OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator. This document is also available as Markdown.

← Westminster Methodist Central Hall Trust

2024-08-31-accounts

Methodist Conference Property at Central Hall Westminster

Annual Report and Consolidated Financial Statements

31 August 2024

Charity Commission registered number: 1133912

Contents

Reports

Reference and administrative information 1
Trustees’ report 2
Independent auditor’s report on the
financial statements 8
Financial statements
Consolidated statement of financial
activities 12
Consolidated balance sheet 13
Trust balance sheet 14
Consolidated statement of cash flows 15
Principal accounting policies 16
Notes to the consolidated financial
statements 21

Methodist Conference Property at Central Hall Westminster

Reference and administrative information

Trustees Rev Paul Regan (Chair)
Mr Bala Gnanapragasam (Secretary)
Mr Nevil Tomlinson (Treasurer)
Mrs Ama Ackah-Yensu
Rev Jonathan Dean
Rev Anthony Miles
Mrs Judith Mitchell
Rev Lansford Penn-Timity
Office Central Hall Westminster
Storey’s Gate
Westminster
London
SW1 9NH
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Bankers HSBC Bank PLC
The Peak
333 Vauxhall Bridge Road
London
SW1V 1EJ

Methodist Conference Property at Central Hall Westminster 1

Trustees’ report 31 August 2024

The Trustees present their statutory report together with the accounts of Methodist Conference Property at Central Hall Westminster for the year ended 31 August 2024. The accounts have been prepared in accordance with the accounting policies set out on pages 16 to 20 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.

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. Since 3 July 2024, the appointment of new Trustees follows the connexional Nomination Committee process which uses a skills-based approach and open recruitment. However, a Chair of the London District and the local superintendent minister (see below) are co-opted as Trustees, but not as the Chair. The Chair, Secretary and Treasurer of the Trust offer training to new Trustees on appointment in the form of personal induction.

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 is a Trustee. A trading company, Central Hall Westminster Limited (the Company), is wholly owned by the Trust. The principal activity of the Company is the letting and rental of facilities at Central Hall Westminster. The Company makes gift-aided payments to the Trust of its distributable profits.

The current Trustees and those who served in the year to 31 August 2024 and up to the date of signature of this report are as follows:

Trustee

Trustee
Rev Nigel Cowgill (Chair) (to 21 July 2024) Mr Alan Eccles (to 27 February 2024)
Rev Paul Regan (Chair) (from 21 July 2024) Mr Wesley Gibbs (to 27 February 2024)
Mr Bala Gnanapragasam (Secretary) Mr Martin Lougher (to 27 February 2024)
Mr Nevil Tomlinson (Treasurer) Rev Anthony Miles
Mrs Ama Ackah-Yensu Mrs Judith Mitchell (from 1 September 2023)
Mr Joseph Adjui (from 18 April to 3 July 2024) Rev Lansford Penn-Timity
Ms Ruby Beech (to 3 July 2024) Dr Joanna Williamson (to 3 July 2024)
Rev Jonathan Dean(from 1 September 2024)

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 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT (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 Finance Director 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 of Central Hall Westminster Limited 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 2024

OBJECTIVES AND ACTIVITIES (continued)

Main objectives for the year

The main objectives for the year were:

ACHIEVEMENTS AND PERFORMANCE

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. This grant enabled the Trust and Central Hall Westminster Ltd to repay most of their bank loans and overdrafts, whilst covering trading losses incurred by Central Hall Westminster Ltd during the year.

On 31 July 2024 there was a recapitalisation of the Central Hall Westminster Ltd in which the Trust wrote off £400,000 from its investment in the share capital of its subsidiary and also wrote off a loan of £1,500,000 to the subsidiary. The Trust also issued loan notes of £1,750,000 to the subsidiary; these are repayable after ten years and carry a commercial rate of interest. As a result of these changes, the subsidiary has a balance sheet with positive reserves and adequate cash resources for the immediate future. This is better for both customers and suppliers and improves the company reserves.

Central Hall was closed for business for eight weeks during the winter; this was a planned closure whilst the goods lift was refurbished. At the same time the audiovisual system for the Great Hall was upgraded with the cost paid by a major supplier. This closure was a major factor in Central Hall Westminster incurring a significant trading loss during the year.

