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2021-12-31-accounts

CPotential Trust (A company limited by guarantee)

·, rustees report and financial statements for the year ended 31 December 2021

Registered Company Number: 05848363 Registered Charity Number: 1124524

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CPotential Trust

Trustees Report and Financial Statements For the year ended 31 December 2021

CPotenUal "!'rust (A company limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

Reference and administrative details of the charity, its trustees and advisers for the year ended 31 December 2021

Trustees

Christopher Gilbert, Chair Anthony Dowle Timothy Hammett Raisa Hassan Catharine Seddon Deborah Trigg Chief Executive Officer Brett Parker Registered Company Number 05848363 Registered Charity Number 1124524 Registered Office 143 Coppetts Road London N10 1JP Independent Auditors Xeinadin Audit Limited Chartered Accountants 12 Conqueror Court Sittingbourne Kent ME10 5BH Bankers Barclays Bank pie 223 Muswell Hill Broadway London N10 1OD

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CPotential Trust (A company limited by guarantee) Trustees report and financial statements for the year ended 31 Dec€mber 2021

Contents

Page Report of the Trustees ............................................................................................... 4 Letter from the Chair of Trustees ............................................................................... 13 Letter from the CEO ................................................................................................. 14 Independent auditor's report ..................................................................................... 15 Consolidated statement of financial activities .............................................................. 18 Charity statement of financial activities ...................................................................... 19 Consolidated and charity balance sheet ..................................................................... 20 Consolidated statement of cash flow .......................................................................... 21 Notes to the financial statement ................................................................................. 22

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CPot&ntiai Trust (A company !imited by gt.!arantee) Trustees report and financial statements for the year ended 31 December 2021

Report of the Trustees

For the year ended 31 December 2021

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of CPotential Trust operating as CPotential (the charity and the group) for the year to 31 December 2021. The Trustees confirm that the annual report and financial statements of the charity and the group comply with the current statutory requirements, the requirements of the charity and the group'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 2015).

Since the charity and the group qualify as small under section 383, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013 is not required for this charity. The reference and administrative information set out on page 2 forms part of this report.

Structure, governance, and management

CPotential is a long-established charity, which was founded as The Homsey Trust for Handicapped Children in 1963. The charity is a company limited by guarantee (Company Number 05848363) and is governed by its Memorandum and Articles of Association. The Homsey Trust for Handicapped Children was dissolved, and its assets were duly transferred to the company on 31 December 2008.

The charity is managed by a Board of Trustees and the power of appointing and removing Trustees lies with the Trustees. The Board meets five times a year with various sub-committees meeting in between. Day to day management of the charity is delegated to the Chief Executive Officer and the Senior Leadership Team. The Senior Leadership Team comprised the CEO, Clinical Services Manager, Director of Resources, Director of Fundraising and Director of Finance; two of these positions are part-time.

In 2020 the charity established a Finance and Investment Committee to increase finance oversight and planning. Chaired by Tim Hammett (Trustee) and comprising of Chris Gilbert (Chair of Trustees), Brett Parker (CEO) and Agnieszka Kosacz (Director of Finance). Reporting to the main board, the committee meets monthly and reviews the financial performance and projections in detail and recommends and executes investments.

The recruitment and appointment of Trustees is undertaken on an on-going basis to maintain appropriate numbers and skills. The charity uses an open recruitment process. There is an induction process for new Trustees, which includes an interview with the Chief Executive Officer and the Chair of Trustees, the opportunity to observe a Board meeting, an opportunity to observe the charity's activities first-hand and the provision of various documents such as copies of Board minutes, and Charity Commission guidance and information. The Charity has a trading subsidiary: CPotential Trading Ltd.

Objectives and activities

The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. The Trustees consider how planned activities will contribute to the aims and objectives that have been set.

The main objective of the charity is the provision of therapeutic services, support, and advice to children, and their families / carers with movement disorders such as cerebral palsy. Our work integrates physical and occupational therapies. We work from the fundamental ethos that every child can learn and progress, and grow in confidence, skills, and independence. We help each child develop their mobility, motor, sensory, communication, emotional, problem-solving, and self-help skills. Importantly, we embed these into practical applications to encourage independence.

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CPotential Trust (A company limited by guarantee) Trustees report and financial statements for the year endEid 31 December 2021

In 2021 the charity fulfilled its aims and objectives by providing services as follows:

11lt makes all the difference, having a tailor-made physio session with his therapist who understands the benefits of making each session fun whilst encouraging him to work hard, helping him to realise and reach his full potential, while as parents we struggle trying to encourage our child to complete regular exercise. The use of equipment at CPotential like the "Spider cage" has really helped our son to improve his muscle strength and balance, which we were really struggling to do at home." Andy's mum

"We are extremely grateful to have been awarded funded music therapy sessions through the Amy Winehouse Foundation. Our son absolutely adores his therapist and we have watched him grow in confidence with his speech and singing. Watching him so happy and free to express himself through music therapy is an absolute joy." Ruairi's mum

"CPotential has aided Edith's physical development as well as her emotional and social development. Since we started, Edith has learnt to walk, climb, run, jump, and use various play equipment. She has made wonderful friends at CPotential, and her social skills have progressed immensely." Edith's mum

"Ivy has absolutely loved OT and Bimanual Therapy with the amazing Paula, especially being in the sensory swing, making kitten toys and all the fun garden activities with the team. It's hard work, but lots of great progress made. It's the people that make a place special and CPotential has the most caring and amazing team we could have wished for. We are so thankful." Ivy's mum and dad

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CPotenHai Trust (A company fimited by guorantee) TrnsteG.s report and financial statements for the year ended 31 December 2021

"Charlie is such a breath of fresh air, she is kind, patient and I have benefited enormously from the time we have spent together. As parents our wellbeing is always bottom of the list, but Charlie provided me with the time, space, and encouragement to reflect and take care of my emotional health." Anonymous parent

During 2021 we delivered a total of 2,995 sessions and worked with 147 individual children aged from 3 months to 9 years old.

