2021-12-31-accounts

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2021 Annual Report and Accounts

Championing the future of the British thoroughbred

Registration No. 07073259 (England and Wales) Charity Number: 1134293

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WELCOME FROM THE CHAIRMAN 4
CHIEF EXECUTIVE’S MESSAGE 5
WHAT WE DO 6
7
TBA impact and reach
PROTECTING THE DIVERSITY AND PROMOTING THE DEVELOPMENT OF THE THOROUGHBRED BREED 8
Case study: From GBB winner to broodmare: Dragon Bones 10
PEOPLE; LEARNING AND DEVELOPMENT 11
Case study: How the E2SE kickstarted Emily’s career journey 13
COMMUNITY 14
Case study: Dedicated Ron Lott honoured with TBA Award 15
NATIONAL AND INTERNATIONAL POLICY FOR THE THOROUGHBRED BREEDING INDUSTRY 16
International Thoroughbred Movements 2019-2021 17
EQUINE HEALTH AND VETERINARY RESEARCH 18
Case study: Welfare Guidelines set the bar for industry best practice 19
AWARDS AND RECOGNITION FOR THE TBA’S WORK 20
Our vision and ambitions 21
OUR PLANS 22
2022 ACTIVITY 23
FINANCIAL REVIEW 28
STRUCTURE, GOVERNANCE AND MANAGEMENT 29
OFFICERS AND CONTACTS 32
TBA STANDING COMMITTEES 33
EXTERNAL COMMITTEE REPRESENTATION (AS OF JULY 2021) 34
THANK YOU 35
37
Auditors’ report and financial statements
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Cover image by Petra Mikeskova – Best Individual Photo, Stud Staff Photography Competition

Annual Report and Accounts l 2021

CHAIRMAN’S WELCOME

Welcome to the 2021 report, which tracks our activities, successes and future plans. We hope you find this report helpful as we seek to share more of our activities that support the industry, breed and our people.

Arresting that decline and supporting British breeders whenever and wherever we can is essential if we wish to take our industry forward.

Looking back at the autumn of 2021, the strength and depth of the thoroughbred sales both here in Great Britain and in Ireland both pleased and surprised us.

However, whilst the headlines and record prices inevitably attract everyone’s attention it is still apparent that many breeders are at the best breaking even and many are not obtaining the returns they need to keep going. Overall, the yearling sales across Great Britain and Ireland achieved the same aggregate figure as in 2019 and I know all of us will have had to absorb cost increases since then.

The TBA has long been working to improve the environment for fillies and mares, who generally achieve a lower price at sales than colts and geldings and who represent a much lower percentage of the horse population in training. As breeders, most of us live with the females - the mares - that provide our foals and racehorses of the future, and here we have seen so much progress being made.

More and better races in which mares can prove themselves, along with the Great British Bonus, has turned a bigger spotlight on fillies and mares, particularly in the jump sphere, where they are now sought-after and found in virtually every trainer’s yard.

The investment needed in the future requires faith and optimism which thankfully characterises many of us who love our horses and dream of success whether in the sale ring or on the racecourse.

In the meantime there is a polarisation in stallion numbers as those that are popular cover larger and larger books of mares and fashion becomes the driver that consumes the breeding industry. As a consequence fees for those stallions that sell well in the market rise and make the need to achieve higher prices even more apparent.

A plan and perseverance have brought reward, but the good work needs to be kept up, by learning from what has been done well and applying that to the next five to ten years. For instance, the Flat programme for older fillies and mares has been greatly improved, encouraging owners to keep them in training beyond the end of their three-year-old careers.

The background statistics still show a decline in foal production and the number of active broodmares in both Great Britain and Ireland is just stable. It is also noticeable how the jump bred foals are becoming a lesser and lesser percentage of the whole foal crop.

As the coronavirus pandemic recedes and everyone moves forward, there is a real opportunity to try and build consensus between participants and racecourses for a long-term sustainable future for British breeding and racing, an industry which supports all of its constituents (both human and equine), provides a compelling racing product and welcomes new participants with open arms.

While we can all celebrate the advances made in the market in 2021 we should remain cautious and realistic over how this will affect the overall industry over the next few years.

JULIAN RICHMOND-WATSON

CHIEF EXECUTIVE’S MESSAGE

Breeders are generally renowned for their long-term focus, patience and resilience, and these attributes have most definitely been called upon in the last two years.

Following the unprecedented challenges of the Covid-19 pandemic in 2020, 2021 saw the continued impact of national and regional lockdowns, alongside the issues arising from the UK’s exit from the EU from 1 January 2021.

The TBA team have ensured that as an organisation we continue to provide support and guidance for breeders and those working in the industry, including the vital updates to the TBA Covid-19 Protocols which have continued to underpin the continuation of the breeding season.

The UK’s exit from the EU brought fundamental change to the industry after decades of frictionless movement of people and horses that facilitated the growth and success of the British thoroughbred industry. Unsurprisingly, given the administrative and financial burdens of the new systems as Britain became a ‘third country’ in EU law, horse movements for breeding between the UK and EU were down 28% in 2021 from 2019 levels, and the recruitment picture has never been more challenging for breeders. We continue to lobby the UK Government and are working with our European counterparts and other equestrian disciplines on solutions both short and longer term. Whilst our issues are fully recognised, the pace of meaningful improvements to date has been frustratingly glacial.

The Great British Bonus Scheme (GBB) has gone from strength to strength since its launch in June 2020, with nearly 80% of the British born filly foal crop registered. It has been really heartening to hear the positivity and stories of those personally experiencing the benefits from the scheme at the sales. It is certainly changing behaviour from a relatively small investment of industry prize money, with the vital funding from the Horserace Betting Levy Board being instrumental in its success. With global demand for British born thoroughbreds growing, GBB provides a much needed incentive to keep people breeding, buying and racing in this country.

The TBA are also proud to be a signatory of the industry’s Diversity & Inclusion Commitment, and we continue to embed these values in our strategy, operations and activities. We are key funders, alongside the Racing Foundation, of the Entry to Stud Employment programme which is open to anyone interested in working in the industry and the launch in May 2021 of TB-Ed, the new digital e-learning platform for breeders, has as its core objective to improve reach and accessibility to continued professional development within the breeding industry.

We were also delighted to secure the ongoing funding support of the Racing Foundation for our education, equine welfare and environmental sustainability activities through to 2024. The latter strategic area has grown in focus in 2021, and winning the BASIS award for sustainability in sport was a real highlight of the year.

The TBA Board signed off a renewed set of recommendations to continue to progress and deliver equine health and welfare initiatives in the breeding industry aligned with the Horse Welfare Board’s industry strategy, and the first edition of the TBA’s welfare guidelines for thoroughbred breeding were published. The launch of the e-passport and the roll out of equine premises numbers to all British based stud farms ensure we are continuing to make real enhancements to improve the traceability of British bred thoroughbreds.

It was fantastic to welcome members back to live TBA events in 2021, and breeders ongoing support through membership and the sales levy has helped ensure the TBA can remain actively advocating for the future growth and development of the British breeding industry, domestically and internationally.

CLAIRE SHEPPARD, TBA CHIEF EXECUTIVE

Annual Report and Accounts l 2021

WHAT WE DO

Our charity’s purpose as set out in the objects contained in the company’s memorandum of association is:

To encourage by means of the provision of educational or research facilities or otherwise, the science of natural production and improvement of the thoroughbred horse in Great Britain.

