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2022-01-31-accounts

Registered number: 05249004 Charity number: 1120398

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Company, its Trustees and Advisers 1
Trustees' Report 2 - 8
Independent Examiner's Report 9
Statement of Financial Activities 10
Balance Sheet 11 - 12
Statement of Cash Flows 13
Notes to the Financial Statements 14 - 28

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JANUARY 2022

Trustees

M Briggs S Farrow J Gell M Hallworth (resigned 18 January 2022)

J Hartland

Company registered number

05249004

Charity registered number

1120398

Registered office

Unit 27 Tallon Road Hutton Essex CM13 1TE

Company secretary

J Gell

Chief executive officer

P Everett

Accountants

Venthams Chartered Accountants Millhouse 32 - 38 East Street Rochford Essex SS4 1DB

Page 1

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JANUARY 2022

The Trustees present their annual report together with the financial statements of the company for the 1 February 2021 to 31 January 2022. 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 the charitable company comply with the current 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 the 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 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Policies and objectives

The objectives of the charity are:

The relief of poverty, particularly of homeless persons and those in other aspects of housing crisis through providing or assisting in the provision of practical support, regardless of faith, gender, age, race, lifestyle, disability or marital status, primarily in the South Essex area.

Advance public education about the circumstances of homeless people and others in housing crisis.

To bring awareness of the furniture project to all levels of the community throughout the whole of the districts served.

To encourage re-use as a way of life.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

Page 2

LIGHTHOUSE FURNITURE PROJECT LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2022

Objectives and activities (continued)

b. Activities undertaken to achieve objectives

The activities adopted in furtherance of these objects are:

To collect useable second hand furniture, white goods and other items for free to be able to divert them from landfill.

Make saleable either through refurbishment, repair, cleaning and/or testing the collected second hand goods.

To sell at an affordable price the second hand goods to the general public, to be able to cover the majority of the operating costs to make the project self sustaining.

Pricing is designed to drive volume ahead of profitability to prioritize recycling.

To wherever possible donate directly or through referral from government agencies or other charities the second hand goods to those in need or being rehoused.

To employ staff who empathise with the charities objectives and are committed to the environmental and social objectives.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

More information on the charity can be found on our website www.lighthousefurniture.org

c. Volunteers

LFP recognises and continues to massively appreciate the hours/day and hard work generously given throughout the last year. We have been privileged to see how staff and volunteers gave over and above to ensure we could continue to help as many people as we could. We sadly lost a valued volunteer to COVID in early April 2020 and as a result of the threat to life of those in our community that were deemed more vulnerable, LFP’s primary focus was to ensure no staff or volunteer was put at risk. One of the challenges we faced in doing this was the reduction of volunteer hours that we saw due to COVID-19. In 2019-20, 11,600 hours of volunteering enabled LFP to make an approximate saving of £100,000. In 2020-2021 we saw this number reduce to 4,500 hours. In 2021-2022 there has been a small increase to 5,314 hours. As a result of this, the CEO and Trustees recognised the need to employ more staff, particularly in sales and the workshop. This recruitment has ensured LFP remains well placed to provide a consistent service.

d. Main activities undertaken to further the company's purposes for the public benefit

The trustees are mindful of their duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit. The objectives and activities of the charity are undertaken to further our charitable purposes for the public benefit.

Page 3

LIGHTHOUSE FURNITURE PROJECT LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2022

Achievements and performance

a. Key performance indicators

As a result of the lockdown at the beginning of the financial year approximately a quarter of normal operating time was lost so as a general rule the metrics will be down in the range of 15%-25%. The period of activity after the lockdown was above normal but was further impacted by a closure for a week in July due to the spread of COVID within staff as the government’s measures were relaxed.

A key measure of environmental performance is the diversion of goods from landfill and during the past year of operating LFP enabled the reuse of 318 tonnes (2021, 242 tonnes) of furniture and white goods. This equates to a carbon saving of 315 tonnes (2021, 349 tonnes) using the most recent basis from Reuse.