Our Supporters:

We are grateful to our funders and supporters who have continued to support our work, such as:

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CPotential Trust (A company limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

Coronavirus Pandemic

The Covid-19 pandemic continued to impact upon our fundraising capacity as funders shifted their support to emergency relief. We continued to receive funding from trusts and foundations and were pleased to realise a 50% year on year increase on our fundraised activities, £277,235 (2021) v £184,484 (2020).

Although we were largely able to continue to provide services during 2021, they were at reduced capacity and parents chose to keep vulnerable children away and the safety and cleaning protocols reduced capacity. We did however see £103,088 year on year increase in sessions delivered.

We were able to utilise the government furlough scheme and other government support (see page 6 for details) albeit at lower levels than £185k (2021) v £244k (2020).

Achievements and performance

In 2020 we established the following objectives: within 24 months we will have a range of holistic integrated therapies and sharply focused support services that are:

Our organisation will be:

We have worked hard during 2021 to progress these objectives.

Integrated and all-inclusive. In 2021 we achieved a milestone in developing the methodology to integrate the specialist therapy areas and service workflow. Our beneficiaries' needs are often long term and are best serviced by long term planning against defined goals . In 2021 we introduced multidisciplinary assessments as the foundation to producing extended therapy plans for our beneficiaries.

Outcome Evidenced. Aligned to our goal to integrate our services. We have received generous support from The City Bridge Trust who have funded a 12-month project to establish a suite of benchmarked impact measures. As we continue to develop our fully integrated services these evidence protocols will provide further support to our development.

Accessible and Affordable for all. With the fantastic backing of our supporters, we have successful supported children with £80,140 of bursaries. We have developed plans and funding to increase our delivery of services into the community and online.

Robust. We have introduced new highly trained staff: Level 7 physiotherapist and occupational therapist. All service staff are supported by a highly experienced level 8 paediatric supervisor and the organisation has recruited an additional trustee with over 20 years of experience as a paediatric physic. Other specialist training on understanding needs and supporting children with Downs Syndrome, Galileo Whole Body Vibration Therapy, Spider Therapy and DMI (Dynamic Movement Intervention). All staff have undertaken training in Safeguarding, Fire Safety and First Aid. We have introduced new back-office systems (HR, service logging and fundraising) to support staff in their work. We continue to integrate these systems.

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CPot<&ntial Trust (A company !imited by guarrntee) Tn.:siees report ar,d financial statements for the year ended 31 December 2021

Sustainable. Despite the circumstances of the pandemic impacting upon our drive towards sustainability we are pleased to have achieved a £103,088 increase in service delivery and a 50% increase in fundraising. Our charity shop is now transformed into a highly attractive boutique preloved outlet and is now generate a return.

Connected. Partnerships have been formed to provide expert advice, wellbeing support, mental health counselling by Mind in Haringey and EHCP guidance.

We are also delighted to have the support of Irwin Mitchell who can provide our beneficiaries with specialist legal, financial, and educational advice. As we move into 2022, we will establish dedicated resources into further partnership development.

Quotes from CPotential families ...

"CPotential has, in only a few months, provided a place and space where Poppy is celebrated and supported in a way that works for her. With CE sessions, Music Therapy, play and story time, she has been helped and enriched in so many ways. We have seen her grow in physical strength - she is fitter, stronger and braver; she climbs, she jumps, she skips in a way she did not before." Poppy's mum

"We were really grateful to be able to take Teddy for intensive therapy at CPotential which is not really so available in Ireland. Our therapist was encouraging of him and could read him very well and see understand when he needed short breaks. It was great to him tolerate two hours of therapy in a single session and just keep working away at it." Teddy's mum

"One of the factors that make any therapy successful is the patience that the therapist has. We always say that Harriet works better with a therapist at CPotential as they have absolute patience with the children. We have seen significant progress with Harriet's confidence, being able to go upstairs with a support, and going in tunnel. We are currently working on tiptoe walking with Andrea and Will, and we are super grateful for how much progress she has achieved." Harriet' s parents

Financial review

Income: When reviewing the 2021 financial performance it should be noted that the charity had an exceptional source of income in 2019 in the form of proceeds from the sale of land, which provided a capital gain of £1,249,418.

Although Income levels continued to be supressed by the Covid-19 pandemic lockdowns and restrictions we had a 25% increase in revenues £744,388 (2021) v £597,752 (2020) (see page 8 for breakdown).

This income growth was achieved despite a reduction in Covid-19 government support year on year. The Charity received £185,859 (2021) v £244,651 (2020) from the furlough support.

Income from all sources has been used to support the delivery of the charity's key objectives and to develop a strategy and deliver a business plan that ensures sustainable growth and the best possible impact for our beneficiaries.

Expenditure: Although we introduced new staff and resources and increased income our expenditure remained in line with the previous year £1,180,394 (2021) v £1,133,001 (2020).

Trading (Charity Shops): The Covid-19 pandemic and lockdowns severely affected our ability to trade. During 2021 we completed our restructure of our trading shops. The shop closures and reassignments of leases were completed in March 2021.

