2021-12-31-accounts

II'ILLI_I 1111111 11111- Illl The. 1111 , yi 111 ri Iiiyi

WHO WE ARE

This is Report and Financial Statements for the year to 31 December 2021 as required by charity law the trustees’ and regulations and constitutes a directors’ report for the purpose of company legislation. The financial statements have been prepared in accordance with the accounting policies set out on pages 26to 30 and comply with the charity’s trust deed, the Charities Act 2011t,he Companies Act 2006 and 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 United Kingdom and Republic of Ireland (FRS 102). The trustees assert that report trustees committee this annual shows BTBS’ and co-opted members are effective, offering appropriate skills, knowledge and experience in support of clear aims, values and objectives, reflecting the tenets of the Charity Governance Code.

The Book Trade Charity exists to support colleagues across the book trade and their families, providing grants and housing when they need it most. Since 1837 we have been a safety net providing vital funding to help when crisis strikes.

We can help with: utility bills, groceries, transport, medical costs, funeral costs, counselling, household items, relocation, training, development and housing needs. We even have our own housing for colleagues based in Hertfordshire and London.

Beyond our work with individuals, we work hard to support a healthy and vibrant book trade and to break down barriers for young entrants to the trade. We believe in a diverse and inclusive book trade and our approach reflects our commitment to underrepresented groups.

3

A S A F E T Y N E T

We act fast to help colleagues at the point of crisis. Putting food on tables, heating homes and keeping lights on. For hundreds of families.

A S P R I N G B O A R D

But we don’t stop there. We actively drive positive change across the trade and are strongly committed to building a more inclusive and diverse book trade. We have helped hundreds more gain the skills they need to go further and to realise their potential. 5

C H A I R ’ S S TAT E M E N T

2021 was a year of learning. We continued to learn how to operate most effectively through the pandemic and launched our new Bookbinders Cottages in May, with a huge drive to find residents for this unique development in north London. This is an exceptional place with a remit to support underrepresented new entrants to the trade including people from regional and low-income backgrounds. It is heartening that within a matter of months we are now at almost full capacity and have received trade-wide support for this initiative.

This year also saw the formation of our new Ambassadors Group which draws together a handful of our greatest supporters in the trade to single-mindedly drive our profile and fundraising over the coming years. We are excited about the potential to create a strong team of supporters during our 185th anniversary in 2022.

As we enter 2022, we can already see the increasing need for support as incomes are squeezed by inflationary pressures, war rages in Europe and Covid 19 continues to haunt us. I am delighted that we have an excellent team led by Vic that will help the charity and the UK book industry face these challenges.

Jonathan Nowell Chair

A W O R D F R O M O U R C H I E F E X E C U T I V E

Over the past twelve months our life-changing grants and homes have helped hundreds of people across the book trade. As a new face, I have been humbled by our rapid response to eligible colleagues facing crisis. For example, on average during 2021 we agreed Covid funds within five days, a phenomenally fast turn-around for our beneficiaries. This is thanks to our small, agile and dedicated team, who go above and beyond to provide a safety net for people when they need it most. In addition to our welfare grants and housing we continue to support entrants to the trade with training and relocation grants, providing a springboard for thirty colleagues starting out in the book trade during this difficult time.

I am in no doubt about the scale of the challenge ahead. The world is changing and our Covid ravaged book communities are now being shaken by the global energy crisis and by high inflation. It is clear to me that during our 185th year we will need every voice, every supporter and every advocate behind us to ensure that we can respond to this unprecedented challenge on behalf of individuals and families. I am so grateful to our supporters across the trade. Please be in no doubt that your donations matter and they make a real difference to colleagues’ lives each day.

Vic Perry Chief Executive

Photo credit: Mo Siewcharran

Photo credit: Felix Friedmann

7

O U R A I M S

Overall our grants and housing supports colleagues to:

• improve quality of life for themselves and their families

• relieve distress and face crises

• take up education and training

• build their career in the book trade

O U R W AY O F W O R K I N G

is tangible, practical and personal. It often starts with an email or a phonecall to talk through eligibility and to run through the application steps together. We can help with - utilities bills, groceries, transport, medical costs, funeral costs, counselling, household items, relocation, training, development and housing needs.

C R I S I S D O E S N ’ T D I S C R I M I N AT E , A N D N E I T H E R D O W E

We are committed to promoting a workplace committed to the principles of equity, inclusivity and diversity. All applications for support are considered in ways which do not discriminate on the basis of age, gender, ethnicity, race, religion, disability, sexual orientation or socio-economic background.

----- Start of picture text -----
9
----- End of picture text -----

2 0 2 1 H I G H L I G H T S

• Supported 127 beneficiaries with our grants programme plus 52 Covid grant beneficiaries

• Launched Bookbinders Cottages, our new development in Barnet, London

• Kickstarted our new Ambassador programme to raise vital funds and profile

• Glenda won the sector’s ACO Outstanding Achievement award

• Developed a campaign to celebrate our 185th year

• First residents survey at the Retreat to understand what matters most to our community

• Raised almost £40,000 through our book sales once Covid restrictions had eased

• Devised new Advisory Forum terms of reference

Photo credit: Pip Barnard 11

O U R 2 0 2 1 A I M S

To secure the first residents for our Bookbinders Cottages: we ran a concerted campaign to ensure that our 17 new homes were reaching people who would benefit most from the opportunity like new entrants from under- represented groups including those from low socio-economic and regional backgrounds.

To ensure we can meet the needs of people facing crisis : we founded the Ambassadors Network and secured a new President to front our future fundraising drive across the trade. To show the impact and difference that we make: this year we had a lull review of the Covid fund data to bring our work to life. Through this we discovered that we were assessing grants much faster than the sector average. We also started to interview a group of willing beneficiaries to ensure that people can relate to our work and can see themselves in the stories that we tell.

Launching a bursary to support the relocation of new entrants: piloting the Ernest Hecht bursary has been a real highlight and these awards will ensure that people from a low socioeconomic background are supported through their first job in the trade. We have a plan to extend this support throughout 2022.

#TeamBTBS - RideLondon-Essex 2022

13

OUR GRANTS

A large part of our work involves assessing grant applications from individuals seeking support for themselves and their families. We have a series of grants on offer to support colleagues at different stages of their career and facing different pressures.

OUR YEAR IN NUMBERS

£ 2 8 5 , 5 2 8 A W A R D E D I N G R A N T S

4 3 % O F A P P L I C A N T S I N W O R K

2 9 5 A P P L I C AT I O N S

1 7 3 B E N E F I C I A R I E S

4 2 % B O O K S E L L E R S

4 1 % P U B L I S H E R S 1 7 % A L L I E D T R A D E S

W E L FA R E G R A N T S

For book trade people living in their own homes, the charity supports individuals and families in need by providing one-off grants for people facing a crisis. Here are some examples of what people use our grants for:

examples of what people use our grants for:
Impact area	How we might help
Low household income and savings, debt and insolvency	Essential furniture and appliances, help with household bills, heating and mainte- nance costs, travel and car costs
Unemployment and redundancy	Interview costs, funding training and development, CV
Health and medical aid not easily or nor- mally provided by the NHS	Help towards dental work, medical aides such as wheelchairs, mobility scooters, stair lifts
Being a carer	Respite care costs, financial support
Emergencies and unforeseen circumstances	Cover funeral costs, transport and travel
Accidents, illness or bereavement	Deposits for Motability vehicles, mobility aids or stairlifts, counselling sessions
Housing difficulties and homelessness	Pay for accommodation, deposits for a new home, help with removal costs

For further information please go to www.btbs.org

15

R E G U L A R G R A N T S

We often work with colleagues who find themselves on a fixed, low income. They may be retired or indeed starting out in the trade. We support over 60 people with a means-tested grant of up to £175 per month. We know that this ongoing support can be a lifeline for people and enables us to play a sustained and meaningful role in their lives.

Chris’s story

Chris met his partner Hil when they were both young booksellers. After falling in love, they moved to Taunton and ran a bookshop together. In later life, Hil became ill and Chris stopped working to become her carer. After her sudden death, Chris found himself alone, grieving and without a stable income:

7 2 A P P L I C A N T S

3 0 % O F O U R W O R K

“It can sound like a cliché but you just never think you could be in this situation. It was like a switch being turned off and I fell to pieces - our lives had been so entwined for over twenty years. I was emotionally devastated, isolated, jobless and eventually without a home. At that point I was in relatively dire straits and in need of someone to turn to. I then had a kind, caring and helpful conversation with The Book Trade Charity - all the things one needs when you are in that situation. I filled in the paperwork, and it gave me back my confidence in humanity.”

Chris now receives a regular monthly grant from us, and we are so grateful to him for sharing his story.

£ 1 1 9 , 2 1 0 A W A R D E D

17

E D U C AT I O N A N D T R A I N I N G G R A N T S

We have a special grants programme to support people’s training and professional development within the book trade and to support people with a passion to enter the trade. We see these grants as a springboard, enabling people to secure their dream job in the book trade. We continue to work with chosen providers to offer support and practical help to colleagues seeking their first or next job in the trade.

If the costs of undertaking education and training is a barrier to colleagues, we can help them to access career development courses and we tailor support to help new entrants with their living and household expenses often offering grants to support rental deposits or the costs of relocation. Grants awarded are typically between £300 - £2,000.

Amy’s story

“Everything changed after that course, it literally changed my life. Growing up my parents had good jobs and worked hard. Dad was self-employed and had a bad accident at work when I was little which meant he suddenly couldn’t work, and we ended up in debt that we are still paying off today. As a young child this was hard, I remember borrowing books from the school library every weekend so I could have some form of escape. Ever since, I have always done what I can to contribute to the family, I couldn’t afford to go to university even though I wanted to and went straight into full time work. Everything was going well. Fast forward to the second half of Covid - I lost my job. I suddenly couldn’t support my family and was trying to work out what to do next - it really affected my already struggling mental health. I started reading as an escape again. I started a book Instagram and came across ‘Get into Book Publishing’ on Twitter. I didn’t have the money to join until I found out about The Book Trade Charity. I applied for funding and when I found out I was successful I cried. I did the course in Spring and a short while after I got a call about the Bloomsbury apprenticeship scheme. After a few interviews and a work trial I started a few weeks later and it was magical. I now have 1,000 followers on my Book Instagram and have been at Bloomsbury for a year. It genuinely was amazing to have funding for that course and I wouldn’t be where I am today without that help.”