Over the year we have made 2706 collections (2021: 2,208), 1,916 deliveries (2021: 1,405) and collecting in total 18,251 items (2021: 21,658). With these items we have helped approximately 9,520 households (8,600 in 2021) saving them a total of £1,089,615 (£1,132,000 in 2021).

The membership of the Reuse Network (formerly known as Furniture Reuse Network Enterprises) allows us to take part in collecting manufacturer and retailer clearance lines, from hotels and other businesses and these continued during 2021-22. Partnerships with other reuse projects in Epping, Ilford, Rayleigh, Norwich, Thurrock, Stratford, Cambridge and Dereham have also evolved further to assist in the volume of goods recycled.

Page 4

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2022

Achievements and performance (continued)

b. Review of activities

The is no doubt that the years 2021 and 2022 continued to be impacted by COVID-19 and challenged LFP’s ability to achieve our charitable purposes. We continued to see a reduction in items we could divert from landfill dropping from 365 tonnes in 2020 to 315 tonnes in 2021. This drop correlates with the months we were closed to the public. During the Lockdown at the beginning of the year we furloughed some staff from January to April 2021 and operated reduced days for those working to fulfil emergency referrals. During this time we were not collecting donations. In order to maintain support for the most vulnerable during this time, LFP continued to operate at a deficit for February to April.

The CEO and staff continued to look at and develop practice to ensure we remained agile to respond to the growing needs that presented themselves through both the Essential Living Fund and those needing additional support. Referrals increased significantly in 2021 from 351 in 2020 to 694 in 2021. This presented challenges to meet the demand of referrals whilst ensuring we had enough essential items to support those coming to LFP directly. This increase of supported sales also impacted our revenue as we saw our general sales reduce.

Throughout the last year we have been privileged to see how staff and volunteers gave over and above to ensure we could continue to help as many people as we could. Their dedication to ensuring we consistently support the most vulnerable in the community despite the challenges we all faced as levels of COVID infections increased. Volunteering hours increased slightly from 4,500 in 2020 to 5,314 in 2021 but remained less than half of what we were getting pre COVID (11,600 hours).

During the beginning of 2021 the CEO took part in the Goldman Sachs 10,000 Small Businesses Programme which allowed him to develop a 5-year Growth Plan for LFP. This plan was shared with Trustees in August and recognised the growing needs being presented across Essex and the acknowledgement that we needed to consider how we could help to address this. The growth plan set out a desire to be proactive in seeking ways to grow LFP activity to help more people whilst diverting more from landfill.

During this time LFP was approached to be part of a tender with Plan B Management Solutions to access reuse from the Recycle Centres and Household Waste Sites (RCHWs). Plan B’s tender was successful, and work started in December to begin developments to enable LFP to fulfil this for April 2022. When this is in full operation this will provide more large electrical items for use by LFP.

The partnership with Basildon Council involving the collection of small appliances from Barleylands Recycling Centre continued to enable Lighthouse to access small electricals. However, during 2021 the local library collections did not take place as COVID measure limited their opening. Work with Chelmsford Housing Project, that was set up for their more vulnerable tenants with LFP continued to grow and establish in 2021.

Despite these challenges the CEO and management team have risen to meet these head on and as a result have grown in both determination and ability to respond to the challenges faced on a day-to-day basis. The CEO has represented LFP throughout the year at Virtual Reuse Network meetings sharing learning, expertise, policy practice with other organisations where needed. The Management Team of LFP continued to support both Hopeworx in Rayleigh and Epping Forest Reuse (EFRU) the Benjamin Foundation and Cambridge Community Outreach Resource Network (CCORRN) providing white goods to support the local assistance funds in Cambridgeshire and Norfolk.

Our key challenge in 2022 is funding the need to grow to meet need whilst having reserves depleted through the ongoing impact of COVID, the impact of the War on the Ukraine and the cost of living crisis on the retail sector as well charities and their ability to survive. The grants that had offset loss of sales in 2020 were reduced despite the needs of those in our community, on low incomes, in poverty or in crisis increased.