Working purpose

The Thoroughbred Breeders’ Association (TBA) is the only horseracing stakeholder to focus on the future of the Britishbred thoroughbred and the interests of the British breeder.

Vision statement

To improve the sustainability, resilience and impact of the British breeding industry by safeguarding the legacy of world class British breeding for racing and future generations to come.

Strategic Objectives

1 Protect the diversity and promote the development of the British thoroughbred.
2 Shape national and international policy for the thoroughbred breeding industry.
3 Support breeders in their care of horses and employees.
4 Encourage learning and development within the British breeding industry.
5 Promote health and welfare and support veterinary research into the thoroughbred breed.

Values

Teamwork

We are open and accountable and work together as a team, in collaboration with our members and stakeholders.

Excellence

We deliver excellence in our promotion and support of breeders and the British thoroughbred industry.

Active

We are active as custodians of the British thoroughbred, and committed to protecting their heritage and championing their cause.

TBA impact and reach in 2021

Annual Report and Accounts l 2021

PROTECTING THE DIVERSITY AND PROMOTING THE DEVELOPMENT OF THE THOROUGHBRED BREED

During 2021, the TBA delivered a number of key projects to support the promotion of the breed, adapting quickly to evolving government Covid-19 guidance in order to support the industry and breeders in the best possible way.

The suspension of live events in the first quarter of the year led to the development of more creative and collaborative solutions which showcased the industry to new audiences whilst also providing digital marketing support to participants. Working in partnership with Great British Racing International (GBRI), the TBA produced a virtual stallion showcase online, which featured a directory of flat and jump stallions with individual interactive profiles including audio clips, videos, photographs, pedigrees and race records.

In 2021, the Great British Stallion Showcase platform had earned 7,200 website visits and over 31,300 individual page views. The joint venture project addressed key strategic objectives for both organisations, promoting British stallions to both national and international audiences, maximizing its impact and reach through combined skills, resources and audiences.

which 124 registered to use the scheme representing 39% of the eligible population. The in-foal success rate of 78% is the second highest recorded over the past five-year period (79% in 2020).

The TBA continued its partnership with GBRI to promote British bred success , with a shift in focus towards digital activities due to Covid-19 restrictions. Articles to promote British thoroughbred breeding also featured in Ascot Racecourse’s digital racecards throughout the year proving popular with race enthusiasts. Over 2,000 users downloaded the March racecard, with the TBA’s feature ‘A new era for jump mares’ topping the reading list.

In lieu of event fundraising opportunities in the first quarter of the year the annual jump stallion nomination auction was moved online. The auction, which raises vital funds for National Hunt activities and encourages the use of Britishbased stallions, achieved the second highest sum in its history demonstrating an appetite for reliable and easy to use technological solutions which improve the TBA’s services.

The return of live events in August, hosted in accordance with government guidelines, included the postponed NH Breeders’ Awards Evening . Re-located to increase capacity, the Goffs UK sponsored event welcomed over 180 guests for the presentation of 14 awards.

Following the steady progress of the number of mares in jump racing in recent years, the HBLB funded Elite NH Mares’ Scheme continued to invest in British jump breeding to encourage the development and diversity of British jump horses. In total, there were 319 eligible mares in 2021, of

IN 2021, 77% OF THE ELIGIBLE FOAL CROP REGISTERED FOR STAGE 1 OF GBB

OVERALL, THE MEDIAN VALUE OF BRITISH BRED FILLIES AT THE KEY BRITISH SALES HAS INCREASED by 14%

£333,000

WORTH OF BONUSES AWARDED IN AUGUST

The Flat Breeders’ Awards Evening – sponsored by Fitzdares – followed in early September and featured two new awards to reflect the TBA’s aims to encourage innovation (Industry Merit Award), and acknowledge the breeders of fillies (Filly of Merit Award). Shortlisted nominees for a number of categories were also announced for the first time in 2021, enabling the TBA to duly acknowledge the significant achievements of participants in individual categories.

Sandown Park Racecourse hosted its inaugural Breeders’ Day in partnership with the TBA on Wednesday, 15 September to celebrate and showcase the British thoroughbred breeding industry. TBA members received free admission to the fixture which also included prizes for the breeders of winning horses on the day.

The Great British Bonus

Since its inception the TBA managed Great British Bonus has gone from strength to strength, its popularity in the industry evident both in the sales ring and on the racecourse.

By 31 December 2021, the Horserace Betting Levy Board (HBLB) and registrant funded scheme had issued over £4.2 million in 205 qualifying races since launch, dwarfing the £1.6 million in race prize money paid out to those same fillies and mares. 134 bonuses were awarded on the flat and 71 over jumps. Whereas 51 bonuses were awarded to fillies on their debut run, with 38 fillies and mares becoming multiple bonus winners in 2021. 142 of the bonuses were won by 100% GBB fillies demonstrating the support the scheme offers British stallion studs.

In 2021, GBB received 1,655 foal registrations which represented 77% of the eligible 2021 foal crop whilst 67% of the 2020 foal crop completed their yearling registrations, demonstrating breeders’ confidence in the scheme.

GBB fillies made up 26% of the catalogue for the Tattersalls Somerville Sale and 25% of Tattersalls Book 3 – the GBB clearance rate for the latter sat at 88% – higher than the overall sale figure of 86%, non-registered British bred fillies (79%), and colts (85%). The Goffs UK Spring Store Sale was

Activity at the event included TBA representation and trade stand, racecourse screen advertising, racecard content, a prize draw, and an interactive QR code trail around the course providing links to virtual stud farm tours and educational videos about thoroughbred breeding.

The TBA team spoke with many racegoers on the day and answered their questions about the industry. A number of new members were also recruited at the event, and a stud farm reported that it subsequently gained a new client from the event.

another example of GBB’s success with registered fillies selling for a median value of £27,500 versus the overseas fillies’ median value of £17,000. Interestingly the median value of British bred fillies at the key British sales has increased by 14% in 2021 compared with their non-British counterparts who achieved 10%.

Annual Report and Accounts l 2021

CASE STUDY

From GBB winner to broodmare: Dragon Bones

“ In the long run it’s going to be brilliant for breeders because it encourages breeding in Britain and strengthens the quality of our broodmares .”

One of the greatest successes for GBB in 2021 was the Ian Williams trained Dragon Bones. The Passing Glance mare pocketed her first £20,000 bonus in a Listed mares’ novices’ hurdle at Doncaster early in March. A win at Hexham landed her another £20,000 and just four days later she boosted her tally with a win at Worcester. A fourth and final bonus was collected by her connections following a victory in a mares’ novice’ hurdle event at Newton Abbot in May. In a two-month period Dragon Bones had brought home £70,000 in bonuses – almost doubling her career winnings of £36,000. Of the scheme, her trainer, Ian Williams said “ GBB has been incredible. She won a Listed race and still her bonuses are worth more than double her prize money. It’s a fantastic scheme for everyone involved, the owners, the breeders, trainers, and jockeys and of course the stable staff. It’s a great reward for all parties.