----- Start of picture text -----
19
----- End of picture text -----

E D U C AT I O N A L P R O J E C T G R A N T S

Project grants help us to reach much wider communities by providing targeted support for literary festivals, reading and literature appreciation programmes (particularly for young people) and the development of local and regional initiatives to promote the love of reading. This year we supported:

• Southam Literary Festival – a small festival at the heart of the community

• Bound by Veterans – a charity retraining wounded, injured and sick veterans as bookbinders

• Independent Publishers Guild conference

• Publishing Hopefuls – an online group supporting people into UK publishing

Our educational grants are typically between £1,000 and £2,000 (to a maximum of £5,000) for educational projects and initiatives which facilitate or provide training to promote the study, knowledge and appreciation of literature, publishing and the book trade. We encourage applications for funding from local and regional charities in support of education and training activities connected with learning, literacy and the enjoyment of reading.

----- Start of picture text -----
Photo credit: Bound by Veterans
----- End of picture text -----

Meet Bound by Veterans

Bound by Veterans exists to support ex-servicemen and women, specifically those discharged early due to wounds, injuries and sickness (WIS), to transition from military to civilian life. Since they started nine years ago more than 600 veterans have completed introductory courses and signed up for City & Guilds Level 1,2,3 qualifications.

4 P R O J E C T S F U N D E D

£ 4 , 0 0 0 A W A R D E D

“ We are very grateful to have The Book Trade Charity funding which enables us to enjoy a secure workspace for the veterans in an attractive and peaceful setting. It is a rare thing for a sponsor to fund rent specifically but BTBS tends to focus on helping with these fundamental costs which makes their support very important to us.”

21

The Overflow #134: Avoiding the difficulty bomb The Overflow #134: Avoiding the difficulty bomb

C O V I D G R A N T S

“I really don’t know what we would have done had The Book Trade Charity not been there for us. I know this is a challenging and uncertain time for everyone and having someone to reach out to and get support from is, for us, lifesaving.”

In 2021 we continued to support people across the book trade with grants to help them to withstand and recover from the Covid pandemic. The grant operational guidelines were used as a basis to assess the new Covid grants but given the unprecedented scale and urgency of individual need the usual cap on grants was stretched to meet actual shortfalls in income where appropriate. Many of those who applied in 2021 had either lost jobs due to Covid or were dealing with other life-changing events due to the pandemic (e.g., exacerbated health issues or relocation). Many more Covid applicants also sought support for career guidance as they applied themselves to looking for new employment.

We continue to provide support to individuals and their families who are struggling due to the pandemic.

5 2 A P P L I C A N T S 5 7 A P P L I C AT I O N S £ 8 0 , 0 0 0 A W A R D E D

23

OUR IMPACT, GRANTS

E N T R Y T O T H E T R A D E G R A N T S

We recognise the barriers for young people trying to obtain their first job in the industry and we are passionate about supporting people from underrepresented groups to enter the trade. This year we asked some of the young entrants who had undertaken fully funded career development sessions, why our support made a difference to them. This is what they said:

“I came into this from another industry and quickly learned that jobs and opportunities were few and centred around London or Edinburgh. The advice was invaluable, and helped me to grow my business.”

“Yes - it’s great to enable publishing hopefuls from low income backgrounds to get opportunities in the field, and these kind of sessions are incredibly useful. I would have found a session with book careers hard to afford without help, so the sponsorship of the Book Trade Charity was very valuable for me.”

“The publishing industry is notoriously underpaid leading to very little opportunity for those from lower income backgrounds to find their feet within it.”

“This is a highly competitive industry and too often favours those from privileged backgrounds and those with connections in the industry. It’s important for an industry that serves the UK’s book-reading public that the country’s demographic is better represented in the publishing industry.”

“Very important, especially given that career development sessions tend to be expensive and people looking for a job would find it hard to book them by themselves otherwise.”

In 2021 our work supported beneficiaries across the UK. Here is a breakdown of our grants programme for the past three years:

H O W D I D W E H E L P ?

Welfare grants, (one-off & regular), Entry to the trade grants and Project grants (not including Covid Hardship Grants)	2021	2020	2019
Beneficiaries:	127	130	190
New contacts:	51	52	82
Applications for assistance (total):	291	287	382
Applications funded:	262	235	267
Applicant did not pursue:	17	26	66
Applications rejected (ineligible or not within financial criteria) :	12	26	49
Covid hardship grant applications 2021
Beneficiaries:	52	89	/
Applications for assistance (total):	62	149	/
Applications funded:	57	106	/
Applicant did not pursue:	3	30	/
Applications rejected (ineligible or not within financial criteria) :	2	13	/

2 9 G R A N T S A W A R D E D I N 2 0 2 1

25

W H AT D I D P E O P L E A S K F O R S U P P O R T W I T H ?

	2021	2021	2020	2020	2019	2019
Regular support: (supported for full 12 months)	72 (64)	£119,210	73 (69)	£119,515	76 (60)	£140,090
Christmas one-off grants	58	£9,150	57	£8,100	40	£6,300
Housing/rent arrears/debt	25	£19,178	11	£7,633	30	£15,519
Travel & car costs	2	£810	2	£949	4	£1,668
Holidays, respite care	3	£1,050	0	£0	2	£835
Household, including car- pets, white goods	30	£21,838	25	£11,870	31	£15,295
Retraining & redundancy	14	£5,163	22	£6,005	20	£6,569
Disability, medical & nurs- ing home fees	6	£3,428	2	£2,050	6	£2,339
Interns & Entry to the Book Trade	46	£15,090	38	£10,530	42	£23,404
Project grants	5	£4,230	5	£5,800	16	£19,501
Ernest Hecht Bursaries:	1	£6,000	N/A	N/A	N/A	N/A
Covid Hardship Fund Grants:	57	£80,331	106	£166,779	N/A	N/A

Grants awarded may fall into more than one category per beneficiary

The above graph shows what people have asked for our support with this year

27

OUR IMPACT, HOMES

Our homes in London and Hertfordshire exist to provide safe, secure and subsidized accommodation for book trade people of all ages. Our oldest resident is 98 and our youngest, 23.

T H E R E T R E AT I N H E R T F O R D S H I R E

The Retreat at Kings Langley provides independent living in a community of self-contained accommodation for book trade people who need housing for social and economic reasons - a ‘safe port’ to start afresh after a difficult time. The estate provides homes for colleagues of all ages who have worked in the trade. People can apply to live there as the result of housing need or simply because they wish to live or retire amongst others who love books and share experience in the book trade. Properties are let to eligible applicants on assured short-hold tenancies at subsidised rents/utilities.

• Occupancy: 95% (2020: 98%)

• Average age of residents at 31 December 2021 was 67(2020: 66.7 years). Our oldest resident is 90 and youngest is 43.

----- Start of picture text -----
29
----- End of picture text -----

B O O K B I N D E R S C O T TA G E S I N L O N D O N , N 2 0

The Bookbinders Cottages form a small and unique development of tailor-made flats in North London providing a ‘place to call home’ for young people starting their book trade career in London. The development provides independent living in a community of selfcontained flats for book trade people.

• Occupancy: 60% (2020: 79%). During 2022 occupancy has increased significantly.

• Average age of residents at 31 December 2021: 44(2020:70). Our oldest resident is 98 and youngest 23.

Katie’s story:

“It’s fantastic. The location itself is such an easy commute. I can be in my office in 45 minutes. It’s so quiet and it feels really safe. The flats really are stunning - I have enough space to work from home when I need to. It’s clean, well decorated and generously sized and so comfortable. The community is great too, I’ve become good friends with a neighbour upstairs. If I was still in Derby, I would be spending all of my money on transport and would have found it difficult to meet friends and spend time in the office - I don’t think I could have moved to London without this help. The Book Trade Charity are amazing. Publishing is so hard to get into and having a few of the barriers lessoned makes the whole industry a better place.”

Katie is a resident at Bookbinders Cottages and we thank her for sharing her story.

• Redevelopment works complete: site handed back to BTBS in March 2021

Photo credit: Felix Friedmann

31

FOCUS FOR 2022

1 8 5 A P P E A L

The cost-of-living crisis is starting to affect families across the book trade and our grants programme is under strain. In response we are launching the #185Appeal to raise money to strengthen our grants programme, ensuring we can be there for colleagues struggling with increased bills and inflation.

You can support the appeal by visiting btbs.enthuse.com/cf/cost-of-living-appeal or by following the QR code on the last page.

E N E R G Y

We are actively scoping our Sustainable Futures Project which focuses on three main elements:

• Replacing or upgrading existing heating to modern, ‘greener’, energy efficient systems.

• Modifications to individual homes including better insulation, draught proofing, radiator reflectors and other LEAN changes to help reduce our carbon footprint and save money.

• Providing tailored support, advice and grant assistance to enable our community members to benefit from adopting greener and more sustainable energy choices.

A D V I S O R Y F O R U M

The Book Trade Charity has recognised the need to invite and welcome a broader range of views to inform our planning and service delivery. This may include, but is not limited to; people with lived experience of our services; people with a sound understanding of grant making; housing best practice and policy practitioners.

The forum will act as a critical friend, informing and assisting The Book Trade Charity in several ways including being a key point of advice for the ongoing design and delivery of BTBS programmes. This work will continue into 2023.

33

FUNDRAISING

H O W W E R A I S E M O N E Y

We are so grateful to our individual and company donors from across the book trade and love speaking to potential supporters. As a small charity every pound makes a difference. Typically we raise money by:

• Working with Publishers and Booksellers, who donate to enable our work supporting colleagues in crisis.

• Book sales – the sale of books donated by the book trade. Despite the cancellation of the 2021 London Book Fair, we raised almost £39,000 from our book sales in 2021 and attracted 805 boxes of donated books from across the trade, a record!

• Five London Marathon runners from across the trade raised over £7,700 as a team.

• Trusts, charitable foundations and legacies.

We adhere to and comply with the provisions of the Fundraising Standards Board as part of BTBS’ membership during the year.

The Board records its thanks and appreciation to the following supporters:

• London Marathon runners: Mollie Haynes, Perri Lucatello, Carl Smith, Patrick Kirwin Taylor and Sarah Sherborne.

• Events and collections were held on our behalf by: Hachette’s All Together Network, University of Surrey, Old Export Lags and bookseriesinorder.com.

• Major Donations (£1,000 or more): regular (unrestricted) corporate and charitable trust support during the year: Blackwells, Blake Friedmann, The Book Society, The Booksellers Association, Clays, Canongate, David Grossman, Faber and Faber, Hachette, Harper Collins, Ingram/Lightning Source, Old Possum’s Practical Trust, Pan Macmillan, PenguinRandomHouse, Profile Books, Publishers Licensing Society, Simon & Schuster and the Sue Thompson Charitable Trust.

• Donation received from the estate of Elaine Moss.

35

V O L U N T E E R S & S TA F F

We wish to record our thanks and appreciation to all volunteers who contributed greatly to the charity’s achievements and developments during the year. Without this support, we would not be able to transform lives.

Particularly, the trustees record their thanks to:

• Paul Chapman, Sally Atkinson, Marie Bucksey, Ben Gutcher and Barbara Taylor who were co-opted onto committees and who used their knowledge, skills and experience to the great benefit of the charity;

• The Retreat residents who are involved in the book sales which contribute to the charity’s income.