Page 5

LIGHTHOUSE FURNITURE PROJECT LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2022

Achievements and performance (continued)

c. Investment policy and performance

Reserves invested for one to twelve months will be placed in accounts or in a bond(s) yielding the market rate of return or better but also have sound ethical values.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. Reserves policy

The trustees consider that it is appropriate to maintain free cash reserves at between three and six months of resources expended which equates to a range of between £200,000 and £400,000 in general funds. At this level, the trustees feel that they would be able to continue the current activities of the charity in the event of a significant drop in funding, allowing a period of time for funding to be replaced. At the balance sheet date, the unrestricted funds total was £181,702 (2021: £200,309) which represents approximately 2.8 (2021: 3.5) months of unrestricted expenditure.

We aim to maintain:

Lighthouse Furniture Project Limited also notes the need to hold an amount in reserve in line with legislation to enable the minimum required payment of redundancy money, should the charity need to close its operations.

c. Financial risk management objectives and policies

It is the policy of the charity to protect the organisation as far as possible as is reasonably practical from fraud by staff, service users and members of the general public.

In order to minimise its exposure to risk, the charity has specific risk policies in respect of the following areas:-

Page 6

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2022

Structure, governance and management

a. Constitution

Lighthouse Furniture Project Limited is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 4th October 2004, amended to allow for charitable status on 1st August 2007.

b. Methods of appointment or election of Trustees

The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. There is no limit on the composition of the board of directors who are invited to join the board by the recommendation of the existing board members through their extensive local church and business contacts.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £10 in the event of a winding up.

c. Organisational structure and decision-making policies

The board meets monthly with a break in the summer with a chair appointed by rotation. The chief executive attends all meetings to update the board on activities and help discuss challenges facing the operations. The directors delegate the majority of the day to day activities and management to the chief executive whilst retaining overall financial control and responsibility for setting policy and maintaining accounting records.

d. Financial risk management

The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

The trustees have a risk management strategy which comprises:

The review keeps a close eye on health and safety as it applies to both employees and customers. The mix of skills and competencies amongst staff of the charity are a key resource that must be continually developed and are considered periodically in the process. The rapid growth in the charity's operations has meant that the financial resources are key to being able to support the growth. A quarterly review of the performance and financial position of the company helps the directors to manage the position.

Plans for future periods

We are exploring the possibility of opening a shop in Basildon for re-use and exploring new partnerships. We will be renewing the lease on unit 31 Tallon Road where our workshop is located.

Page 7

LIGHTHOUSE FURNITURE PROJECT LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2022

Statement of Trustees' responsibilities

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 state 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:

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:

J Gell

Date: 25 October 2022

Page 8

LIGHTHOUSE FURNITURE PROJECT LIMITED (A Company Limited by Guarantee)

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 JANUARY 2022

Independent Examiner's Report to the Trustees of Lighthouse Furniture Project Limited ('the company')

I report to the charity Trustees on my examination of the accounts of the company for the year ended 31 January 2022.

Responsibilities 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 accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the company's 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 Charity Commission under section 145(5)(b) of the 2011 Act.

Independent Examiner's Statement

Since the company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Institute of Chartered Accountants in England & Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable 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.

Dated: 27 October 2022

Stuart Harrison FCA

Venthams

Chartered Accountants Millhouse 32 - 38 East Street Rochford Essex SS4 1DB

Page 9

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JANUARY 2022

Note
Income from:
Donations and legacies
3
Charitable activities
4
Investments
5
Other income
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
50,579
672,008
7
52,358
774,952
11,426
782,133
793,559
(18,607)
200,309
(18,607)
181,702		 Restricted
funds
2022
£
-
-
-
-
-
-
-
-
-
2,296
-
2,296		 Total
funds
2022
£
50,579
672,008
7
52,358
774,952
11,426
782,133
793,559
(18,607)
202,605
(18,607)
183,998		 Total
funds
2021
£
57,411
474,219
104
157,787
689,521
11,277
679,853
691,130
(1,609)
204,214
(1,609)
202,605

