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← Westminster Methodist Central Hall Trust

2023-08-31-accounts

Methodist Conference Property at Central Hall Westminster

Annual Report and Consolidated Financial Statements

31 August 2023

Charity Commission registered number: 1133912

Contents

Reports

Reports
Reference and administrative information 1
Trustees’ report 2
Independent auditor’s report on the
financial statements 9
Financial statements
Consolidated statement of financial
activities 13
Consolidated balance sheet 14
Trust balance sheet 15
Consolidated statement of cash flows 16
Principal accounting policies 17
Notes to the consolidated financial
statements 22

Methodist Conference Property at Central Hall Westminster

Reference and administrative information

Trustees Rev Nigel Cowgill (Chair)
Mr Joseph Adjui
Mr Bala Gnanapragasam (Secretary)
Mr Nevil Tomlinson (Treasurer)
Mrs Ama Ackah-Yensu
Ms Ruby Beech
Rev Anthony Miles
Mrs Judith Mitchell
Rev Lansford Penn-Timity
Dr Joanna Williamson
Executive Directors Sarah Ainsworth
Sarah Franczak
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Bankers HSBC Bank PLC
The Peak
333 Vauxhall Bridge Road
London
SW1V 1EJ
Solicitors Pothecary Witham Weld
70 St George’s Square
London
SW1V 3RD

Methodist Conference Property at Central Hall Westminster 1

Trustees’ report 31 August 2023

The Trustees present their statutory report together with the accounts of Methodist Conference Property at Central Hall Westminster for the year ended 31 August 2023. The accounts have been prepared in accordance with the accounting policies set out on pages 17 to 21 of the attached accounts and comply with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) 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).

STRUCTURE, GOVERNANCE AND MANAGEMENT

The governing body of the Methodist Church is the Conference. The authority under which the Conference acts is legally given by the 1976 Methodist Church Act. The names and addresses of the advisors to the Conference can be found in the Trustees’ Report of the Methodist Church Fund.

Each year the Conference appoints the Managing Trustees (“the Trustees”) of the Methodist Conference Property at Central Hall Westminster (“the Trust”). The Trustees hold the property upon the model trusts contained in the Methodist Church Act 1976. The governing document is the Model trusts. The Trustees are responsible for making recommendations to the Conference for the appointment of Trustees for the following year. The Chair and Secretary of the Trust offer training to new Trustees on appointment in the form of personal induction.

Trustees

The Trustees work closely with the ministerial staff and officers of the church known as Methodist Central Hall Westminster (the Church) which is based at Central Hall Westminster. The superintendent minister (Rev Anthony Miles) and five other members of the Church are Trustees. A trading company (Central Hall Westminster Limited) is wholly owned by the Trust. The principal activity of the company is the letting and rental of facilities at Central Hall Westminster.

The current Trustees and those who served in the year to 31 August 2023 and up to the date of signature of this report are as follows:

Trustee
Rev Nigel Cowgill (Chair) Mr Alan Eccles (to 27 February 2024)
Mr Bala Gnanapragasam (Secretary) Mr Wesley Gibbs (to 27 February 2024)
Mr Nevil Tomlinson (Treasurer) Mr Joseph Adjui (from 18 April 2024)
Mrs Ama Ackah-Yensu Mr Martin Lougher (to 27 February 2024)
Mr Kojo Amoah-Arko (to 31 August 2023) Rev Anthony Miles
Mr Joseph Anoom (to 31 August 2023) Mrs Judith Mitchell (from 1 September 2023)
Ms Ruby Beech Rev Lansford Penn-Timity
Mr Michael Davies(to 31 August 2023) Dr Joanna Williamson

Trustees meet three times a year and are supported in their work by the following committees:

Methodist Conference Property at Central Hall Westminster 2

Trustees’ report 31 August 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Trustees (continued)

The Board of Directors of Central Hall Westminster Limited meet quarterly. They delegate the day-to-day management of the commercial activities to the Chief Executive Officer, assisted by a Chief Operating Officer and a Chief Financial Officer all of whom have an ex officio position on the Board of Directors. The Board of Directors is supported in its oversight by the following committees:

No Trustees received remuneration for their services as Trustees. Pay and remuneration of the key management personnel is set by the Remuneration and Nominations Committee who pay due regard to market rates and take advice from external consultants, where necessary. Performance related pay is determined in the context of pre-set performance targets. Pay progression is informed through formalised appraisals and performance against objectives.

OBJECTIVES AND ACTIVITIES

The object of the Trust is the provision of funds to support the work of the Methodist Church and to maintain an on-going programme of refurbishment of the Methodist Central Hall Westminster, which is its principal asset.

Careful consideration of the Charity Commission’s general guidance on public benefit has been borne in mind in reviewing the objectives of the Trust and planning activities. The Trustees consider the current activities as detailed in this report deliver public benefit.

The Trustees are responsible for the following:

Methodist Conference Property at Central Hall Westminster 3

Trustees’ report 31 August 2023

OBJECTIVES AND ACTIVITIES (continued)

Main objectives for the year

The main objectives for the year were:

ACHIEVEMENTS AND PERFORMANCE

As well as running its in-person services and activities, the Church continued with its popular online services first introduced at the start of the Covid pandemic. The Trust’s annual grant to the Church was increased from £130,000 to £180,000 which is still below its normal level. This had a serious impact on the Church’s reserves but this was corrected by the Church launching an appeal to its members which raised £73,000 in July and August.