Her breeder, Nigel Ford, had started her racing career off with a win in a bumper at Worcester which attracted a ‘very good offer’ and so she was sold. As the registered breeder, Nigel received 20% of her bonus wins and being GBB registered undoubtedly boosted her sales tag. Ford noted “ I had become a little disillusioned with the breeding game but with Dragon Bones’ success and GBB I am a bit more encouraged than I was two or three years ago, so I am going to put two mares in foal next year .”

Dragon Bones was retired to stud at the end of 2021 to commence her broodmare career.

“GBB has been incredible. She won a Listed race and still her bonuses are worth more than double her prize money.”

PEOPLE; LEARNING AND DEVELOPMENT

During 2021, the focus for the education activity at the TBA was the development and release TB-Ed of an online learning platform, . Having spent considerable time testing the potential and need for an online learning platform, the build and initial content creation was completed in April 2021 and a minimum viable product version of TB-Ed was released in May.

TB-Ed offers interactive courses written by industry experts which are available on demand, plus recorded webinars, lectures and short information videos. Free and paid-for content is available, with discounts on courses and video material for TBA members and associate subscribers. The most popular offering at launch was an interactive course on ‘Understanding Pedigrees’, with a video also released featuring a discussion between pedigree expert Nancy Sexton and journalist Lydia Hislop.

TB-Ed is a membership benefit that will in time offer a full range of courses and professional development opportunities for existing breeders and employees, together with entry level courses for those who would like to learn more about breeding thoroughbred racehorses. 534 users were registered on TB-Ed in 2021 and it has sparked interest from 64 countries including Ireland, USA, Australia, Germany, South Africa, France and Sweden.

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REGISTERED USERS
OF TB-ED WITHIN
7 MONTHS
OF ITS RELEASE
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Annual Report and Accounts l 2021

CASE STUDY

During 2021, the TBA continued to champion recognition and reward for those employed on stud farms, supporting the Godolphin Stud and Stable Staff Award, co-ordinating the TBA’s own Stud Employee Award and participating in Racing Staff Week by delivering a stud employee photography competition. Below is the winning image for Best Teamwork Photo, by Joanna Grabowska.

2021 also saw the TBA sign up to the industry commitment

to diversity and inclusion (D&I) , and join the industry’s working group, with the priority being the creation of an action plan. TBA Trustee Kate Sigsworth was appointed as the TBA Diversity and Inclusion Champion, with Caroline Turnbull taking executive responsibility for developing and implementing the D&I action plan.

The TBA continued to support the development of the Training and Qualifications Pathway and in particular the Entry to Stud Employment programme delivered by the National Stud. The programme was reviewed and amended this year in response to feedback from participants and employers, with a new bespoke intensive course offered to those with no experience of horse handling being introduced in July 2021. Two of the four students on this course went on to work in industry. The nine-week residential course for those with some experience took place between October and December 2021. Thirteen students completed the course with 11 going on to work on studs and complete their Level Two Diploma in Horse Care (Breeding). Students also achieved a Level 2 award in transporting horses and principles of horse care, and first aid and manual handling courses.

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2017 – 2021
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76%
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70% of E2SE GRADUATES HAVE COMPLETED THE LEVEL 2 DIPLOMA

STUDENTS COMPLETED RESIDENTIAL E2SE AND WENT ON INTO THE WORKPLACE

How the E2SE kickstarted Emily’s career journey

One of the graduates from the 2021 Entry to Stud Employment Scheme (E2SE), an initiative funded by the TBA, along with the National Stud and the Racing Foundation, was Emily Stevens, from Dagenham. Having had some experience with horses, but not thoroughbreds, she enrolled onto the nine-week course and then gained a six-month placement with Juddmonte at Banstead Manor, who have since given her full-time employment.

“ It all started when I was 18 and I was studying animal management for A-levels. One section was on horses and my tutor took me to the National Stud for a tour. I chose university [studied animal management and zoology] but was drawn to horses. So, after looking up apprenticeships, the National Stud and this course kept coming up .

“S ince I started at Juddmonte I have been based with the mares and foals, following them through from being born and they will be weaned later on in the summer.

“ I want to stay working within the industry and work my way up the ladder to being a foaling manager – I really enjoy working with the foals.

“ I can’t see myself doing anything different. The course gave me confidence with horses. Before I would put myself in the background, but it gave me the boost I needed before going into the placement, where I had to jump into the deep end .”

The course is available to those with previous general equine experience, such as Emily, or it can offer a bridge to individuals without equine experience. This cohort was given a six-week programme, followed by a three-week placement at the National Stud.

“I want to stay working within the industry and work my way up the ladder to being a foaling manager – I really enjoy working with the foals.”

Annual Report and Accounts l 2021

CASE STUDY

COMMUNITY

Continuing to support breeders with guidance for their operations and re-establishing the community aspects of membership were the key areas of focus for the executive team in 2021 as the country navigated its way through the Covid-19 pandemic.

The free-to-access Covid-19 and Brexit Hubs on the TBA website were updated with the latest information providing a useful reference tool for breeders and other industry stakeholders.

An increased number of members utilised the members’ area of the website, gaining access to business and employment support documents, insurance policy details and breeder information.

The Racecourse Badge Scheme for Breeders , though not able to grant race tickets for part of the year, sent a record 18,353 notifications in 2021 (9,738 in 2020). The free automated messages, sent via SMS or email, alert breeders when horses they have bred are entered to run, declared and win races.

received £250 each and a certificate to recognise their contribution to their teams.

With regards to the health and well-being of people within the industry, the TBA continued to promote Racing Welfare’s services and support phoneline across its communications to raise awareness of the breadth of help available.

Opportunities for members to meet at TBA events increased in the second half of the year with the two awards events, Breeders’ Day at Sandown Park and a drinks reception at Tattersalls. The awards events in particular witnessed high attendance rates, demonstrating the appetite to join together and celebrate success within the industry.

The Stud Employee Award , sponsored by New England Stud, was won by Ron Lott of Shadwell Stud in 2021. Lott had impressed the judging panel with his long-term dedication to the industry and his appetite to pass on his knowledge and skills to others.

Building a stronger community and attracting new participants remained a key priority in 2021. Working towards this ambition, the TBA signed up to the industry’s diversity and inclusion commitment – agreeing to produce and implement a plan of activities to improve awareness, access and inclusivity across the sector.

The five shortlisted nominees, Beverley Woodley, Greg Hooley, John Rice, David Gardner and Antonia Neal also

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+13% 18.4k 24.9k
ASSOCIATE RBSB NOTIFICATIONS WEBSITE USERS
SUBSCRIPTIONS SENT (74.7K PAGE VIEWS)
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Dedicated Ron Lott honoured with TBA Award

Ron Lott, nominated by Shadwell Stud’s Stud Manager Paul Holdsworth, was 2021’s worthy winner of the Stud Employee Award at the TBA’s Flat Breeders’ Awards Evening in September.

Ron was chosen from six shortlisted nominees, received a £2,000 cash prize and was presented with the engraved Charlie Langton bronze perpetual trophy.

Ron commenced his career in the industry as a stallion handler at the age of 26 in 1981, working for Sir John Musker before joining the Shadwell team in 1984.

Initially working at Melton Paddocks before moving to Nunnery Stud in 1988, the first stallion he looked after was Green Desert.

