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2022-12-31-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 2022

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

Giroscope Limited

Contents of the Financial Statements for the year ended 31st December 2022

Page
Report of the Trustees 1 to 6
Report of the Independent Auditors 7 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

Giroscope Limited

Report of the Trustees for the year ended 31st December 2022

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 2022. 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

In an unpredictable and uncertain property market and economic picture Giroscope cautiously expanded its property stock in 2022.

All three purchases in the year were off-market. 18 Cadogan Street, was purchased in late July. The property had been empty for over a year and was in both serious disrepair and full of furniture and possessions. After substantial internal and external works, the property was let in early December.

14 Albert Avenue was also purchased in late July of 2022. A very large property situated to the north of the Giroscope estate which requires considerable renovation. The property is now completely stripped out, new windows have been fitted and most of the subsidence issues have been addressed. The property will take some time to bring back to its former glory, and we expect to complete renovations in the summer of 2024.

The third property to be purchased in 2023 was 57 Bacheler Street. This was a property that had been leased from a private landlord for 10 years by Hull City Council. The property was tenanted and the lease was coming to an end. We approached the landlord, who was open to the idea of selling with the tenant in situ. Giroscope completed the purchase and the tenants have stayed in place without any disruption to their lives.

In October 2022 Giroscope paid back its loan facility with Social & Sustainable Capital (SASC) using long term loan debt finance from Handelsbanken, our principle bankers. This loan was taken out in December 2017 and unlocked a grant from Power to Change. These funds were used to construct the three house Giroscope self-build project.

When topped up with Right to Buy Replacement Grant fund from Hull City Council this pot of money enabled Giroscope to also complete some further purchase and renovate projects - mostly on Coltman Street, home to Giroscope HQ.

The self-build project was completed in 2022. The three houses were occupied one after another early in 2022. All the gardens and boundary works were completed in the Summer are the tenants had moved in. This included the completion of the two flood alleviation ponds at the front and rear of the properties.

These houses will join the rest of the Giroscope stock as social housing for the duration of their life. All the tenants moved into the new houses from existing Giroscope properties - freeing up three properties for people in housing need. Giroscope will explore further new build projects in the future.

Work continued throughout the year on the renovation of the former St Matthews church. A new floor was installed incorporating underfloor heating. The mezzanines were constructed above both aisles of the former church. These will provide office spaces as the building is developed into a community enterprise & training hub. Work is expected to be complete on the project in early 2024.

Some of the funding for the St Matthews project was from European Structural Investment Funds. in the case of St Matthews, the European Regional Development Fund (ERDF). This was finally spent out in April 2022. As well as providing capital funding for some of the renovation work at the former church, we also received ERDF to provide business development and support to new and existing enterprises in our community. We hope to continue this work in the future if funding becomes available.

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.

Page 1

Giroscope Limited

Report of the Trustees for the year ended 31st December 2022

ACHIEVEMENT AND PERFORMANCE

At the end of the year Giroscope owned a total of 123 properties comprising 138 residential units (111 houses and 27 flats), 2 enterprise parks (comprising of offices and workshops), the former St Matthew's church, a community shop, a café premises and our office at 69 Coltman Street.

We also lease the former Premiere Bar (built as a cinema) and a three bedroom flat from Hull City Council.

We continue to manage 6 privately owned properties on behalf of Hull City Council, who took over control from the absent owners via Empty Dwelling Management Orders.

In 2022 Giroscope completed the construction of our first new build project of 3 houses to the rear of our offices at 69 Coltman Street.

We purchased 3 houses in 2022. 2 were completely derelict, and required a full schedule of works, whilst one was a tenanted property, that had formerly been leased to Hull City Council.

We completed a full renovation programme to 5 existing Giroscope properties, including regularising rooms in the roof, and improving thermal efficiency. We also commenced renovation works on the 2 newly acquired properties referred to above.

Later in the year we received recognition from the property charity LandAid, winning an award for our work supporting young homeless people.

In 2022, 103 people engaged with the Giroscope Volunteer Programme carrying out work experience across our five projects: construction, cooking, computer recycling, bike workshop and furniture.

Throughout 2022 Giroscope delivered over 50 business support outcomes. This included specialist support to new and existing local enterprises and pre-enterprise support to budding entrepreneurs.

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.

Giroscope continues 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.