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CPotential Trust

(A company limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

Revenues for Trading were improved £152,488 (2021) v £144,675 {2020).

The Trading company also benefited from Covid-19 support albeit at a year-on-year reduction £38,418 v £93,053. Costs were reduced to £197,010 (2021) v £244,660 {2020).

Despite the £50k government funding reduction, the performance was slightly improved with the loss for the year Of £6,099 {2021) V £6,932 {2020)

This is an encouraging financial achievement and indicates a much-improved trading position as we move forward.

Income: Although the Covid-19 pandemic continued to impact our fundraising, but we were pleased to see a 50% increase in funds raised £277,235 (2021) v £184,484 (2020)

Although the level of government Covid support reduced year-on-year by £58,792 we still had a significant increase in income. This was driven by increased charitable activity and fundraising. Separating the effects of the Government Covid support this represents a year-on-year income increase of 58%. This is also 18% on 2019 pre pandemic income levels.

The Charity income breakdown is as follows:

The Charity income breakdown is as follows:
2021 2020
Donations and capital grants £277,235 V £184,484
Charitable Activity £125,524 V £22,436
Other income incl. CV-19 grant £185,859 V £244,651
Trading income {charity shops) £152,488 V £144,675
Investments
Total Income		 £3,282
£74,388		 V
V		 £1,506
£597,752

Expenditure: Our year-on-year expenditure remained levelled £1,180,394 (2021) v £1,133,001 (2020) despite an increase in staff and resources that generated income.

There was a small increase in the cost of raising funds which is reflected in the increase in income levels £434,971 {2021) V £408,897 (2020).

Surplus/ Loss: 2021 was another challenging year, however we used our time and resources to push forward with our restructuring of the Charity and introducing new services and resources. This has placed us in a good position for growth as the pandemic restrictions lift.

The charity reduced its loss to £436,006 (2021) despite a backdrop reduction of £58,792k in Covid grant funding.

The trustees are mindful of the reduction of the charity's working capital during the pandemic and have, after careful consideration decided to release capital by way of a sale and lease back on its Coppetts Road asset. It is expected that this will generate £1.85m to recapitalise the charity. Negotiations for this will be concluded in 2022 and the board will take all the required fiduciary and legal advice to ensure full charitable compliance.

Bearing the above in mind, and after making appropriate enquiries, the Trustees are confident that the charity has adequate resources to continue in operational existence. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the going concern basis can be found in the Accounting Policies in Note 1 to the Accounts.

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C Potential Trust (A company trmited by guarantee} Trustees report and financial statements for the year ended 31 December 202·!

Plans for 2022 and beyond

Our decision to continue with the growth of our service capacity during 2021 is proving to be advantageous as the post pandemic operational environment normalises. We remain confident that the growth in our income and reduction of our losses will continue into 2022 and beyond.

During 2022 we will continue to review and reassess our progress and work towards the achievement of the following objectives:

We will continue to develop our strategy to generate growth:

Risk management

Trustees consider a risk assessment register at every meeting, and this is regularly updated and reviewed by the Senior Leadership Team. This constitutes a regular review of the major risks to which the charity is exposed. All of these risks are identified and placed on the register. Where appropriate, systems or procedures are established to manage the risks the charity faces.

The culture of the charity is that risk management systems are absorbed into the organisation's daily operations through regular discussion by the Senior Leadership Team and through our policies and procedures. Internal control risks are minimized by the implementation of procedures for the authorisation of all financial transactions and projects. Procedures are also in place to ensure compliance with the health and safety and wellbeing of staff, children, and visitors to the charity.

Investment policy

A specialist Trustee Investment Subcommittee examines the best use of our reserves and develops an investment policy which reflects our needs.

The Investment & Finance Committee is responsible for (and ensures that regular reporting procedures are in operation to monitor the performance of):

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CPotential Tru�t (A company limited by guarantee} Trustees report and financial statements for the }'ear ended 31 December 2021

All investment related affairs of the Charity including:

Following the above principle, in the year 2021 the charity invested £150,000 in the Sarasin Endowment Fund.

Reserves policy

The Trustees have determined a reserves policy in the light of the need to maintain a secure and predictable provision of services to young people with disabilities. Specifically, the policy is to seek to maintain sufficient free reserves to allow the charity to cope with seasonal variations in cash flow and with the types of unexpected expenditure and non-receipt of budgeted income that can typically occur in a charity of our type and size. Having analysed the risks of such eventualities occurring, the Trustees believe that a general reserve of between 3 and 6 months budgeted total expenditure for the current year is appropriate. We were compliant with this policy at the end of 2021.

Designated reserves are also kept, providing for funds invested in fixed assets and for specific needs identified by the Trustees including cyclical maintenance, innovation, and investment in our trading subsidiary, as set out in note 14 to the accounts.

Over the next 24 months, our new strategy and business plan will move us to secure, sustainable and effective services; fundraising activity and designated reserves will be used to facilitate the growth of new resources, people, and equipment.

Remuneration of senior staff policy

Our policy is to seek to pay key staff at a level that is competitive in the employment market to be able to attract and retain high quality personnel who will contribute to the expansion and strategic direction of the charity. The Trustees approve the salaries budget for each calendar year before the start of the year. The Chair of Trustees decides any changes in the Chief Executive's salary based on a review of performance against the objectives set for the foregoing period and available budget. The Chief Executive approves the salaries of other key staff considering, their performance, current market rates and available budget.

Related parties and connected organisations

There are no issues regarding related parties and connected organisations.