Holdsworth said: “ An outstanding horseman, Ron has proved this time and time again with colts starting their stud careers, having the unique blend of skills and understanding that is vital in the safe and successful management of the transition from racehorse to stallion .

At the awards ceremony in early September, which was held at Chippenham Park, Ron said: “ I couldn’t have had a better job in my life, it has been a great job and I would like to thank Shadwell for nominating me. There is a load of people in the industry who deserve this award, anyone who works in the industry does. I’d like to thank Sheikh Hamdan for standing such good stallions and the staff at Shadwell, they have been brilliant – it is a big family environment .”

“ His devotion to the health and welfare of the horses in his care knows no bounds and this was no more evident when Unfuwain, his favourite stallion, was nearing the end of his days. Dedicating his time to this great horse, he sat up and nursed him through radiation treatment, colic surgeries, even sitting up in the early hours of some cold February nights to be at his side until the end .

“ One of Ron’s main attributes would be that despite fulfilling his role for over 40 years, he has never grown tired or lost any interest for his job and his enthusiasm has a positive impact on all those that he meets. Ron is keen to nurture and pass on his knowledge to the scores of students that have worked at Shadwell and is very much a father figure, who retains a delightful mix of traditional values with the ability to get the very best out of those around him. ”

“I couldn’t have had a better job in my life, it has been a great job and I would like to thank Shadwell for nominating me.”

Annual Report and Accounts l 2021

NATIONAL AND INTERNATIONAL POLICY FOR THE THOROUGHBRED BREEDING INDUSTRY

International thoroughbred movements 2019 – 2021

GB <> EU

A vital aspect of the TBA’s role is to represent the breeding industry within the racing industry, with UK Government, and internationally and is currently represented on 35 external committees, boards or groups.

industry and utilising such solutions, raise animal health and welfare standards further, including digital checks at this border without any significant bureaucratic burden on those moving thoroughbreds legally.

The TBA produced an interim report on the health of the British breeding industry in May 2021 which collated data and research on the impact of the Covid-19 pandemic to use as an evidence base for industry representation. The Board of Trustees also agreed to progress with an Economic Impact Study in 2022 and has secured funding from the HBLB and Racing Foundation for the project.

The industry has also lobbied for a post-Brexit immigration system that does not adversely compromise the status of EEA and non-EEA workers already based in the UK, and one that recognises the profession as highly skilled.

The main area of focus in 2021 was the impact of the UK’s exit from the EU from 31 January 2021. Brexit has brought about a major change for the industry with the introduction of equine health certification, VAT and custom requirements for moving horses, and the end to the free movement of workers from the EU. The TBA has played a leading role in the work of the Thoroughbred Industry Brexit Steering Group, led by TBA Chairman Julian Richmond-Watson. The group co-ordinated work in these main policy areas alongside the management of engagement with government and European institutions.

With the UK now progressing a more actively independent legislative agenda, this is an area where the TBA is growing its focus both in response to Government consultations and proactively lobbying for change. In this we work closely with the BHA Government Affairs team on a coordinated approach, to align with the agreed strategy for the sport.

Other industry areas where the TBA has been actively involved include in the future governance structure of British racing, the introduction of the rate card approach for HBLB prize money funding, and the replacement infectious disease surveillance and diagnostic services following the closure of the Animal Health Trust.

In the short term the TBA has ensured UK Government departments were fully appraised of the issues for the industry arising from the new processes including the horse welfare impacts from delays at ports and details of the increased costs and bureaucracy and highlighted where improvements can be made. The industry has collated movement statistics demonstrating the impact of the changes on the industry, carried out surveys and worked closely with transporters. The TBA has prepared responses to Government consultations and select committees. A Brexit hub was also created on the TBA website, containing information, FAQs and resources.

The association has been actively proposing short, medium and longer term solutions to mitigate the negative impacts, and the ambition remains for high health, high welfare movement for trade in thoroughbreds. The TBA believes that there are eminently achievable solutions built on our high standards utilising the provisions of the Trade and Cooperation agreement. The UK can, by working closely with

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2019 4,289
2020 4,345
2021 4,155
2019 4,672
2020 4,237
2021 2,359
2019 2,451
2020 1,076
2021 1,340
2019 11,412
2020 9,658
2021 7,854
2019 2,056
2020 1,782
2021 1,830
2019 426
2020 221
2021 307
2019 2,482
2020 2,003
2021 2,137
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Non-racing movements GB <> Ire

Non-racing movements GB <> Other EU

Racing movements GB <> EU (incl. Ire)

TOTAL GB <> EU

GB <> Rest of World (ie. non-EU)

Non-racing movements GB <> Rest of World

TOTAL GB <> Rest of World

Source: Weatherbys

The EFRA Select Committee on the ‘Movement of Animals Across Borders’ was published in September 2021. Julian Richmond-Watson, TBA Chairman and Chair of the Thoroughbred Industries Brexit Steering Group, commented:

“ The racing and breeding industries welcome the recommendations of the EFRA Select Committee Report on Moving Animals Across Borders. It recognises the importance of obtaining recognition for High Health Status horses and acknowledges the industry’s innovative solutions for increased traceability and digital health records.

“ This is credit to the huge amount of collaborative work from organisations and individuals across the industry to protect the future of our sport, horses and people. Sustaining the symbiotic trading relationship between the UK, Ireland and France is critical to our future both in the short and long term. Our counterparts in both Ireland and France concur that implementing systems to ensure High Health Status and removing barriers to movement of horses will be mutually beneficial.

“ We thank the EFRA Select Committee for raising these issues with Government as a matter of urgency and look forward to monitoring progress on the areas outlined .”

Annual Report and Accounts l 2021

CASE STUDY

EQUINE HEALTH AND VETERINARY RESEARCH

The TBA Veterinary Committee underwent a change of Chairman in 2021, with Kirsten Rausing standing down at the June meeting after serving as Chairman for six years. The TBA acknowledged the enormous debt owed to Miss Rausing for her extraordinary contribution to the work of the Veterinary Committee and she remains as a valued member of the committee. TBA Trustee James Crowhurst MRCVS commenced in the role as Chairman at the September meeting of the committee.

In 2021 the TBA’s Veterinary Committee continued to monitor global incidence of equine infectious disease reported into the International Collating Centre. The UK had recorded a small number of cases of the neurological, reproductive and respiratory forms of EHV-1 and EHV-4, as well as cases of influenza and two cases of CEM, the latter occurring in nonthoroughbreds (as was the case in many of the other reports). A severe outbreak of the neurological form of EHV-1 amongst showjumpers competing at the CES Valencia Spring Tour in March 2021 resulted in 20 deaths across 10 countries with links to the event. The UK closely monitored the spread of the disease which fortunately did not have an impact on the UK thoroughbred horse population.

Members of the committee contributed to a wide range of consultations during 2021, including the Defra consultation on Animal Welfare in Transport, the TBA Equine Welfare Guidelines, the introduction of future import controls, and changes to BHA rules on use of bisphosphonates, influenza vaccine protocols and signing horses out of the food chain. The opportunity to ensure that the thoroughbred breeding industry remained well represented was enabled by the TBA’s close collaboration with national and international racing and breeding organisations, with UK government, and the wider equestrian sector.

