 2021
£
5,012
340,648
1,666
347,326
3,115,571
10,005
3,125,576		 2020
£
-
130,770
1,666
132,436
3,312,652
11,671
3,324,323

continued...

Page 21

Giroscope Limited

Notes to the Financial Statements - continued for the year ended 31st December 2021

18. SECURED DEBTS

The following secured debts are included within creditors:

Bank overdraft
Bank loans		 2021
£
5,012
3,456,219
3,461,231		 2020
£
-
3,443,422
3,443,422

The bank loans are secured by way of a legal mortgage over the properties to which they relate and the bank overdraft is secured by way of a fixed and floating charge over the company's assets.

19. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Restricted funds
Restricted
TOTAL FUNDS
Net movement in funds, included in the above are
Unrestricted funds
General fund
Restricted funds
Restricted
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
TOTAL FUNDS		 as follows:
Incoming
resources
£
972,926
66,351
1,039,277		 At 1/1/21
£
3,729,773
-
3,729,773
Resources
expended
£
(808,176)
(61,564)
(869,740)
At 1/1/20
£
3,514,399
3,514,399		 Net
movement
in funds
£
1,085,462
4,787
1,090,249
Gains and
losses
£
920,712
-
920,712
Net
movement
in funds
£
215,374
215,374		 At
31/12/21
£
4,815,235
4,787
4,820,022
Movement
in funds
£
1,085,462
4,787
1,090,249
At
31/12/20
£
3,729,773
3,729,773

continued...

Page 22

Giroscope Limited

Notes to the Financial Statements - continued for the year ended 31st December 2021

19. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
922,524
922,524		 Resources
Movement
expended
in funds
£
£
(707,150)
215,374
(707,150)
215,374		 Resources
Movement
expended
in funds
£
£
(707,150)
215,374
(707,150)
215,374
215,374

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Restricted funds
Restricted
TOTAL FUNDS		 At 1/1/20
£
3,514,399
-
3,514,399		 Net
movement
in funds
£
1,300,836
4,787
1,305,623		 At
31/12/21
£
4,815,235
4,787
4,820,022

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Restricted
TOTAL FUNDS		 Incoming
resources
£
1,895,450
66,351
1,961,801		 Resources
expended
£
(1,515,326 )
(61,564)
(1,576,890 )		 Gains and
losses
£
920,712
-
920,712		 Movement
in funds
£
1,300,836
4,787
1,305,623

continued...

Page 23

Giroscope Limited

Notes to the Financial Statements - continued for the year ended 31st December 2021

20. RELATED PARTY DISCLOSURES

The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Page 24

Giroscope Limited

Detailed Statement of Financial Activities

for the year ended 31st December 2021


INCOME AND ENDOWMENTS
Donations and legacies
Donations
Investment income
Rents received
Deposit account interest
Charitable activities
Grants
Other income
Other income
Gain on sale of tangible fixed assets
Total incoming resources
EXPENDITURE
Charitable activities
Wages
Social security
Pensions
Rates and water
Insurance
Light and heat
Telephone
Postage, stationery and advertising
Sundries
Motor expenses
Repairs and renewals
Sub contractors
Volunteer development costs
Bad debts
Donations
Support costs
Governance costs
Auditors' remuneration
Legal fees
Carried forward		 2021
£
1,056
855,780
-
855,780
78,076
104,365
182,441
-
1,039,277
273,291
10,637
5,214
21,615
15,495
22,340
5,641
4,430
10,444
6,691
19,286
305,311
17,276
5,834
3,744
727,249
3,780
13,388
17,168		 2020
£
924
736,136
4
736,140
108,967
75,989
184,956
504
922,524
207,101
14,743
4,032
25,867
15,599
22,370
4,909
3,460
12,140
8,048
15,686
218,924
15,031
2,814
5,185
575,909
3,780
4,830
8,610

This page does not form part of the statutory financial statements

Page 25

Giroscope Limited

Detailed Statement of Financial Activities

for the year ended 31st December 2021

Detailed Statement of Financial Activities
for the year ended 31st December 2021

Governance costs
Brought forward
Bank charges
Credit card charges and interest
Depreciation of tangible fixed assets
Bank loan interest
Total resources expended
Net income		 2021
£
17,168
10,193
347
2,419
112,364
142,491
869,740
169,537		 2020
£
8,610
4,580
8
1,904
116,139
131,241
707,150
215,374

This page does not form part of the statutory financial statements

Page 26