Central Hall Westminster Ltd increased its revenue during the year but was impacted by exceptional increases in energy costs and by higher staff costs as it rebuilt its staff levels following Covid. It incurred a loss which in turn squeezed our financial capability to meet all of the Trust’s objectives. The great flexibility of our building and our staff was displayed following the death of Queen Elizabeth II when long planned arrangements led to Central Hall becoming a hive of activity and our views over Westminster Abbey were central to television broadcasts.

The latest quinquennial inspection report was received in April 2022, with the building reported as being well maintained and in good condition. We continued a programme of proactive maintenance, whilst systematically addressing matters raised in the quinquennial report and by the end of 2023 all urgent matters had been dealt with. Capital expenditure continues at less than half of its pre Covid level due to financial constraints.

All scheduled loan repayments were made on time but the Trust was sometimes, but not always, in breach of the covenants set out in its £1.5million loan from HSBC. The overdraft remained within the limit of its agreed facility of £1.5million, but it has exceeded this figure on occasions since the end of the year.

HSBC have been supportive throughout the period since the end of year and issued a temporary increased to the overdraft limit to the value of £2.0million. Following receipt of the £4.0million grant, referenced below, the overdraft and loan have both been repaid.

Methodist Conference Property at Central Hall Westminster 4

Trustees’ report 31 August 2023

FINANCIAL REVIEW

The year under review saw an increase in income to £8,551,000 compared to the prior year (2022: £5,879,000) reflecting the re-opening of the conference centre following the Covid-19 pandemic, although trading was still below the pre-pandemic level. There was a net loss (expenditure exceeding income) of £955,000 (2022: £376,000 loss) costs. The Trust allocated £576,000 (2022: £478,000) for charitable activities, including a grant of £180,000 (2022: £130,000) to the Church. The Trust has invested in a further £217,000 (2022: £160,000) of improvements to Central Hall Westminster in addition to its annual maintenance spend, in the region of £500,000 and a programme of redecoration. Total net debt reduced from £3,017,000 at 31 August 2022 to £2,389,000 at 31 August 2023.

Receipt of Grant

On 25 April 2024 the Trust received a grant of £4,000,000 from the Methodist Church of Great Britain. The purpose of the grant is to compensate the Trust for losses incurred as a result of the enforced closure of the building during the Covid emergency and whilst it re-established commercial operations in the following years. The grant does not include any restrictions concerning the use of the funds.

Risks

The Trustees have examined the principal areas of their operations and considered what major risks could arise in each of these areas. In the opinion of the Trustees, resources and review systems have been established which, in normal conditions, should allow the risks identified by them to be mitigated to an acceptable level in their day-to-day operations.

The most significant risk identified by the Trustees to the continued achievement of their objectives is the reliance upon the trading subsidiary, Central Hall Westminster Limited, meeting its financial targets. Strategies that the Trustees have adopted to mitigate this risk include regular meetings of the Chair, Secretary and Treasurer with senior representatives of the Company and the Church, as well as a review of the Company’s financial position and outlook at each meeting of the Trustees.

Reserves

Following receipt of the £4,000,000 grant, the Trustees have used a risk-based approach to establish a new reserves policy. The most significant risk is failure of the Company to meet its financial targets. Except when the business was closed for 18 months during the Covid crisis, the worst annual loss reported by the Company in the last 20 years has been about £1,000,000 after adjusting for inflation.

The Trustees have therefore determined that their reserves policy is for the Trust (and not the Company) to hold a cash reserve of £1,000,000.

Methodist Conference Property at Central Hall Westminster 5

Trustees’ report 31 August 2023

FINANCIAL REVIEW (continued)

Reserves (continued)

At 31 August 2023, the Trust held cash of £20,000 (2022 £60,000). A cash reserve will be established at 31 August 2024 although the amount is not yet certain. Since the receipt of the £4.0 million grant, the Trust has held cash balances of at least £500,000 but some of this is required to cover routine expenditure.

Assessment of going concern

The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charitable group to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements.

A review of the Balance Sheet shows net current liabilities of £3,459,339 at 31 August 2023 (2022: £2,148,199). Included within net current liabilities are £2,141,718 (2022: £1,233,374) of deferred income representing amounts invoiced to clients ahead of events by the Company. The Company’s business model is that clients hiring the facilities pay in advance. These deposits are not ordinarily refundable to clients. The net current liabilities shown in the Balance Sheet therefore do not represent a future cash outflow of the Trust.

On 25 April 2024 the Trust received a grant of £4,000,000 from the Methodist Church of Great Britain. The purpose of the grant is to compensate the Trust for losses incurred as a result of the enforced closure of the building during the Covid emergency and whilst it re-established commercial operations in the following years.

The receipt of the grant has enabled the repayment of substantially all short-term and longterm debt of the Trust leaving a cash surplus in both Trust and Company accounts. Cashflow projections indicate that both the Trust and Company will remain in surplus funds for the foreseeable future. After making enquiries the Trustees have concluded that there is a reasonable expectation that the charitable group has adequate resources to continue in operational existence for the foreseeable future. The charitable group therefore continues to adopt the going concern basis in preparing its financial statements.

