2022-02-28-accounts

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

COMPANY REGISTRATION NUMBER: 6502018

CHARITY REGISTRATION NUMBER: 1125677

LOW COST LIVING LIMITED

Company Limited by Guarantee

Financial Statements

For the year ended 28 February 2022

COHEN ARNOLD

Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Financial Statements

Year ended 28 February 2022

	PAGES
Trustees' Annual Report (Incorporating the Director's Report)	1 to 3
Independent Auditor's Report to the Members	4 to 8
Statement of Financial Activities (Including Income and Expenditure
Account)	9
Statement of Financial Position	10
Statement of Cash Flows	11
Notes to the Financial Statements	12 to 18

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 28 February 2022

The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 28 February 2022.

Reference and administrative details

Registered charity name Low Cost Living Limited Charity registration number 1125677 Company registration number 6502018 Principal office and registered 4A Manor Road office London N16 5SA

The trustees

S Gross M Lew Mr I Hochhauser AUDITOR Cohen Arnold Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU

Structure, governance and management

Governing Document

Low Cost Living Limited is a company limited by guarantee and is governed by its Memorandum and Articles of Association.

Organisation

The charity and its day-to-day affairs are administered by the trustees. Every trustee holds office until he/she shall die or shall cease to hold office by virtue of the Articles of Association.

Risk Management

The trustees have identified and reviewed the risks to which the Charity is exposed, in particular those related to the operations and finance of the Company. To mitigate those risks systems have been put in place, which the trustees are satisfied provide reasonable assurance against fraud and error.

It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

- 1 -

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 28 February 2022

Objectives and activities

Objectives and Aims for the Benefit of the Public

The objective and principal activity of the charity is that of relief of poverty, in particular financial hardship amongst people living or working in London by provision of low cost household goods and food which they could not otherwise afford through lack of means.

The trustees confirm that they 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 future activities.

Grant Making

Grants are made by way of selling goods at low cost and occassionally by making charitable donations to institutions.

Achievements and performance

Charitable Achievements

The charity's principal charitable activity is buying goods at wholesale prices and passing the savings to people undergoing financial hardship by selling the goods to them at low cost.

Financial review

The financial position of the charity is satisfactory. The trustees are satisfied that the charity's financial situation is stable and its charitable activities sustainable.

Plans for future periods

The trustees hope and expect to continue the charity's activities and meet the increasing demands for the service provided.

Trustees' responsibilities statement

The trustees, who are also directors 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 charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.

In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the applicable Charities SORP;

• make judgments and accounting estimates that are reasonable and prudent;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

- 2 -

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 28 February 2022

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

Auditor

Each of the persons who is a trustee at the date of approval of this report confirms that:

• so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and

• they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

22/12/2022 The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by:

S Gross Trustee

- 3 -

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Independent Auditor's Report to the Members of Low Cost Living Limited

Year ended 28 February 2022

Opinion

We have audited the financial statements of Low Cost Living Limited (the 'charity') for the year ended 28 February 2022 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, 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 FRS 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:

• give a true and fair view of the state of the charity's affairs as at 28 February 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;

• have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.

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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

- 4 -

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Independent Auditor's Report to the Members of Low Cost Living Limited (continued)

Year ended 28 February 2022

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the trustees' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.

- 5 -

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Independent Auditor's Report to the Members of Low Cost Living Limited (continued)

Year ended 28 February 2022

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.

- 6 -

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Independent Auditor's Report to the Members of Low Cost Living Limited (continued)

Year ended 28 February 2022

Auditor's responsibilities for the audit of the financial statements

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 auditor’s 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity through discussion with the trustees and identified financial reporting legislation, landlord legislation and charity legislation as being most significant to these financial statements.

• We communicated these identified frameworks amongst our audit team and remained alert to any indications of non-compliance throughout the audit. We ensured that the engagement team had sufficient competence and capability to identify or recognise non-compliance with laws and regulations.

• We discussed with the trustees the policies and procedures regarding compliance with these legal and regulatory frameworks.

• We assessed the susceptibility of the charity's financial statements to material misstatement due to non-compliance with legal and regulatory frameworks, including how fraud might occur, by enquiry with the trustees during the planning and finalisation stages of our audit and by using proprietary disclosure checklists. The susceptibility to such material misstatement was determined to be low.

• Based on this understanding, we designed our audit procedures to identify non-compliance with the identified legal and regulatory frameworks, which were part of our procedures on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

- 7 -

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Independent Auditor's Report to the Members of Low Cost Living Limited (continued)

Year ended 28 February 2022

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

• Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charity's members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's 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 charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.