Page 2

Giroscope Limited

Report of the Trustees for the year ended 31st December 2022

FINANCIAL REVIEW

Principal funding sources

The principle funding source of the charity are the rents received from the tenants. This includes payments made from tenants and direct payments from Housing Benefit, for both supported and unsupported tenants.

The senior management team and other staff at Giroscope continue to 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.

This funding is primarily debt finance from our bankers. We also access both statutory and non-statutory grants and donations when opportunities arise. These come in the form of both capital and revenue grants.

Giroscope received funding from the Hull Community Led Local Development Fund (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.

The Sir James Reckitt Charitable Trust made two grants to Giroscope in 2022: £10,000 towards the refurbishment of 46 Wellsted Street and £85,000 from their Centenary Fund.

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

In October 2022 Giroscope paid back its loan facility with Social and Sustainable Capital (SASC) using long term debt finance for Handelsbanken, our principle bankers. The loan was taken out in 2017 and unlocked a grant from Power to Change. These funds were used to construct the Giroscope self-build project and complete other house renovations.

We also received grants from UK Cycling, Two Ridings Community Foundation, Renew, and the Winter Warmth Community grant 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.

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.

Page 3

Giroscope Limited

Report of the Trustees for the year ended 31st December 2022

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 4

Giroscope Limited

Report of the Trustees for the year ended 31st December 2022

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 5

Giroscope Limited

Report of the Trustees for the year ended 31st December 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Auditors

Sadofskys 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, Sadofskys, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 12th September 2023 and signed on its behalf by:

R Amesbury - Trustee

Page 6

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 2022 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 7

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.

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:

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.

Sadofskys 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

12th September 2023

Page 9

Giroscope Limited

Statement of Financial Activities for the year ended 31st December 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
4
Renovation and letting of housing
Investment income
3
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
£
1,396
114,569
876,288
992,253
842,843
-
149,410
4,815,235
4,964,645		 Restricted
fund
£
-
160,511
-
160,511
153,188
-
7,323
4,787
12,110		 2022
Total
funds
£
1,396
275,080
876,288
1,152,764
996,031
-
156,733
4,820,022
4,976,755		 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

The notes form part of these financial statements

Page 10

Giroscope Limited

Balance Sheet

31st December 2022

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
£
46,914
4,999
8,729,450
8,781,363
23,390
116,487
139,877
(195,586)
(55,709)
8,725,654
(3,761,009 )
4,964,645		 Restricted
fund
£
-
-
-
-
12,110
-
12,110
-
12,110
12,110
-
12,110		 2022
Total
funds
£
46,914
4,999
8,729,450
8,781,363
35,500
116,487
151,987
(195,586)
(43,599)
8,737,764
(3,761,009 )
4,976,755
4,964,645
12,110
4,976,755		 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

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2022.

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 2022

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 12th September 2023 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 2022

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
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		 2022
£
333,845
(148,773)
185,072
(909)
(515,914)
(516,823)
1,586,200
(1,133,615 )
452,585
120,834
(4,347)
116,487		 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)

The notes form part of these financial statements

Page 13

Giroscope Limited

Notes to the Cash Flow Statement

for the year ended 31st December 2022

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES OPERATING ACTIVITIES
2022 2021
£ £
Net income for the reporting period (as per the Statement of Financial
Activities) 156,733 1,090,249
Adjustments for:
Depreciation charges 2,282 2,419
Losses on investments - (920,712)
Interest paid 148,773 112,364
Decrease in debtors 81,842 54,272
Decrease in creditors (55,785) (10,131)
Net cash provided by operations 333,845 328,461
2. ANALYSIS OF CASH AND CASH EQUIVALENTS
2022 2021
£ £
Notice deposits (less than 3 months) 116,487 665
Overdrafts included in bank loans and overdrafts falling due within one year - (5,012)
Total cash and cash equivalents 116,487 (4,347)
3. ANALYSIS OF CHANGES IN NET DEBT
At 1/1/22 Cash flow At 31/12/22
£ £ £
Net cash
Cash at bank 665 115,822 116,487
Bank overdraft (5,012) 5,012 -
(4,347) 120,834 116,487
Debt
Debts falling due within 1 year (342,314) 182,848 (159,466)
Debts falling due after 1 year (3,125,576 ) (635,433) (3,761,009 )
(3,467,890 ) (452,585) (3,920,475 )
Total (3,472,237 ) (331,751) (3,803,988 )

The notes form part of these financial statements

Page 14

Giroscope Limited

Notes to the Financial Statements

for the year ended 31st December 2022

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 2022

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
INVESTMENT INCOME
Rents received
INCOME FROM CHARITABLE ACTIVITIES
Activity
Grants
Renovation and letting of housing
Other income
Renovation and letting of housing		 2022
£
1,396
2022
£
876,288
2022
£
160,511
114,569
275,080		 2021 2021
£
1,056
2021
£
855,780
2021
£
78,076
104,365
182,441

3.