FUTURE PLANS

As the Company rebuilds its business, it is anticipated that the consolidated results will show a return to profitability. This will support our ability to provide resources to support the work of the Church and undergo the building work identified by the quinquennial inspection and by commercial demands.

Throughout this time, we will seek God’s guidance to ensure that mission and ministry will be nurtured and continue to grow in order to meet the needs and aspirations of the 21st century.

Methodist Conference Property at Central Hall Westminster 6

Trustees’ report 31 August 2023

GRANT MAKING POLICY

Since its inception, the Trust has provided free resources to the Church in the form of free accommodation, including payment of utilities, maintenance, cleaning and security. The Trust will continue to provide those resources. Traditionally, the Trust has also paid a monthly cash grant to the Church. Payment ceased from February 2024 due to financial constraints and has not resumed since then. Following the receipt of £4,000,000 from the Methodist Church of Great Britain on 25 April 2024, the Trust is preparing a new policy on the payment of future grants.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice.

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and the group, and of the income and expenditure of the group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, applicable Charity (Accounts and Reports) Regulations and the provisions of the charity’s trust deed. They are also responsible for safeguarding the assets of the charity and the group, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Methodist Conference Property at Central Hall Westminster 7

TnMtsM' rgport 31 Augusl 2023 STATEMENT OF TRUSTEE8' RESPONSIBILMES leoMnued} The Trustees are responsible for Ihe maintenance and integrity of the charity and financial inf0m￿tioN includèd on th8 charity's web$rte. Legislalion in the United Kingdom goveming the prepara￿￿ and dis8eminatr.on ol financkil slatements may drffer from legislation in other JurlsdKtsons. Approved by order of the members ofthe Board of Trustees and stgned on ts behall by. TNslee a-LC i K Rev Nigel Cowgill Meth¢)dist Conferen( Propgty at Central Hall ￿sIMIn¥le1 8

Independent auditor’s report 31 August 2023

Independent auditor’s report to the Trustees of Methodist Conference Property at Central Hall Westminster

Opinion

We have audited the financial statements of Methodist Conference Property at Central Hall Westminster (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 August 2023 which comprise the consolidated statement of financial activities, consolidated and charity balance sheets, consolidated statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Methodist Conference Property at Central Hall Westminster 9

Independent auditor’s report 31 August 2023

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the group’s and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do so.

Methodist Conference Property at Central Hall Westminster 10

Independent auditor’s report 31 August 2023

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

Methodist Conference Property at Central Hall Westminster 11

Independent auditor’s report 31 August 2023

Auditor’s responsibilities for the audit of the financial statements (continued)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s Trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s Trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Buzzacott LLP Statutory Auditor 130 Wood Street Date: 30 May 2024 London EC2V 6DL

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Methodist Conference Property at Central Hall Westminster 12

Consolidated statement of financial activities Year to 31 August 2023

Note Un-
restricted
funds
2023
£		 Endowment
funds
2023
£		 Total
funds
2023
£		 Un-
restricted
funds
2022
£		 Endowment
funds
2022
£
Total
funds
2022
£
Income from:
Trading activities
.Lettings and hiring
.Catering
Investment income from bank deposits
Other income
.Insurance claims
.Other
Total income
Expenditure
Expenditure on raising funds:
.Letting and hiring
3
.Catering
3
Expenditure on charitable activities
3
Interest payable
Total expenditure
Net expenditure
2
Taxation
9
Funds brought forward at 1
September 2022
Fund carried forward at 31 August
2023		 5,964,204
2,353,465
400
67,656
165,129		 —
—
—
—
—		 5,964,204
2,353,465
400
67,656
165,129		 4,166,237
1,353,251
2,176
275,960
81,396		 —
—
—
—
—
4,166,237

1,353,251

2,176

275,960

81,396
8,550,854 — 8,550,854 5,879,020 —
5,879,020
6,771,514
2,007,686
559,836
160,082		 —
—
6,575
—		 6,771,514
2,007,686
566,411
160,082		 4,415,979
1,249,083
471,199
112,538		 —
—
6,575
—
4,415,979

1,249,083

477,774

112,538
9,499,118 6,575 9,505,693 6,248,799 6,575
6,255,374
(948,264)
—		 (6,575)
—		 (954,839)
—		 (369,779)
—		 (6,575)
—
(376,354)

—
(948,264)
6,185,806		 (6,575)
177,533		 (954,839)
6,363,339		 (369,779)
6,555,585		 (6,575)
184,108
(376,354)

6,739,693
5,237,542 170,958 5,408,500 6,185,806 177,533
6,363,339

The statement of financial activities contains all gains and losses recognised in the year and the results reported relate to continuing operations.

The total income of the parent charity amounted to £799,114 (2022: £428,238) and total expenditure was £977,819 (2022: £833,381) giving net expenditure for the year of £178,705 (2022: net expenditure of £405,143).

The notes on pages 22 to 30 form part of these financial statements.