Page 10

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

BALANCE SHEET FOR THE YEAR ENDED 31 JANUARY 2022

Note
Fixed assets
Tangible assets
13
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
17
Total net assets
Charity funds
Restricted funds
18
Unrestricted funds
18
Total funds		 13,068
26,927
62,463
102,458
(39,962)		 2022
£
333,578
333,578
62,496
396,074
(212,076)
183,998
2,296
181,702
183,998		 12,302
50,622
68,286
131,210
(39,909)		 2021
£
341,801
341,801
91,301
433,102
(230,497)
202,605
2,296
200,309
202,605

Page 11

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

BALANCE SHEET (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2022

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:

J Gell

Date: 25 October 2022

Page 12

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JANUARY 2022

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2022
£
(1,931)
(3,892)
(3,892)
-
(5,823)
68,286
62,463		 2021
£
(9,752)
(34,941)
(34,941)
-
(44,693)
112,979
68,286

Page 13

LIGHTHOUSE FURNITURE PROJECT LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

1. General information

Lighthouse Furniture Project Limited is a company limited by guarantee and registered in England and Wales number 1120398. The principal activity of the company is the refurbishment and sale of secondhand goods.

2. Accounting policies

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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Lighthouse Furniture Project Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

The Directors are of the opinion that the company will not be significantly affected by the pandemic caused by the coronavirus (Covid-19) and believe that the company is a going concern. Accordingly, the Financial Statements have been prepared on that basis.

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.

Grants are included in the Statement 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. Where 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, the 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

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 attributable 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.

Page 14

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

LIGHTHOUSE FURNITURE PROJECT LIMITED (A Company Limited by Guarantee)

2. Accounting policies (continued)

2.4 Expenditure (continued)

Expenditure on raising funds includes all expenditure incurred by the company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the company's objectives, as well as any associated support costs.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £200 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following bases:

Freehold property - No depreciation
Improvements to leasehold - Straight line over the term of lease
property
Plant and machinery - 25% straight line
Motor vehicles - 20% straight line
Fixtures and fittings - 25% and 33% straight line

2.7 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.8 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Page 15

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

LIGHTHOUSE FURNITURE PROJECT LIMITED (A Company Limited by Guarantee)

2. Accounting policies (continued)

2.9 Cash at bank and in hand

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

2.10 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that 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 obligation. 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.

2.11 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.

2.12 Pensions

The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.

2.13 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.

Restricted funds are funds which are to be used in accordance with specific restrictions 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 16

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

3. Income from donations and legacies

Unrestricted
funds
2022
£
Donations
15,226
Grants
35,353
Total 2022
50,579
Total 2021
57,411		 Total
funds
2022
£
15,226
35,353
50,579
57,411		 Total
funds
2021
£
15,411
42,000
57,411

4. Income from charitable activities

Unrestricted
funds
2022
£
Income from charitable activities - Sale of recycled items
672,508
Income from charitable activities - Provision of repair and
refurbishment services
(500)
Total 2022
672,008
Total 2021
474,219		 Total
funds
2022
£
672,508
(500)
672,008
474,219		 Total
funds
2021
£
473,019
1,200
474,219

5. Investment income

Unrestricted
funds
2022
£
Investment income - local cash
7
Total 2021
104		 Total
funds
2022
£
7
104		 Total
funds
2021
£
104

Page 17

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

6. Other incoming resources

Employee Retention Furlough Scheme
Local authority business COVID grants
Total 2021
7.
Expenditure on raising funds
Costs of raising voluntary income		 Unrestricted
funds
2022
£
31,522
20,836
52,358
157,787		 Total
funds
2022
£
31,522
20,836
52,358
157,787		 Total
funds
2021
£
83,201
74,586
157,787
Unrestricted
funds
2022
£
Costs of raising voluntary income - wages and salaries
9,955
Costs of raising voluntary income - NI
1,072
Costs of raising voluntary income - pension costs
399
Total 2022
11,426
Total 2021
11,277		 Total
funds
2022
£
9,955
1,072
399
11,426
11,277		 Total
funds
2021
£
9,830
1,054
393
11,277

Page 18

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

8. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2022
£
Sale of recycled items
782,133
Total 2022
782,133
Total 2021
679,853		 Total
2022
£
782,133
782,133
679,853		 Total
2021
£
679,853
679,853