The committee also kept a close eye on exotic diseases such as African Horse Sickness (AHS), and West Nile Virus (WNV). AHS remained of greatest concern due its high fatality rate and lack of suitable vaccine, and the TBA ensured that Defra was aware of concerns raised about possible post-Brexit trade deals between the UK and South Africa enabling direct import of horses into the UK. WNV moved closer to the UK in 2021 with cases occurring in the Netherlands and Germany, and as a result the TBA kept in close contact with manufacturers of the WNV vaccine to assess its future availability should it ever be required.

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511
£50k
BROODMARE CHANGE
OF OWNERSHIP DISEASE SURVEILLANCE
NOTIFICATIONS
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4,533
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CHANGE OF OWNERSHIP
NOTIFICATIONS
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Welfare Guidelines set the bar for industry best practice

At the heart of the TBA’s strategic objectives, is the commitment to protect and promote the health and welfare of the British thoroughbred and to support breeders with the provision of educational materials to guide on best practice.

“ The Guidelines describe and quantify common stud management practices, and will be of particular benefit for those who are new to the industry. Its themes will also be developed through future educational content for TB-Ed courses and resources, and presentations at the annual Stud Farming Course and other TBA educational seminars .”

A key milestone in the TBA’s progress was the publication of the Equine Welfare Guidelines for the Thoroughbred Breeding Sector in October 2021.

Horse Welfare Board Chair, Barry Johnson added: “ Welfare is the responsibility of the whole sport. Whilst quality levels are already high, it’s imperative that we constantly and collectively drive-up standards, share best practices and foster innovation. The TBA is at the forefront of such efforts and a critical support in delivering the industry’s overarching welfare strategy for the thoroughbred, A Life Well Lived ”.

Pitched at an introductory level to assist industry entrants, the guide provides a framework for thoroughbred management covering key topics such as duty of care, environment, behaviour, company, health and stud practices as well as information on how to report concerns or request support for a thoroughbred.

Available in print or as a digital download, the free guide was mailed to all members of the Association as a handy reference for stud teams across the country and was complemented by the launch of a free-to-view mini video series on the TBA’s e-learning website, TB-Ed. This ‘essential checks’ video series gained over 1,000 visitors in 2021 providing specific advice and guidance on paddocks, vital health markers, care of the older horse and transportation.

TBA Chief Executive Claire Sheppard said: “ The publication of the TBA Equine Welfare Guidelines for breeders actively demonstrates the strength of the commitment of the TBA to the welfare of thoroughbreds being the primary consideration at all stages of the breeding life cycle .

Annual Report and Accounts l 2021

Our vision and ambitions

AWARDS AND RECOGNITION FOR THE TBA’S WORK

Memcom Excellence Awards 2021

Highly Commended in the Best Integrated Marketing or Membership Campaign for the Great British Bonus.

Working alongside creative agency Cambridge Publishers Limited (CPL), the TBA gained a Highly Commended Award at the 2021 Memcom Excellence Awards in London for marketing activities relating to the Great British Bonus. The campaign exceeded its KPIs in 2021 through a variety of both online and offline activities to raise awareness of the scheme, drive registration numbers and influence sales averages for eligible fillies.

TBA Trustee Philip Newton said: “ It is great for the Great British Bonus launch and project teams to be recognised with this highly commended award. The scheme has made a big impact in its early years and marketing support is essential in communicating the benefits to our industry and beyond .”

British Association for Sustainable Sport (BASIS) Awards 2021

The TBA and Racing Foundation won first prize in the Innovation; Initiatives and Products Awards category at the BASIS awards in October 2021.

Recognition was earned for the TBA’s first Environmental Impact of Stud Farms Assessment – funded by the Racing Foundation – which will help shape the association’s future work in this area.

James O’Donnell Chair of the TBA’s Environmental Sustainability Working Group and Assistant Stud Director at Shadwell Stud, said: “ Winning this award is a major achievement for the horseracing industry and is the result of a true collaboration between the TBA and the Racing Foundation.

“ It shows what can be achieved when the industry works together. Environmental sustainability is an important subject that will be at the forefront of people’s minds going forward and this project, and subsequent award, is a great place to start. ”

Annual Report and Accounts l 2021

OUR PLANS

Keeping the industry running safely and effectively as the UK continued to navigate its way through the Covid-19 pandemic was the key priority for the TBA in 2021. However, as the government set out plans for a ‘new normal’ in which society lived with Covid-19 in existence, the TBA strategic plans were reviewed to address the longer-term challenges and capitalise on new opportunities in 2022 and beyond.

Environmental, Social and Governance (ESG), issues have become increasingly important in recent years as organisations recognise the ‘social licence’ they need to operate successfully in the long term. As a registered charity the TBA has long been committed to improving industry standards and has developed a more comprehensive plan for 2022 to address these wider societal concerns. Strategies to improve the natural environments on and around stud farms and the industry’s diversity and inclusion work will complement the association’s ambitions for a more sustainable future.

The following pages set out the TBA’s key ambitions for the next twelve months, how it will deliver the required activities and how its success will be measured.

2022 ACTIVITY

Our ambitions, how we will achieve them and how we will know that we are successful.

AMBITION: Deliver learning and development opportunities via TB-Ed, improving accessibility and reach

HOW WE WILL ACHIEVE THIS

HOW WE WILL KNOW WE ARE SUCCESSFUL

Increase in website traffic on the platform.
Continue to invest in the platform and the delivery of relevant and high-quality content.
Increase in engagement with educational resources on the platform.
Deliver regular engaging content and agree priorities for 2022 and beyond that improves accessibility and reach, with a clear structure that ensures content is offered across Levels 1 to 4 within a framework delivering both CPD and accreditation.
Increase in course registrations on the platform.
Growth in returning customers on the platform.
Agree a two-year strategic operational, marketing and communications plan to raise awareness of the platform and support learning and development across the breeding industry, with the aim of being financial sustainable by 2025.
Analyse and monitor platform activity to inform future decision making and the requirements of the industry.
Develop the TBA’s approach to the ongoing operational management and resourcing of TB-Ed project.

AMBITION: Manage and develop the Great British Bonus Scheme

HOW WE WILL ACHIEVE THIS

HOW WE WILL KNOW WE ARE SUCCESSFUL

High levels of registrations at all 3 stages.
Agree a five-year business plan for the scheme, building on its proven ability to influence behaviours of sectors of the bloodstock industry.
Growth in GB-bred foal crop.
Growth in % of mares in the General Stud Book (GSB) covered by stallions standing in GB.
Continue to manage its operation, adopting high levels of integrity and transparency.
Increase in median value of GBB fillies at major sales.
Develop the scheme’s analytical capabilities for its own and broader industry benefit.
Increase in % of filly and mare individual runners that are British bred.
Work in partnership with GBRI and the racing industry to grow awareness of the scheme.