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 and have addressed all urgent matters raised in the report. Due to financial constraints, capital expenditure continues at less than half of its pre Covid level due to financial constraints. An exception was made for the goods lift which has been financed through an advance by the Westminster Circuit against the proposed sale of a manse that they own jointly with the Trust.

Methodist Conference Property at Central Hall Westminster 4

Trustees’ report 31 August 2024

ACHIEVEMENTS AND PERFORMANCE (continued)

The Church continued to prosper in terms of membership, attendance at services and its charitable works. The Trust continued to provide resources to support the work of the Church; in particular it provided space in Central Hall and paid for utilities, maintenance, cleaning and most security costs. However, the cash grant from the Trust to the Church stopped in February. This had a serious impact on the Church’s reserves, but the Church has reviewed its costs, raised extra funds from its members and applied for various grants.

All loan repayment instalments have been paid on time during the year. The Trust’s loan from HSBC Bank was fully repaid during the year. Central Hall Westminster Ltd repaid all of its overdraft from HSBC and the facility has been withdrawn by the bank. There are two remaining small loans outstanding with Royal Bank of Scotland and HSBC; the former will be repaid in full in July 2025 and the letter in August 2027.

FINANCIAL REVIEW

The year under review saw a decrease in income (excluding grant income) to £7,667,000 compared to the prior year (2023: £8,551,000) reflecting the planned closure of the conference centre for eight weeks for building works. After receiving grants of £4,250,000 (2023: nil) there was a net profit (income exceeding expenditure) of £3,011,232 (2023: £955,000 net loss). The Trust allocated £475,000 (2023: £566,000) for charitable activities, including a grant of £75,000 (2023: £180,000) to the Church. The Trust has invested in a further £216,000 (2023: £205,000) of improvements to Central Hall Westminster in addition to its annual maintenance spend, in the region of £500,000 and a programme of redecoration. There was total net cash of £465,000 at 31 August 2024 (2023: total net debt of £2,389,000).

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 as well as a review of the Company’s financial position and outlook at each meeting of the Trustees.

Reserves

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. It will take several years before this target can be achieved and the Trustees will establish a designated cash reserve once the Company recommences gift aided payments to the Trust.

Methodist Conference Property at Central Hall Westminster 5

Trustees’ report 31 August 2024

FINANCIAL REVIEW (continued)

Reserves (continued)

At 31 August 2024, the Trust held cash of £242,000 (2023: £20,000). In addition, the Company held cash of £694,000 (2023: overdraft of £442,000).

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. In particular the Trustees have considered the charitable group’s forecasts and existing bank facilities.

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 rebuild our reserves, provide resources to support the work of the Church and undergo the building work identified by the quinquennial inspection and by commercial demands. In case of continued financial constraints, the Trust will seek grant support from within and without the Methodist Connexion.

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.

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. The cash grant remains suspended whilst the Trust rebuilds its reserves.

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.

Methodist Conference Property at Central Hall Westminster 6

Trustees, report 31 August 2024 STATEMENT OF TRUSTEES, RESPONSIBILITIES (continued) The 18w applic8ble 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: select suitable accounting policies and then apply them consistentty", observe the methods and principles in 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)- make judgments and estimates that are reasonable and prudent", state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disdosed and explained in the financial statements; and prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charity will continue in business. The Trustees are responsible for keeping proper accounting records thal 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. The Trustees are responsible for the maintenance and integrity of the charity and financial information included on Ihe charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Approved by order of the members of the Board of Trustees and signed on its behalf by.. Trustee Date: Methodist Conference Property at Central Hall Westminster 7

Independent auditor’s report 31 August 2024

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 2024 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 8