• Colleagues who help to collect books for and support our book sale events on the day;

• The Retreat residents and friends who organise social occasions and outings, and particularly Graham Hogben who took on the role of minibus driver for the weekly supermarket trips, and other outings;

• The many other book trade friends and colleagues who donate much needed funds and others who give of their time to further the charity’s objectives;

• Ursula Mackenzie (President) for her significant fundraising and profile raising across the trade.

The Board records its thanks and appreciation to the small staff team of Glenda Barnard, Nicki Cattle and Keith Foster who are professional and dedicated in all that they do, including many voluntary hours in support of book sales and other events. The Board pays tribute to Vic and her team.

37

FINANCIAL REVIEW

This year has been one of significant transition. After the development of Bookbinders Cottages and launching a major Covid Fund in 2020 this year was an important time to reframe in order to gear up for the challenges ahead.

	2021	2020
Total income:	£632,580	£1,267,311
Total expenditure:	£1,014,760	£1,156,967
Investment gains	£39,288	£15,878
Net (expenditure)/income	-£343,088	£126,222

2020 income was significantly higher due to the Covid Fund Appeal and the Capital Appeal for the development at Bookbinders Cottages. 2021 was expected to be a year of higher expenditure and the end of year position was favourable against budget,

Recurring income for the charity comprises income comes from voluntary sources, events, rents and investments:

• Corporate and personal donations, and grants from charitable trusts contributed £114,237 (2020: £316,745) to unrestricted funds and £11,264 (2020: £527,022) to restricted funds.

• Events income totalled £53,795 (2020: £55,385) mainly from book sales and the London Marathon

• Rental income amounting to £450,764 (2020: £359,993) was receivable which will grow in 20221 when predicted occupancy levels will be met.

• Gross investment income was £6,866 (2020: £8,166). Movement in the stock market during 2021 resulted in net realised and unrealised gains totalling £39,288 (2020: £15,878).

Costs for the year are £1,014,956 (2020: £1,156,967):

• Grants in the year, including provisions for regular grant commitments in 2021, amounted to £285,478 compared with £339,141 in 2020, when Covid grant applications were high.

----- Start of picture text -----
I N C O M E
----- End of picture text -----

----- Start of picture text -----
E X P E N D I T U R E
----- End of picture text -----

39

I N V E S T M E N T S

The charity’s investments are held with Rathbones in a bespoke portfolio of securities; who provided this report:

Stock markets moved higher in 2021 as the global economy adjusted to and started to recover from the COVID-19 pandemic. Economic activity was somewhat ‘stop-start’ as new CDVID-19 variants disrupted progress made as a result of the distribution of vaccines. Towards the end of the year, focus turned to the prospect of higher inflation as a result of the strong economic recovery. Investors became increasingly concerned about how much monetary policy would need to be tightened by central banks around the world. Despite these challenges, the UK equity market (as measured by the FTSE All Share) rose +18.3% and overseas equities (as measured by the FTSE All- World ex UK) were up +20.1%. Fixed income was weaker on the prospect of higher interest rates leading to lower bond prices, with the FFSE UK Gilts All Stock failing -5.2%.

The charity’s investment portfolio, managed by Rathbones, performed well, returning +14.8% net of all fees. This was ahead of Rathbones’ short term composite index benchmark which rose +12.7% and ahead of the peer group (as measured by the ARC Charity Steady Growth Index), which was +12.3%.

I N V E S T M E N T P O L I C Y

Overall, the trustees wish to pursue a policy which provides revenue and growth to support the charity’s current purposes and enhances income and capital growth over the longer term, thereby enabling them to meet the current and future objectives in accordance with the purposes of the charity. The investment objective of the Fund is to produce a return of inflation (CPI) plus 3%, net of fees. The Board has agreed to dispense with the income requirements and re-invest income to support capital growth, subject to any withdrawals the charity finds it necessary to make. This requirement is subject to annual review.

The trustees have delegated the day-to-day decision making and control of the charity’s investments to Rathbones Investment Management, through a managed fund, to be informed by the policies and guidelines agreed annually at a meeting of trustees and monitored by regular contact with the Chief Executive, by formal quarterly reports and biennual presentations to the finance committee of The Book Trade Charity. The trustees, in delegating their investment management, require the Managers to pay attention to the standard investment criteria, namely the suitability of the class of investment and the need for diversification insofar as it is appropriate to the circumstances of the charity and these requirements are to be met by the management of the fund. There are few restrictions on the

type of investments or markets in which the Managers would invest on the charity’s behalf and the trustees see no conflict with the overall objectives of the shared fund. The Charity intends to actively learn more about ethical investment over the coming twelve months. The trustees accept a medium risk approach to investment (definition below*) with a medium-to-long term objective of meeting the requirement for a returns target of inflation plus 3%, recognising that there will be short term fluctuations, and are satisfied the fund proposed for BTBS by Rathbones can achieve this. Note, we are less dependent on income from investments, given the significant reduction in value of reserves.

*The volatility target, as measured by standard deviation, aims to be high single digit (8-10%) i.e. roughly half way between that of equities and government bonds. If we assume an expected return of +6% per annum (gross of fees) and that the volatility is 9%, then the expected range of returns (in theory) for the portfolio would be between -12% and +24% each year with a 95% degree of confidence.

R E S E R V E S P O L I C Y

As at 31 December 2021, the charity held designated funds (comprising the property reserve, which is based on the net book value of the fixed assets of the charity, less loans secured against the properties) of £8,789,818, with unrestricted reserves of £478,990 (representing four months of unrestricted expenditure).

The charity’s target is to hold sufficient reserves in investments to cover four key areas of need:

1. Continuity — funds used to bridge any delays in regular receipts—the estimated value of 3 months of donation income, £30,000.

2. Cyclical Maintenance — funds used for major maintenance to buildings and interiors — this is estimated at £100,000

3. Restructuring — funds used to cover essential trading activities if sources of income were reduced, such as a fall in occupancy of the property — this is identified as 4 months of budgeted expenses £280,000

4. Dissolution — funds used should the charity be unable to continue. Only to be used in the event of the trustees’ deciding the charity should cease to exist — this is identified as three months running costs plus three months residual salaries £175,000

Minimum required unrestricted reserves are approximately £585,000. The charity will continue to review their reserves and reserves policy on an annual basis and work towards achieving the minimal target level of coverage. During the year we have consciously made significant investment in the capital redevelopment of Bookbinders Cottages which has temporarily reduced the level of reserves below the policy target.

41

G O I N G C O N C E R N

The trustees have assessed the position of the charity as a going concern in preparing this report and financial statements and have made this assessment in respect to a period of over one year from the date of approval of these accounts, based on budgets and cashflow forecasts to December 2023, the forecast reserves position at 31 December 2023 and the expected level of activity during 2022/2023. The charity’s net current assets at 31 December 2021 are covered by fixed asset investments which can be converted to cash if necessary.

The trustees assessed key risks in the assumptions to these budgets and cashflow forecasts, including reductions in key revenue streams, increases in costs and fluctuations in interest rates and reviewed the impact that a significant change could have on the forecast to ensure the charity position. Mitigations against these risks were considered and would entail reducing the level of grants offered or the number of beneficiaries supported, re assessing the criteria for providing housing and increasing the fundraising activity of the charity.

Despite the global uncertainty in relation to COVID-19, the trustees have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern, and the charity will have sufficient resources to meet its liabilities as they fall due.

This report is prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

43

Governance The Book Trade Charity18TBSI is a company limited by guarantee IIK7251781 and a re8lStered charity111281291. We were founded in 1837 and Incorpor3ted on 15 October 2(X)8. with the Memorandvm and Art￿￿5 of Association18overning instrument) amended by S￿cIaL resolutions on 26August 2(K)9 and 16 luty 2014. The trustees are responsible for keeping proper accounting ￿(OrdS that disc105e with reasonable accur3cy at any time the finana31 kx)sition of the charitable compèfty and enable them to ensure that the financial statements cornp￿ with the Companies Att 2(KJ6. We are also responsible for safeguarding the assets of the charitsble compary and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. As far as y￿ are 3￿re.. the￿ is no relevant audit information of which the charitable cornpanvs auditor is unawaie.. and we are aware of any relevant audit information and have established that the charitable company'5 auditor is aware of that information. Our objects are to". lal provide grants Iwelfarel and supported accommodation to anyone with a UK book trade conneth.on (including bookbinding and allied trades) so as to relieve s(Kial and financial need. including the Impact on families and individuals of sickness and illness; Ibl support new entrants to the book trade with accommodation and grants,. Icl look for and support proerammes of education and training which promote study. knowledge and appreciation of literature. publishing and the book trade and for the benefit of those who work in this trade. This confiirnation is gThien and should be interpreted in accordance with the provisions of $418 of the Companies Act 2(X)6. The tiustees are responsible for the maintenance and integrity of the corporate and financial information Included on the charitable companls webslte. Legislation in the United Kingdom governin8 the preparaty.on and disseminatw)n of financial statements moy differfrom le81513tion in otheTjkJfi5dictions. Governan￿ structure Our trustees Ipage twol are also directOF5 of The Book Trade Charity IBTBSI for the ptjrposes of company law arKI are responsible for preparkng this report and financial statetnents in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generalw AC￿pted Accounting Practi￿1. The Chair leads the board, acts as the principal Interf3￿ between the board and the Chief Executs've and provide5the trustees Trmth information, advice and support on strategic issue5. Tr Chief Executive Is the senior mem1￿( of staff. who rewrts to and is accountable to the board for all operational arHJ strate8K matters. The boards remit 15 formal documented. We are satisfied that we comply with relevant charity and company law5 and resulatuns on good govemance and that we have sufficient scrutiny of day-to-day operations. includinE our duttes to.. jo￿ln8the Board. The Ch￿f Executwe and Chair work together to ensure good Su￿$$10n planninE and in 2021 a skills audit was undertaken. New tFUStees are c04)pted under the provisions of the governing Instrument and approved by the board. We work hard to find indNidua15 Wlth a range of skills and experien￿, including but not limited to= * bcx)k trade kno￿edge 3nd netWOTks * charity governance and law * the benevolent fund charity sector, welf3￿. education, training and hDusing' equality, diversity and inclusion S finance, asset manaBement and investments. fundrai5in8 and marketing and. human resour￿5, health and ￿fety. In 2021, ￿ CO￿pted three new trustee5 who will strengthen our Board and bring new insights and perspectives to future-proof The B{￿lk Trade Charity: comply with the objects and purposes as set out In the governing Trnstrument- approve policies, plans and budgets in support of I￿ aims ar)d objective5.' ensure the organisation is solvent and well run with appropriate controls and delegated powers- scrutini5e all activities of the charity.. approve financial statements. ensuring these give a true and fair picture of the chariW5 FM)Sltion.' report to the Charity Commission serious inciderits12021- nO￿l- appoint a Data Protection Lead IGDPRI (Ann Woodhalll Ja￿lne Rithards- Founder of Storymix, a children's fiction development studio that creates incliJsNe stories and nurtures voices from under-represented backgrounds in children's books. lan Chapman- Ch￿1 Executwe and Publisher of Simon and Schuster UK and a IDng-term supporter ofThe Book Trade Charity. Meryl Halls- Manag¢-ng Director of the Booksellers Ass(xiation18AI- the trade body of the UK ancf Ireland. founded to Pfomote retail bookselling. Statement of trustees responslbillties Company law reqUI￿S us to prepare financial ststemenls for each financ&il ye3r which gNe a tnje and fairvEw of the income and expenditure of the charitable company for that perK)d. In preparÈng these financial 5L3teFnent& the trustees are required to.. select suitable accountill8 policies and then apply them consistentty., observe the methods and principle5 in Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charÈties preparing their accounts in accordance with the Financial Reporting Standard applicable to the Unrted Kingdom and Republic of Ireland IFRS 1021.. ake judgements and accour¥ting estimates that are reasonable and prudent.. state whether applicable UK Accounting standards have beerb lollowed. subject to any material departure5 di5c105ed and explained in the financial st3tements,' and prepare the financial statemernts on the going concern basis unles5 it is inappropriate to presume that the charitable company will continue in business. In 2021 we drafted a wetcome pack for tiustees to OLrtline the role and responsibilities for new joiners. In addition. new trustees met with the Chief ExecutNe to discuss the work of the charity and further training will be offered in 2022. Sthommlttees ofthe 8oard The charivs two sijb-comtnittees operate within terms of ieference approved by the board with a focus on policie5, praCtI￿S and prcKedures. There were no changes in the temis of reference. reporting processes or apwintments during2021. Grants and Hous#)g Comrnittee This imrJ)rtant committee regular￿ rewews the level of applications received by 8TBS and the charivs response. It 15 underpinned ty a set of operational guidelines for assessing grant appE￿atiOnS. ensuring that the proce55 of reviewing household income, savings and expenditure is approached Consistent￿ and lairlv. During 2021 the Grnnts and Housing Committee worked with the 5tsff team to PFovide the Board with- recommendations on financial criteria in assessing applic3tions and delegated financial limits 45