Methodist Conference Property at Central Hall Westminster 13

Con•olldat•d ￿lan￿ •ho•t 31 August 2023 2023 2023 2022 Nole8 Flx•d M•ets Tangfoltr fixed 8ss•t8 Equty shar• in m￿Se5 10.139.601 220.325 10,359.921 10.249,801 220,325 10,470.126 Currnnt••••t• Deblts Cash on depo￿1 •1 tho Contral Financ Board Cash at bank ond in h8nd 10 167M02 1,049.S 7,42• 14.997 889,BB8 7251 55,817 1.112,574 U•bllld Creditors.. amounts foffmg due wknin one year 4.149,227 {3.280.773 N•¢ ¢ury•rrt lJabllld 13.459.339 (2.148,1 Total ••ats lo•• curY•ni I￿￿11￿•• 6.900187 8.321.¥27 Creditor¥'. amounts falling du8 kn after one year Te￿1 nèt ••••l• 12 11,492.08T) SAOO.S00 11,958.5881 6,363.339 R•pr¢•vntsd by: Inccrfne funds- Unr¢8trithd funds Capth fvnds- Enokiwment lund8 16 16 6.237,542 170.988 0,185.K 177,533 Totsl fvndB 5.408,500 6,363.339 The notes on pages 22 to 30 fom) part ofthese finaneAal ststements. The financial stslements were approved by the Tfustees, and authonsed for I￿Ut on and 8re swned on thèir behalf by.. 3cl J,"r TfUSt¢e Troasurer Rev Nigel Cowgill Mr Nevil Tomlinson Methodist Conference Propety 81 Central Ho11 Ktsstminster 14

Tw•1 balan￿ shegl 31 August 2023 202? 2023 2022 2022 Note8 Flx•d #••ts Tangibl• fixed assets Equity 8har• in manse$ InveBlmeni in tradtrr¥ $ub8NIory 9.923.662 220.325 10.001,640 220.325 10.643.987 Curr•nt Debtors Cash on dwit * the Centr Financ Board Cgsh #i bank and in hand 10,721.965 10 3M982 506.615 4.855 $4,710 ,180 14,963 U•blllUe• Credrt¢rs' 8mounts WirJ du¢ wiihin on year 11 (t,677.119) {1.373.33n 14frt Current Ilabilsll•• 11.292,2191 (807,15n Tol•l ¢urr•nt Il•blllU•• 9.3St.700 9.914.608 Creditors.. an￿ntS tsHiThJ due •fter moro Ih&n on* year Totsl nèt •u 12 11.192,08) 8,159.685 {I.S58.$841 8.356.224 R•pr•••nt•d by.. Incc¥m8 fvftds- unres￿iGteil l￿dS Caprtal fvnds- En(ltrrnt lunds 16 18 7,•08.727 170.968 8.178.691 177,$33 Totsl fund• 8.159.88S 6,3￿.224 The notes on pg9e$ 22 to 30 fom part ol Ihe3e ffinancial stalemenls. The financ￿1 $taIeff￿ts were approved ty the Managing Truslees, and authorlsed tor issue and are s￿￿ed on Iheir behaN by.. Rev Nigel Cowgill fvEfJs- Mr Neiil Tomlinson Methodist Conference Propety 8t Cantr81 Hall VhtstmlnsleT 16

Consolidated statement of cash flows Year to 31 August 2023
Notes 2023
£		 2022
£
Cash flows from operating activities:
Net cash provided by operating activities
A
Cash flows from investing activities:
Investment income and interest received
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities:
Repayments of amounts borrowed
Net cash (used in) financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 September 2022
B
Cash and cash equivalents at 31 August 2023
B		 826,221 489,611
400
(199,609)		 2,151
(160,180)
(199,209) (158,029)
(466,501) (257,004)
(466,501) (257,004)
160,511
(580,131)		 74,578
(654,709)
(419,620) (580,131)

A Reconciliation of net movement in funds to net cash used in operating activities

2023
£		 2022
£
Net movement in funds (as per the statement of
financial activities)
Adjustments for:
Depreciation charge
Investment income and interest receivable
Decrease in debtors
Increase in creditors
Net cashprovided by operating activities		 (957,287)
312,257
(400)
382,044
1,089,607		 (376,354)
341,912
(2,151)
361,359
164,845
826,221 489,611

B Analysis of cash and cash equivalents

2023
£		 2022
£
Cash at bank and in hand
Short term deposits
Bank overdraft
Total cash and cash equivalents		 14,997
7,429
(442,046)		 55,817
7,251
(643,199)
(419,620) (580,131)

C Analysis of changes in net debt

Analysis of changes in net debt
Cash at bank
Bank overdraft
RBS loan
HSBC loans
Total net debt		 At 1
September
2022
£		 Cash
flows
£		 At 31
August
2023
£
63,068
(643,199)		 (40,642)
201,153		 22,426
(442,046)
(580,131) 160,511 (419,620)
(517,827)
(1,918,577)		 171,086
295,685		 (346,741)
(1,622,892)
(2,436,404) 466,771 (1,969,633)
(3,016,535) 627,282 (2,389,253)

Methodist Conference Property at Central Hall Westminster 16

Principal accounting policies 31 August 2023

Basis of accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). Methodist Conference Property at Central Hall Westminster meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The functional currency is sterling and the financial statements are rounded to the nearest pound.