4. INCOME FROM CHARITABLE ACTIVITIES

Other capital grants received during the year are:

2022 2021
Capital Grants received £ £
Hull City Council Right-To-Buy Replacement Grant 82,610 230,987
Sir James Reckitt Charity 10,000 -
Garfield Weston Foundation - 30,000
Community Led Local Development (ERDF project) 239,963 18,879
332,573 279,866
Grants received, included in the above, are as follows:
Hull and East Riding Charitable Trust
Sir James Reckitt Charity
Hull Community Led Local Development
Tudor Trust
Bettys and Taylors Family Fund
Carried forward		 2022
£
10,000
85,000
28,133
-
16,665
139,798
2021
£
4,500
-
26,054
2,000
16,665
49,219

Page 16

continued...

Giroscope Limited

Notes to the Financial Statements - continued for the year ended 31st December 2022

4.
INCOME FROM CHARITABLE ACTIVITIES - continued
Brought forward
Job retention scheme
Hull City Council Kickstart scheme
NHS Social Prescribing Grant
Sport England
Renew Community Fund
UK Cycling - Big Bike Revival
Two Ridings Community Foundation
Winter Warmth Community Foundation
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
8.
TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year
ended 31st December 2021.		 2022
2021
£
£
139,798
49,219
2,986
9,725
-
7,147
8,715
8,715
-
3,270
2,000
-
2,867
-
1,930
-
2,215
-
160,511
78,076
Support
Direct
costs (see
Costs
note 6)
Totals
£
£
£
819,898
176,133
996,031
Governance
costs
£
176,133
2022
2021
£
£
4,800
3,780
2,282
2,419
ended 31st December 2022 nor for the year

Trustees' expenses

There were no trustees' expenses paid for the year ended 31st December 2022 nor for the year ended 31st December 2021.

continued...

Page 17

Giroscope Limited

Notes to the Financial Statements - continued

for the year ended 31st December 2022

9. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
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 ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
1,056
Charitable activities
Renovation and letting of housing
116,090
Investment income
855,780
Total
972,926
EXPENDITURE ON
Charitable activities
Renovation and letting of housing
808,176
Net gains on investments
920,712
NET INCOME
1,085,462
RECONCILIATION OF FUNDS
Total funds brought forward
3,729,773
TOTAL FUNDS CARRIED FORWARD
4,815,235		 2022
£
361,602
21,955
6,823
390,380
2022
8
11
19
Restricted
fund
£
-
66,351
-
66,351
61,564
-
4,787
-
4,787		 2021
£
273,291
10,637
5,214
289,142
2021
6
9
15
Total
funds
£
1,056
182,441
855,780
1,039,277
869,740
920,712
1,090,249
3,729,773
4,820,022

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 2022

11. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS TANGIBLE FIXED ASSETS TANGIBLE FIXED ASSETS
Improvements
to
Plant and
property
machinery
£
£
COST
At 1st January 2022
38,474
7,370
Additions
-
-
At 31st December 2022
38,474
7,370
DEPRECIATION
At 1st January 2022
-
7,108
Charge for year
-
51
At 31st December 2022
-
7,159
NET BOOK VALUE
At 31st December 2022
38,474
211
At 31st December 2021
38,474
262
Motor
Computer
vehicles
equipment
£
£
COST
At 1st January 2022
7,039
6,622
Additions
-
909
At 31st December 2022
7,039
7,531
DEPRECIATION
At 1st January 2022
3,739
2,639
Charge for year
825
1,077
At 31st December 2022
4,564
3,716
NET BOOK VALUE
At 31st December 2022
2,475
3,815
At 31st December 2021
3,300
3,983		 Fixtures
and
fittings
£
23,464
-
23,464
21,196
329
21,525
1,939
38,474 262 2,268
Motor
Computer
vehicles
equipment
£
£
7,039
6,622
-
909
7,039
7,531
3,739
2,639
825
1,077
4,564
3,716
2,475
3,815		 Totals
£
82,969
909
83,878
34,682
2,282
36,964
46,914
3,300 3,983 48,287

continued...