reports on 8rants. hou5in& education and traininB actNlties. including those which We￿ approved and refused by the Committee under delegated powers analysis of financial expenditure on grants. education and trainirnB progfammes and future trends. Analysi5 of the Covid Haidship Fund including geographical mappin8 and impact feedback from recipients. corbsider Charity Commission guidan￿,. have regard to risk pr3ctces and procedures of other benevolent funds and ask for input from Staff. OCC￿r￿ ofthe new flats at B￿kbonder$ Cottages.. ensuring that our new flats were at predicted occupancy levels was a huge focus for 2021. The delay to practical completion had a knock-on effect to e3med income which meant that recruitment had to stsrt in earnest during the Sprin8. We made the conscious decision to revise down the occuparkcy expectstions inline with Covid norms since we anticipated that residents would benefit from more communal Spa￿ in case of further lockdown5. This risk is high as a loss of rental income for the charity which might affect the ability of the Charlty to repay the associated bank loan. Finance Commlttee This committee reviews income and expenditure, cash fbw. capital proiecls and irNestrnents and provths the Board with recommendations on the BudEet for the year. capital exFendrture and investments. Alongside the Chair and three board trustees. there Is one Cr￿OptiOn (providing continued input from the prevws Bookbinders Charitable Society). The Chair is appointed. usuallyfof a term of three years as the interface befween the Board and the ChEf Executive,. assist the Board in ensuring £ompliance with statutw and regulatory oblig3tions.' chair meetings and work with the Chief Executwe to review and ￿COMMend any change5 to our policies and procedures. Heatth & Safety: risks during the pandemic were mitigated by clear protocols and signage for staff, residents and contiactors plus enhan￿d cleaning of communal areas to minimi5e the risk of spreading the viru5. Nonssential repairs and maTrntenance We￿ suspended d¢Jring lockdowns to minimi5e contractor visits to households. IT system5 enabkd staff to work from home, On￿ working from the Offi￿ on a rota basis, if ab501utely nece55ary. The P￿SIdent is apwinied, USLJalty for a term of ihiee ye6r5, lo build profile and rahse funds. The President represents the charity at key functions and evenrs and Is not a director nor a trustee but can attend Board meetings. During 2021. the Pre51dent focused on the capilal de¥ek)pment appeal. developing Ambassadors Network terms of reference with the Chief Executive antj appointing a successor for 2022. Loss of key staff". with a small stsff team. the loss of their experience, knowledge and skills could adversew impact oper3tions e.8. the ability to process grants for beneficiaties. This risk is mitl8ated by an agreed succession plan (for of[￿er$ and 5taff),- secure archNe. filing and documeatètion systems and cooperative w0￿1n8 practices. New for 2021.. The Ambassad￿5 Netwwk This is a new group with the express aim of supporting the President to raise targeted, major donoi and Corporate funds and to raise the PTof11e of The Book Trade Charity 35 energetic adv(Kates with the clout. determination and passion to help drive support for our cause. We end the year with five new Ambassadors. who bring 3 wealth of experience and contacts and who we can't wait to work alongside. We reco8ni5e that as a sm311 team we need to extend our reach In 2022 capitalise on this moment of profitability across the publishing industry and corwersely an unprecedented need from ￿nef￿13r1es who are aliea(ty feeling the effects of increased living costs. ITfailure or b)ss- the loss of inforfflation or records, which would impact day-to-day working systems and 0￿ratIons. During 2021 we rr￿ed all data onto the cloud and undertook traininE to undetStand the online sec(Jre archNe, filing & dctumentation system5. We also instructed a new supplierfor IT support who is available to support the team in the event of IT failure or10s5. Fire. flcrf d￿nage at The Retreat and the BoDkbinders Cotts8es estate, which could resijlt in the potential risk of death or injury to staff or resident5.'1055 of Offi￿ facilities and/or accommodation. with consequent1055 of income (from rents), office capability or fundraising resour￿5. The design ofThe Retreat means any damage would tend to be localised rather than wide5pre3d.' the risk is mitigated ftjrther with regular tnaintenance and agreed safety procedure5. corltinuous pro￿rtY and grounds maintenan￿, and awarene55 of potential ri5k5. TheTeam Key Management Personnel include the Chair and all trustees. who are unpaid as atK)ve. plus the Chief Executwe. who is paid. The terms and conditions of employment of the ChEf Executive and th￿e other permanent staff members lone fvll-time and two part-timel were reviewed by the trustees folklwt￿ a benthmarkirbg exercise in 2021. In assessing pay, the Board has regard to ￿rforManCe. the financial position of the cbafty. the rate of inflation at mid-year. and book trade pay rates and comparable roles across the third sector. Ncrl-ccKn￿i3n￿ vath General Data Protertion Regulations IGDPRI and the risk of actions tsken by the regulator. This risk is mitigated by the Board agreeing a Data Protection Policy. via slaff training and the appointment of a Data Protection Lead who has direct access to the Board. INO applicationg for information and data were re￿iVed duiin8 the year_l New (hief Executive Victoria Perry (Vicl officiallyjoined The PA)ok Trade Charity in March 2021 and had a month-long intensNe handover with David Hicks which formed part of an invaluable and generous induction. bons taken on behaff of BT8S vthhoutapprowate approval (fraud and theftl. This risk is mitigated by policies, practices and approv31 systems reviewed by the Board, Chief Executive and annual review of the financial statements by indeperLdentextem31 auditor5. TranSact￿)n$ with Trustees The rèimbursement of expense5 to Board members is shown in the finarhcial statements in note 8. Other transactions with relaied parties are shown in Note 21. Situatiors have the rthntial to lead to adverse publKity and loss of SUFI)lrt This risk is mitigated by the Board approwng and keepirE under regular reV￿W robust plans, policies and procedures, based on thelr commercial and kjok trade related knowledge and skills. Risk management and dealing vAth un￿rtaInties The Book Trade Charity operates a risk register and matrix which reflerts our operational plan and key3rea5 of concern. The register has been strtngthened in 2021 to Include mitigating actions arjd status updates and is r￿W viewed by the Board as a standing agenda item, The trustees look at existing and potent131 risks in detail.. 47