Independent auditor’s report 31 August 2024

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 9

Independent auditor’s report 31 August 2024

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 10

Independent auditor’s report 31 August 2024

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 London EC2V 6DL

Date: 06 March 2025

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 11

Consolidated statement of financial activities Year to 31 August 2024

Note Un-
restricted
funds
2024
£		 Endowment
funds
2024
£		 Total
funds
2024
£		 Un-
restricted
funds
2023
£		 Endowment
funds
2023
£
Total
funds
2023
£
Income from:
Trading activities
. Lettings and hiring
. Catering
Investment income from bank deposits
Donations and legacies
. 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 income (expenditure) before
taxation
2
Taxation
9
Net movement in funds
Funds brought forward at 1
September 2023
Fund carried forward at 31 August
2024		 5,301,863
2,237,961
3,782
4,250,000
12,241
111,481		 —
—
—
—
—
—		 5,301,863
2,237,961
3,782
4,250,000
12,241
111,481		 5,964,204
2,353,465
400
—
67,656
165,129		 —
—
—
—
—
—
5,964,204

2,353,465
400

—

67,656

165,129
11,917,328 — 11,917,328 8,550,854 —
8,550,854
6,415,708
1,825,149
468,199
190,465		 —
—
6,575
—		 6,415,708
1,825,149
474,774
190,465		 6,771,514
2,007,686
559,836
160,082		 —
—
6,575
—
6,771,514

2,007,686

566,411

160,082
8,899,521 6,575 8,906,096 9,499,118 6,575
9,505,693
3,017,807
—		 (6,575)
—		 3,011,232
—		 (948,264)
—		 (6,575)
—
(954,839)

—
3,017,807
5,237,542		 (6,575)
170,958		 3,011,232
5,408,500		 (948,264)
6,185,806		 (6,575)
177,533
(954,839)

6,363,339
8,255,349 164,383 8,419,732 5,237,542 170,958
5,408,500

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 £4,867,913 (2023: £799,114) and total expenditure was £4,767,673 (2023: £977,819) giving net income for the year of £103,240 (2023: net expenditure of £178,705).

The notes on pages 21 to 28 form part of these financial statements.

Methodist Conference Property at Central Hall Westminster 12

Consolidated balance Sheet 31 August 2024 2024 2024 2023 2023 Notes Fixed assets Tangible fixed assets Equity Sha￿ in manses 10.192.416 220.325 10.412.741 10,139,601 220,325 10,359,926 Current assets Debtors Cash on deposit at the Central Finance Board Cash at bank and in hand 10 1.371.887 667,462 236.211 697.252 2.305,350 7.429 14,997 689,888 Liabilities Creditors.. amounts falling due within one year 11 (4.098,355) 14,149,227) Net current liabilities 1.793.005) (3.459.339) Total assets less current liabilities ,619.736 6,900,587 Creditors.. amounts falling due in after one year Totsl net assets 12 (200,004) ,419.732 (1.492,087) 5,408.500 Represented by: Income funds- Unrestricted fijnds Capitsl funds- Endowment funds 16 16 8,255.349 164.383 5,237,542 170,958 Total funds 8.419.732 5,408,500 The notes on pages 21 to 28 fomi part of these financial statements. The financial statements were approved by the Trustee5. and authorised for issue on and are signed on their behalf by: Trustee Treasurer Methodist Conference Property at Central Hall Westminsler 13

Trust balance sheet 31 August 2024 2024 2024 2023 2023 Notes Flxed assets Tangible fixed assets Equity share in manses Investment in trading subsidiary 10.009.361 220.325 100,OIJO 10,329.686 9,923,662 220,325 500,000 10,643,987 Current assets Debtors Cash on deposit at Ihe Central Finance Board Cash at bank and in hand 10 120,036 364,982 233.737 9,231 363.004 4,955 14.963 384.900 Liabilities Creditors= arnounts fallirrfJ due within one year 11 1679.765) 11.677,119) Nel current liabilities 1316.7611 11,292,219) Total assets less current liabilitiè$ 10,012,925 9,351,768 CreditOf5.' amounts falling due after more than one year Total net assets 12 11.750,000) 8.262.925 {1,192,0831 8,159,685 Rapresented by: Income fiJnds- Unrestricted fijnds Capital funds- Endowment funds 16 16 8.098.542 164.383 7.988,727 170.958 Total fund5 8.262.925 8,159,685 The notes on pages 21 to 28 fom) part of these financial statements. The fin cial statements were approved by the Managing Trustees, and authorised for issue are signed on their behalf by: on Methodist Conference Property at Central Hall Westminster 14