Going concern

The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charitable group to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements.

A review of the Balance Sheet shows net current liabilities of £3,459,339 at 31 August 2023 (2022: £2,148,199). Included within net current liabilities are £2,141,718 (2022: £1,233,374) of deferred income representing amounts invoiced to clients ahead of events by the Company. The Company’s business model is that clients hiring the facilities pay in advance. These deposits are not ordinarily refundable to clients. The net current liabilities shown in the Balance Sheet therefore do not represent a future cash outflow of the Trust.

On 25 April 2024 the Trust received a grant of £4,000,000 from the Methodist Church of Great Britain. The purpose of the grant is to compensate the Trust for losses incurred as a result of the enforced closure of the building during the Covid emergency and whilst it reestablished commercial operations in the following years.

The receipt of the grant has enabled the repayment of substantially all short-term and longterm debt of the Trust leaving a cash surplus in both Trust and Company accounts. Cashflow projections indicate that both the Trust and Company will remain in surplus funds for the foreseeable future.

After making enquiries the Trustees have concluded that there is a reasonable expectation that the charitable group has adequate resources to continue in operational existence for the foreseeable future. The charitable group therefore continues to adopt the going concern basis in preparing its financial statements.

Basis of consolidation

The consolidated (group) financial statements comprise the Trust and its wholly owned subsidiary Central Hall Westminster Limited.

Methodist Conference Property at Central Hall Westminster 17

Principal accounting policies 31 August 2023

Basis of consolidation (continued)

The results of the trading subsidiary company are presented in the consolidated statement of financial activities by disclosing the income and expenditure derived from its noncharitable trading activities separately from those of the Trust. A summary profit and loss account for the trading subsidiary is included in note 1. The Trust has not prepared its own statement of financial activities, as permitted by paragraph 393 of the SORP.

The subsidiary company’s assets and liabilities are consolidated in the balance sheet on a line-by-line basis.

Tangible fixed assets and depreciation

Freehold buildings and improvements

The Trust has control over and responsibility for a Grade II* listed structure, the freehold of which is ultimately vested in the Trustees for Methodist Church Purposes. Major improvements to the premises are capitalised and depreciated over their estimated useful life. Balancing obligations of listing against the prospective income flows, the Trustees consider that the historic cost figures are acceptable for the purposes of the financial statements. Depreciation has been provided at 2% per annum, commencing on 1 September 1999 and on improvements which have been capitalised since that date.

Equity share in manses

The Trust and the Westminster Circuit jointly own two manses for ministers. As these are functional assets the value shown in the balance sheet is the Trust share at cost. No provision for depreciation is provided in respect of the equity share in manses as the maintenance programme to which the properties are subject ensures that the estimated residual value is not less than cost. The Trustees review the value of the equity shares annually for impairment in order to ensure that the carrying value is not materially different from the residual value of the asset.

Depreciation

Depreciation is provided at rates calculated to write off the cost of fixed assets less their estimated residual value over their estimated useful lives as follows:-

Property improvements over 20 to 50 years
Computer and office equipment 25% straight line
Fixtures and fittings 10% straight line

Individual items costing less than £500 are written off as incurred.

Trading income, investment income and other income

Income is recognised in the period in which the Trust is entitled to receipt and the amount can be measured reliably and it is probable that the income will be received.

Methodist Conference Property at Central Hall Westminster 18

Principal accounting policies 31 August 2023

Trading income, investment income and other income (continued)

Income from Central Hall Westminster Limited comprises lettings, hiring and catering income which is measured at the fair value of the consideration received or receivable.

Income also comprises investment income and income from insurance claims.

Investment income from bank deposits is recognised in the period it is receivable, the amount can be measured reliably and it is probable that the income will be received.

Receipts from insurance claims are recognised gross of any expenditure required to rectify related work and are classified as other income.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis.

Grant making policy

Grants payable are accounted for when approved by the Trust and the approval has been communicated to the recipient.

Cash on deposit

Cash on deposit includes deposits held at call with the Central Finance Board of the Methodist Church.

Cash at bank and in hand

Cash at bank and in hand, includes deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

Fund structure

General funds represent those monies which are freely available for application towards achieving any charitable purpose that falls within the charity’s charitable objects.

The Endowment Fund relates to the original amounts, totalling £328,758, given by members and friends of the Methodist Church to provide finance to build the Central Hall Westminster. Depreciation on the original cost of the building has been charged to this fund since 1 September 1999 in line with the building depreciation policy.

Methodist Conference Property at Central Hall Westminster 19

Principal accounting policies 31 August 2023

Pensions

During the year, the Company contributed to the Pension and Assurance Scheme for Lay Employees of the Methodist Church, a defined benefit scheme operated by the Methodist Church. This is a multi-employer scheme, as a result of which it is not possible to identify the assets and liabilities of the Scheme that are attributable to Central Hall Westminster Limited. Contributions are charged to the statement of income and retained earnings as they become payable, including any payments in respect of past service deficits. The Scheme closed to future accrual on 31 May 2019. Since that date, the Company has contributed to a defined contribution scheme operated by Royal London. Contributions are charged to the statement of income and retained earnings as they become payable. In the year to 31 August 2023 contributions to the scheme amounted to £153,727 (2022: £83,235).