The Book Trade Charity IBTBS) Independent auditorfs report 2021 The Book Trade Charity {BTBS) Independent auditorfs report 2021 Oplnlon We have audited the financial statefflents of The B￿k Trade Charity IBTBS) Ithe'charitable companll for t￿Year ended 31 December 2021 which comprise the statement of financial activits. the balance sheeL the ststements of cash flows, the principal accounting pO1￿cleS and notes to the finanoal ststements_ financial reix>rting framework that has been applied in their preparation is applicable law and United Kingdom AccountirE Standards. including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Iieland, (United Kingdom GenerallyAccepted Accountit)g PraCt￿e). Other Informatlon The Trustees are responsible for the other information. The other information comprises the information nduded in the Afjnual Report and Financial Statements, other than the financial Statements and our auditols rep)rt thereon. Our opinion on the financial statements doEs not cover the other information and, except to the extent otherwse exp1K1t￿ stated in our ￿pOrL we do nDt express any form of a55urance conclusion thereon. In connett￿n with our audrt of the financial Statements, our responsibility is to read the other information and. In dO￿g 50. consider whether the other information is materialw inconsistent with the financial 5tatement5 or our knowledge obtained in the audit or oiherwise appear5 to Material￿ misstated. If we identify such material inconsistenoes or apparent material rni5Statements. we a￿ required to determine whether there 15 a material mi5Statement in the financial statements or a matefial misstatement of the other information. If. based on the work we have performed. we COr￿l￿de that there is a material misstatement of this other information. we are required to report that fact. This ￿pOrt is made solely to the charitable compantys MeM￿r$. as a ￿(ty. in accordarKe vrth Chapter 3 of Part 16 of the Companies Act 2￿6. Our audit work has been undertaken so that we might state to the charitab company's members those matters we are required to stste to them in an auditor's report arKI for no other purpose. To the fullest extent permitted by law, we do not ac￿pt or assume responsibility to anyone other than the charitable company and the charitsble company's mefflber5 as a body. for our audit work. for this rew)rt, orfor the opinions we have formed. In our opinion, the financial statements.. We have nothing to ￿port in this regard. give a true and lair view of the state of the Charitab￿ companrfs affaits as at 31 t￿rnber 2021 and of income and extnditure for the year then ended,. * have been proper￿ prepa￿d in accordance with United Kingdom Generalty Accepted Account￿8 Practice- Opinions on other matters prescnbed bythe CompanTres Act 21J In our opinion. based on the work undertaken In the course ol the audit= + have been prepared in accordance with the requirements of the Companies Act 2(￿. • the information gNen in the Tru5tees' report. which is also the directors, report for the purptsses of company law. for the finanuJl year for whKh the financial statements are prepared 15 consistent wrth the financial staternent5.' and + the Trustees. rerN)rt. which is also the director5. report for the purposes ol company law, h35 iEen prepa￿d in accordance with applicable legal reouirements. Basis foropinion We conducted our audit in accordance wlth International Standards on Auditing IUKI IISAS IUK) and applicable law. Our responsibilities under those standards are further described irk the auditof s regy)nsibtIit￿S for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that a￿ relevant to our audit of the f1n3ncial statements in the UK. including the FRCS Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these iequirements. We believe that the audit evidence we have obtained is Sufficient and appropriate to pr(Mde a basis for our opinion. Matters on whtth we are required to report ty ex￿ptIOn In the light of the knowtedge and urHJerstanding of the charitable company and its environment obtained in the course of the audii we hève not identified material misststements in the Trustees, report. We have nothing to report in respect ol the followin8 matters in relation to which the Companie5 Act 21X)6 requires us to report to you if. in our opinion.. Condusion5 relatingto going cOn￿M In auditing the fina￿la1 statements, we have concluded that the TILFStees' use of the 8oin8 concern basis of accountin8 in the preparation of the financial statemefit5 is appropriate. adequate accounting records have not been kept, or retums adequ3te for our audit have not been received from brancFts not visited by us.. or the financial statement5 are not in ag￿ement with the accounting records and returns.. or • certain disclosures in respect to the femuneration of Trustee5 specIf￿d by law are not m3de,' or • we have not re￿ived all the infoffliation and eXplanat￿rts 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 trustees. re￿rt and from the requirement to prepare 3 strategic report. Based on the work we have Frfom)ed. we have rK)t identif￿d any material urKertainties relating to events or conditiorss that, indivtdually or collecttvety. may cast significant doubt on the Charl￿$ ability to conts'nue 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 responsibililies of the Trustees wtth respect to 8QlnB concem are desuibed in the relevant sections of this report. Tntstee< respcfftsibillt￿s As explained MO￿ fulty in the Tnjstees. responsibilittes ststement, the Trustees Iwho are 3150 the directo￿ for the purposes of company lawl are responsible lor the preparation o* the ftsnanci31 statements and for being satisfiecj that they give a true and fair view, arid for such internal control as the Trustees determine 15 necessary to enable the preparation of financial statements that are free from material misststement. vthether due tD fraud or error. 49

The Book Trade Charity IBTBSI Independent auditorfs report 2021 The Book Trade Charity {BTBSI Independent auditorfs report 2021 Trusteeg respons1blllt￿S Icontinuedl In preparing the financial statements, the Trustees are responsible for assessing the charitable compan￿5 ability to continue 3$ a going con￿rn. disc105in& as applicabte, matters related to going COn￿rn and Ltsingthe going cOn￿rn basis of accounting unless the TnJstees either intend to liquidate the CharItsb￿ company or to cease 0￿ratIonS, or has no realistic alternative but to do so. re¥Jcffl5rbilities fLK the audit of the finarKÈal statements Icontinuedl In response to the nsk of Ir￿gU1a¥itieS and non-complian￿ with laws and regulations, we designed procedures which included. but We￿ not limited to. reodin8the minutes of meetings of those charged with governance,. and • enquiring of management as to actual and w>tential litigation and claims. Auditorfs respcmstbilitlesfor the audit of fThncial statements Our objectwes are to obtain reasonable assuran￿ about whetherthe financial statements as a whok are free from material mi55tatemen[ whether due to fraud orerror, and to is5￿ an 3uditorfs report that includes our opinion. Reasonable assurance is a high level of assuran￿. but is not a guarantse that an aud1tc0nd￿ted in accordance with ISA5 IUKI will always detect a material misststement when it exists. MÈsstatements can arise from fraud or error and are considered material if, indniidualty or in the aggregate. they could reasofjabty be expected to influence the economic decisions of users taken on the basis of these financial statements. There are inherent limitstions in our audit procedures described above. The more remLwed that laws and regulati￿$ are from financial transactions. the less like￿ it Ès that we would become aware of non We design procedure5 n line with our responsibilities, outlined above. to detect materi31 tfkisstatements in resFkct of irregularities. including fraud. The extent to which our procedures are capable of detecting Irre8ularities, including fraud is detailed below. A further description of our responsibilities lor the audit of the financial statements is IcKated on the Finanaal RetK)rting Council's webslte èt www.frc.or 3udit rsre5 onsibilities. This description forms part of our udito<s rep)rt. Our approach to identifying and assessine the risks of material mi55tstement in rest￿ of irregularitTes. indudinE fraud and non-complian￿ with law5 and regulations, wa5 as follows_. Use of this reK This report is made 501efy to the charitable comp3n(s Trvstees, as a body, in accordance with Chapter 3 of Part 16 01 the Companies Act 2(KA Our audil work has been undertaken so that we might state to the charitable companvs Trustees those matter5 that we ate required to state to them in an auditorfs report and for no other purp￿. To the fullest extent permitted by law. we do not accept or assume re5ponsibilÈty to anyone other than the charitable comp3Ws and the compantys Trustee5 as a body. for our audit V40rk. orthe opinion5 we have formed. • the eng3Bement partner ensured that the eng3Eement team colkctNeW had the appropriate competence, cap8bllitiÈs and skills to identify or recognise r￿n{oT￿pIlan￿ w¢th applicable laws and ￿gUlatIO[l5,. we obtained an understandin8 of the legal and regulatory frameworks that are applicable to the charitab company and determined that the most significant framewo￿ which are difectly rekvant to specific assertions in the finarKial statement5 are those that relate to the reporting framework Istatement of Recommended Practi￿ Accounting and Reporting by Charities prepaiing this accounts in accordan￿ with the Financial reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021, the Charities Act 2011, and the Companies Acl 2Q)61, those that relate to data protection IGeneral Data Protection Regulation) and those in relation to safeguarding. We assessed the susceptibility of the charitsble companV5 financi31 statements to material mi55tatemenL including obtaining an understsnding of how fraud might occur. bv". Catherine Biscoe. Senior Statutory Aijditor for and on behJlf of Buzzacott LLP, Statutory Auditor 130 Wood Street LorKlon making enquiries of management as to their knowledge of actual, sust*rted and al￿ged Iraud,. and considering the iriternal controls in place to mitigate risks of fraud and rK)rFcompl1an￿ wtth law5 and regulations. EC2V6DL To addressthe risk of fraud through management bias and override of controls we.. performed anaW'cal procedures to identify any unusual or unexpected relatM)nships.' • performed substantive testing of expenditure including the authorisation thereof,. * tested journal entries to identify unusu31 transactions,. and ssessed whether the judgements and the assumptions made in detemiinin8 accounting estimates for the useful economic lsves of tangible fixed assets. the accfLied 8rant ex￿ndrtUre and the estimation5 of future income and expenditure flow5. were ind￿ative of wtential bias. 51

The Book Trade Charity IBTBSI Statement of financial activities lillcluding income and expenditure accountl for the year ended 31 December 2021 The Book Trade Charity IBTBSI Statement of financial activities (including income and expenditure account) for the year ended 31 December 2020 Tatal hJnd5 y￿e￿ncle￿ lunds Desyd￿￿￿d fvnds Resirtted funds funds 2021 Tofol 2020 Unrestflcted I￿ndS Desionoted fvfjds Res[f￿￿e6 Nores 2020 Income from.. DonatlOn53nrf legacR5 l(I).340 11,815 121.155 843.767 316.745 577,022 843.767 Rentsl Income 4￿,764 53.795 6.866 620.765 450.764 53,795 359.993 55.385 8.166 1.267.311 CIKtntablg or(M¢￿5 ot￿r tiading actmties Invesiments and Intere￿ receivable Total inÈomÉ . Rert6ffJnc(bY tfodtryJo(M'Jttt5 lfftvtJnent5ondJnterestreceJ¥ob 359,993 55.385 4166 340.289 359.993 55.385 8.166 1.267.311 11.815 632. rotttlw￿orne 527,022 ExpEnd￿￿reQfi= Publicityand fundra151ll 56.288 56.288 53.295 . Pulthrtyorxl Jundr0151ng . FyndnYrSJFYJtrothng .. Costs d5elhngdothrtedoth 53.295 53.295 . Costs of 5ellin8 donaied 8oods 3,475 3.475 5.5SY) 5,590 . Grantg prograinmes 254.769 86.331 0￿(JI￿bIe￿(fvlt￿S yJi.i&) - Giontspr(Jwomme5 . PrOv15K￿ 228,924 344J04 166.779 395,703 702.246 133 atcttmTnodation 434,877 178.665 613.542 ssl 702.246 133 354142 0￿,5 fundraisin TotslexpÈndifvre 551 133 749.4 178.665 86.882 1014.956 L.156. Totolexpethurt 633.913 356.J42 166,912 J.156.967 Trlet (ex￿di1￿￿> income befofe In¥estment zaiThs ond Ner t￿[￿Je(eX￿￿f￿e1 lyefve Miestmentgoins t7R11055e5 1128.6441 117&6651 I75.￿7) 1382.3761 110.344 106.376 (356. 142) 3￿.1j0 IJO.344 Net IfNe5tmEnt gajn5 Net lex￿ndit￿reI Ir￿me 39.288 189.3561 39.288 I343.(￿} IS378 12Q222 JWilJ¥t5rment IS.878 122.254 15.878 126.222 117&66S1 I75.￿7} Netvpr¢¥nelex&yepdrturÈ3 1356,1421 Transfèr between lunds 265.658 1124.6151 1141.0431 riao5ler iwecnlw 1.325.041 Net movernent in tunth 176,302 13012801 1216.1101 1343.Wl 126,222 11202.787J 360.110 126,222 Reconciliatioft of tund5-. Fund balance5 broughtfoiward at I lantsarv 202] Recon(Jlwtw oflurds" Ftrndboktncesbrtsughtfonvordatl knwry2020 1.505.475 8.124.199 9,629,674 302.688 9,LYJ3.OY8 3FA>.IiO 9,755.896 9.629.674 FuTh¥l¥tkrrttscUrnedlot￿￿tst 3J L*ember2020 302.685 g.Q)3.098 3fQ.IlQ 9.755.896 Fund bal8nce5 carried forward at 31 Decèmber 2021 478.990 8,789.818 144.(MX) 9.412. 9.755.896 All of the charity's activities derived from continuing operation5 during the atx)ve two financial ￿riodS. The charity has no reco8nised gains or1055e5 Other than those shown above. The notes on pages 32 to 40 form part of these firbancial statements. 53

