Charity number: 1127514 

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## The Marcela Trust 

Trustees’ Report and Financial Statements 

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For the Year Ended 31 July 2023 



## The Marcela Trust 

## Contents 

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|||Page|
|---|---|---|
|Reference and administrative details ofthe Charity, its trustees and advisers||1|
|Trustees’ Report||2-7|
|Independent Auditors’ Reporton the Financial Statements||8 - 12|
|Consolidated Statement of Financial Activities||13|
|Consolidated Balance Sheet||14|
|Charity Balance Sheet|-|15|
|Consolidated Statement ofCash Flows||16|
|NotestotheFinancialStatements|17-37||





## The Marcela Trust 

Reference and Administrative Details of the Charity, its Trustees and Advisers For the Year Ended 31 July 2023 

| 

## Trustees 

Mrs J Franklin MBE Mrs D P Rose Mr M R Spragg , MrP Hotham ; 

## Charity registered number 

## 4127514 

. 

## Principal office 

The Trustees’ Office The Marcela Trust . East Hill House . 76 High Street Colchester CO1 1UF 

## Independent auditors 

Kreston Reeves LLP Chartered Accountants Springfield House Springfield Road Horsham West Sussex RH12 2RG 

## Bankers 

HSBC Bank UK 16 Goring Road Worthing , West Sussex BN1i2 4AW 

## Solicitors 

Dean Wilson Ridgeland House 165 Dyke Road Brighton BN3 1TL 

Page 1 



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## The Marcela Trust 

## Trustees’ Report For the Year Ended 31 July 2023 

The trustees present their annual report together with the audited financial statements of the Charity for the 1 August 2022 to 31 July 2023. 

## Objectives and activities 

## a. Policies and objectives 

In December 2009 the Trust received a donation of 95.5% of the share capital of Omarca Investment Holdings Limited, a dormant intermediary holding company which holds 100% of the shares of OMC Investments Limited. The principal activities of OMC Investments Limited, which was founded in 1971, are property investment, management and development and the operation of three hotels through its subsidiary companies. Both Omarca investment Holdings Limited and OMC Investments Limited are companies registered in England and Wales. 

The Trust is named after Marcela Botnar (1928-2014), the wife of the founder of OMC investments Limited, Octav Botnar (1913-1998). The aim of the Trust is to administer donations received from OMC Investments Limited which are made from that Company's operating profits. The trustees do not actively fundraise. Restricted donations are administered in accordance with the wishes of the donor. In the absence of any restrictions, the trustees are empowered to invest the funds in accordance with Trust Law as they deem fit and to support charitable activities and organisations of merit and integrity, at their discretion in accordance with the Trust Deed and having due regard for the public benefit guidance published by the Charity Commission for England and Wales. 

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

## b. Grant-making policies 

Since the Trust's inception in 2009, the trustees have made grants using restricted and unrestricted funds donated by OMC Investments Limited, administering restricted funds in accordance with the wishes of the donor and unrestricted funds to support charitable activities and organisations of merit and integrity, at their discretion in accordance with the Trust Deed. 

## c. Main activities undertaken to further the Charity's purposes for the public benefit 

The trustees consider that through its aims and the donations it has made, the Trust has provided public benefit. Specifically, through donations made in previous financial years, the Trust has provided clear public benefit by funding projects in the fields of medical research, the Arts, education and the relief of poverty in disadvantaged communities. All of the beneficiaries of the Trust’s donations rely fundamentally, if not exclusively, on financial support from the charitable and not for profit sectors in order to fund the services, research, activities and philanthropic work they carry out. 

Page 2 



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## The Marcela Trust 

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Trustees' Report (continued) For the Year Ended 31 July 2023 

## Achievements and performance 

## a. Main achievements of the Charity 

Donations of £450,000 (2022: £450,000) were received from OMC Investments Limited in the financial year. Donations from the Trust to other charitable organisations and activities amounting to £352,000 (2022: £427,000) were made in the year in furtherance of the Trust’s legal purposes and for the public benefit, as explained below. 

- £2,000 was donated to The Society of Portrait Sculptors, Registered Charity No. 1046243 to fund the running of childrens classes. 

- *® £150,000 was donated to Fauna & Flora International, Registered Charity No. 1011102 to fund selected charitable community initiatives in the remote Zarand region of Western Transylvania. 

- e £200,000 was donated to Consensus Action on Sugar and Health, Registered Charity No. 1098818 to fund their work on improving the food environment in order to reduce and prevent obesity, Type 2 diabetes and cancers arising from the consumption of foods high in fat, salt and saturated fat. 

## b. Peformance review 

A consolidated statement of financial activities is presented on page 13. 

Charitable donations made by the Trust are administered in accordance with the wishes of the donor in the case of restricted donations and in the case of unrestricted donations, in accordance with the Trust Deed and at the trustees’ discretion, as explained in this report. 

As the Trust is the ultimate majority shareholder of the trading and investment company, OMC Investments Limited, the results of that company and its subsidiary companies are consolidated into the financial statements of the Marcela Trust. How the consolidated figures impact on the Trust's accounts is explained in the Notes to the Financial Statements. 

The Directors’ Report included in the Financial Statements of OMC Investments Limited outlines the significant ’ factors affecting that company's performance and outlook and the trustees are kept informed of the company’s activities at trustee meetings during the year. 

## c. Performance and impact of subsidiary undertakings 

OMC Investments Limited makes charitable donations to the Trust from its annual operating profits, and the _ Trust administers the donations: The trustees do not actively fund raise. 

In the financial year ended 31 July 2023 the turnover of OMC Investments Limited increased by c. £1 million (33%) compared with the previous financial year. The trading figures of OMC Investments Limited’s two subsidiary companies which operate hotels in Leeds and Colchester (a loss of £53,849 and £165,178 respectively) are consolidated here alongisde the results of OMC Investments Limited which reported a loss of £888,503 after negative fair value movements of £3,076,803. 

The increased turnover during the period refiected the additional income from new leases at No. 3 Robert Street and a large retail store investment acquired in June 2022. 

As result of the soaring costs of electricity, oil, gas and food in the period following the Russian invasion of Ukraine in February 2022, the rate of inflation rose consistently during the period under review. This resulted in — the Bank of England continuing to increase interest rates month on month until September 2023. 

In response, commercial property investment values have fallen and uncertainty took hold in the capital and debt markets. Sellers have been reluctant to put stock on the market at reduced values and buyers have had difficulty finding debt at a viable rate. Hence, investment opportunities have been scarce even for cash buyers. 