Statement of responsibilities of the Trustees

With regards to the attached accounts, it is the responsibility of the Trustees to:

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CPote.ntial Trust (A company limited by guarantee} Trustees rep.on and financial statemenis for the year ended 31 December 2021

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the group and the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the charitable 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 group and the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.

Each of the Trustees confirms that to the best of his/her knowledge there is no information relevant to the audit of which the auditors are unaware. Each of the Trustees also confirms that he/she has taken all necessary steps to ensure that he/she is aware of all relevant audit information and that this information has been communicated to the auditors.

Guarantees

Members of the charitable company guarantee to contribute an amount not exceeding £10 to the assets of the charitable company in the event of winding up. The total number of such guarantors at 31 December 2021 was 10. The Trustees have no beneficial interest in the charitable company.

Disclosure of information to auditors

In so far as the Trustees are aware:

Auditors

The Trustees wish to continue the appointment of the charity's auditors, Xeinadin Audit Limited who have indicated their willingness to continue in that capacity.

Approved by the Trustees on 28 [th ] September 2022 and signed on their behalf by:

Chair of Trustees

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CPotential lrust (A company limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

Letter from the Chair of Trustees

The year 2021, continued to be dominated by the consequences of the Covid-19 pandemic and a restricted operating environment. However, we have continued to make immense progress in our charity's development. We now have a wide range of evidence based, integrated rehabilitation services, using highly qualified therapists and cutting-edge technology. We are very much looking to the future.

The trustees and team are dedicated to achieving our mission "To be the champion in unlocking potential in children and young adults with movement disorders by 2027[11] •

The difficult years since 2019 have allowed us to revaluate and improve. We are now well placed to continue with our growth and extend the support we can give to our beneficiaries.

In 2021 even with pandemic restrictions we increased the number of crucial therapy sessions to 2,995 (573 in 2020) for 147 (85 in 2020) children in the year. To facilitate this, we also increased our income generation by £146,636.

Our work remains as vital as ever and our decision to push forward with our development during the height of a pandemic means that we are now able to respond to our beneficiaries needs with flexibility and great expertise.

11CPotential has aided Edith's physical development as well as her emotional and social development. Since we started, Edith has learnt to walk, climb, run, jump and use various play equipment. She has made wonderful friends at CPotential, and her social skills have progressed immensely. 11 Edith's mum

In 2021 we are very pleased to have introduced:

We would like to thank all the individuals, staff, trust funds and companies that have supported us this year.

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Christopher Gilbert

Chair of Trustees

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CPotential Trust

(A company limited by guarantee} Trustees report and financial statements for the year ended 31 December 2021

Letter from the CEO

"Finding the right therapy centre that works with your family is one of the most important things when raising a child with additional needs. We are so glad that we found CPotential!" Harriet's mum

It's feedback like this that have driven the team forward during a very challenging operational year.

To have delivered nearly 3,000 sessions for 147 children against the constantly changing backdrop of the pandemic and a very restricted and often uncomfortable operational environment is a testament to all our staff, families, and supporters. They have all been remarkable.

We have continued our journey with enthusiasm and commitment. It has been a personal pleasure for me to see our services beginning to thrive.

We still have significant challenges ahead with ambitious plans to further expand our service delivery and resources. We are extremely well placed for this and are confident that the progress of CPotential will continue.

I would like to express my sincere thanks to our Board of Trustees who have given their time so generously and provided my team and myself with clear and critical direction.

My thanks also go to all those that have supported us with their time, advice, and money. We all appreciate such generosity.

Finally, my special thanks go to those team members who have worked so hard and diligently delivering the services. You are all exemplars for your profession.

Yours sincerely,

Brett Parker

CEO

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CPotential Trust (A company limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

Independent Auditors' Report on the financial statements to the Trustees of CPotential Trust

Opinion

We have audited the financial statements of CPotential Trust (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Consolidated Statement of Financial Activities, the Charity Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Emphasis of Matter

We draw attention to the going concern accounting policy which describes the heavy reliance on the completion of the sale and leaseback in order to continue as a going concern. Our opinion is not modified in respect of this matter.

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CPoter[r] i:ia Trust (A company limii:f,-d by guarantee) Trustees: re-port and financial statements for the year E;nded 31 D�cember 2021

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 Auditors' Report thereon. Our opinion on the financial statements does not cover the other information and 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, 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 Group's and the parent 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 Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 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 an Auditors' Report 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.

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CPolenfial Trust

(A company limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

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 Auditors' Report.

Use of our report

This r�port 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

� � � c , L___,,

Xeinadin Audit Limited Chartered Accountants and Registered Auditors 12 Conqueror Court Sittingbourne Kent ME10 5BH

Date: '2 C\

Xeinadin Audit Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

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CPotential Trust (A company limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

Consolidated statement of financial activities incorporating income and expenditure account for the year ended 31 December 2021

Continued activities Continued activities
Unrestricted Restricted Total Total
funds funds funds funds
2021 2021 2021 2020
Note £ £ £ £
Income from:
Donations and capital grants 2 172,638 104,597 277,235 184,484
Other income (incl. Covid-19 gov grant) 2,3 185,859 185,859 244,651
Trading activities 3 152,488 152,488 144,675
Charitable activities 4 125,524 125,524 22,436
Investments 5 3,282 3,282 1,506
Total income 639,791 104,597 744,388 597,752
Expenditure on:
Raising funds 6 434,971 434,971 408,897
Charitable activities 6 576,504 168,919 745,423 709,061
Other expenditure 7 15,043
Total expenditure 1,011,475 168,919 1,180,394 1,133,001
Net income/ (expenditure) before other
gains and losses (371,684) (64,322) (436,006) (535,249}
Net movement in funds (371,684) (64,322) (436,006) (535,249}
Reconciliation of funds:
Total funds brought forard 1,566,622 77,395 1,644,017 2,179,265
Total funds carried forard 1,194,938 13,073 1,208,010 1,644,017

The notes on pages 22 to 34 form part of these financial statements.