The Book Trade Charity {BTBSI Balance sheet as at 31 December 2021 The Book Trade Charity (BTBSI Statement of cash flows as at 31 December 2021 2021 2021 2020 2020 2021 2020 Notes r4ot Fixed assets Tangible assets Investment5 Total fixed assets lo,￿3.2 358.634 10.44L924 10.080,1&) 313.l44 10.393.324 Net ca5hlusedinl bycwatsngKtMbEs 1239.0211 502.529 io I￿￿)d$ aThJ Interest frtyn In¥e5trrr)ts PUrth￿e fixed a55et5 Prttelsfrcth the dSpty￿ ofinve5trnents 8.166 118L7751 12.312,1231 Cvrrent a55ets OÈbtor5 Cash at bank and In hand Totsl ￿rrent 3sset$ li 30.050 368,617 398.667 31, 482.359 16.1231 lii,mD) I￿1,051) 12,314,957) 514.257 Credilws". amounts lè111r￿ due within one year 987,CÉ2 12 I￿,046} Il81.6931 Net ojrrent assets 1113,6631 1825,3461 209.621 332.574 481S99 1.307,945 Total assets les$ current liabilitie5 10.65LS45 10.725.898 NorrfLrrent liabSllties Creditus". Jmounts falling due outside of tneyear 368,936 482.599 13 IL238.7371 I970.￿1) NoteSto the statementof cashflows forthe year to 31 DeceffliEr 2021 Net assets 9.412,8( 9,755.WJ6 A ReC1￿ci￿at￿ of net rrKwement in funds to netcash fkwfrom operatirÉactNities 2021 2020 The funds of the char Unrestritted fund5 Free r￿erVeS Net in fw)ds l¥ perthe ststementClfin￿IaCt￿itie5j 1343,(081 126,222 478,990 8.789,818 302.688 9.C$3.L Oesignated fvnds Tot31 unrestriaed funds 14 Oey£oit)Ichne lo55(￿ (115SM)S31 ￿f￿￿da&sets Gair￿￿ Irwtments DNithds aryl Int￿eStfI￿￿ Inves￿en[S Deuease In debt￿$ Oecre35e Inue(&t￿S Nei cash (used ￿¢￿ratire￿￿Ès 178.665 99,538 256.604 115,8781 18.1661 79.982 135,7731 502.5Z9 9.26& 9.395.786 139.2881 16,8661 Restrirted funds 15 IM.{ 3￿.110 Totsl chatity lunds 9,412.808 9,755.896 130.3021 1239.0211 The financial statements were approved 3nd authorised for isyJe by the Board on B Anafrfii5 rrftharees in netdet NL￿-Ca5h mcwements I 2020 Cashfl(rns 31 L)ec 2021 Honorary Treasurer ca5harballka￿1 In harnl Cash held trrfirwe5fftrt manys 482,359 240 1113.7421 79 1113.6G31 368,617 319 482,599 117.wl 1970.C021 1504.4831 368.936 154,7351 11.238,n71 1924.5361 The notes on pages 32 to 40 form part of these financial siatements. Loansf3l1irwd￿e ￿thin¢r* year Loansfauing due lXFts￿e￿(￿￿ 137,6551 37.665 1kn,3901 1420,0531 Company number.. 06725178 IEngland and Wales) 55

The Book Trade Charity (BTBSI Principal Accounting Policies Yearended 31 December 2021 The Book Trade Charity IBT85) Principal Accounting Policies Year ended 31 December 2021 The principal accountin8 policies adopted, judgements and key sources of estimatitm Un￿rtaInty in the preparation of the financial statements are laid out below. Assessment ofgoing COn￿M Icontinuedl With regard to the next 3ccountinE period, the year ending 31 De￿mber 2022. the most significant areas that affect the cairying v3lue of the asset5 held ty the charity are the performance of housin8 markets and, to a lesser extent investment matkets. Bas￿ of preparat)n These financial statement5 have been prepared for the year to 31 Oecember 2021_ The financial statements have been prepared under the historical c05t convention with Items recognised at cost or transaction value unless otheTwise stated in the relevant accounting policies below or the notes to these accounts. Income recognition All income is included in the stètement of financial activities when the charitable company is legally entitled to the income and the amount can be quantified with reasonable certainty. Income is deferred only when the charity has to fulfil conditions before becoming entitled to it or where the donor or funder ha5 specified that the income is to be expended in a future accountirsg penod. The following specific policies apply to categories of income: The financial statements havè been prepared in accordance with Accourbting and Reporting by Charities.. Statement of Recommended Practice applicable to charitie5 preparing their financial statements in accordance with the Financial ReportinE Stsndard applicable in the United Kingdom and Republic of Ireland IFRS 1021 (Charities SORP FRS 1021, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2(X)6. Income is recognised in the peikod in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be re£ewed. The charity constitutes a public benefit entity as defined by FR5 102. Income compTi5e5 donations, investment Income ond other income including the surplus on the di5P0531 of tangible fixed assets. The financial statements are presented in sterling and are rounded to the nearest pound. Donations are recognised when charity has confirmation of both the amount and setdement date. In the event ol donations pledged but not received, the amount is accrued for where the re￿Ipt Is considered probable. In the event that 3 donation is subject lo conditions that require a level of performance before the charity 15 entitled to the lunds, the income is deferred and not recognised until either those conditions are fully met, 01 the fulfilment of those conditions Is wholly within the control of the charity and it is probable that those condiiions will be fulfilled in the reportir)g period. Critical accountlng estimates and 3reas of judgement Preparation of the financial statements requires the trustees and management to make significant judgements and estimates. The items in the financial statements where these jLFdgement5 and estimates hève been made include.. • e5tiin3tin8 the useful economic life of tangib￿ fixed as5ets,' In accordance with the Charity'es SORP FRS 102 volunteer time is not recognised with a financial value. + estimating the value of regular grants that had ￿en committed to be disbursed at the year end- and Estirnating ihe fair value of donated books and similar items for resale is imprartic31 because of the volume of low-value item5 rece5ved and the absence of detailed stock record5. Donated goods for resale are therefore not iecognised on re￿Ipt and in5teaLI the value to the charity of the donated goods sold 15 recognised as income when sold. estimating future cash flows for the purpose of assessing going concernlsee belowl- As the long-term impact of the global Covid pandemic is stFII unknown. it is not Possible to evaluate all the potential implications for the charTrty's activities. beneficiaries, funders. suppliers and the wider economy. Estimates used in the accounts, particularty wilh respect to the value of listed investments15ee note 101 continue to be subject to a greater degree of uncertainty and volatility. As set out in these accounting polics under"A55e5sment of going concern". the trustees have considered the impact of the pondemic on the charity and have concluded that althouBh there may be some negative consequences. it is appropriate for the charity to continue to prepare ils accounts on the 80ing con￿rn basis. Legacies ale included in the statemerit of tinancial activitie5 when the charity is entitled to the legacy, the execut015 have established that there are suffioent surplus assets in the estate to pay the le8acy. and any conditions attached to the legacy are within the control of the charity. Entitlement is taken as the earlier of the date on which either.. the charity Is 3ware that probate has been granted. rhe estate has been finali5ed and notification ha5 been made by the executor to the charity that a distribut40n will be ¥nade, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, Is only £(In5idefed probable when the amount can be measured reliably and the charity ha5 bee notified of the execvtorfs intention to make a disiribution. Where legacies have been notified to the charity, or the charity Is aware of the Eranting of Pfobate, btjt the criteria for income recognition have not been met, then the legacy is treated as a contlngent asset and disclosed if Material. In the event that the gift is in the form of an a55et other than cash or a fin3naal asset traded on a fecDgnised stock exchanEe, recognition is Subject to the value of the gilt being reliably measurable with a degree of reasonable accuracy and the title of the a55et having being tran5feiied to the charity. Assessment of80in8 corKem The trustees have assessed whether the use of the going concern assumption is 3ppropriate Èn preparing these financial statements. The trustees have made this assessment in respect to 3 period of one year from the date of approval of these accounts. This is based on budgets and cash flow forecasts to De￿mber 2022 and projections beyond. The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast 5i8nificant doubt on the ability of the charity to continue a5 a going concern. They are of the opinion that the charity will have sufficient resoLFrce5 to meet its liabilities as they fall due. Despite the continued global uncertainty in relation to COVID-19, there are no concerns regarding the charitys ability to continue as a goin8 concern. Dividends are recognised On￿ the dtvidend has been declared and notification has been received of the dividend due. Interest on funds held on deposit 15 included when receivable and the amount can be measured reliably by the charity,. this is normal￿ utM)n notification of the inteiest paid or payable by the bank. 57