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## The Marcela Trust 

Trustees’ Report (continued) For the Year Ended 31 July 2023 

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## Achievements and performance (continued) 

The Directors’ valuation of the majority of the portfolio at 31 July 2023 produced a reduced valuation for most properties as cited above, reflecting the prevailing market conditions. 

The Company’s tenants have proven to be resilient following the vicissitudes of the Pandemic and inflationary economic conditions, and rents are consistently being paid in full and on time. 

The three hotels operated by the Company's subsidiary companies have had a difficult trading year. Revenues have been impacted by room cancellations during the constant rail strikes and cautious consumer spending due to the “cost of living crisis”. While in the case of the two hotels in Leeds revenue levels were higher than the previous year, turnover at all three hotels was inadequate to counter the massively increased costs of electricity, gas, food and wages during the period. The trading results of the two subsidiary companies are reported in their respective financial statements. 

, 

OMC Investments Limited made one donation to the Marcela Trust in July 2023 in the sum of £450,000. 

A forecast has been prepared for the next twelve months. The directors consider that the Company remains robust and that revenues and profits will be steady in the coming year. 

## d. Investment policy and performance. 

The trustees are empowered to invest the funds of the Trust in stocks, shares, securities, debts, options or other investments as they consider fit and in accordance with Trust Law. The trustees have had no signiflcant funds to invest in the current year. The uncommitted funds at the year end were held in the Trust’s bank account in readiness for charitable donations post year end and in order to discharge audit and accountancy fees. 

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## Financial review 

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## a. Going concern 

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

## b. Reserves policy 

The Trust 

Since its inception in 2009, the Trust’s sole source of income has been represented by donations received from OMC Investments Limited. The Trust has no operating activities of its own and its only unavoidable overheads are audit and accountancy fees, insurance and bank charges. At the year end the Trust had unencumbered funds on deposit of £322,775 (2022: £230,357). These funds are held by the charity for the purpose of making. donations in future reporting periods. 

## The Group 

The reserves of the OMC Investments Limited sub group are £67,853,684 (2022: £69,373,834). This is largely represented by investment and development properties and properties used within the group totalling £62,480,000 (2022: £65,866,803) and net current assets of £5,373,684 (2022: £3,507,031). The directors of the group manage the property portfolio with the aim of maintaining and improving the value and earning potential of the portfolio for the longer term while maintaining a cautious attitude to risk and making donations from income, subject to ongoing and future investment considerations, to the Marcela Trust to fund the Trust’s charitable donations. 

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Page 4 



## The Marcela Trust 

Trustees’ Report (continued) For the Year Ended 31 July 2023 

## c. Principal risks and uncertainties 

The trustees have reviewed the major potential financial risks to which the Trust may be exposed and systems and procedures are in place to mitigate such risks. The Trust currently has no direct operational activities which could represent other risk exposure. ; 

, 

The Trust’s main asset is 95.5% of the shares of Omarca Investment Holdings Limited, which is a dormant intermediary holding company which owns 100% of the shares of OMC Investments Limited. OMC Investments Limited’s principal activities are property investment, management and the operation of three hotels through its subsidiary companies. 

The risks to which OMC Investments Limited is exposed are therefore by extraction, indirect risks for the Marcela Trust. According to the financial statements of OMC Investments Limited, the Russian invasion of Ukraine in February 2022 created conditions of high inflation which in turn resulted in interest rates being increased month on month throughout 2022 until September 2023. These events have impacted consumer spending and business profitability and represent a risk to the businesses of the Company’s tenants and its subsidiary companies. 

Against this background, in recent weeks the rate of inflation has been falling and the Bank of England has paused further interest rate increases. These are positive signs for the economy and therefore for the Company. 

The outbreak of war in Gaza in October 2023 however has the potential to create instability on many levels. At the time of writing the consequences of the conflict on a national and wider international scale are uncertain. 

The Directors consider that the Company's investment portfolio across well-positioned office, leisure and high street locations in Central London, Central Leeds and a number of market towns and small cities in the South and East of England represents a reasonable and broad risk profile under normal circumstances. 

## d. Principal funding 

The Trust received donations amounting to £450,000 in the financial year (2022: £450,000) from OMC Investments Limited. The donations meet and correspond with the objectives of the Trust which are for general charitable purposes and in the case of restricted donations, are administered in accordance with the donor's wishes. 

## Structure, governance and management 

## a. Constitution 

The Marcela Trust is a registered charity, number 1127514, and is constituted under a Trust deed. 

## b. Methods of appointment or election of trustees 

The management of the Group and the Charity is the responsibility of the trustees who are elected and co-opted under the terms of the Trust deed. 

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## The Marcela Trust 

## Trustees' Report (continued) For the Year Ended 31 July 2023 

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## Structure, governance and management (continued) 

## c. Organisational structure and decision-making policies 

The Trust was established by Deed on 1st December 2008 as amended by a Deed of Amendment dated 5 January 2009. It was formed for general charitable purposes in the expectation that it was to receive a donation. of shares in Omarca Investment Holdings Limited. It is registered by the Charity Commission under Registration Number 1127514. 

The Trustees are responsible for the appointment of trustees and meet periodically during the year when funds become available for making donations and/or to discuss progress reports from beneficiaries of the Trust and other important issues. The day to day management of the Trust is undertaken by the trustees. Appropriate induction and training of new trustees is undertaken as necessary. Trustees who acted during the year are listed at the beginning of the report. 

## d. Pay policy for key management personnel (including those of subsidiaries) 

The Trustees consider that they, together with the directors of the subsidiary company OMC Investments Limited, comprise the Key Management Personnel (see Note 11 to the accounts). The Trustees give their time freely. The pay and remuneration of the directors of OMC Investments Limited are set by the Board and are reviewed annually based on the nature, role and extent of the respective director's reponsibilities and comparable remuneration levels in relevant industry sectors. 

## Plans for future periods 

Charitable activity in the coming financial year will depend on the level of donations received from OMC Investments Limited. The trustees do not actively fund raise. Unencumbered funds held at the year end are sufficient to discharge the Trust’s audit and accountancy fees, insurance and bank charges and to make donations to organisations of merit and integrity at the discretion of the trustees. On receipt of further donations from OMC Investments Limited if any, during the coming year, the trustees expect to continue to support charitable activities and organisations at their discretion (or in the case of restricted donations in accordance with the wishes of the donor) in accordance with the general charitable purposes set out in the Trust Deed and having due regard for the public benefit guidance published by the Charity Commission for England and Wales. 