18

CPotential Trust (A company limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

Charity statement of financial activities incorporating income and expenditure account for the year ended 31 December 2021

Continued activities Continued activities
Unrestricted Restricted Total Total
funds funds funds funds
2021 2021 2021 2020
Note
£		 £ £ £
Income from:
Donations and capital grants 2 172,638 104,597 277,235 184,484
Other income (incl. Covid-19 gov grant) 2 147,441 147,441 151,598
Charitable activities 4 125,524 125,524 22,436
Investments 5 3,282 3,282 5,562
Total income 448,885 104,597 553,482 364,080
Expenditure on:
Raising funds 6 237,966 237,966 168,293
Charitable activities 6 576,504 168,919 745,423 709,061
Other expenditure 7 15,043
Total expenditure 814,470 168,919 983,389 892,397
Net incomeI(expenditure) before other
gains and losses (365,585) (64,322} (429,907) {528,317}
Net movement in funds (365,585) {64,322) (429,907) {528,317}
Reconciliation of funds:
Total funds brought forard 1,725,477 77,395 1,802,872 2,331,188
Total funds carried forard 1,359,892 13,073 1,372,965 1,802,872

The notes on pages 22 to 34 form part of these financial statements.

19

CPotential Trust (A company limited by guarantee)

-, rustees report and financial statements for the year ended 31 December 2021

Consolidated and charity balance sheets as at 31 December 2021

Fixed assets
Tangible assets
Current assets
Debtors
Prepayments and acrued income
Cash at bank and in hand
Creditors:amounts falling due within one
year
Net current assets
Total assets less current liabilities
Creditors:amounts falling due after more
than one year
Net assets
Charity funds
Restricted funds
Unrestricted funds
Total funds
Note
10
11
11
12
12
15
13
13		 Consol­
idated
2021
£
1,148,699
1,148,699
24,227
16,632
169,799
210,658
(91,013)
119,645
1,268,344
(60,334)
1,208,010
13,073
1,194,937
1,208,010		 Consol­
idated
2020
£
1,175,216
1,175,216
29,206
42,083
486,785
558,074
{70,608}
487,466
1,662,682
(18,667)
1,644,015
77,395
1,566,620
1,644,015		 Charity
2021
£
1,146,245
1,146,245
198,180
132,643
330,823
{62,436)
268,387
1,414,632
(41,667)
1,372,965
13,073
1,359,892
1,372,965
Charity
2020
£
1,170,490
1,170,490
187,262
23,428
473,369
684,059
632,381
1,802,871
1,802,871
77,395
1,725,476
1,802,871

The financial statements were approved by the Trustees on 28/09/22 and signed on their behalf by: / . 4 //- .y . ,· ,:/: _ vP°F ./ ,, / Christopher Gilbert, Chair of Trustees //�;;P/

The notes on pages 19 to 32 form part of these financial statements.

20

CPotential Trust (A company limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

Consolidated statement of cash flows for the year ended 31 December 2021

Total funds Total funds
2021 2020
£ £
Cash flows from operating activities:
Net cash provided by (used in) operating activities (313,898) (464J852}
Cash flows from investing activities:
Purchase of property, plant and equipment (44,846) {57J913}
Proceeds from sale of property, plant and equipment
Net cash provided by (used in) investing activities (44,846) {57J913}
Loans over 12 months taken out /(repaid) 41,667
Rent deposit over 12 months received 18,667 18J667
Changeincash and cash equivalents in the reporing period (298,410) (504J098)
Cash and cash equivalents at the beginning of 486,785 1J009J550
the reporting period
Cash and cash equivalents at the end of the reporing period 169,799 486J785
Reconciliation of net income/(expenditure) to net cash flow from operating activities
Net income/(expenditure) for the reporing period
(as per the statement of financial activities) (436,006) {535J249}
Adjustments for:
Depreciation charges 71,273 57J188
(Decrease )/increase in debtors 30,430 15A10
(Decrease )/increase in creditors 20,405 (2J201}
Net cash used in operating activities (313,898) {464J852}

The notes on pages 19 to 32 form part of these financial statements.

21

CPotential Trust

(A company limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

Notes to the financial statement for the year ended 31 December 2021

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities published on 16 July 2014, the Financial Reporting Standard for Smaller Entities (effective January 2015) and the Companies Act 2006

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

Statements of financial activities (SOFAs) and Balance sheets are presented for both the group and the charity. The group statements consolidate the financial statements of the charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

1.2 Company status and General Information

The charity is a company limited by guarantee and registered in England and Wales. The members of the company are the Trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.

1.3 Basis of consolidation

The financial statements consolidate the accounts of CPotential Trust operating as Cpotential and Cpotential Trading Ltd which is its only subsidiary undertaking.

The charity has taken advantage of the exemption contained within 408 of the Companies Act 2006 not to present its own Income and expenditure account.

1.4 Fund accounting

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.

Restricted funds are to be used for specified purposes as laid down by the donor. Expenditure which meets these criteria is identified to the fund, together with a fair allocation of support costs.