Annual Report and Accounts l 2021

AMBITION: Promote and represent the British breeding industry

HOW WE WILL ACHIEVE THIS

HOW WE KNOW WE ARE SUCCESSFUL

Deliver the 2022 International Thoroughbred Breeders’ Federation (ITBF) conference activities in Newmarket.
Successful delivery of ITBF conference.
Development of shared ownership toolkit and platform.
Encourage shared ownership models and initiatives for thoroughbred breeding to improve reach and affordability.
Publication of sustainability guide and website hub.
Increase in engagement with awards events.
Established and developed dialogue with MPs, peers and civil servants.
Develop the TBA’s support and guidance to encourage a more environmentally sustainable approach to British breeding.
Launch of industry data dashboard.
Influence the race programme and prize money distribution for the long-term health of the sport with continued focus on stayers, fillies/mares and earlier racing of jump breds.
Delivery of Economic Impact Study.
Recognise, celebrate and promote British bred success through TBA events and communications, attracting new potential investors and encouraging continued investment in the industry for development of the breed.
Continue to provide Covid-19 related guidance.
Agree a public affairs plan to ensure effective engagement and representation with Government.
Continue to oversee the industry approach to improving the movement of horses and welfare in transport.
Improve industry insight with the development of the British Breeding Industry Dashboard and support the industry data project and Racing Digital.
Scope, manage and produce the third Economic Impact Study.

AMBITION: Continued membership engagement and growth

HOW WE WILL ACHIEVE THIS

Establish and deliver a plan to maximise the retention of new members gained through GBB.
Continue to campaign for membership growth aimed at associates/enthusiasts/young and new entrants.
Improve member engagement and internal efficiency through an enhanced member relationship management system.
Increase TBA breeding community engagement through member visits, events and regional representative activity.

HOW WE KNOW WE ARE SUCCESSFUL

Increase in associate subscribers.
Develop the TBA approach to the membership value proposition.
Sustain full membership numbers.
Launch of new CRM/CMS system and improved member communications.
Increased event attendance.
Delivery of enhanced membership package.

AMBITION: Delivery of the full thoroughbred breeding industry training and qualification pathway

HOW WE WILL ACHIEVE THIS

Manage the working relationship with the National Stud (NS) including the delivery of the E2SE course to the agreed SLA and the development of the full pathway – L1–4.
Review the Skills Passport and produce Version 2 to include Level 4 criteria and in digital format.
Deliver the annual Stud Farming Course, and any other agreed physical educational activity.
Develop the approach to breeder engagement in learning and development alongside the National Stud and deliver during the summer, including the introduction of mentoring training.

HOW WE KNOW WE ARE SUCCESSFUL

Secure funding for E2SE course beyond 2022.
Increased number of students achieving workplace qualifications.
Workplace mentors appointed.

Annual Report and Accounts l 2021

AMBITION: Support the delivery of a breeding industry people strategy

HOW WE WILL ACHIEVE THIS

HOW WE KNOW WE ARE SUCCESSFUL

Participate in careers promotion events.
Inform future careers recruitment promotion and retention initiatives through a Public Perspectives survey.
Introduce people management guidance and training.
Encourage new and diverse entrants to the industry through the promotion of the TBA bursaries for training and development, tailored e-learning content and working with other organisations.
Complete employee/trustee D&I training.
Recognise and reward those working in the industry through the annual stud employee award, racing staff week promotion and other initiatives.
Ensure comprehensive and up to date employer guidance and support including employment law/ business/health and safety guidance and helplines.
Delivery of the agreed diversity and inclusion (D&I) plan for the breeding industry.
Support other industry initiatives including the wellbeing plan for participants in the breeding industry, code of conduct and safeguarding.

AMBITION: Support and encourage veterinary research for the benefit of thoroughbred breeding stock

HOW WE WILL ACHIEVE THIS

HOW WE KNOW WE ARE SUCCESSFUL

Increase awareness of research results amongst thoroughbred breeding community and wider equine sector.
Conclude current early pregnancy loss and host parasite research, communicate outcomes and use for e-learning and education activity.
New projects identified and confirmed for 2023.
Support the development of the new infectious disease surveillance service.
Successful launch and maintenance of equine infectious disease service.
Identify 2023 projects for consideration with the Horserace Betting Levy Board (HBLB).

AMBITION: Delivery of the TBA equine welfare strategy

HOW WE WILL ACHIEVE THIS

HOW WE KNOW WE ARE SUCCESSFUL

Close gaps in industry data collection.
Benchmark current activity and traceability levels.
Increase understanding and compliance with legislative and registration requirements.
Ongoing strategic thinking and review of welfare issues.
Clear framework of welfare guidance and infectious disease protocols for participants to reference.
Communicate breeding industry high welfare standards through pro-active campaigns and initiatives, to include promoting the widespread adoption of the e-passport.
Continue positive perception of thoroughbred breeding activities.
Continue to improve traceability standards including agreeing future developmental priorities for the e-passport.
Liaise with government on health and welfare consultations and initiatives including the Equine Health and Welfare Pathway and supporting progression towards digitisation of ID and export health certification, and interoperability with industry systems.
Monitor incidences of disease and issue guidance to members on prevention and control of disease, including review, production and effective dissemination of the Codes of Practice.
Equine welfare embedded as a fundamental goal underpinning all learning and development activities delivered by the TBA, including the TBA e-learning platform.

Annual Report and Accounts l 2021

FINANCIAL REVIEW

The results for the year are set out in the financial statements at the end of this annual report and accounts. Total income amounted to £1,762,677 (2020 – £1,552,183) which, after total expenditure of £1,417,855 (2020 – £1,530,940) resulted in a net surplus for the year of £344,822 (2020 – net surplus of £21,243).

As at 31 December 2021 aggregate fund balances amounted to £1,998,635 (2020 – £1,653,813).

Reserves policy

Principal funding

The TBA’s Reserves Policy is managed by the Policy and Business Strategy Committee and ratified by the board. In forming the policy, the TBA aims to ensure that the reserves level matches the TBA’s needs at the time. In setting this policy the TBA assesses the reliability of future income streams, reviews committed expenditure and the likely changes in the main source of income and assesses how the charity would cope with changes in its main source of income and the likelihood of the charity’s needs and the consequences of the TBA not having been able to meet them.

The TBA’s principal funding is derived from the Voluntary Sales Levy and grant income, together with subscriptions and publications income. Grant income increased as a percentage of funding from 28% in 2020 to 33% in 2021.

The charity understands its duty to protect the public, including vulnerable people, from unreasonably intrusive or persistent fundraising approaches, and undue pressure to donate but does not currently fundraise from the public or use any internal fundraisers or external fundraising agencies for either telephone or face to face campaigns and received no fundraising complaints during the year. The charity is a member of the Fundraising Regulator to reinforce responsible fundraising behaviours.

The minimum level of reserves for 2021/22, is set at £1,268,026 (2019/20 – £935,963) to include provision for twelve month’s running costs/provision for closure costs including redundancy payments, sums committed to the education and veterinary projects described above, and a ring fenced element for discretionary use by the board in the event of a disease outbreak requiring central funding.

Programme related investments

The Thoroughbred Breeders’ Association (TBA) and the Racehorse Owners Association formed a mutual trading company in 2005 for the publication and circulation of the magazine ‘Owner Breeder, incorporating Pacemaker’. As of 1 July 2021 the TBA sold its 50% share in the venture to the Racehorse Owners Association for the sum of £100,000 in addition to the repayment of the initial loan of £100,000. All income and expenditure for the company was divided between the two Associations, with magazine production and distribution costs shared as a percentage of respective membership numbers up to that date. The TBA’s investment and sale in the company are accounted for as an unquoted programme-related investment (see note 16 for details).