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## The Marcela Trust 

Trustees’ Report (continued) For the Year Ended 31 July 2023 

## Statement of trustees’ responsibilities 

The trustees 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). 

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources, including their 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; e observe the methods and principles of the Charities SORP (FRS 102); 

   - e make judgements and accounting estimates that are reasonable and prudent; e state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; 

- _ @ prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business. 

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

## Disclosure of information to auditors 

Each of the persons who are trustees at the time when this Trustees’ Report is approved has confirmed that: 

- ° so far as that trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and 

- ° that trustee has taken all the steps that ought to have been taken as a trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information. 

Approved by order of the members of the board of trustees and signed on their behalf by: 

see nencnenusseenpenssaneuennsnsnaneoUeSSanTeetTT Mrs J Franklin MBE, Trustee 

## Date: 7 Decambess 2O2VS 

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## The Marcela Trust 

## Independent Auditors’ Report to the Members of The Marcela Trust 

## Opinion 

We have audited the financial statements of The Marcela Trust (the ‘parent charity’) and its subsidiaries (the 'group’) for the year ended 31 July 2023 which comprise the Consolidated 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). 

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn. 

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. 

. 

## In our opinion the financial statements: 

- e give a true and fair view of the state of the Group's and of the parent charity's affairs as at 31 July 2023 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended; 

- e have been properly prepared in. accordance with United Kingdom Generally Accepted Accounting Practice; and 

- e have been prepared in accordance with the requirements of 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 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 

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 Group's or the parent 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. 

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## The Marcela Trust 

## independent Auditors’ Report to the Members of The Marcela Trust (continued) 

## Other information 

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors’ Report thereon. The trustees are responsible for the other information contained within the Annual Report. 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

## We have nothing to report in this regard. . 

## Matters on which we are required to report by exception 

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

- . the information given in the Trustees' Report is inconsistent in any material respect with the financial statements; or 

- ° the parent Charity has not kept sufficient accounting records; or . the parent Charity financial statements are not in agreement with the accounting records and returns; or e we have not received all the information and explanations we require for our audit. 

## Responsibilities of trustees 

As explained more fully in the Trustees’ Responsibilities Statement, the trustees are responsible for the preparation of the financial statements which 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 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 Group or the parent charity or to cease operations, or have no realistic alternative but to do so. 

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## The Marcela Trust 

## Independent Auditors’ Report to the Members of The Marcela Trust (continued) 

## 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. 

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: 

## Capability of the audit in detecting irregularities, including fraud 

Based on our understanding of the charity, the group and their sectors as a whole, and through discussion with the Trustees and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to employment law, anti-bribery, GDPR, the Companies Act and the Charity Commission. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities SORP (FRS 102) Second Edition (released October 2019), and other relevant charity legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated Trustees’ and management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks related to management bias in accounting estimates and judgemental areas of the financial statements such as the valuation of subsidiaries and valuation of investment properties, as well as posting inappropriate journal entries to increase revenue or reduce expenditure within the trading subsidiaries’ accounts. Audit procedures performed by the engagement team included: 

- e Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations including health and safety and fraud, and review ofthe reports made by management; and 

- e Assessment of identified fraud risk factors; and e Checking and reperformingthe reconciliation of key control accounts for trading subsidiaries; and e Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and 

- e Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and 

- e Challenging assumptions and judgements made by management in its significant accounting estimates; and e Reviewing the fair value of investments held in subsidiary companies, with reference to their net assets at the reporting date; and 

- e Reading minutes of meetings of those charged with governance and reviewing correspondence with relevant tax and regulatory authorities; and 

- e Obtaining and reviewing bank audit confirmation letters to verify cash at bank levels at the reporting date; and 

- e Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and 

- e Review of the property valuation reports, assessment of significant underlying assumptions and of management's expers' independence and objectivity; and 

Page 10 



## The Marcela Trust 

## Independent Auditors’ Report to the Members of The Marcela Trust (continued) 

- e Proof in total workings and substantive testing conducted on income streams for trading subsidiaries; and e Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. 

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

- e 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. 

- e 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 of the effectiveness of the charity's internal control. 

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

- e 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 Auditors' 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 Auditors’ 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 whetherthe financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 

- ° Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. 

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. 

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## The Marcela Trust 

## Independent Auditors’ Report to the Members of The Marcela Trust (continued) 

## Use of our report 

This report is made solely to the charity'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 charity'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 charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed. 

Kien Jeers LX Kreston Reeves LLP Chartered Accountants Statutory Auditor Horsham Date: P; 17 | ? ots 

- 

, 

Kreston Reeves LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. 

Page 12 



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## The Marcela Trust 

Consolidated Statement of financial activities For the Year Ended 31 July 2023 

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**----- Start of picture text -----**<br>
, Unrestricted Total Total<br>funds funds funds<br>2023 2023 2022<br>Note £ £ £<br>Income from:<br>Other trading activities 4 8,079,373 8,079,373 6,916,849<br>Investments 6 152,537 152,537 16,794<br>Total income 8,231,910 8,231,910 6,933,643<br>Expenditure on:<br>Raising funds 7 5,819,563 5,819,563 5,421,077<br>Charitable activities 359,895 359,895 432,440<br>Total expenditure 6,179,458 © 6,179,458 5,853,517<br>Net income before net gains/(losses) on<br>investments 2,052,452 2,052,452 1,080,126<br>Net gains/(iosses) on investments 17,483 17,483 (54,653)<br>Net income before taxation 2,069,935 2,069,935 1,025,473<br>Taxation 13 (421,739) (421,739) (45,365)<br>Net income after taxation 1,648,196 1,648,196 980,108<br>Transfers between funds 21 - - -<br>Net movement in funds before other recognised ——————<br>gains/(losses) 1,648,196 1,648,196 980,108<br>Other recognised gains/(losses):<br>(Losses)/gains on revaluation of fixed assets (3,076,803) (3,076,803) 1,755,274<br>Net movement in funds - (1,428,607) (1,428,607) 2,735,382<br>Reconciliation of funds:<br>Total funds brought forward 69,599,591 69,599,591 66,864,209<br>Net income attributable to the parent charity 1,561,236 1,561,236 . 988,843<br>Net (losses)/gains attributable to the parent charity (2,921,224) (2,921,224) 1,623,856<br>68,239,603 68,239,603 69,476,908<br>Net income attributable to non-controlling interests 69,477 69,477 45,918<br>Net (losses)/gains attributable to non-controlling ;<br>interests (138,096) (138,096) 76,765<br>Total funds carried forward 68,170,984 68,170,984 69,599,591<br>**----- End of picture text -----**<br>


The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year. 