1.5 Going Concern

The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the forseeable future and there are no material uncertainties about the Charietes ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

The Charity is heavily reliant on an ongoing sale and leaseback of the building in order to continue as a going concern. The Trustees have taken this into consideration when assessing going concern and are confident that the sale will complete in the near future.

22

CPotential Trust (A company limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

Notes to the financial statement for the year ended 31 December 2021

1.6 Income

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

Voluntary income received by way of donations are included in full in the statement of financial activities when receivable. Intangible income is recognised as an incoming resource where the provider of the service has incurred a financial cost. Volunteer time is not included in the financial statements.

Income from the sales of goods is accounted for when the goods are sold.

Grants are recognised in full in the statement of financial activities in the year in which they are receivable.

Investment income is recognised on a receivable basis.

1. 7 Expenditure

Resources expended are recognised in the period in which they are incurred. Resources expended include attributable VAT which cannot be recovered.

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the basis of the full-time equivalent number of staff working in each activity.

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity's activities.

The costs of generating funds relate to the cost incurred by the group and charity in raising funds for the charitable work.

1.8 Turnover

Turnover comprises revenue recognised by the charity in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.

23

CPotential Trust

(A company limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

Notes to the financial statement for the year ended 31 December 2021

1.9 Tangible fixed assets and depreciation

All assets costing more than £500 are capitalised.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases

Freehold land and buildings 2% straight line basis on buildings only Building improvements 5% straight line basis Fixtures and fittings 20% straight line basis Furniture and equipment 33% straight line basis

Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities.

1.10 Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

Investments in subsidiaries are valued at cost less provision for impairment.

1.11 Operating leases

Rentals under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.

1.12 Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

1.13 Government Grants

Grants that become receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the company are recognised as income in the period in which it becomes receivable on an accruals basis and recognised immediately in profit and loss.

24

CF[)] otential l rust (A company limited by guarantee) Trustees r6por1 and financial statements for the year ended 31 December 2021

Notes to the financial statement for the year ended 31 December 2021

2. Income from donations, legacies and grant income

Unrestricted Restricted Total Total
funds funds funds funds
2021 2021 2021 2020
Group and Charity £ £ £ £
Donations from trusts and foundations 152,149 104,597 256,746 161,797
Donations from companies 200
Donations from individuals 20,489 20,489 22,487
Grants income ( Covid-19 grant) 147,441 147,441 151,598
320,079 104,597 424,676 336,082
Group and Charity 2020 296,049 40,033 336,082

All of the above income was received by the charity so the group and charity tables are identical.

3. Income and expenditure from trading activities

Unrestricted Restricted Total Ttal
funds funds funds funds
2021 2021 2021 2020
Group £ £ £ £
Trading income
Sale of good in charity shops 152,488 152,488 144,675
Other income (incl Covid-19 gov grant) 38,418 38,418 93,053
190,906 190,906 237,728
Trading expenditur
Salaries and National Insurance 75,953 75,953 88,318
Rent of retail shops 93,382 93,382 124,211
Other expenses 24,756 24,756 29,284
Depreciation on tangible fixed assets 2,914 2,914 2,847
197,005 197,005 244,660
Net income/(loss) from trading activities (6,099) (6,099) (6,932)
Net income/(loss) from trading activities 2020 (6,932) (6,932)

Charity - All of the above income was received by the trading subsidiary. The charity has no trading income or expenditure.

25

CPotential 1·rust (A company limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

Notes to the financial statement for the year ended 31 December 2021

4. Income from charitable activities

Group and Charity
Sessional services
Income from charitable activities
Income from charitable activities 2020		 Unrestricted
Restricted
Total
Ttal
funds
funds
funds
funds
2021
2021
2021
2020
£
£
£
£
125,524
125,524
22,436
125,524
125,524
22,436
22,436
22,436

All of the above income was received by the charity so the group and charity tables are identical.

26

CPotential 1 rust

(A company limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

Notes to the financial statement for the year ended 31 December 2021

5. Investment income

Investment income
Unrestricted Restricted Total Ttal
funds funds funds funds
2021 2021 2021 2020
Group £ £ £ £
Income from investments 3,261 3,261
Bank interest 21 21 1,506
Interest income 2021 3,282 3,282
Charity
Income from investments 3,261 3,261
Bank interest 21 21 1,506
lntercompany loan interest 4,056
Investment income 2021 3,282 3,282 5,562
Investment income 2020 5,562 5,562

6. Expenditure analysis by function and type of funding

Unrestricted Restricted Total Ttal
funds funds funds funds
2021 2021 2021 2020
Raising funds £ £ £ £
Donations, legacies and capital grants 237,966 237,966 168,293
Trading activities 197,005 197,005 240,604
Other activities to generate funds
434,971 434,971 408,897
Charitable activities
Primary special school
Sessional services 637,216 96,219 733,435 699,475
Parents information project
Charity governance 11,988 11,988 9,586
649,204 96,219 745,423 709,061
Other expenditure
Capital project and campaign 15,043
Total expenditur - Group 1,084,175 96,219 1,180,394 1,133,001
Total expenditur - Charity 887,170 96,219 983,389 892,397

Total expenditure in the charity is equal to total expenditure in the group less expenditure on trading activities.