Consolidated statement of cash flows Year to 31 August 2024

Notes 2024
£		 2023
£
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 2023
B
Cash and cash equivalents at 31 August 2024
B		 3,251,563 826,221
3,782
(400,867)		 400
(199,609)
(397,085) (199,209)
(1,501,395) (466,501)
(1,501,395) (466,501)
1,353,083
(419,620)		 160,511
(580,131)
933,463 (419,620)

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

2024
£
3,011,232
348,052
(3,782)
(704,425)
600,486
3,251,563		 2023
£
(957,287)
312,257
(400)

382,044
1,089,607
826,221
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

B Analysis of cash and cash equivalents

2024
£		 2023
£
Cash at bank and in hand
Short term deposits
Bank overdraft
Total cash and cash equivalents		 697,252
236,211
—		 14,997
7,429
(442,046)
933,463 (419,620)

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
2023
£		 Cash
flows
£		 At 31
August
2024
£
22,426
(442,046)		 911,037
442,046		 933,463
—
(419,620)
(346,741)
(1,622,892)		 1,353,083
178,233
1,322,892		 933,463
(168,508)
(300,000)
(1,969,633) 1,501,125 (468,508)
(2,389,253) 2,854,208 464,955

Methodist Conference Property at Central Hall Westminster 15

Principal accounting policies 31 August 2024

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 £1,793,005 at 31 August 2024 (2023: £3,459,339). Included within net current liabilities is £3,010,548 (2023: £2,141,718) 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 16

Principal accounting policies 31 August 2024

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.

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.

Methodist Conference Property at Central Hall Westminster 17

Principal accounting policies 31 August 2024

Trading income, investment income and other income (continued)

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 £327,758, 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 18

Principal accounting policies 31 August 2024

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 2024 contributions to the scheme amounted to £136,401 (2023: £153,727).

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:

Methodist Conference Property at Central Hall Westminster 19

Principal accounting policies 31 August 2024

Judgements and key sources of estimation uncertainty (continued)

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.

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 20

Notes to the consolidated financial statements Year to 31 August 2024

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 profit of the Company at 31 August 2024 was £2,908,007 after share capital cancelled during the year of £3,650,000. (2023: net loss of £763,700) and after Gift Aid donations of nil in the year.

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

2024
£		 2023
£
Turnover
Cost of sales
Gross profit
Administrative expenses
Operating loss
Interest receivable
Interest payable
Other income
Loss before Gift Aid and Taxation
Taxation
Loss for theyear		 7,539,824
**(6,590,076) **		 8,317,669
(7,070,412)
949,748
**(1,924,539) **		 1,247,257
(2,260,062)

(974,791)
9,289
(115,873)
339,382		 (1,012,805)
300
(46,474)
295,279
(741,993)
—		 (763,700)
—
(741,993) (763,700)

Included within ‘other income’ is a contribution of £288,066 from Methodist Conference Property at Central Hall Westminster (2023: £120,000) and insurance claims income of £12,241 (2023: £67,656).

Net assets(liabilities) of trading subsidiary 2024
£		 2023
£
Total assets
Total liabilities
Net assets(liabilities)		 4,207,774
(3,956,352)		 1,675,308
(3,931,893)
251,422 (2,256,585)

Methodist Conference Property at Central Hall Westminster 21

Notes to the consolidated financial statements Year to 31 August 2024

2 Net expenditure

Net expenditure is stated after charging:

Operating lease rentals
Depreciation – owned assets
Auditor’s remuneration
. current year audit fee (group)
. previous year audit fee (group)
. non- audit services(group)		 2024
£
10,016
348,052
21,000
7,110
17,695		 2023
£

3 Total expenditure

Expenditure on raising funds 2024
£
828,177
2,184,905
35,018
1,521,493
190,503
244,338
52,160
12,633
1,346,481
6,415,708		 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
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 2024
£
2023
£
Catering costs
Subcontracted cateringcosts		 1,825,149 2,007,686
Charitable activities 2024
£		 2023
£
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)
Auditor’s remuneration – non-audit services		 75,000
295,892
23,252
35,725
—
24,460
6,420
14,025		 180,000
282,695
44,770
28,881
60
22,550
—
7,455
474,774 566,411