The notes on pages 17 to 37 form part of these financial statements. : Page 13 



## The Marcela Trust 

Consolidated Balance Sheet As at 31 July 2023 

; 

|||||2023||2022|
|---|---|---|---|---|---|---|
|||Note||£||£|
|Fixed assets||||‘|||
|Tangible assets||14||9,762,993||10,278,251|
|Investment property||15||53,447,987||56,358,447|
|||||63,210,980||66,636,698|
|Current assets|||||||
|Stocks||17|25,222||29,571||
|Debtors||18|1,227,291||1,305,983||
|_|||||||
|Cash at bank and in hand|||6,392,106||4,055,646||
||||7,644,619||5,391,200||
|Creditors: amounts falling due within one|||||||
|year||19|(1,857,421)||(1,605,277)||
|Net current assets|;|||5,787,198||3,785,923|
|Total assets less current liabilities||||68,998,178||70,422,621|
|Creditors: amounts falling due after more|||||||
|than one year||20||(827,194)||(823,030)|
|Net assets||||68,170,984||69,599,591|
|Charity funds|||||||
|Unrestricted funds||21||65,108,103||66,468,091|
|Total funds||||65,108,103||66,468,091|
|Non-controlling interests||||3,062,881||3,131,500|
|||||68,170,984||69,599,591|



The financial statements were approved and authorised for issue by the trustees and signed on their behalf by: 

Tre ana re Fanti 

Date: 7 ecember ZZ 323" 

The notes on pages 17 to 37 form part of these financial statements. 

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## The Marcela Trust 

, 

## Charity Balance Sheet As at 31 July 2023 

. 


**----- Start of picture text -----**<br>
2023 2022<br>Note £ £<br>Fixed assets<br>Investments 16 64,790,803 66,242,334<br>64,790,803 66,242,334<br>Current assets<br>Cash at bank and in hand 322,775 230,357<br>322,775 230,357<br>Creditors: amounts falling due within one<br>year 19 (5,475) (4,600)<br>Net current assets 317,300 225,757<br>Net assets 65,108,103 66,468,091<br>Charity funds<br>Restricted funds 21 - -<br>Unrestricted funds 21 65,108,103 66,468,091<br>Total funds 65,108,103 66,468,091<br>**----- End of picture text -----**<br>


The financial statements were approved and authorised for issue by the trustees and signed on their behalf by: 


**----- Start of picture text -----**<br>
“Jie na he Frans £s ov<br>**----- End of picture text -----**<br>


Date: 4 Peumbsar 2023 

The notes on pages 17 to 37 form part of these financial statements. 

Page 15 



## The Marcela Trust 

Consolidated Statement of Cash Flows For the Year Ended 31 July 2023 . 


**----- Start of picture text -----**<br>
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|2023|2022|
|Note|£|£|
|Cash|flows|from|operating|activities|
|Net|cash|used|in|operating|activities|.|25|2,049,556|2,237,762|
|Cash|flows|from|investing|activities|
|Dividends,|interests|and|rents|from|investments|152,537|16,794|
|Purchase|of tangible|fixed|assets|(177,009)|(69,392)|
|Purchase|of investments|-|(9,272,330)|
|Disposal|of investments|and|tangible|fixed|assets|311,376|426,131|
|Net|cash|provided|by/(used|in)|investing|activities|286,904|(8,898,797)|
|Change|in|cash|and|cash|equivalents|in|the|year|2,336,460|(6,661,035)|
|Cash|and|cash|equivalents|at the|beginning|of the|year|4,055,646|10,716,681|
|Cash|and|cash|equivalents|at the|end|of the|year|26|6,392,106|4,055,646|
|The|notes|on|pages|17|to|37|form|part|of these|financial|statements|

**----- End of picture text -----**<br>


Page 16 



## The Marcela Trust 

## Notes to the Financial Statements 

For the Year Ended 31 July 2023 

1. General information 

The Marcela Trust is registered by the Charity Commission, incorporated in England & Wales. Details of the registered address can be found on the reference and administrative details page. The Marcela Trust owns 95.5% of the share capital of Omarca Investment Holdings Limited. Omarca investment Holdings Limited holds 100% of the share capital of OMC Investments Limited. All of the companies are registered in England and Wales. 

2. Accounting policies 

## 2.1 Basis of preparation of financial statements 

—. 

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. 

The financial statements have been prepared to give a ‘true and fair’ view and have. departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to providea ‘true and fair' view. This departure has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. 

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

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Group and its subsidiary undertaking. The results of the ’. subsidiary are consolidated on a line by line basis. 

No separate SOFA has been presented for the charity alone because the charity has taken advantage of the exemption available. 

These financial statements are presented in sterling which is the functional currency of the group and are rounded to the nearest £1. 

## 2.2 Going concern 

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for the next 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. 

Page 17 



The Marcela Trust 

. 

## Notes to the Financial Statements For the Year Ended 31 July 2023 

2. Accounting policies (continued) 

   - 2.3 Income 

Income in respect of donations is accounted for on a receivable basis once the charity has entitlement to the income, it is probable that the income will be received and the amount of income can be measured reliably. For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled. 

> ‘ Income from other trading activities represents the amount derived from the sale of properties, rents receivable, car parking charges and hotel operations (net of VAT) receivable by the subsidiary companies. 

## 2.4 Expenditure 

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. 

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

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

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure. 

## 2.5 Government grants 

Government grants received relate to the Coronavirus Job Retention Scheme, Eat Out To Help Out, local government grants and small business grants. Such grants are credited to the Consolidated Statement of Financial Activities as the related expenditure is incurred. 

## 2.6 Interest receivable 

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

Page 18 



## The Marcela Trust 

## Notes to the Financial Statements 

For the Year Ended 31 July 2023 

## 2. Accounting policies (continued) 

2.7 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. : 

The corporation tax charge relates to taxable profits arising in the trading subsidiaries. 

_ The Charity receives no exemption in respect of Value Added Tax (VAT) and is not VAT registered. 