The Book Trade Charity IBTBSI Principal Accounting Policie5 Year ended 31 December 2021 The Book Trade Charity IBTBSI Principal Accounting Policies Yeai ended 31 December 2021 Eynditure re¢c8nitic Liabilities are recD8ni5ed a5 expenditure as soon as there is a legal or constructNe obli8ation committing the charity to make a payment to a third party. it is prob3ble that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Tan8ible fued assets and depreciatlon Icontinuedl Oeprec4ation is provided to write off the cost or valuation. less estimated residual values. of all lixed assets eventy over their expected useful lives. It is calculated at the following rate5'. Fixtures and fittings Motor vehKles Freehold buildings between IO% and 20% Straight line 20% straight line between 2% and 5% straight line All expenditure is accounted for on an accruals basis. Expenditure comprise5 direct costs and support costs. All expenses, including support Costs, are allocated or 3prKJriioned to the applicable expenditure headings. The classification between activities is as follows.. • Expenditure on raising funds includes all expenditure associated with raising funds for the charity. This includes investment management fees. staff cost5 associated vdiih fundraisin& and an allocation of support costs. The charitable company has a policy of capitalising assets which cost more than £l,(XJO. Fieehold13nd is not depreciated. • Expenditure on charitable artivities includes all costs associated with further￿n8 the charitable purposes of the charity through the provision of it5 charitable activities. Such costs include charitable grants and donations, direct and support costs in respect on the charity's pnmary charitable purposes as described in the trustees. report and includes governance costs. Borrowing costs that are directly attiibutsble to the acquisition, construction or production of a tangible fixed asset are c3Pltalised as part of the cost of that asset and depreciated in line with estimated useful life of the associated asset. Investments Listed investments are a form o basic financial instrument and are init1311y recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the c1051ng quoted market price. Grants payable are included in the statement of finanoal actNlties when approved and when the intended recipient has either received the funds or been informed of the decision to make the Brant 3nd has satisfied all performance conditions. Grants approved but not paid al the end of the financial year are accrued. Grants where the beneficiary ha5 not been informed or must fulfil performan￿ condittons before the grant is released ale not accrued for but are disclosed as financial commitment5 in the notes to the accounts. The charity doe5 not acquire pvt opttons. derivatives or other complex financial Instruments. All expenditure is stated inclusive of iriecoverable VAT. Realised gains lor10sses1 on investment assets are calculated as the difference between di5PO531 proceeds and their opening carryin8 value or their purchase value if acquired svbsequent to the first day of the financial year. UnTealised gains and losses are calculated as the difference between the fair value of investments at the year end and their carrying value at that date. Realised and unrealised investment gairss lor losse51 are combined bn the statement of financial activities and are ciedited lor debited) in the year in which they arise. AFloCa￿n of support and govern3n￿ costs Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it Is necessary to provide support in the form of personnel development. financial procedures. provision of office services and equipment and a suitsble workin8 environmenl. Debtors Debtors are recogni5ed at the settlement amount. less any provision for non-recoverability. Prepayments are valued at the amoLtnt prepaid. Governance costs comprise the costs involvin8 the public accountability of the chafity lincluding aud4t costs) and costs in respect to its compliènce with regulation and good practice. Support costs and governance costs are apportioned as detailed in notes 6 and 7. Cash at bankand in hand Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisltion. Pension costs The charitable company offers staff contributions toward5 a pension scheme. established with the Pen5ion5 Trust in anticipation of auttFenrolment applying. Contributtons to thi5 scheme, and previousty exi5tin8 personal pension schemes are charged to the statement of financial activities in the year in whlch they become payable. The charitws contributions are restricted to the contiibutions disclosed in note 8. There were no outstanding contributions at the year end. The charity has no liability beyond makinE its contributions and pèying across the deductions for the employees, contributions. Creditors and pr￿5￿ Creditors 3nd prov15ions 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 ieliably. Creditors and provisions are recognised at the amount the charity ant￿Ipate5 it will pay to settle the debt. Tangible fixed assets and depreciat1¢ Freehold land and bLJildings are stated at a trustee5' valuation made, with professional assistance. in 2010 based on Fnarket value for existing use- under the transition provisions of FRS 102 this valuation h35 been treated as deemed cost. Freehold13nd and building acquired Since then are stated at C05t. or where they h3ve been acquired for £nil consideration the fair value at the date of acquisition has been used as deemed cost. All other fixed assets are stated at cost. FUNI accountir FU￿15 held by the tharity are.. Unrestricted funds the are funds which can be l￿ed in accordan￿ with the charitable company's objects. at the di5(retion of the Board. 59

The Book Trade Charity {BTBS) Principal Accounting Policies Year ended 31 December2021 The Book Trade Charity IBTBSI Notes to the financial statements Year ended 31 December 2021 Fund accounting Icontinuedl Designated fLtnds these are unrestritted funds set aside by the Board for spec puiposes. i. tkmatlons and legaae5 Unrestntted Designated Restritted 2021 2020 Restricted fund5- these are funds that can only ￿ used for particular restrirted purp)se within the objects of the chaiitable company. ReStr￿tionS arise when specified by the (lonor, or implied by the terms of an appeal. Le8acie5 5,335 311,410 150.(1)O 3?6.889 133 k08,340 11,264 119.604 Errest Hecht Fun Leases Rentals applitable to oper3tin8 leases where substsntialty all of the benefi'ts and risks of ownership remain with the lessor are charged to the ststement of financial activrties on a 5traight-line basis overthe term of the lease. COVIDIg Hardship Fund Ola'sfijndraising Trrta 2021 hJrLds ssl 551 121.155 ICQ.340 11,815 843.767 Unresrrjrted Re5tii(ted 2020 LegGc Dontrtions 5.335 311,410 5,335 3Jl.41CI 150,CiKI 376.889 133 Errtest Hecht Fund COVID19 Hord5hip Fw)d 0lts.5fv￿Q15Ing Tota12020lwJds 150.( 376.889 133 316.745 527,022 843,767 2. Otkw trading actiwtses Unrestricted Restnrted 2021 2020 Marathw donation5 Even￿tO11ett1(￿)s Sales0fd￿ated 8cxxIs Total 2021 fiKK15 7.716 7.207 38072 53.795 7,716 7.207 3&872 53.795 6,411 14.441 34.533 55,385 Uoiestntted RestrKted 2020 AlorotlM)n dorjtrith 6.411 J4,441 34,533 55.385 6.411 14.441 34.533 55.385 EvEnts/collectJons Stsles of d￿l￿gOod5 Toio120Xlfvnds 3. In￿stment irmme Unrestricred Restntted 2021 2020 sted Investrnents Total 3)21 fu(Kts 6.866 6.866 6,866 6A66 8,166 8.166 61

The Book Trade Charity IBTBSI Notes to the financial statements Yearended 31 December2021 The 8ookTrade Charity IBTBS} Notes to the financial statements Year ended 31 December 2021 3. Irwestment income Icontinuedl Expenditure Icontinuedl Induded In expenditure are.. Staff costs amounting to £197,37812020-. £192.5991 Payfflents under operats.ng leases forequipmeni amounting to E2,95412020." £2.9541 A charge for depreciation amDuntinE to £178,66512020.. £99.5381 Fee paid to the aL￿ltor in ￿SPect of the 5tatutoryaudit amounting to £8.95012020.. £7,5(X)l exclusive of VAT Urtre5rrirted ResirKt 2020 LtsteLI investments TotD12020funds 8.165 8.166 8.166 8.166 4. Expenditu Support tosts Total fijnds 2020 Trustee5' indemnrty insUra￿e is provided bythe charitable compan(s insurers at no additional cost tothe charitable company. Direct costs Inote 61 2021 R3isingfunds Publicily and fundrain8 FutsdT3551ng C95t5 of selling (lonated Eoods 8,831 47,457 56.288 53,295 5. Grants payaL IrKluded within grants piogrammes expenditure a￿ the followinE grants." 3.475 3.475 2021 2020 Charitable attiwtses Grants programme5 Inoie 51 Provision of residentsal aCc￿rnodab0ry Ola's fundraising 285,478 550,278 551 55.622 63.264 341.1( 613.542 551 395.703 702.246 133 Ind￿Idual5 -Th2 ¥Yell¥È of people In fiAano need - Medal rosts of benefKiane5 - Suwxxtto En trainin& retraiTr5n£ and educi( Irtstitut￿s 171,236 3,428 20.253 148.067 2,050 16.535 848.613 166.343 1,014.956 1.156.%7 . MFKT Re5tncted gr&)is . COMD-19 Hwdship fund 10,230 5,800 sUp￿rt costs Inote6} Totol Aund5 3020 8D,331 285,478 166,779 339,231 t05t5 Grants We￿ awarded to 179 beneficiaries12020: 2171 individuals. Grant5 were awarded to the following inStitut￿s." Bound by Veteran5. Second Shelf, Publishing Hopefu15 and Southam B(Kik FestNal. R015tngfvnds PubliGityondfundr0151n Fundroising . Costs olsellJngdonoieL4qoods 10.210 41085 53.195 6. St4)p)rt costs allcKation 5,5 5.590 Irwei t[¥￿fi& OffKe ChiEt Office Bank chaiEe5 Totèl 2020 <￿e 7) 1021 Choritoble uctMtIES . Gronts progrommes lth)te 5J . ProVis￿n cyf re51dentiol Gccommodotion Olri sfvfidroi51ng 339.141 639.714 133 5&562 6Z532 395.703 702.246 133 32.754 &7ai 451 47.456 43.075 994.788 161179 J.156.967 .G￿￿t5￿￿cvaTh1r￿￿S 7.641 3821] 4.426 4.760 55,F*2Z 56.562 11.462 38.ZL3 109.1 3.95B 5.134 4.421 1s.sas 4.760 g.S20 45 61,26S if4343 62,542 162.179 25.471 1.353 Offi(e Total 2030 JtGff exetut 7} thargp5 28.724 I.J47 5.841 357 3.075 33.SJ 3.712 iO.f186 357 .562 12.6JO 24023 33.511 95.746 2.266 3.212 13.265 10.086 20.172 357 62.542 162.179 1.071 63

The Book Trade Charity {BTBS) Notes to the financial statements Year ended 31 December2021 The Book Trade Charity IBTBS) Notes to the financial statements Year ended 31 December 2021 Cost allocation includes an element ofjudgement and the Charitab￿ company has had to consider the cost/benefil of detailed calculations and record keeping. Basis for support costs allocatiori.. Office staff. estimated time S￿nt on actNities. Travel, allocated according to U53ge. Office expenses, allocated 3ccordin8 to Usage of resources. Governance costs, specifically incurred professional fees a￿ allocated direct￿ to the retevant athity and other fees are allocated equal￿ ktween the d)aritable activities. Bank charge5. allocated accoiding to usage of reSoUr￿s. 9. F￿ed assets F￿tureS and fitty￿s Assets Ir under BwkbiRder5 Ew1pm￿t conStr￿tion Developrnent Freehdd propertv Mot¢x vehides Total At l January 2021 A(kliti(w 7.939.921 8.r130 16.d90 16.8(Yl 2.908,513 158.780 10,873.324 181.775 6,505 D55￿ Transfers 13,(67.2931 3,067,293 3,(￿7,293 11.055.099 At 31 DEcem￿r 2021 7.939.921 24.580 16,81J) 6,505 7. Goveman At l JaBuary 2021 Chèrge ktrthe year Elirninaied ￿ dis1%￿$ At 31 De£ember 2021 786,548 87.921 3.236 2,458 3.360 3.360 793.144 178.665 2021 2020 1.301 83,625 Legal ènd professional Audrt and accOunta￿Y fees Bank charges 11.422 8.7SI 1.073 21.245 874.469 5.694 6.720 1,301 83,625 971,809 9.250 1.350 iO.EQO 14et t4xvalue At 31 December 2021 7.065.452 7.153.373 18,886 4,854 io.(Éo 13.440 5.204 2.983.668 10,D83,290 10.080,180 At 31 December 2020 2,4)8.513 8. stsff costs and remuneratlon ofkey management personnel Included In freehold property is land £4,025,%712020'. of £4,025,%71 which is not depreciated. Ihe freehold property15 entirety occupted by the charitable company for its own activitles. Assets under construction relate to works in Pro￿S5 ai the Bookbinders development. 2021 2020 Wages and salaries Sot581 security ￿t$ Peftsion c05t5 171,740 13.247 12.391 197.378 168,417 10.783 13.399 192.599 10. 1nNestr￿nts 2021 2020 L￿ted in%tstments arket vduE at l j￿Uary 2021 Addititris at cost OI¥K>sal 3t M¥1￿ vue Unrea￿Sed InVeS￿eTht gainsl1055e51 Martet ¥￿ve at 31 December 2021 The average numbef of employees during the year. ana￿Sed by function. was as folk)ws.' 312,9Q4 6.123 286.026 i1,￿J0 2021 2020 39,Z88 358.315 15.878 312.904 E51ate management Support Cash by irfvthent mar4gers for rein%stmeM 319 240 4.0 358.634 313.144 One employee re￿iVed remuneraibn of between £60.Q)l and E70.tKK) in 202112020.. One employee recehied remuneration of between E70,(X>l and £80,IXK)l. Contributions amounting to £4,8(X)12020: £7.￿8) were paid to a personal pension Scheme for that employee. The key management personnel of the charity in charge of directing and controllin& running and operating tt charity on a day-to-day basis comprise the trustee5 and the senlor management team. The total ￿muneratiOn (including tsxable benefits and employer's pension contributsonsl of the key management ￿e￿onnel for the year was £97,95512020_. £88.6001. Thi5 includes the one-off eX￿ptIonal costs related to the ChieF ExecutNe's hanclover and induction. Trustees ère not rÈrnvneroted. During 2021 no amounts were paid on trEhalF oflreimbursed to trustees for travel costs12020'. £nill. Histcfftcal c￿t of11sted Inves￿entS at 31 December 2021 280,368 274,167 At 31 December 2021. the following investment holding was material. 2021 Rathtm￿e Core In¥vtment Fund For Chantses 358.314 At 31 December2020. thefollowing invesrmentholdFng wos rn(Jter￿l. 2Q30 Roihb)ne ((￿l￿veSt￿Te￿t FundFor charl1￿5 311 65