Actual total reserves were £1,998,635 (2020 – £1,653,813), of which £73,918 (2020 – £3,301) were restricted reserves not available for the general purposes of the charity. The unrestricted general funds were £1,924,717 (2020 - £1,650,512) of which £116,726 (2020 – £111,540) is represented by fixed assets.

The charity’s available free reserves were therefore £1,807,991 (2020 – £1,538,972) which is in line with this policy. The difference between the minimum level of reserves and the actual reserves will be used to fund further initiatives to meet our objectives.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The pay of the Chief Executive Officer is reviewed by the directors annually. The level of salary is periodically benchmarked to ensure that the remuneration set is fair and in line with that generally paid for similar roles.

The company is constituted under a Memorandum of Association dated 11 November 2009 and is a registered charity number 1134293.

The principal objects of the company are to encourage by means of the provision of educational or research facilities or otherwise the science of producing and improving the thoroughbred horse in Great Britain.

Organisational structure and decision making

The Board of Trustees comprises up to 12 elected and co- opted members, who meet at least six times a year to approve policy. The Board Chairman also chairs the Policy and Business Strategy Committee which recommends policy to the board on appropriate matters.

On 31 December 2009 the company acquired the whole of the assets and liabilities of the unincorporated association of the same name under a Deed of Asset transfer.

The Chief Executive reports to the Chairman and the board and sits on all the Association’s sub committees which address and deliver the Association’s objectives in support of the thoroughbred breed.

Method of appointment or election of trustees

The management of the company is the responsibility of the trustees who are elected and co-opted under the terms of the Articles of Association.

Risk management

The trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate our exposure to the major financial risks to the sustainability of activity of the organisation from a reduction in sales levy income and/or a major equine disease outbreak.

Policies adopted for the induction and training of trustees

Newly appointed trustees receive an Induction from the Chief Executive and are provided with Charity Commission Guidance documentation. Trustees are provided with details on updates to legislation on an ongoing basis. The association uses legal advisers to provide ad hoc advice on charitable requirements.

An Annual Review of the risks the charity may face is conducted by the Policy and Business Strategy Committee with any subsequent changes updated in the management register. In 2021, three major perceived risks were identified. The issues around the movement of racehorses and breeding stock across EU borders was identified as a continuing major risk. Lobbying to the UK government as well as EU has continued to take place and close working relationships with our EU partners was evaluated as the most effective way to mitigate this risk. Continuing issues with cross border traffic in 2021 have not eased the perception of this risk and little engagement from UK Government has meant that this risk will continue to be reviewed in 2022.

Pay policy for senior staff

The TBA considers its key management personnel comprise the Board of Directors, who are the charity’s trustees and the Chief Executive Officer.

They are in charge of directing and controlling, running and operating the charity on a day to day basis. All directors give of their time freely and no director received remuneration in the year. Details of the directors’ expenses and related party transactions are disclosed in the notes to the accounts.

Annual Report and Accounts l 2021

The proposed review of the Gambling Act, along with DEFRA consultations on the welfare of animals whilst being transported, have raised the level of perceived risk to the breeding industry from UK Government policies. In early 2022 the industry’s ability to access rebated red diesel was curtailed, with minimum consultation with the racing industry, adding to economic pressures on the sector. As such this perceived risk has been raised up the scoring matrix and closer ties with government departments is seen as the best method to mitigate this.

The third major risk in 2021 is perceived to be that of climate change. With the potential for a decrease in biodiversity, an increase in extreme weather events and obvious impacts on grassland, this is now seen as a major risk to the industry. This risk also incorporates the change in Government stance on use of petrochemicals and other inputs to the industry that may add to costs and cause difficulty in stud operations. The creation of a role within the TBA Executive to manage and map a strategy for sustainability for both the organisation and the breeding industry is seen as a first step to track and control this risk.

The charity continues to perceive that sources of funding and dependency on traditional sources of income are a high risk. The reserves policy in the first instance and the continued monitoring of sales levy, as well as continuing diversification planning on income sources is considered to be reasonable mitigation.

A key element of the management of financial risk is the setting of a reserves policy, which is regularly reviewed by the trustees as a result of the charity’s reliance on a high level of voluntary donations. The TBA’s reserves policy provides for cash reserves of not less than twelve month’s overall expenditure for the charity. Details are provided under Reserves Policy above.

Public benefit

The trustees confirm that they have referred to the Charity Commission’s guidance on public benefit when reviewing the Charity’s aims and objectives and in planning future activities. The Thoroughbred Breeders’ Association is a registered charity whose charitable purpose defined within the Charities Act 2011 is to encourage by means of the provision of education or research facilities or otherwise the science of producing and improving the thoroughbred horse in Great Britain.

Trustees’ responsibilities statement

The trustees (who are also directors of The Thoroughbred Breeders’ Association for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP 2019 (FRS 102);
make judgements and estimates that are reasonable and prudent;
state whether applicable UK accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position he financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company 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 corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of information to auditors

Each of the persons who are trustees at the time when this

Trustees’ Report is approved has confirmed that:

so far as that trustee is aware, there is no relevant audit information of which the charitable company’s auditors are unaware, and
that trustee has taken all the steps that ought to have been taken as a trustee in order to be aware of any relevant audit information and to establish that the charitable company’s auditors are aware of that information.

Auditors

The auditors, Price Bailey LLP have indicated their willingness to continue in office. The Designated Trustees will propose a motion re-appointing the auditors at a meeting of the trustees.

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

This report was approved by the trustees, on 24 August 2022 and signed on their behalf by:

Julian Richmond-Watson Chairman

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Annual Report and Accounts l 2021
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Annual Report and Accounts l 2021

OFFICERS AND CONTACTS 2021

Chairman

Patron

Her Majesty The Queen

Julian Richmond-Watson

Trustees (per Companies House register)

James Crowhurst

Julian Richmond-Watson

CHAIRMAN

Bryan Mayoh

Thomas Blain

Peter Mendham

(resigned 15 July 2021)

Colin Bryce

Chief Executive

Claire Sheppard

Matthew Prior

Kate Sigsworth

Ted Voute

TBA STANDING COMMITTEES 2021 MEMBERS

Committee membership review takes place annually, next review July 2022. The Chief Executive attends all committee meetings alongside relevant executives. The secretariat for each committee is highlighted in red.