9. Analysis of expenditure by activities

Sale of recycled items
Total 2021		 Activities
undertaken
directly
2022
£
710,450
605,618		 Support
costs
2022
£
71,683
74,235		 Total
funds
2022
£
782,133
679,853		 Total
funds
2021
£
679,853

Page 19

LIGHTHOUSE FURNITURE PROJECT LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

9. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Cost of goods provided free of charge
Cost of goods sold
Premises expenses
Insurance
Light and heat
Office expenses
Marketing
Telephone
Rent
Motor running expenses
Travelling expenses
Clothing
Subscriptions
Training
Staff welfare
Sundry expenses
Legal and professional fees
Bad debts
Total 2022
Total 2021		 Sale of
recycled
items
2022
£
414,395
14,821
145,722
17,481
7,711
11,181
2,865
1,241
3,695
49,540
21,986
3,588
2,023
2,827
1,689
5,032
696
3,530
427
710,450
605,618		 Total
funds
2022
£
414,395
14,821
145,722
17,481
7,711
11,181
2,865
1,241
3,695
49,540
21,986
3,588
2,023
2,827
1,689
5,032
696
3,530
427
710,450
605,618		 Total
funds
2021
£
346,531
12,346
114,906
14,922
7,527
11,044
5,352
4,228
3,575
48,609
22,574
3,100
1,702
2,957
1,042
3,821
-
(1,118)
2,500
605,618

Page 20

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

9. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Depreciation
Bank charges
Loan interest paid
Governance costs
Total 2022
Total 2021		 Sale of
recycled
items
2022
£
34,280
12,115
3,415
14,375
7,498
71,683
74,235		 Total
funds
2022
£
34,280
12,115
3,415
14,375
7,498
71,683
74,235		 Total
funds
2021
£
33,829
15,077
2,736
14,411
8,182
74,235

10. Independent examiner's remuneration

The independent examiner's remuneration amounts to an independent examiner fee of £3,725 ( 2021 - £3,500 ).

11. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2022
£
422,921
23,888
13,292
460,101		 2021
£
360,423
19,233
11,981
391,637

Page 21

LIGHTHOUSE FURNITURE PROJECT LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

11. Staff costs (continued)

The average number of persons employed by the company during the year was as follows:

Management
Administration
Logistics
Refurbishment		 2022
No.
1
10
7
7
25		 2021
No.
1
9
6
7
23

No employee received remuneration amounting to more than £60,000 in either year.

12. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .

During the year ended 31 January 2022, no Trustee expenses have been incurred (2021 - £NIL) .

Page 22

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

13. Tangible fixed assets

Cost or valuation
At 1 February 2021
Additions
Disposals
At 31 January 2022
Depreciation
At 1 February 2021
Charge for the year
On disposals
At 31 January 2022
Net book value
At 31 January 2022
At 31 January 2021		 Freehold
property
£
308,212
-
-
308,212
-
-
-
-
308,212
308,212		 Short-term
leasehold
property
£
25,599
-
-
25,599
25,403
196
-
25,599
-
196		 Plant and
machinery
£
14,674
1,418
(2,855)
13,237
12,340
1,464
(2,855)
10,949
2,288
2,334		 Motor
vehicles
£
102,266
-
(17,544)
84,722
73,101
9,280
(17,544)
64,837
19,885
29,165		 Fixtures
and fittings
£
24,108
2,474
-
26,582
22,214
1,175
-
23,389
3,193
1,894		 Total
£
474,859
3,892
(20,399)
458,352
133,058
12,115
(20,399)
124,774
333,578
341,801

Page 23

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

14. Stocks

Finished goods and goods for resale
15.
Debtors
Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 2022
£
13,068
2022
£
8,696
193
18,038
26,927		 2021
£
12,302
2021
£
15,419
4,467
30,736
50,622

16. Creditors: Amounts falling due within one year

Other loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
17.
Creditors: Amounts falling due after more than one year
Other loans		 2022
£
8,936
2,360
13,681
2,517
12,468
39,962
2022
£
212,076		 2021
£
6,915
12,962
7,139
1,785
11,108
39,909
2021
£
230,497

The company has fixed and floating charges covering the property of the company in favour of Big Issue Invest Limited and The Charity Bank Limited dated 23 June 2016.