27

CPotential Trust (A company limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

Notes to the financial statement for the year ended 31 December 2021

7. Expenditure analysis of direct and support costs

Cost of
raising
funds		 Cost of
charitable
activities		 Other costs Suppor
costs		 Total 2021 Ttal 2020
Group £ £ £ £ £ £
Staff costs (charity) 134,391 336,729 272,504 743,624 664,751
Staff costs (trading)* 75,953 75,953 88,318
Other trading costs* 117,052 117,052 148,286
School direct costs
Other serice costs 29,129 29,129 31,778
Fundraising - voluntary 4,632 4,632 24,189
Fundraising - events
Running capital project 4,933
Capital project write-of
Investment management 78
Audit 4,000 7,800 11,800 10,600
Other governance costs (3) (3) 1,081
Communications 16,666 16,666 5,766
Depreciation 68,359 68,359 54,523
Premises, ofice & IT 57,042 57,042 56,962
Management &HR 63,334 63,334 39,346
Financial administration (7,194) (7,194) 2,390
336,028 373,654 470,712 1,180,394 1,133,001
Support costs 98,943 371,769 (470,712)
Total expenditure 2021 434,971 745,423 1,180,394 1,133,001
Total expenditure 2020 408,897 709,061 15,043 1,133,001

Charity-All of the above expenditure was incurred by the charity apart from the two trading costs lines and £4,000 in the audit line.

28

CPotential Trust (A company limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

Notes to the financial statement for the year ended 31 December 2021

8. Net incoming resources/(resources expended)

This is stated after charging:

This is stated after charging:
Group Group Charity Charity
2021 2020 2021 2020
£ £ £ £
Depreciation on tangible fixed assets 71,273 57,188 68,359 54,342
Auditor's remuneration 11,800 10,600 7,800 6,600
Auditor's remuneration - non-audit
Pension costs 18,855 14,999 17,539 14,006

During the year, no Trustees received any remuneration (2020: £NIL). During the year, no Trustees received any benefits in kind (2020: £NIL). No Trustees received reimbursement of expenses in 2021 (2020: £NIL).

9. Staff costs

Staff costs were as follows:

Staf costs were as follows:
Group Group Charity Charity
2021 2020 2021 2020
£ £ £ £
Wages and salaries 725,355 688,134 655,730 606,751
Social security costs 62,684 63,359 57,672 57,417
Pension costs 18,855 14,999 17,539 14,006
806,894 766,492 730,941 678,174

The average number of people employed by the charitable group during the year was as follows:

Group Group Charity Charity
2021 2020 2021 2020
No. No. No. No.
Sessional serices 11 12 11 12
Fund raising 2 2 2 2
Retail shops 5 3
Suppor 8 g 8 g
26 26 21 23

One employee received remuneration amounting to more than £60,000 in the year. The employee was paid in the £60,000-£69,999 band (2020 - one emolyee)

During the year there was £10,469 redundancy pay to three employees (2020 - £3,000)

29

CPotential Trust (A company limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

Notes to the financial statement for the year ended 31 December 2021

10. Tangible fixed assets

Land & Furniture & Fixtures &
buildings equipment fittings Total
Group £ £ £ £
Cost
At 1 January 2021 1,206,691 243,712 122,749 1,573,152
Additions 18,856 25,990 44,846
Disposals (14,535) (2,376) (16,911)
At 31 December 2021 1,192,156 262,568 146,363 1,601,087
Depreciation
At 1 January 2021 129,961 186,526 81,449 397,936
Charge fr the year 21,154 22,638 27,481 71,273
On disposals (14,535) (2,285) (16,820)
At 31 December 2021 136,580 209,164 106,645 452,389
Net book value
At 31 December 2021 1,055,576 53,404 39,718 1,148,698
At 31 December 2020 1,076,730 57,186 41,300 1,175,216
Charity
Cost
At 1 January 2021 1,170,474 237,202 114,843 1,522,519
Additions 18,123 25,990 44,113
Disposals
At 31 December 2021 1,170,474 255,325 140,833 1,566,632
Depreciation
At 1 January 2021 93,744 184,399 73,886 352,029
Charge for the year 21,154 20,265 26,940 68,359
On disposals
At 31 December 2021 114,898 204,664 100,826 420,388
Net book value
At 31 December 2021 1,055,576 50,661 40,007 1,146,244
At 31 December 2020 1,076,730 52,803 40,957 1,170,490

30

CPotential Trust (A compc:ny limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

Notes to the financial statement for the year ended 31 December 2021

**11. ** Debtors
Group Group Charity Charty
2021 2020 2021 2020
£ £ £ £
Due afer more than one year
Amounts owed by group underakings 115,091 121,000
Due within one year
Outstanding fees 2,952 3,250 2,597 3,250
Amounts owed by group undertakings 80,492 63,012
Tax and social security
Other debtors 21,275 25,955
Prepayments 13,979 20,635 1,980
Accrued income 2,653 21,448 21,448
40,859 71,288 198,180 210,690

Included in the amounts due to the charity from group undertakings is a loan of £156,000 from CPotential Trading Ltd, a wholly owned subsidiary of the charity. The loan bears interest at the rate of 2.5% above the Bank of England base rate.

12. Creditors

Amounts falling due within one year

Amounts falling due within one year
Group Group Charity Charty
2021 2020 2021 2020
£ £ £ £
Trade creditors 7,786 13,589 6,467 11,804
Tax and social security 17,300 18,021 16,066 17,065
Bank loan 8,333 8,333
Other creditors 4,459 3,276 4,193 3,276
Accruals 52,056 22,799 26,297 19,533
Deferred income 1,080 12,923 1,080
91,013 70,608 62,436 51,678
Amounts falling due afer more than one year
Rent deposit 18,667 18,667
Bank loan 41,667 41,667
60,334 18,667 41,667

Included within Bank Loans is a Bounce Back Loan made available as part of the UK Government Coronavirus support scheme. The loan is guaranteed by the UK Government under BBLS. The loan attracts interest at a rate of 2.50% and is repayable by 60 monthly instalments of £934.36. The final repayment is due in February 2027.