Operating leases

Rentals payable under operating leases are charged to expenditure on a straight line basis over the period to which they relate.

Financial instruments

The Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Trust's balance sheet when the Trust becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. Notes 10, 11 and 12 provide details of debtors and creditors.

Judgements and key sources of estimation uncertainty

In the application of the Trust's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The most significant estimates and assumptions which affect the carrying amount of assets and liabilities in the accounts relate to:

Useful economic lives of tangible fixed assets - The annual depreciation charge for tangible fixed assets is sensitive to change in the estimated useful economic lives and residual value of assets. These are reassessed annually and amended where necessary to reflect current circumstances. Depreciation rates are set out on page 17.

Methodist Conference Property at Central Hall Westminster 20

Principal accounting policies 31 August 2023

Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Methodist Conference Property at Central Hall Westminster 21

Notes to the consolidated financial statements Year to 31 August 2023

1 Operating profit of trading subsidiary

The Trust owns 100% of the issued share capital of Central Hall Westminster Limited, a company incorporated in the United Kingdom and registered in England, company number 3802387.

The Company lets out the conference property and donates under Gift Aid its taxable profit to the Trust to provide resources to support the work of the church known as Methodist Central Hall Westminster (the 'Church').

The net loss of the Company at 31 August 2023 was £763,700 (2022: net gain of £28,787) after Gift Aid donations.

Its trading results, extracted from its audited accounts were as follows:

2023
£		 2022
£
Turnover
Cost of sales
Gross profit
Administrative expenses
Operating loss
Interest receivable
Interest payable
Other income
Loss (profit) before Gift Aid and Taxation
Taxation
Retained(loss) profit for theyear		 8,317,669
**(7,070,412) **		 5,451,488
(4,592,216)
1,247,257
**(2,260,062) **		 859,272
(1,277,131)

(1,012,805)
300
(46,474)
295,279		 (417,859)
2,151
(43,398)
487,893
(763,700)
—		 28,787
—
(763,700) 28,787

Included within ‘other income’ is a contribution of £120,000 from Methodist Conference Property at Central Hall Westminster (2022: £120,000); insurance claims income of £67,656 (2022: £275,690) and Coronavirus Job Retention Scheme income of £nil (2022: £7,691).

Net(liabilities) of trading subsidiary 2023
£		 2022
£
Total assets
Total liabilities
Net liabilities		 1,675,308
(3,931,893)		 1,915,282
(3,408,167)
(2,256,585) (1,492,885)

Methodist Conference Property at Central Hall Westminster 22

Notes to the consolidated financial statements Year to 31 August 2023

2 Net expenditure

Net expenditure is stated after charging:

2023
£		 2022
£
Operating lease rentals
Depreciation – owned assets
Auditor’s remuneration
. current year (group)
. previous year (group)
. other services		 9,640
344,022
22,550
7,455
8,197		 7,620
341,192
18,150
—
6,245

3 Total expenditure

Expenditure on raising funds 2023
£
913,509
2,161,871
33,322
1,723,527
258,816
221,825
61,320
2,020
1,395,304
6,771,514		 2022
£
524,863
1,584,321
17,718
1,096,660
80,550
144,358
61,661
(1,885)
907,733
4,415,979
Letting and hiring costs
Hiring expenses and commissions
Wages and salaries (note 5)
Advertising and publicity
Maintenance, insurance, heating and lighting
Office and administration costs
Legal and professional
Depreciation
Bad debts
Other costs
Expenditure on raising funds 2023
£
2022
£
Catering costs
Subcontracted cateringcosts		 2,007,686 1,249,083
Charitable activities 2023
£
2022
£
Grants to the church
Depreciation of the building
Wages and salaries (note 5)
Legal and professional fees (note 4)
Trustees’ travel expenses reimbursed
Auditor’s remuneration – current year (note 4)
Auditor’s remuneration – previous year (note 4)		 180,000
282,695
44,770
28,881
60
22,550
7,455		 130,000
280,251
43,543
5,774
56
18,150
—
477,774
566,411

Methodist Conference Property at Central Hall Westminster 23

Notes to the consolidated financial statements Year to 31 August 2023

4 Governance costs

2023 Costs of
raising
funds
£		 Charitable
activities
£		 Total
2023
£
Auditor’s remuneration – current year
Auditor’s remuneration – previous year
Legal and professional fees		 —
—
221,825		 22,550
7,455
28,881		 22,550
7,455
250,706
221,825 58,886 280,711
2022
Costs of
raising
funds
£		 Charitable
activities
£		 Total
2022
£
Auditor’s remuneration – current year
Legal and professional fees		 —
144,358		 18,150
5,830		 18,150
150,188
144,358 23,924 168,338

5 Staff costs – Group

The average number of employees during the year was:

2023
No.		 2022
No.
Hirings and lettings
Support services		 48
1		 36
1
49 37

Cost for these employees was:

Cost for these employees was:
2023
£		 2022
£
Wages and salaries
Social security costs
Pension costs
Temporary staff		 1,835,882
195,266
154,942
20,551		 1,369,270
143,523
96,819
18,252
2,206,641 1,627,864

The number of employees in the group whose emoluments (excluding pension contributions) exceeded £60,000 were:

2023
No.		 2022
No.
£110,000 - £119,999
£90,000 - £99,999
£80,000 - £89,999
£70,000 - £79,999		 1
1
1
1		 —
1
—
2

In connection with these higher paid employees, employer pension contributions were paid totalling £50,384 (2022: £25,170).