## 2.8 Tangible fixed assets and depreciation 

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

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

## Depreciation is provided on the following basis: 

Plant and equipment - 3 to 5 years straight line basis 

2.9 Investments 

Investments in subsidiaries are held at fair value. 

## 2.10 Investment property 

Investment property is carried at fair value determined periodically by external valuers and the directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Financial Activities. 

## 2.11 Stocks 

Stocks are valued at the tower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost is based on the cost of purchase ona first in, first out basis. 

## 2.12 Debtors 

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

## 2.13 Cash at bank and in hand 

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

Page 19 



## The Marcela Trust 

Notes to the Financial Statements For the Year Ended 31 July 2023 

## 2. Accounting policies (continued) 

## 2.14 Liabilities and provisions 

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. 

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. 

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those . amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The financeunwindingcost.of the discount is recognised in the Consolidated, Statement of Financial Activities as a 

## 2.15 Financial instruments 

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 

## 2.16 Pensions 

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

## 2.17 Fund accounting 

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes. 

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. 

Investment income, gains and losses are allocated to the appropriate fund. 

Page 20 



The Marcela Trust 

## Notes to the Financial Statements 

For the Year Ended 31 July 2023 

## 3. Critical accounting estimates and areas of judgement 

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 

## Critical accounting estimates and assumptions: 

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. 

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year relate to determining the fair value of the investment properties, which are sensitive to fluctuations in the property market. 

## 4, Income from other trading activities 

Income from non charitable trading activities 


**----- Start of picture text -----**<br>
||||||||
|---|---|---|---|---|---|---|
|Unrestricted|Total|
|funds|funds|
|2023|2023|
|£|£|
|Trading|income|from|subsidiary|undertakings|8,079,373|8,079,373|
|Unrestricted|Total|
|funds|funds|
|2022|2022|
|E|£|
|Trading|income from|subsidiary|undertakings|6,916,849|6,916,849|

**----- End of picture text -----**<br>


Page 21 



) 

## The Marcela Trust 

## Notes to the Financial Statements For the Year Ended 31 July 2023 

## 5, Government grants receivable 

Total funds 2023 £ Government grants receivable by subsidiary undertakings - 

|||||||Unrestricted|Total|
|---|---|---|---|---|---|---|---|
|||||||funds|funds|
|||||||2022.|2022|
|||||||£|£|
|Government|grants|receivable|by|subsidiary|undertakings|112,187|112,187|



The government grants receivable are included within total trading income from subsidiaries as detailed in note 4. , 

## Greyfriars Colchester Limited; 

The entity received government assistance in the form of the local government support grants totalling ENi! (2022: £77,874). 

, 

## QHH Limited; 

The entity received government assistance in the form of the local government support grants totalling ENil (2022: £34,313). 

## OMC Investments Limited; 

The entity received no government assistance in the form of government grants. 

6. Investment income 

||||Unrestricted|Total|
|---|---|---|---|---|
||||funds|funds|
||||2023|2023|
||||£|£|
|Investment|income|.|152,537|152,537|
||||Unrestricted|Total|
||||funds|funds|
||||2022|2022|
||||£|£|
|Investment|income||16,794|16,794|



Page 22 



## The Marcela Trust 

Notes to the Financial Statements For the Year Ended 31 July 2023 

## 7. Expenditure on raising funds 

## Costs of raising funds 

|||Unrestricted|Total||
|---|---|---|---|---|
|||funds|funds||
|||2023|2023||
|||£|£||
|Legal and professional||154,152|154,152||
|Directcosts oflet properties and|hotel operations|1,439,810|1,439,810||
|Recruitment and welfare||38,120|38,120||
|Office administration||114,301|114,301||
|Travel||34,263|34,263||
|Rent, rates and service charges||105,993|105,993||
|Light, heatand cleaning||556,335<br>~|556,335||
|Repairs and maintenance||135,142|135,142||
|Bank charges||175,917|175,917||
|Advertising||7,904|7,904||
|Insurance||124,964|124,964||
|Fees payable to the charity's auditor forthe auditing ofaccounts of|||||
|subsidiaries ofthe charity||28,505|28,505|.|
|Wages and salaries||2,569,753|2,569,753||
|National insurance||56,564|56,564||
|Pension costs||63,291|63,291||
|Depreciation|:|214,549|214,549||
|||5,819,563|5,819,563||



Page 23 



## The Marcela Trust 

) 

## Notes to the Financial Statements 

## For the Year Ended 31 July 2023 

## 7. Expenditure on raising funds (continued) 

## Costs of raising funds (continued) 

|||Unrestricted|Total|
|---|---|---|---|
|||funds|funds|
|||2022|2022|
|||£|£|
|Legal and professional||218,521|218,521|
|Direct costs of let properties and hotel operations||1,458,656|1,458,656|
|Recruitment and welfare||33,124|33,124|
|Office administration||112,242|112,242|
|Travel||33,129|33,129|
|Rent, rates and service charges||164,447|164,447|
|Light, heat and cleaning||299,851|299,851|
|Repairs and maintenance||121,472|121,472|
|Bank charges||127,412|127,412|
|Advertising||11,807|11,807|
|Insurance||106,347|106,347|
|Fees payable to the|charity's auditor for the auditing ofaccounts of|||
|subsidiaries ofthe charity||23,603|23,603|
|Wages and salaries||2,383,582|2,383,582|
|National insurance|©|53,759|53,759|
|Pension costs||60,600|60,600|
|Depreciation||212,525|212,525|
|||5,421,077|5,421,077|



Page 24 



## The Marcela Trust 

Notes to the Financial Statements For the Year Ended 31 July.2023 

## 8. Analysis of grants 

|||Grants to|Total|
|---|---|---|---|
|||Institutions|funds|
|||2023|2023|
|||£|£|
|Grants|paid|353,500|353,500|



The Group made the following grants to institutions during 2023 from unrestricted funds: 

- e St Helena Hospice - £1,500 

- « Society of Portrait Sculptors - £2,000 e Fauna & Flora International - £150,000 

- e« Consensus Action on Salt, Sugar & Health - £200,000 

|||Grants to|Total|
|---|---|---|---|
|||Institutions|funds|
|||2022|2022|
|||£|£|
|Grants|paid|427,000|427,000|



The Group made the following grants to institutions during 2022 from unrestricted funds: 