Page 19

Giroscope Limited

Notes to the Financial Statements - continued for the year ended 31st December 2022

12. FIXED ASSET INVESTMENTS

12. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£
MARKET VALUE
At 1st January 2022 and
31st December 2022 4,999
NET BOOK VALUE
At 31st December 2022 4,999
At 31st December 2021 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 2022 8,413,649
Additions 515,914
At 31st December 2022 8,929,563
AMORTISATION
At 1st January 2022
and 31st December 2022 200,113
NET BOOK VALUE
At 31st December 2022 8,729,450
At 31st December 2021 8,213,536
Fair value at 31st December 2022 is represented by:
£
Valuation in 2021 920,712
Cost 8,008,851
8,929,563

continued...

Page 20

Giroscope Limited

Notes to the Financial Statements - continued for the year ended 31st December 2022

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022
£
Rent arrears
26,419
Other debtors
9,081
35,500
15.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022
£
Bank loans and overdrafts (see note 17)
157,800
Other loans (see note 17)
1,666
Trade creditors
3,545
Social security and other taxes
6,507
Other creditors
21,568
Accrued expenses
4,500
195,586
16.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2022
£
Bank loans (see note 17)
3,629,670
Other loans (see note 17)
131,339
3,761,009
17.
LOANS
An analysis of the maturity of loans is given below:
2022
£
Amounts falling due within one year on demand:
Bank overdrafts
-
Bank loans
157,800
Other loans
1,666
159,466
Amounts falling between one and two years:
Bank loans - 1-2 years
3,629,670
Other loans - 1-2 years
131,339
3,761,009		 2021
£
58,841
58,501
117,342
2021
£
345,660
1,666
43,346
4,792
35,987
7,780
439,231
2021
£
3,115,571
10,005
3,125,576
2021
£
5,012
340,648
1,666
347,326
3,115,571
10,005
3,125,576

continued...

Page 21

Giroscope Limited

Notes to the Financial Statements - continued for the year ended 31st December 2022

18. SECURED DEBTS

The following secured debts are included within creditors:

Bank overdraft
Bank loans		 2022
£
-
3,787,470
3,787,470		 2021
£
5,012
3,456,219
3,461,231

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 as follows:
Unrestricted funds
General fund
Restricted funds
Restricted
TOTAL FUNDS		 At 1/1/22
£
4,815,235
4,787
4,820,022
Incoming
resources
£
992,253
160,511
1,152,764		 Net
movement
in funds
£
149,410
7,323
156,733
Resources
expended
£
(842,843)
(153,188)
(996,031)		 At
31/12/22
£
4,964,645
12,110
4,976,755
Movement
in funds
£
149,410
7,323
156,733

continued...

Page 22

Giroscope Limited

Notes to the Financial Statements - continued for the year ended 31st December 2022

19. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

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

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 1/1/21
£
3,729,773
-
3,729,773		 Net
movement
in funds
£
1,234,872
12,110
1,246,982		 At
31/12/22
£
4,964,645
12,110
4,976,755

continued...

Page 23

Giroscope Limited

Notes to the Financial Statements - continued for the year ended 31st December 2022

19. MOVEMENT IN FUNDS - continued

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
£
1,965,179
226,862
2,192,041		 Resources
expended
£
(1,651,019 )
(214,752)
(1,865,771 )		 Gains and
losses
£
920,712
-
920,712		 Movement
in funds
£
1,234,872
12,110
1,246,982

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 2022


INCOME AND ENDOWMENTS
Donations and legacies
Donations
Investment income
Rents received
Charitable activities
Grants
Other income
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
Bank charges
Credit card charges and interest
Depreciation of tangible fixed assets
Bank loan interest
Total resources expended
Net income		 2022
£
1,396
876,288
160,511
114,569
275,080
1,152,764
361,602
21,955
6,823
26,884
17,100
29,102
6,229
4,209
13,974
15,716
22,099
259,411
29,654
2,208
2,932
819,898
4,800
4,026
15,637
615
2,282
148,773
176,133
996,031
156,733		 2021
£
1,056
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
10,193
347
2,419
112,364
142,491
869,740
169,537

This page does not form part of the statutory financial statements

Page 25