Methodist Conference Property at Central Hall Westminster 24

Notes to the consolidated financial statements Year to 31 August 2023

5 Staff costs – Group (continued)

The Trust considers its key management personnel comprise the Trustees, the Chief Executive Officer and three executive directors. The total employment benefits including employer pension and national insurance contributions of the key management personnel were £383,417 (2022: £349,952). Those employees which exceeded £60,000 are considered key management personnel and are included in the above disclosure.

No Trustees received remuneration during the year (2022: none).

6 Tangible fixed assets

Tangible fixed assets
Group Freehold
buildings and
improvements
£		 Fixtures and
fittings
£		 Computer
and office
equipment
£		 Total
£
15,190,543
233,815
15,424,358
4,940,742
344,015
5,284,757
10,139,601
10,249,801
Cost
At 1 September 2022
Additions
At 31 August 2023
Depreciation
At 1 September 2022
Charge for the year
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022		 14,195,910
204,717		 960,341
26,518		 34,292
2,580
14,400,627 986,859 36,872
4,194,270
282,695		 728,153
53,188		 18,319
8,132
4,476,965 781,341 26,451
9,923,662 205,518 10,421
10,001,640 232,181 15,973
Trust Freehold
buildings and
improvements
£		 Total
£
Cost
At 1 September 2022
Additions
At 31 August 2023
Depreciation
At 1 September 2022
Charge for the year
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022		 14,195,910
204,717
14,400,627
4,194,270
282,695
4,476,965
9,923,662
10,001,640		 14,195,910
204,717
14,400,627
4,194,270
282,695
4,476,965
9,923,662
10,001,640

Methodist Conference Property at Central Hall Westminster 25

Notes to the consolidated financial statements Year to 31 August 2023

7 Equity share in manses
Group and Trust		 Leasehold
properties
£
Cost
At 1 September 2022 and 31 August 2023		 220,325

8 Investment in trading subsidiary

Trust 2023
£		 2022
£
Share capital 500,000 500,000

The summarised balance sheet of the subsidiary company is as follows:

2023
£		 2022
£
Fixed assets
Current assets
Liabilities
Net funds		 215,939
1,459,369
(3,931,893)		 248,161
1,667,121
(3,408,167)
(2,256,585) (1,492,885)

9 Taxation

The Trust as a registered charity, is exempt from taxation on its income and gains falling within Section 505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to its charitable objectives. No tax charge has arisen in the year in the Trust.

For the year ended 31 August 2023 there is no tax charge as a result of the company recording a loss in 2023. The Company will continue to pay all of its taxable profits to the parent undertaking in the future. No gift aid was payable to the Trust due to the taxable losses arising.

10 Debtors

Debtors
Group 2023
£		 2022
£
Trade debtors
Other debtors
Prepayments and accrued income		 384,754
71,289
211,419		 461,038
345,341
243,127
667,462 1,049,506
Trust 2023
£		 2022
£
Amounts due from subsidiary undertaking
Other debtors
Prepayments		 222,450
127,409
15,123		 222,450
271,841
12,324
364,982 506,615

Methodist Conference Property at Central Hall Westminster 26

Notes to the consolidated financial statements Year to 31 August 2023

11 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Group 2023
£		 2022
£
Bank overdraft
Royal Bank of Scotland loan (note 12)
HSBC loans (note 12)
Trade creditors
Deferred income (see below)
Other taxes and social security
Other creditors and accruals
VAT payable		 442,046
182,400
295,416
563,276
2,141,718
59,660
305,782
158,929		 643,199
182,400
295,416
461,321
1,233,374
—
171,601
273,462
4,149,227 3,260,773
Trust 2023
£		 2022
£
Royal Bank of Scotland loan (note 12)
HSBC loan (note 12)
Trade creditors
Amounts owed to subsidiary undertaking (note 1)
Income in advance from subsidiary undertaking
Other income in advance
Other creditors and accruals
VAT payable		 182,400
195,420
57,810
746,556
185,375
230,000
11,699
67,859		 182,400
195,420
140,914
620,000
185,374
—
45,648
3,581
1,677,119 1,373,337

Deferred income for the Group includes letting deposits and other sales invoiced for events to be held in the next financial year and is analysed as follows:

2023 Brought
forward
£		 Invoiced
in the year
£		 Released
in the year
£		 Carried
forward
£
Letting deposits in advance
Other deferred income		 1,233,374
—		 7,731,122
230,000		 (7,052,778)
—		 1,911,718
230,000
Invoiced
in the year
£		 Released
in the year
£		 Carried
forward
£
2022 Brought
forward
£
Letting deposits in advance 1,507,861 6,415,793 (6,690,280) 1,233,374