Methodist Conference Property at Central Hall Westminster 22

Notes to the consolidated financial statements Year to 31 August 2024

4 Governance costs

Governance costs
2024 Costs of
raising
funds
£		 Charitable
activities
£		 Total
2024
£
Auditor’s remuneration – current year
Auditor’s remuneration – previous year
Auditor’s remuneration – non-audit services
Legal and professional fees		 —
—
—
244,338		 24,460
6,420
14,025
35,725		 24,460
6,420
14,025
280,063
244,338 80,630 324,968
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

5 Staff costs – Group

The average number of employees during the year was:

2024
No.		 2023
No.
Hirings and lettings
Support services		 42
1		 48
1
43 49

Cost for these employees was:

2024
£		 2023
£
Wages and salaries
Social security costs
Pension costs
Temporary staff		 1,780,362
190,612
136,401
77,530		 1,835,882
195,266
154,942
20,551
2,184,905 2,206,641

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

2024
No.		 2023
No.
£110,000 - £119,999
£90,000 - £99,999
£80,000 - £89,999
£70,000 - £79,999
£60,000 – £69,999		 1
2
—
1
3		 1
1
1
1
—

Methodist Conference Property at Central Hall Westminster 23

Notes to the consolidated financial statements Year to 31 August 2024

5 Staff costs – Group (continued)

In connection with these higher paid employees, employer pension contributions were paid totalling £80,431 (2023: £50,384).

The Trust considers its key management personnel comprise the Directors, the Chief Executive Officer, COO and Finance Director. The total employment benefits including employer pension and national insurance contributions of the key management personnel were £439,360 (2023: £383,417). Those employees which exceeded £60,000 are considered key management personnel and are included in the above disclosure. The amount of £439,360 included severance pay of £30,000.

No Trustees received remuneration during the year (2023: none).

6 Tangible fixed assets

Tangible fixed assets
Group Freehold
buildings and
improvements
£		 Fixtures and
fittings
£		 Computer
and office
equipment
£		 Total
£
15,424,358
400,867
15,825,225
5,284,757
348,052
5,632,809
10,192,416
10,139,601
Cost
At 1 September 2023
Additions
At 31 August 2024
Depreciation
At 1 September 2023
Charge for the year
At 31 August 2024
Net book value
At 31 August 2024
At 31 August 2023		 14,400,627
381,591		 986,859
18,056		 36,872
1,220
14,782,218 1,004,915 38,092
4,476,965
295,892		 781,341
48,825		 26,451
3,335
4,772,857 830,166 29,786
10,009,361 174,749 8,306
9,923,662 205,518 10,421
Trust Freehold
buildings and
improvements
£		 Total
£
Cost
At 1 September 2023
Additions
At 31 August 2024
Depreciation
At 1 September 2023
Charge for the year
At 31 August 2024
Net book value
At 31 August 2024
At 31 August 2023		 14,400,627
381,591
14,782,218
4,476,965
295,892
4,772,857
10,009,361
9,923,662		 14,400,627
381,591
14,782,218
4,476,965
295,892
4,772,857
10,009,361
9,923,662

Methodist Conference Property at Central Hall Westminster 24

Notes to the consolidated financial statements Year to 31 August 2024

7 Equity share in manses

Equity share in manses
Group and Trust Leasehold
properties
£
Cost
At 1 September 2023 and 31 August 2024		 220,325

8 Investment in trading subsidiary

Investment in trading subsidiary
Trust 2024
£		 2023
£
Share capital 100,000 500,000

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

2024
£		 2023
£
Fixed assets
Current assets
Liabilities
Net funds		 183,055
4,024,719
(3,956,352)		 215,939
1,459,369
(3,931,893)
251,422 (2,256,585)

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.