- e Nuffield Orthopaedic Centre - £275,000 

- e Society of Portrait Sculptors - £2,000 

- e Fauna & Flora International - £150,000 

Page 25 



## The Marcela Trust 

## Notes to the Financial Statements 

For the Year Ended 31 July 2023 

## 9. Support costs 


**----- Start of picture text -----**<br>
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|Unrestricted|Total|
|funds|funds|
|2023|2023|
|£|£|
|Fees|payable|to|the|charity's|auditor|for|the|audit|of the|charity's|annual|
|accounts|2,870|2,870|
|Fees|payable|to|the|charity’s|auditor for|non-audit|costs|3,525|3,525|
|Tota!|2023|6,395|6,395|
|Unrestricted|Total|
|funds|funds|
|2022|2022|
|£|£|
|Fees|payable|to|the|charity’s|auditor|for|the|audit|of the|charity’s|annual|
|accounts|2,380|2,380|
|Fees|payable|to|the|charity’s|auditor|for|non-audit|costs|3,060|3,060|
|Total|2022|5,440|5,440|

**----- End of picture text -----**<br>


Audit fees of the subsidiary companies are allocated to raising funds and the audit fee of the Charity is allocated to charitable activities and were unrestricted in the current and preceding year. 

## 10. Auditors’ remuneration 


**----- Start of picture text -----**<br>
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|2023|2022|
|£|“£|
|Fees|payable|to|the|Charity's|auditor|for|the|audit|of the|Charity's|annual|
|accounts|31,375|26,483|
|Fees|payable|to|the|Charity's|auditor|in|respect|of:|
|The|auditing|of accounts|of associates|of the|Charity|12,445|11,690|

**----- End of picture text -----**<br>


Page 26 



## The Marcela Trust 

Notes to the Financial Statements For the Year Ended 31 July 2023 

## 11. Staff costs 


**----- Start of picture text -----**<br>
||||||
|---|---|---|---|---|
|Group|
|Group’|As|restated|
|2023|2022|
|£|£|
|Wages|and|salaries|2,569,753|2,383,582|
|Social|security|costs|56,564|53,759|
|Pensions|63,291|60,600|
|2,689,608|2,497,941|

**----- End of picture text -----**<br>


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


**----- Start of picture text -----**<br>
|||||||||
|---|---|---|---|---|---|---|---|
|Group|Group|
|2023|2022|
|No.|No.|
|Management|12|9|
|Administration|4|4|
|Hotel|staff|(excluding|hotel|manager)|.|92|98|
|108|111|

**----- End of picture text -----**<br>


The number of employees whose employee benefits including National Insurance contributions (excluding employer pension costs) exceeded £60,000 was: 


**----- Start of picture text -----**<br>
||||||||
|---|---|---|---|---|---|---|
|Group|Group|
|2023|2022|
|No.|No.|
|In|the|band|£220,001|- £230,000|1|1|
|In|the|band|£150,000|- £160,000|1|1|

**----- End of picture text -----**<br>


The total employment benefits including employer pension contributions of the key management personnel were £402,887 (2022: £394,066). _ 

## 12. Trustees’ remuneration and expenses 

One of the trustees is a director of a subsidiary company. One director receives remuneration, benefits and reimbursed expenses in respect of their employment by that company. No remuneration or reimbursed expenses have been paid to the trustees, in their role as trustees, by the charity. 

Trustees’ emoluments for the period (including employer's national insurance) were as follows: D P Rose £224,614 (2022: £224,879). 

The remuneration paid to D P Rose is in respect of her employment as a director by the trading subsidiary and not for her role as a trustee of the charity. 

During the year ended 31 July 2023, no trustee expenses have been incurred (2022 - ENIL). 

Page 27 



## The Marcela Trust 

Notes to the Financial Statements For the Year Ended 31 July 2023 

## 13. Taxation 

||2023|2022|
|---|---|---|
||£|£|
|Corporation tax|||
|Current tax on netincome for the year|421,739|-|
|Total current tax|421,739|-|
|Deferred tax|||
|Changes to tax rates|-|(14,326)|
|Tax losses carried forward|-|59,691|
|Total deferred tax|-|45,365|
|Taxationonnetincome|421,739|45,365|



The tax assessed for the year is lower than (2022 - lower than) the effective rate of corporation tax in the UK of 21% (2022 - 19%). The differences are explained below: 

||2023|2022||
|---|---|---|---|
||£|£||
|Net income before tax|2,069,935|1,025,473||
|Net income multiplied by the effective rate ofcorporation tax in the UK of||||
|21% (2022 - 19%).|434,686|194,840<br>,||
|Effects of:||||
|Expenses not deductible fortax purposes, otherthan goodwill amortisation||||
|and impairment|97,624|25,712||
|Capital allowances foryear in excess ofdepreciation|(39,781)|(43,446)||
|Utilisation oftax losses|-|(42,261)||
|Adjustments to tax charge in respect of prior periods|26,739|-||
|Othertiming differences leading to an increase/(decrease) in taxation|(97,529)|(354)||
|Group relief|-|(135,838)||
|Subsidiaries not eligible for corporation tax|-|1,347||
|Deferred taxation - losses to be utilised|-|45,365||
|Total tax charge forthe year|421,739|45,365||
|The tax charge is in relation to the trading subsidiaries.||||
|On 24 May 2021, the Finance Bill 2021 was substantively enacted, increasing|the main rate of corporation|||
|tax to 25% on 1 April 2023 for companies with taxable profits above £250,000. Companies||with taxable||
|profits below £50,000 will continue to pay corporation tax at 19% and a marginal relief will apply between|||~|
|thesethresholds.||||



Deferred taxes have been measured using the rates substantively enacted at the reporting date in these financial statements. 

Page 28 



The Marcela Trust 

Notes to the Financial Statements For the Year Ended 31 July 2023 

## 14. Tangible fixed assets 

## Group and Charity 

|||Freehold|Plant and||
|---|---|---|---|---|
|||property|machinery|Total|
|||£|£|£|
|Cost or valuation|||||
|At 1 August 2022||9,508,356|3,733,225|13,241,581|
|Additions||-|177,009|177,009|
|Disposals||-|(409,800)|(409,800)|
|Revaluations||(476,343)|-|(476,343)|
|At 31 July 2023||9,032,013|3,500,434|12,532,447|
|Depreciation|||||
|At 1 August2022||“|2,963,330|2,963,330|
|Charge forthe year||-|214,548|214,548|
|On disposals||-|(408,424)|(408,424)|
|At 31 July 2023||-|2,769,454|2,769,454|
|Net book value|||||
|||||||
|At 31 July 2023||9,032,013|730,980|9,762,993|
|At31July2022||9,508,356|769,895|10,278,251|



The freehold property class of fixed assets has a current value of £9,032,013 (2022 - £9,508,356) and a carrying amount at historical cost of £17,829,640 (2022 - £17,829,640). 