The Book Trade Charity IBTBSI Notes to the financial statements Yearended 31 December2021 The Book Trade Charity IBTBSI Notes to the financial statements Year ended 31 December 2021 io. Investments Icontinuecll Listed investments held at 31 De￿mber 2021 comprise the folk)wing'. 13. Creditor5: amounts fallin8 due outside of oneyear IcDntir5uedl The bank loan may be analysed.. 2021 2020 2021 2020 Alternive 35&314 358.314 312.9)3 312,￿)3 [￿ewIthin orE year [￿e tkn¥een twoyears betwÈen three and fiveyears 54.n5 56,405 1,182,332 1.293,472 17,080 69.659 9rKI.343 987,082 11. DebtNs 2011 2020 The bank loan t5 repayable in monthw instslments of £8,229 Iincluswe of interest) and bears interest at 3% over base rate. Capital repayments commenced in November 2021. The total aereed facility is £1,400,(￿ of which £1,293,472 has been dfawn down at the balance sheet date. Trade debtors 11,660 18.3 14.1% 17.712 31, Prepayments and accrued IntlKne loan has been secured by way of a fixed charge over the diaritable company's freehold property. 12. Creditors: amounts falling due wthin year 2021 2020 14. tggnated fvnds At I January 2071 At31 Oeternber 2021 Trade trÈditOf5 VAT and payroll tèxÈs Accruals and deferred Income Bank loans 20.991 5.928 107,392 54,735 189,046 Utilisedl released Transfers designatws 4.743 I49.￿2 17.1 181.693 T￿￿1be FrxedA5SEiS Fuod 9,093.098 9.093.098 1178.6651 1178,6651 1124,6151 1124,6151 8,789,818 8,789,818 Accruals include £50.(￿(2020.. £50,(XK)l in fespect of grant commFtment5 to 30June 2022. in accordan￿ wth the accounting policy. The tangible fixed assets fund fepresents the amount of lurnds hxked up in fixed asset5 which are tbeeded for orerational purrM)ses, ￿55 the outstanding value of bank loans cured against the properties of the charity. tkprecialK)n of fixed assets released from the designated fund annually. 13. CreditOf5.' amounts falling due outslde of or*year Transfers from the fund in the year ￿p￿sent the movement in the drawn down loan facility Itr3nsfer otjt to 8eneral funds of £306.3￿) net of capital additions in the year (transfer in from general funds Df £170,511 and restricted capr(al fttnd of Ell,2641. 2020 8ank loan 1.2¥737 970.CA)2 Atl JontsGry New 2020 design¢Ttion5 At31 December 2020 UtJ115ed/ releG5ed Towible FrAedAsseis Fund 8.124.199 8.124.199 2.312.123 1312,123 11.Y3.2241 11,343.2241 9.093.098 9.093.098 67

The Book Trade Charity IBTBSI Notes to the financial statements Year ended 31 December 2021 The Book Trade Charity (BTBSI Notes to the financial statements Year ended 31 December 2021 15. Restrfcted funds 16. Volunteers Volunteers constitute the Board of trustees, with co-options to the committees and, recognition given to their contribution to the chariws achievements and developments during the year, without which the chanty would not be able to achieve all that it does to relieve need. The support of the President and the honorèry Treasurer is particulady signiticant Book trade colleagues who help to collect books foi book sales at The Retreat and at London Book Fair and who support our book sales throu8hout the year. The Retreat residents and friends who organise social occasions and outinEs, and volunteer Graham Hogben (JrNes the minibus for the weekly supermarket trips, and other occasional outings. Atl January 2021 At31 Intome Expendilure TransfeTS 2021 Ernest HÈtht Funtl COWO-19 Hardship Fund Ola Gotkowska'sAppeal Capital appeal 150.0(X) 210.110 16.(KK)I 180.3311 1129.7791 144,( 551 11,264 11,815 111,2641 186.8821 1141.0431 360,110 I44.￿ The Ernest Hecht Fund was set up in 2020. this fund provides a bursary stheme for young I￿0p￿ entering the trade from cliverse and/or financial￿ disadvantaged backgrounds 17. Contingent asset The Trustees of Old Possum's Practical Trust have agreed to donate £lO,OCK) to the charitable comp3ny annually, as k)n8 a5 Trusvs funds permit No debtors have been recognised in the financial statements in respect of futu￿ donatk)ns as it is not tx)ssible to determine how long the Trust will continue trj donate to the charitable COTnpany. The COVID-19 Hardship Fund wa5 established in 2020. Thisfund is to be utili5ed on relieving hardship inCUr￿d those in the book trade as 2 result of the COVID-19 pandemrc. It was agreed with the original funder to which remaining funds pertain that the fund be released to general uftrestricted funds at 31 December 2021 to be applied for the general benefit of the chariW5 beneficiaries in recovery from the impact of COVID-19. 18. lease commiknents At 31 tkcember 2021. the charity had following futu￿ minimum commitment5 in respect to non-£3ncellable operating.. The Olo Gotkowska Appeal was set up by the Charity in 2018. The Charity is to raise and distribute furKIs to assist with medical costs relating to diagnosis. treatment and support. Equipment The capital appeal fund relates to fvnds received for capital projects, the transfer to designated funds arisingfrom capital additions during the year. 2021 2020 Withir* oneye3r Within twoandfive year5 2.954 2.215 5,169 2.954 5,169 8,123 AtJ Jonuory 2020 At31 Incon EyndJturÈ 2020 Erne5tHecht Fund COVIO-19 Hard5hw Fund Olo Gotkowsko's Appeol 150.OCfl 376.889 133 I50.￿) 210.110 19. Capitsl commitments As al 31 December 2021. the char￿able company had contracted for capital commitments amourFting to £nil 12020.. É142.IXK)l in relat￿n to the redevelopment of properties at the Bookbinders site, which are not othenNise provided for in the finanual statements. {16& 779J 11331 (166.912J 527.022 360.110 20. Control The ch3ritsble company is controlled by ihe members who are the trustee5 of the charitable company. UnresrrKted I￿$￿￿ted [und5 lurtds Re5tftcted fotul lux>d5 TGngiblefixedosset5 Investments iO,tWO.18A) lo.￿.180 313.144 514.267 118J.693J 1970.(L2J 9.755.896 21. Related party transactM)ns During the year, the following transactions tc>ok pla￿ at arm's length between the charity and it5 rel8ted parties.. £27,(KX)12020: £35.4(M)I was rece¢ved as donations froTn various organisatlolls in which some trustees are invofved and In donations from tru5tee5 a5 I[￿¥vIdUal$. 313.144 154.157 1164.6J31 Current 055ets Curreni lJDbilitie5 Non-tuirÉnt l￿bIlItje5 360.11 (17.Wl I970.￿1} 302.688 9.093.098 Af 31 D￿efflbef2o20 3￿.130 David Hick5. the chafrtWs ex-chief Executive oFfI￿r. is a resident of The Retreat 3nd therefore pays a monthly rental charge to the B(x)k Tiade Charity. Thi5 tran$artI￿ was undertaken at ami's length during his employment and continues on the same basi& 69

OUR PEOPLE

P R E S I D E N T

Ursula Mackenzie (until February 2022) Isobel Dixon (from February 2022)

PAT R O N S

Nigel Batt Kip Bertram Edwin Buckhalter John Elsley Christopher Foyle Trevor Hing Timothy Wright

A M B A S S A D O R S

Ursula Mackenzie

David Young David Shelley John Seaton Andrew Franklin Ian Hudson

A U D I T O R

Buzzacott LLP, 130 Wood Street, London, EC2V 6DL

B A N K E R S

Unity Trust Bank PLC, Nine Brindleyplace, Birmingham, B1 2HB

S O L I C I T O R S

Sherrards LLP, 4 Beaconsfield Road, St Albans, Hertfordshire, AL1 3RD

I N V E S T M E N T

S TA F F

Chief Executive: Victoria Perry Operations Manager: Glenda Barnard Finance & Admin Manager (p/t): Nicki Cattle Special Projects (p/t): Keith Foster

B O A R D O F T R U S T E E S

Chair: Jonathan Nowell Vice Chair: Ann Woodhall Honorary Treasurer: Emily-jane Taylor

T R U S T E E S A N D

B O A R D M E M B E R S

Jeremy Brinton Elise Burns Isobel Dixon

Kate McFarlan

David Neale

Fraser Tanner Emily-jane Taylor Ann Woodhall

Gemma Woodward Ian Chapman Jasmine Richards Meryl Halls Samantha Smith

Jasmine Richards (from 2022) Meryl Halls (from 2022) Ian Chapman (from 2022)

C O M PA N Y S E C R E TA R Y Victoria Perry

H O W Y O U C A N H E L P

To support our new appeal to fund our vital, core work please scan the QR above with your phone or go to btbs.enthuse.com/cf/cost-of-living-appeal and join us on our mission to raise at least £185,000 on our 185th birthday #185Appeal.

We welcome support of all kinds - please contact Vic at [e-mail] to discuss how you can make a difference.

A D V I S E R S

Rathbone Investment Management, 8 Finsbury Circus, London, EC2M 7A2

Some photos used are representative to maintain confidentiality.

71

Registered Office: The Foyle Centre, The Retreat, Kings Langley, Hertfordshire, WD4 8LT (t) 01923 263128 (w) www.booktradecharity.org (e) [e-mail] Registered company number: 06725178 | Registered charity number: 1128129