Charity Charity Group Group
2021 2020 2021 2020
£ £ £ £
Due within 1 year 8,333 8,333
Due between 1-2 year 10,000 10,000
Due between 2-5 years 30,000 30,000
Due afer 5 years 1,667 1,667
50,000 50,000

31

CPotential Trust (A company limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

Notes to the financial statement for the year ended 31 December 2021

13. Statement of funds

Brought Incoming Resources Gains/ Carried
forard resources expended (losses) Transfers frard
£ £ £ £ £ £
Restriced funds
Capital campaign fund 9,595 (9,595)
Equipment fund 35,273 34,705 (63,106) 6,873
Early Intervention fund 32,527 39,992 (72,519)
Wellbeing Therapy fund 9,900 (8,700) 1,200
Speech & Language Therapy 5,000 5,000
Music Therapy fund 15,000 (15,000)
77,395 104,597 (168,919) 13,073
Designated funds
Land & building reserve 1,175,000 1,175,000
Maintenance resere 140,000 (140,000)
Retail reserve 185,000 185,000
Innovation resere 250,000 (250,000)
Events resere 30,000 (30,000)
General funds (213,380) 639,791 (1,011,475) 420,000 (165,064)
Total unrestricted 1,566,620 639,791 (1,011,475) 1,194,936
Total of funds 1,644,015 744,388 (1,180,394) 1,208,009
Restriced funds 2020
Capital campaign fund 24,638 (15,043) 9,595
Equipment fund 12,958 25 (2,210) 24,500 35,273
Early intervention fund 40,008 (40,008) 32,527 32,527
Music therapy fund
37,596 40,033 (57,261) 57,027 77,395
Designated funds 2020
Land & building resere 1,175,000 1,175,000
Redevelopment resere
Maintenance resere 140,000 140,000
Retail resere 185,000 185,000
Innovation reserve 250,000 250,000
Events resere 30,000 30,000
General funds 2020 361,668 557,719 (1,075,740) (57,027) (213,380)
Total unrestricted 2020 2,141,668 557,719 (1,075,740) (57,027) 1,566,620
Total of funds 2020 2,179,264 597,752 (1,133,000) 1,644,015

32

CPotential Trust (A company limited by guarantee) Trustees report and financial statements for the year ended 31 December 2021

Notes to the financial statement for the year ended 31 December 2021

14. Statement of funds (continued)

Purposes of restricted funds

The capital campaign fund consists of monies donated for the development of Capital campaign fund an extension and improvements to the Centre's building. Equipment fund The equipment fund consists of monies donated for the purchase of small items and capital items for the font-line services. The early intervention fund consists of monies received for delivering our pre­ Early intervention fund school and outreach services. The music therapy fund consists of monies received for the provision of music Music therapy fund therapy. The wellbeing therapy fund consists of monies received for the provision of Wellbeing therapy fund wellbeing therapies for families. Speech & Language therapy fund The speech & language therapy fund consists of monies received for the provision of speech and language therapy. Purposes of designated funds Land & building reserve The land and building reserve represents the unrestricted funds invested in the charity's freehold land and buildings plus an allowance for forthcoming additions which are not therefore available for other purposes. Maintenance reserve The maintenance reserve is monies set aside by the Trustees for the future maintenance of the charity's land and buildings. Retail reserve The retail reserve represents money loaned to the charity's trading subsidiary company and therefore not available for other purposes. Innovation reserve The innovation reserve is monies set aside by the trustees in order to be able to pilot new activities that do not yet have funding including new services, new partnerships and new fundraising programmes. The events reserve is money set aside to allow for the organising of Events reserve fundraising and promotional events where costs have to be paid out before income is received.

33

CPotential Trust

(A company limited by guarantee)

Trusiees report and financial statements for the year ended 31 December 202'1

Notes to the financial statement for the year ended 31 December 2021

15. Analysis of net asssets between funds

Unrestricted Restricted Total Ttal
funds funds funds funds
2021 2021 2021 2020
£ £ £ £
Tangible fixed assets 1,148,699 1,148,699 1,175,216
Current assets 197,585 13,073 210,658 558,074
Creditors due within one year (91,013) (91,013) (69,109)
Creditors due afer one year (60,334) (60,334) (18,667)
1,194,937 13,073 1,208,010 1,645,514
Tangible fixed assets 2020 1,165,621 9,595 1,175,216
Current assets 2020 547,301 10,773 558,074
Creditors due within one year 2020 (70,609) (70,609)
Creditors due after one year 2020 (18,667) (18,667)
1,623,647 20,368 1,644,015

16. Operating lease commitments

At 31 December 2021 the total of the future minimum annual lease payments under non cancellable operating leases
Charity Charity Group Group
2021 2020 2021 2020
£ £ £ £
Within 1 year 57,792 80,762
Between 1 and 5 years 224,000 234,650
More than 5 years 110,444 166,320
392,236 481,732

17. Subsidiaries

Company name Country Company Description Percentage
number shareholding
CPotential Trading Ltd England 05544962 Retail shops selling donated goods 100%

There were no related party transactions in the year 2021.

18. Related Parties

The charitable company has not entered into any related party transactions during the year, nor are there any outstanding balances owing between related parties and the charitable company at 31 December 2021.

34