Moshe Broner-Cohen FCA (Senior Statutory Auditor)

For and on behalf of Cohen Arnold Chartered accountants & statutory auditor New Burlington House 1075 Finchley Road LONDON NW11 0PU

23/12/2022

- 8 -

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Statement of Financial Activities (including income and expenditure account)

Year ended 28 February 2022

		2022	2022	2021
		Unrestricted
		funds	Total funds	Total funds
	Note	£	£	£
Income and endowments
Donations and legacies	5	108,150	108,150	–
Charitable activities	6	4,254,635	4,254,635	4,888,390
Investment income	7	39	39	109
Other income	8	9,995	9,995	31,990
				
Total income		4,372,819	4,372,819	4,920,489
				
Expenditure
Expenditure on charitable activities	9,10	(4,544,561)	(4,544,561)	(4,755,859)
				
Total expenditure		(4,544,561)	(4,544,561)	(4,755,859)
				
				
Net (expenditure)/income and net movement in funds		(171,742)	(171,742)	164,630
				
Reconciliation of funds
Total funds brought forward		194,697	194,697	30,067
				
Total funds carried forward		22,955	22,955	190,447
				

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 12 to 18 form part of these financial statements.

- 9 -

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Statement of Financial Position

	28 February	28 February	2022
			2022		2021
	Note	£		£	£	£
Fixed assets
Tangible fixed assets	16			174,553		19,652
Current assets
Stocks	17	542,557			353,472
Debtors	18	121,794			110,891
Cash at bank and in hand		61,593			580,351
					
		725,944			1,044,714
Creditors: amounts falling due
within one year	19	(877,542)			(869,669)
					
Net current liabilities				(151,598)		175,045
						
Total assets less current liabilities				22,955		194,697
						
Net assets				22,955		194,697
						
Funds of the charity
Unrestricted funds				22,955		190,447
						
Total charity funds	20			22,955 		190,447 

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

These financial statements were approved by the board of trustees and authorised for issue on 22/12/2022 ........................, and are signed on behalf of the board by:

S Gross

Trustee

The notes on pages 12 to 18 form part of these financial statements.

- 10 -

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Statement of Cash Flows

Year ended 28 February 2022

	2022	2021
	£	£
Cash flows from operating activities
Net (expenditure)/income	(171,742)	164,630
Adjustments for:
Depreciation of tangible fixed assets	13,185	7,723
Impairment of tangible fixed assets	15,000	–
Other interest receivable and similar income	(39)	(109)
Interest payable and similar charges	1,171	314
Accrued (income)/expenses	(930)	1,330
Changes in:
Stocks	(189,085)	43,573
Trade and other debtors	(10,903)	(68,663)
Trade and other creditors	8,803	188,023
		
Cash generated from operations	(334,540)	336,821
Interest paid	(1,171)	(314)
Interest received	39	109
		
Net cash (used in)/from operating activities	(335,672)	336,616
		
Cash flows from investing activities
Purchase of tangible assets	(183,086)	(2,550)
		
Net cash used in investing activities	(183,086)	(2,550)
		
Net (decrease)/increase in cash and cash equivalents	(518,758)	334,066
Cash and cash equivalents at beginning of year	580,351	246,285
		
Cash and cash equivalents at end of year	61,593 	580,351 

The notes on pages 12 to 18 form part of these financial statements.

- 11 -

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements

Year ended 28 February 2022

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 4A Manor Road, London, N16 5SA.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. There are key assumptions or other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities.

Income tax

The Charity is not liable to direct taxation (Income Tax) on its income which falls within the various exemptions available to registered charities. As a result no Deferred tax is provided on timing differences.

The Charity is registered for Value Added Tax (VAT) and therefore pays output tax on sales and reclaims input tax it suffers on its purchases. Income and expenditure on charitable activities is shown exclusive of VAT where appropriate.

- 12 -

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

LOW COST LIVING LIMITED COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements (continued)

Year ended 28 February 2022

3. Accounting policies (continued)

Fund accounting

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

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

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

Incoming resources

All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

• income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

• income from donated goods is measured at the fair value of the goods unless this is impracticle to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliabily measured. No amounts are included for the contribution of general volunteers.

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

• expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities, and the sale of donated goods.

• expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.

• other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

- 13 -

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

LOW COST LIVING LIMITED COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements (continued)

Year ended 28 February 2022

3. Accounting policies (continued)

Tangible assets

All fixed assets are initially recorded at cost.

Premiums paid for short term leases are recognised in the balance sheet and amortised on a straight line basis over the lease period.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures & fittings - 25% reducing balance Motor vehicles - 25% straight line Equipment - 25% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cashgenerating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

Stocks

Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

4. Limited by guarantee

Low Cost Living Limited is a company limited by guarantee. The liability of each member in the event of winding up is limited to £1.

5. Donations and legacies

Unrestricted Total Funds Unrestricted Total Funds Funds 2022 Funds 2021 £ £ £ £ Donations Donations 108,150 108,150 (4,250) –    

- 14 -

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

LOW COST LIVING LIMITED COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements (continued)

Year ended 28 February 2022

6. Charitable activities

Charitable activities
	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2022	Funds	2021
	£	£	£	£
Sale of goods	4,254,635 	4,254,635 	4,888,390 	4,888,390 

7.	Investment income
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2022	Funds	2021
		£	£	£	£
	Bank interest receivable	39	39	109	109
					
8.	Other income
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2022	Funds	2021
		£	£	£	£
	Covid-19 grant income	9,995 	9,995 	31,990 	31,990 

During the year, the charity received £9,995 (2021: £6,990) as part of the governement's coronavirus 'Job Retention Scheme'.