12 Creditors: amounts falling due after more than one year

Creditors: amounts falling due after more than one year
Group 2023
£		 2022
£
Royal Bank of Scotland loan
HSBC loan		 164,341
1,327,746		 335,427
1,623,161
1,492,087 1,958,588

Methodist Conference Property at Central Hall Westminster 27

Notes to the consolidated financial statements Year to 31 August 2023

12 Creditors: amounts falling due after more than one year (continued)

Trust 2023
£		 2022
£
Royal Bank of Scotland loan
HSBC loan		 164,341
1,027,742		 335,427
1,223,157
1,192,083 1,558,584

The Trust loan from the Royal Bank of Scotland is unsecured, carries interest at 1% over the Bank of England’s base rate and is repayable by substantially equal monthly instalments over a period of 18 years commencing April 2007. In addition to the balance falling due after more than one year as shown above, £182,400 (2022: £182,400) is due within one year (note 11).

The Trust loan from HSBC, £1,500,000 is unsecured and carries interest at 3.5% over the Bank of England’s base rate. The loan is repayable over 5 years, with monthly repayments in years 2 to 5 equivalent to the repayment schedule for a loan repayable over 9 years. The balance remaining at the end of year 5 is due for payment at the end of the 5-year repayment term. £1,027,742 is included within amounts due after more than one year and £195,420 is included within amounts due within one year (note 11).

The company loan from HSBC, £500,000, is unsecured, carries interest at 3.99% over the Bank of England’s base rate and is repayable by substantially equal monthly instalments over a period of 5 years commencing September 2022. £99,996 is included within current creditors and £300,004 is included within creditors due after more than one year.

13 Capital commitments

At 31 August 2023 the Group had no capital commitments (2022: none).

14 Operating leases – Group

The following total commitments existed at 31 August 2023 in respect of non-cancellable operating leases:

operating leases:
Office equipment
2023
£		 2022
£
Within 1 year 9,640 7,620
9,640 7,620

15 Related parties

Parent undertaking

The ultimate holding entity of the Trust is the Methodist Church. During the year the Trust donated £120,000 (2022: £130,000) to the Church.

The Methodist Church rents a room in Central Hall Westminster and during the year paid £7,500 to the Trust (2022: £nil). There were no other material transactions with other entities controlled by the Methodist Church with exception of the Pension and Assurance Scheme for Lay Employees of the Methodist Church as detailed in the accounting policies.

Methodist Conference Property at Central Hall Westminster 28

Notes to the consolidated financial statements Year to 31 August 2023

15 Related parties (continued)

Parent undertaking (continued)

One Trustee was reimbursed travelling expenses during the year of £60 (2022: £56). One Trustee occupies a manse rent free in his capacity as a Minister of the Church. The manse is a property in which the Trust has an equity share.

Trading subsidiary

The Trust owns 100% of the issued share capital of Central Hall Westminster Limited, a company incorporated in the United Kingdom and registered in England, company number 3802387 (note 1).

The Trust has issued guarantees to HSBC in respect of amounts owed to HSBC by its trading subsidiary, Central Hall Westminster Limited, under a £500,000 loan facility and a £1,500,000 overdraft facility. Drawings under the overdraft facility were £442,046 at 31 August 2023 (2022: £643,199).

16 Analysis of net assets between funds

Analysis of net assets between funds
Group – 2023 Unrestricted
funds
£		 Endowment
funds
£

Total
2023
£
Tangible fixed assets
Equity share in manses
Net current liabilities
Long term liabilities		 9,968,643
220,325
(3,459,339)
(1,492,087)		 170,958
—
—
—		 10,139,601
220,325
(3,459,339)
(1,492,087)
5,237,542 170,958 5,408,500
Group – 2022 Unrestricted
funds
£		 Endowment
funds
£

Total
2022
£
Tangible fixed assets
Equity share in manses
Net current liabilities
Long term liabilities		 10,072,268
220,325
(2,148,199)
(1,958,588)		 177,533
—
—
—		 10,249,801
220,325
(2,148,199)
(1,958,588)
6,185,806 177,533 6,363,339
Trust – 2023 Unrestricted
funds
£		 Endowment
funds
£

Total
2023
£
Tangible fixed assets
Equity share in manses
Investment in trading subsidiary
Net current liabilities
Long term liabilities		 9,752,704
220,325
500,000
(1,292,219)
(1,192,083)		 170,958
—
—
—
—		 9,923,662
220,325
500,000
(1,292,219)
(1,192,083)
7,988,727 170,958 8,159,685

Methodist Conference Property at Central Hall Westminster 29

Notes to the consolidated financial statements Year to 31 August 2023

16 Analysis of net assets between funds (continued)

Analysis of net assets between funds(continued)
Trust – 2022 Unrestricted
funds
£		 Endowment
funds
£		 Total
2022
£
Tangible fixed assets
Equity share in manses
Investment in trading subsidiary
Net current liabilities
Long term liabilities		 9,824,107
220,325
500,000
(807,157)
(1,558,584)		 177,533
—
—
—
—		 10,001,640
220,325
500,000
(807,157)
(1,558,584)
8,178,691 177,533 8,356,224

Methodist Conference Property at Central Hall Westminster 30