Page 24

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

18. Statement of funds

Statement of funds - current year

Balance at 1
February
2021
£
Income
£
Expenditure
£
Balance at
31 January
2022
£
Unrestricted funds
General Fund
200,309
774,952
(793,559)
181,702
Restricted funds
New van funding
2,296
-
-
2,296
Total of funds
202,605
774,952
(793,559)
183,998
The transfer from the restricted fund is in respect of fixed assets acquired from the general fund for which
funding was provided by the restricted fund grant.
Statement of funds - prior year
Balance at
1 February
2020
£
Income
£
Expenditure
£
Transfers
in/out
£
Balance at
31 January
2021
£
Unrestricted funds
General Fund
169,214
689,521
(691,130)
32,704
200,309
Restricted funds
New van funding
35,000
-
-
(32,704)
2,296
Total of funds
204,214
689,521
(691,130)
-
202,605		 Balance at
31 January
2022
£
181,702
2,296
183,998
Unrestricted funds
General Fund
Restricted funds
New van funding
Total of funds
2,296
202,605

The transfer from the restricted fund is in respect of fixed assets acquired from the general fund for which funding was provided by the restricted fund grant.

Page 25

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

19. Summary of funds

Summary of funds - current year

General funds
Restricted funds		 Balance at
1 February
2020
£
169,214
35,000
204,214		 Balance at 1
February
2021
£
200,309
2,296
202,605
Income
£
689,521
-
689,521		 Income
£
774,952
-
774,952
Expenditure
£
(691,130)
-
(691,130)		 Expenditure
£
(793,559)
-
(793,559)
Transfers
in/out
£
32,704
(32,704)
-		 Balance at
31 January
2022
£
181,702
2,296
183,998
Balance at
31 January
2021
£
200,309
2,296
202,605
Summary of funds - prior year
General funds
Restricted funds

20. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2022
£
Tangible fixed assets
333,578
Current assets
100,162
Creditors due within one year
(39,962)
Creditors due in more than one year
(212,076)
Total
181,702		 Restricted
funds
2022
£
-
2,296
-
-
2,296		 Total
funds
2022
£
333,578
102,458
(39,962)
(212,076)
183,998

Page 26

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

20. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2021
£
341,801
128,914
(39,909)
(230,497)
200,309		 Restricted
funds
2021
£
-
2,296
-
-
2,296		 Total
funds
2021
£
341,801
131,210
(39,909)
(230,497)
202,605
21.
Reconciliation of net movement in funds to net cash flow from operating activities
2022
£
Net expenditure for the year (as per Statement of Financial Activities)
(18,607)
Adjustments for:
Depreciation charges
12,115
Increase in stocks
(766)
Decrease/(increase) in debtors
23,695
Increase/(decrease) in creditors
(18,368)
Net cash used in operating activities
(1,931)
22.
Analysis of cash and cash equivalents
2022
£
Cash in hand
62,463
Total cash and cash equivalents
62,463		 2021
£
(1,609)
15,077
(7,837)
(16,628)
1,245
(9,752)
2021
£
68,286
68,286

Page 27

LIGHTHOUSE FURNITURE PROJECT LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

23. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 1
February
2021
£
68,286
(6,915)
(230,497)
(169,126)		 Cash flows
£
(5,823)
(2,021)
18,421
10,577		 At 31
January
2022
£
62,463
(8,936)
(212,076)
(158,549)

24. Pension commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £13,292 (2021 : £11,981). Contributions totalling £2,517 (2021: £1,785) were payable to the fund at the balance sheet date and are included in creditors.

25. Operating lease commitments

At 31 January 2022 the company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

2022 2021
£ £
Not later than 1 year 44,200 44,200

26. Related party transactions

During the year key management personnel received remuneration of £39,318 and pension contributions of £1,573 were made on their behalf.

Page 28