The three properties included within this class of fixed assets were not included in external valuations undertaken during the year ended 31 July 2023. These properties were last revalued externally at 31 July 2022. These properties have been revalued in the current year by the directors of OMC Investments Limited, one of whom is a Chartered Surveyor. The basis of the valuation was open market value assuming the properties would be sold subject to existing leases. The directors consider the carrying value to be a fair reflection of the fair value of the properties at 31 July 2023. These properties have a current value of £9,032,013 (2022 - £9,508,356) and a carrying amount at historical cost of £17,829,640 (2022 - £17,829,640) . The depreciation on this historical cost is Eni. , 

Page 29 



| 

## The Marcela Trust 

Notes to the Financial Statements For the Year Ended 31 July 2023 

## 15. Investment property 

## Group 

|||Freehold|
|---|---|---|
|||investment|
|||property|
|||£|
|Valuation|.||
|At 1 August2022||56,358,447|
|Disposals||(310,000)|
|Deficit on revaluation||(2,600,460)|
|At31July2023||53,447,987|



The investment properties class of fixed assets have a current value of £53,447,987 (2022 - £56,358,447) and a carrying amount at historical cost of £89,410,724 (2022 - £89,663,201). 

- Included within the investment properties class of fixed assets are properties which were revalued on 26 July 2023 by Sowerybys who are external to the company. Such properties have a current value of £325,000 (2022 - £375,000) and a carrying amount at historical cost of £282,998 (2022 - £282,998). The directors do not consider this value to be materially different at the year end. The depreciation on this historical cost is £nil. 

Included within the investment properties class of fixed assets are properties which were revalued on 31 July 2023 by T B J Noble Bsc (Hons) MRICS of Nicholas Percival Limited who are external to the company. Such properties have a current value of £1,150,000 (2022 - £1,300,000) and a carrying amount at historical cost of £2,828,901 (2022 - £2,828,901). The depreciation on this historical cost is £nil. 

The remaining properties included within the investment property class of fixed assets were not included in external valuations undertaken during the year ended 31 July 2023. These properties were either last revalued externally at 31 July 2022 or were properties purchased during the year ended 31 July 2022. These properties have been revalued in the current year by the directors of OMC Investments Limited, one of whom is a Chartered Surveyor. The basis of the valuation was open market value assuming the properties would be sold subject to existing leases. The directors consider the carrying value to bea fair reflection of the fair value of the properties at 31 July 2023. These properties have a current value of £51,972,987 (2022 - £54,373,448) and a carrying amount at historical cost of £86,298,825 (2022 - £86,298,825). The depreciation on this historical cost is £nil. 

Page 30 



## The Marcela Trust 

Notes to the Financial Statements For the Year Ended 31 July 2023 

## 16. Fixed asset investments 

investments in subsidiary companies Charity £ Cost or valuation At 1 August 2022 66,242,334 . Revaluations (1,451,531) At 31 July 2023 64,790,803 — . Net book value At 31 July 2023 64,790,803 At 31 July 2022 66,242,334 

## Principal subsidiaries 

The following were subsidiary undertakings of the Charity: 

|Names|Company|Principal place ofbusiness|business|Principal activity|Holding|Holding|
|---|---|---|---|---|---|---|
||number||||||
|Omarca Investment|02264609|3 Robert Street, London,||Dormant intermediary||95%|
|Holdings Limited||WC2N 6RL||holding company|||
|OMC Investments|00991581|3 Robert Street, London,||Property development||100%|
|Limited*||WC2N 6RL|||||
|QHH Limited”|07637088|9 Quebec Street, Leeds, LS1||Hotel and luxury||100%|
|||2HA||apartments|||
|Greyfriars Colchester|08835219|High Street, Colchester, CO1||Luxury hotel and||100%|
|Limited*||1UG||restaurant|||
|The financial results ofthe|the subsidiaries forthe yearwere:||||;||
|Names||Income|Expenditure<br>Profit/(Loss)||Net|assets|
|||£||£<br>forthe||£|
|||||period|||
|||||£|||
|Omarca Investment Holdings Limited<br>OMC investments Limited*||-<br>4,118,077|-<br>-<br>5,006,580<br>(888,503)||4,000,000<br>68,238,900||
|QHH Limited*||2,199,160|2,253,009<br>(53,849)||(228,353)||
|GreyfriarsColchester|Limited*|2,113,805|2,278,983<br>(165,178)||(3,454,702)||



The financial results of the subsidiaries for the year were: 

* These companies are 100% subsidiaries of OQmarca Investment Holdings Limited. 

. 

Page 31 



## The Marcela Trust 

, 

## Notes to the Financial Statements For the Year Ended 31 July 2023 

. 

## 17. Stocks 

|||||||Group|Group|
|---|---|---|---|---|---|---|---|
|,||||||2023|2022|
|||||||£|£|
|Finished|goods|and|goods|for|resale|25,222|29,571|



## Finished goods and goods for resale 

The cost of stocks recognised as an expense in the year amounted to ENil (2022: £26). 

## 18. Debtors 

, 

|||Group|Group|
|---|---|---|---|
|||2023|2022|
|||£|£|
|Due after more than one year||;||
|Other debtors||565,253|579,184|
|||565,253|579,184|
|Due within one year||||
|Trade debtors||211,693|104,165|
|Other debtors||81,503|155,187|
|Prepayments and accrued income|7|368,842|467,447|
|||1,227,291|1,305,983|



; 

Page 32 



## The Marcela Trust 

## Notes to the Financial Statements For the Year Ended 31 July 2023 

## 19. Creditors: Amounts falling due within one year 

||Group|Group|Charity|Charity|
|---|---|---|---|---|
||2023|2022|2023|2022|
||£|£|£|&£|
|Trade creditors|162,190|368,562|-|-|
|Corporation tax|394,355|-|.|-|
|Other taxation and social security|407,247|286,758|-|-|
|Other creditors|166,907|266,987|-|-|
|Accruals and deferred income|726,722|682,970|5,475|4,600|
||1,857,421|1,605,277|5,475|4,600|



## Deferred income 

||||2023|2022|
|---|---|---|---|---|
||||£|£|
|||.|||
|Deferred income at the start ofthe year|||425,677|323,987|
|Incoming resouces deferred during the year|:||§23,513|425,677|
|Amounts released from previous years|||(425,677)|(323,987)|
|Deferred income at the end oftheyear|||§23,513|425,677|
|Deferred income is in relation to rental income invoiced in advance.|||||
|Creditors: Amounts falling due after more than one year|||||
||||Group|Group|
||||2023|2022|
||||£|£|
|Othercreditors|||827,194|823,030|



## 20. Creditors: Amounts falling due after more than one year 

; Other creditors 

Page 33 



## The Marcela Trust 

## Notes to the Financial Statements . For the Year Ended 31 July 2023 

## 21. Statement of funds - Group 

The purpose for which funds are held is detailed in the Trustee's Report on pages 2 to 7. 