9. Expenditure on charitable activities by fund type

		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2022	Funds	2021
		£	£	£	£
Charitable activities		4,534,694	4,534,694	4,748,720	4,748,720
Support costs		9,867	9,867	7,139	7,139
					
		4,544,561	4,544,561	4,755,859	4,755,859
					
Expenditure on charitable activities		by activity type
	Activities
	undertaken	Grant funding		Total funds	Total fund
	directly	of activities	Support costs	2022	2021
	£	£	£	£	£
Charitable activities	4,525,031	9,663	–	4,534,694	4,748,720
Governance costs	–	–	9,867	9,867	7,139
					
	4,525,031	9,663	9,867	4,544,561	4,755,859
					

10. Expenditure on charitable activities by activity type

- 15 -

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements (continued)

Year ended 28 February 2022

11. Analysis of grants

11.	Analysis of grants
		2022	2021
		£	£
	Grants to institutions
	BC Trust	8,000	–
	Others< £1K	1,663	–
			
		9,663	–
			
	Total grants	9,663	–
			
12.	Net (expenditure)/income
	Net (expenditure)/income is stated after charging/(crediting):
		2022	2021
		£	£
	Depreciation of tangible fixed assets	13,185	7,723
			
13.	Auditors remuneration
		2022	2021
		£	£
	Fees payable for the audit of the financial statements	4,250 	4,250 

14. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

	2022	2021
	£	£
Wages and salaries	186,779	167,465
Social security costs	–	545
Other employee benefits	–	(333)
		
	186,779 	167,677 

The average head count of employees during the year was 28 (2021: 23). The average number of full-time equivalent employees during the year is analysed as follows:

	2022	2021
	No.	No.
Staff involved in charitable activities	11	11
		

No employee received employee benefits of more than £60,000 during the year (2021: Nil).

15. Trustee remuneration and expenses

No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.

- 16 -

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

LOW COST LIVING LIMITED

COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements (continued)

Year ended 28 February 2022

16. Tangible fixed assets

Tangible fixed assets
	Land and	Fixtures and	Motor
	buildings	fittings	vehicles	Equipment	Total
	£	£	£	£	£
Cost
At 1 March 2021	–	108,930	4,690	18,023	131,643
Additions	150,000	33,006	–	80	183,086
					
At 28 February 2022	150,000	141,936	4,690	18,103	314,729
					
Depreciation
At 1 March 2021	–	92,441	4,691	14,859	111,991
Charge for the year	–	12,374	–	811	13,185
Impairment losses	15,000	–	–	–	15,000
					
At 28 February 2022	15,000	104,815	4,691	15,670	140,176
					
Carrying amount
At 28 February 2022	135,000	37,121	(1)	2,433	174,553
					
At 28 February 2021	–	16,489	(1)	3,164	19,652
					

During the year, the charity purchased a 10 year lease for an additional premise and paid a £150,000 premium for this.

17. Stocks

17.	Stocks
		2022	2021
		£	£
	Raw materials and consumables	542,557	353,472
			
18.	Debtors
		2022	2021
		£	£
	Trade debtors	93,174	84,277
	Other debtors	28,620	26,614
			
		121,794	110,891
			
19.	Creditors: amounts falling due within one year
		2022	2021
		£	£
	Trade creditors	822,204	811,081
	Accruals and deferred income	4,650	5,580
	Social security and other taxes	574	3,008
	Other creditors	50,114	50,000
			
		877,542	869,669
			

- 17 -

DocuSign Envelope ID: 846B89E8-6BA2-4F30-88A2-ACD3CF9B42A7

LOW COST LIVING LIMITED COMPANY LIMITED BY GUARANTEE

Notes to the Financial Statements (continued)

Year ended 28 February 2022

20. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
					At
		At		28	February
	1	March 2021	Income	Expenditure	2022
		£	£	£	£
General funds		194,697	4,372,819	(4,544,561)	22,955
					
					At
		At		28	February 2
	1	March 2020	Income	Expenditure	021
		£	£	£	£
General funds		30,067 	4,916,239 	(4,755,859) 	190,447 

21. Analysis of net assets between funds

Analysis of net assets between funds
		Unrestricted	Total Funds
		Funds	2022
		£	£
Tangible fixed assets		174,553	174,553
Current assets		725,944	725,944
Creditors less than 1 year		(877,542)	(877,542)
			
Net assets		22,955	22,955
			
		Unrestricted	Total Funds
		Funds	2021
		£	£
Tangible fixed assets		19,652	19,652
Current assets		1,044,714	1,044,714
Creditors less than 1 year		(869,669)	(869,669)
			
Net assets		194,697	194,697
			
Analysis of changes in net debt
	At		At
	1 Mar 2021	Cash flows	28 Feb 2022
	£	£	£
Cash at bank and in hand	580,351	(518,758)	61,593
			

22. Analysis of changes in net debt

- 18 -