10 Debtors

Debtors
Group 2024
£		 2023
£
Trade debtors
Other debtors
Prepayments and accrued income
Tax payable		 670,877
35,769
664,087
1,154		 384,754
71,289
211,419
—
1,371,887 667,462
Trust 2024
£		 2023
£
Amounts due from subsidiary undertaking
Other debtors
Prepayments		 115,639
1,154
3,243		 222,450
127,409
15,123
120,036 364,982

Methodist Conference Property at Central Hall Westminster 25

Notes to the consolidated financial statements Year to 31 August 2024

11 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Group 2024
£		 2023
£
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		 —
168,508
99,996
286,112
3,010,548
50,724
198,537
283,930		 442,046
182,400
295,416
563,276
2,141,718
59,660
305,782
158,929
4,098,355 4,149,227
Trust 2024
£		 2023
£
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		 168,508
—
75,784
—
185,375
230,000
20,098
—		 182,400
195,420
57,810
746,556
185,375
230,000
11,699
67,859
679,765 1,677,119

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:

2024 Brought
forward
£		 Invoiced
in the year
£		 Released
in the year
£		 Carried
forward
£
Letting deposits in advance
Other deferred income		 1,911,718
230,000		 8,146,022
—		 (7,277,192)
—		 2,780,548
230,000
Invoiced
in the year
£		 Released
in the year
£		 Carried
forward
£
2023 Brought
forward
£
Letting deposits in advance
Other deferred income		 1,233,374
—		 7,731,122
230,000		 (7,052,778)
—		 1,911,718
230,000

12 Creditors: amounts falling due after more than one year

Creditors: amounts falling due after more than one year
Group 2024
£		 2023
£
Royal Bank of Scotland loan
HSBC loan		 —
200,004		 164,341
1,327,746
200,004 1,492,087

Methodist Conference Property at Central Hall Westminster 26

Notes to the consolidated financial statements Year to 31 August 2024

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

Trust 2024
£		 2023
£
Royal Bank of Scotland loan
HSBC loan
Amounts owed to subsidiary undertaking (note 1)		 —
—
1,750,000		 164,341
1,027,742
1,027,742
1,750,000 1,192,083

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.

The Trust loan from HSBC was repaid during the year.

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 2024 the Group had no capital commitments (2023: none).

14 Operating leases – Group

The following total commitments existed at 31 August 2024 in respect of non-cancellable operating leases:

Office equipment Office equipment
2024
£		 2023
£
Within 1 year
Between 2 and 5 years		 9,600
5,576		 9,640
15,176 9,640

15 Related parties

Parent undertaking

The ultimate holding entity of the Trust is the Methodist Church. During the year the Trust donated £288,066 (2023: £120,000) to the Methodist Church and the Trust received a grant of £4,000,000 from the Methodist Church.

The Methodist Church rents a room in Central Hall Westminster and during the year paid £12,000 to the Trust (2023: £7,500). 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. On 25 April 2024 the Trust received a grant of £4,000,000 from the Methodist Church of Great Britain.

Methodist Conference Property at Central Hall Westminster 27

Notes to the consolidated financial statements Year to 31 August 2024

15 Related parties (continued)

Parent undertaking (continued)

No Trustees were reimbursed travelling expenses during the year (2023: £60 paid to one Trust). 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). On 31 July 2024 there was a recapitalisation of the Central Hall Westminster Ltd in which the Trust wrote off £400,000 from its investment in the share capital of its subsidiary and also wrote off a loan of £1,500,000 to the subsidiary, supported by the grant of £4,000,000 as mentioned above. The Trust also issued loan notes of £1,750,000 to the subsidiary; these are repayable after ten years and carry a commercial rate of interest.

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 nil at 31 August 2024 (2023: £442,046).

16 Analysis of net assets between funds

Analysis of net assets between funds
Group – 2024 Unrestricted
funds
£


Endowment
funds
£

Total
2024
£
Tangible fixed assets
Equity share in manses
Net current liabilities
Long term liabilities		 10,028,033
220,325
(1,793,005)
**(200,004) **
164,383

—

—

—		 10,192,416
220,325
(1,793,005)
(200,004)
**8,255,349 **
164,383		 8,419,732
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
Trust – 2024 Unrestricted
funds
£


Endowment
funds
£

Total
2024
£
Tangible fixed assets
Equity share in manses
Investment in trading subsidiary
Net current liabilities
Long term liabilities		 9,844,978
220,325
100,000
(316,761)
**(1,750,000) **
164,383

—

—

—

—		 10,009,361
220,325
100,000
(316,761)
(1,750,000)
**8,098,542 **
164,383		 8,262,925

Methodist Conference Property at Central Hall Westminster 28

Notes to the consolidated financial statements Year to 31 August 2024

16 Analysis of net assets between funds (continued)

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