## Statement of funds - current year 


**----- Start of picture text -----**<br>
.<br>**----- End of picture text -----**<br>


||Balance at 1|||||Gains/|Balance at|
|---|---|---|---|---|---|---|---|
||August2022|Income||Expenditure|Taxation|(Losses)|31 July 2023|
||£|£||£|£|£|£|
|Unrestricted||||||||
|funds||||||||
|General Funds -||||||||
|all funds|69,599,591|8,231,910||(6,179,458)|(421,739)|(3,059,320)|68,170,984|
|Statement offunds - prioryear||||||||
||Balance at|||||||
||1 August<br>2021|Income||Expenditure|Taxation|Gains/ <br>(Losses)|_Balance at<br>31 July2022|
||£|£||£|£|£|£|
||||)|||||
|Unrestricted||||||||
|funds||||||||
|||||,||||
|General Funds -||||||||
|allfunds|66,864,209|6,933,643||(5,853,517)|(45,365)|1,700,621|69,599,591|



Page 34 



The Marcela Trust 

. 

Notes to the Financial Statements For the Year Ended 31 July 2023 

## 22. Summary of funds - Charity 

## Summary of funds - current year 


**----- Start of picture text -----**<br>
||||||||||
|---|---|---|---|---|---|---|---|---|
|Balance|at|1|,|Gain/|Balance|at|
|August|2022|income|Expenditure|(losses)|31|July|2023|
|£|£|£|£|£|
|General|Funds-|all|funds|66,468,091|450,000|(358,457)|_ (1,451,531)|_65,108,103|

**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
|Summary|of funds|-|prior year|
|.|Balance|at|1|Gain/|Balance|at|
|August|2021|Income|Expenditure|(losses)|31|July|2022|
|£|£|£|£|£|
|General|Funds|-|all|funds|63,855,392|450,000|(432,482)|_|2.595.181|_66,468.091|
|23.|Analysis|of net|assets|between|funds|
|Analysis|of net|assets|between|funds|-|current|year|
|Unrestricted|Total|
|funds|funds|
|2023|2023|
|£|£|
|Tangible|fixed|assets|9,762,993|9,762,993|
|investment|property|53,447,987|53,447,987|
|Debtors|due|after more|than|one|year|.|565,253|565,253|
|Current|assets|7,079,366|7,079,366|
|Creditors|due|within|one|year|(1,857,421)|(1,857,421)|
|Creditors|due|in|more|than|one|year|(827,194)|(827,194)|
|Total|;|68,170,984|68,170,984|

**----- End of picture text -----**<br>


Page 35 



## The Marcela Trust 

## Notes to the Financial Statements 

: 

|For|theYear Ended 31 July 2023|||||
|---|---|---|---|---|---|
|23.|Analysis of net assets between funds (continued)|||||
||Analysis of net assets between funds - prior year|||||
|||Unrestricted|Restricted||Total|
|||funds|funds||funds|
|||2022||2022|2022|
|||£|-|£|£|
||Tangible fixed assets|10,278,251||-|10,278,251|
||Investment property|56,358,447||-|56,358,447|
||Debtors due aftermore than one year|579,184||-|579,184|
||Current assets|4,812,016||-|4,812,016|
||Creditors due within one year|(1,605,277)||-|(1,605,277)|
|,|Creditors due in more than one year|(823,030)||-|(823,030)|
||Total|69,599,591||-|69,599,591|
|24.|Non-controlling interest|||||
||||||£|
||Equity|||||
||At 1 August 2022||||3,131,500|
||Proportion of profit after taxation forthe year||||(68,619)|
||||||3,062,881|
|25.|Reconciliation ofnet movement in funds to net cash flowfrom operating||activities|||
||||Group||Group|
||.|||2023|2022|
|||||£|£|
||Net income for the year (as per Statement of Financial Activities)||1,648,196||980,108|
||Adjustments for:|||||
||Depreciation charges||214,548||212,524|
||Dividends, interests and rents from investments||(152,537)||(16,794)|
||Decrease/(increase) in stocks||4,349||(26)|
||(Increase)/decrease in debtors||78,692||(83,630)|
||Increase in creditors||256,308||1,100,215|
||Taxation|||-|45,365|
||Netcashprovidedbyoperatingactivities||2,049,556||2,237,762|



. Page 36 



## The Marcela Trust 

. 

## Notes to the Financial Statements 

For the Year Ended 31 July 2023 

## 26. Analysis of cash and cash equivalents 


**----- Start of picture text -----**<br>
Group Group<br>2023 2022<br>£ £<br>Cash in hand 6,392,106 4,055,646<br>Total cash and cash equivalents 6,392,106 4,055,646<br>**----- End of picture text -----**<br>


## 27. Analysis of changes in net debt 


**----- Start of picture text -----**<br>
At 1 August At 31 July<br>2022 Cash flows 2023<br>£ £ £<br>Cash at bank and in hand 4,055,646 2,336,460 6,392,106<br>4,055,646 2,336,460 6,392,106<br>**----- End of picture text -----**<br>


## 28. Pension commitments 

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £63,291 (2022: £60,600). At the balance sheet date £6,733 (2022: £7,811) were payable to the fund and are included in creditors. 

## 29. Related party transactions 

## Mrs J Franklin 

## (Trustee) 

During the year the charity paid donations of £Nil to the Nuffield Orthopaedic Centre Appeal (Registered Charity No. 1046243). Mrs J Franklin MBE is also a trustee of this charity. 

## Mr P Hotham 

## (Trustee) 

During the year the charity paid donations of £150,000 (2022: £150,000) to Fauna & Flora International (Registered Charity No. 1011102). Mr P Hotham is an employee of this charity. 

Page 37