Appointments and

Audit

Juliet Frost Remuneration Juliet Frost Colin Bryce (Chair) Julian Richmond-Watson (Chair) Matthew Prior Anita Wigan (Vacant) Matthew Prior Colin Bryce

Membership, Communications and Marketing

Olivia May

Philip Newton (Chair) Ted Voute Anita Wigan Tom Blain By invitation: Neil Adcock

Anita Wigan

Samuel Bullard

Simon Cox (appointed 21 October 2021)

Principal Banker

Weatherbys Bank Limited Sanders Road Wellingborough Northamptonshire NN8 4BX

Executive Team

Robert Davey Bloodstock Executive

Heather Ewence Education Executive (maternity cover)

Juliet Frost Financial Controller

Philip Newton

DEPUTY CHAIRMAN

Independent Auditor

Price Bailey LLP Chartered Accountants & Statutory Auditors Tennyson House Cambridge Business Park Cambridge CB4 0WZ

Alix Jones Membership Executive

Charlotte Lovatt Communications Manager

Olivia May Communications Coordinator

Victoria Murrell Executive Secretary

Charlotte Newton Great British Bonus Operations Executive

Melissa Rose Education Executive

Caroline Turnbull Education & Welfare Manager

Education and Employment

Melissa Rose/Heather Ewence

Sam Bullard (Chair) Tina Bunton James Crowhurst Richard Lancaster Anita Wigan Julian Wilson Kate Sigsworth James Read

Jump

Rob Davey

Bryan Mayoh (Chair) By invitation: David Futter Stuart Middleton Peter Hockenhull Simon Sweeting Will Kinsey Matthew Prior Liz Lucas Aiden Murphy Nick Luck Tim Kent Tessa Greatrex Simon Cox Tom Symonds Philip Newton

Policy and Strategy

Veterinary and

Equine Health and Welfare

Victoria Murrell

Melissa Rose/Heather Ewence

Julian Richmond-Watson (Chair) Bryan Mayoh Philip Newton Colin Bryce (Vacant)

James Crowhurst (Chair) Sam Bullard Simon Mockridge Richard Newton Sidney Ricketts John Spencer James Tate Ted Voute Kate Sigsworth

Flat

Rob Davey

FLAT:

SALES CONSIGNORS:

Philip Newton (Chair) Ted Voute (Chair) Tom Blain Tom Blain Fiona Denniff Ed Harper Charlie Fellowes Jamie Railton David Hodge Mike Shepherd Tim Lane Oliver St. Lawrence Nick Pocock Marie Sullivan Larry Stratton Simon Sweeting Ted Voute Paul Thorman Anita Wigan Carolyn Warren Bryan Mayoh Andrew Mead By invitation: Billy Jackson-Stops Mike Waring Rachael Gowland

Annual Report and Accounts l 2021

EXTERNAL COMMITTEE REPRESENTATION (AS OF JULY 2021)

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EUROPEAN European EFTBA EFTBA
Federation of Veterninary Genomics
Thoroughbred Committee
Breeders’ James Crowhurst
I.C.S.C. (Europe) Associations James Crowhurst
Ted Voute (EFTBA)
Julian Richmond-Watson
Claire Sheppard
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DOMESTIC
Members Committee Julian Richmond-Watson Julian Richmond-Watson
Claire Sheppard (observer)
Julian Richmond-Watson
Flat Pattern Committee
Julian Richmond-Watson
Tattersalls Liaison Group
BHA Veterinary Committee Claire Sheppard Anita Wigan
John Spencer Ted Voute
James Crowhurst
Racing Group
Philip Newton
Philip Newton
Fixtures and Funding Group
Claire Sheppard
Claire Sheppard
ALL PARTY PARLIAMENTARY
Thoroughbred Industry GROUP FOR THE HORSE
Welfare Forum Thoroughbred Industry Claire Sheppard
Claire Sheppard Brexit Steering Group
Julian Richmond-Watson
Public Affairs Group Claire Sheppard
Claire Sheppard Peter Mendham
Racing Together
Charlotte Lovatt
HBLB CODES OF PRACTICE
GBRI Stakeholder Group COMMITTEE
Charlotte Lovatt Caroline Turnbull
James Crowhurst
Training and Providers Groups
Caroline Turnbull
People Board
Recruitment and Industry
E-learning Group
Claire Sheppard
Caroline Turnbull
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INTERNATIONAL
ITBF ITBF Veterninary
Julian Richmond-Watson Committee
Claire Sheppard James Crowhurst
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THANK YOU

The TBA would like to thank all individuals and organisations who supported the association in 2021.

Trusts, partners and supporters

Sales levy

Thank you to:

The sales levy is a hugely important resource to the association and the TBA is grateful to those who have supported and contributed. Without this vital funding the work detailed in this report would not have been possible.

The Levy Board – whose funding supported veterinary research, the Great British Bonus (GBB) Scheme, the Codes of Practice, the Elite NH Mares’ Incentive Scheme and also the association’s education programme.
The Racing Foundation – which committed to supporting a number of the association’s equine welfare and environmental sustainability projects. With specific support for the successful Entry to Stud Employment Scheme (E2SE) and development of the TB-Ed platform.
Weatherbys – which supported various areas of activity including headline sponsorship of the TB-Ed platform and support of TBA events and publications.
Event sponsors who helped contribute to the delivery of important services for the thoroughbred breeding community.

Annual Report and Accounts l 2021

THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee) TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF THE THOROUGHBRED BREEDERS’ ASSOCIATION

Conclusions relating to going concern

Opinion

We have audited the financial statements of The Thoroughbred Breeders’ Association (the ‘charitable company’) for the year ended 31 December 2021 which comprise the Statement of Financial Activities incorporating Income and Expenditure Account, the Balance sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 charitable company’s ability to continue as a going concern for a period of at least 12 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.

In our opinion the financial statements:

give a true and fair view of the state of the charitable company’s affairs as at 31 December 2021, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

Other information

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

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006

Basis for opinion

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 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 charitable company 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.

We have nothing to report in this regard.

Annual Report and Accounts l 2021

THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee) TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

INDEPENDENT AUDITORS’ REPORT (continued) TO THE MEMBERS OF THE THOROUGHBRED BREEDERS’ ASSOCIATION

Opinions on other matters prescribed by the Companies Act 2006

the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

the information given in the trustees’ report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and

In preparing the financial statements, the trustees are responsible for assessing the charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.

the directors’ report included within the trustees’ report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

Auditor’s responsibilities for the audit of the financial statements

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

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.

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

adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or

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:

certain disclosures of trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit ; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors report and from the requirement to prepare a strategic report.

We gained an understanding of the legal and regulatory framework applicable to the charitable company and how it operates and considered the risk of the charitable company not complying with the applicable laws and regulations including fraud in particular those that could have a material impact on the financial statements. This included those regulations directly related to the financial statements. In relation to the charity this included data protection, health and safety, employment law and financial reporting.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 31, the trustees (who are also

INDEPENDENT AUDITORS’ REPORT (continued)

TO THE MEMBERS OF THE THOROUGHBRED BREEDERS’ ASSOCIATION

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

The risks were discussed with the audit team and we remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following:

Management override: We reviewed systems and procedures to identify potential areas of management override risk. In particular, we carried out testing of journal entries and other adjustments for appropriateness.
Reviewing minutes of Trustee Board meetings, minutes of Audit Committee meetings and correspondence with the Charity Commission, agreeing the financial statement disclosures to underlying supporting documentation, enquiries of management including those responsible for the key regulations and a review of the risk management processes and procedures in place. We have also reviewed the procedures in place for the reporting of any incidents to the Trustee Board including serious incident reporting of these matters as necessary with the Charity Commission.

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 charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members, for our audit work, for this report, or for the opinions we have formed.

Helena Wilkinson BSc FCA DChA (Senior Statutory Auditor) For and on behalf of Price Bailey LLP

Chartered Accountants

Statutory Auditors Tennyson House Cambridge Business Park Cambridge CB4 0WZ United Kingdom

26 August 2022 Date: ___________

Annual Report and Accounts l 2021

THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee) TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES INCOME FROM: Donatons and legacies 3 Charitable actvites 4 Other trading actvites 5 Investments 6 Other Income – gain on disposal 16 of programme investment TOTAL INCOME EXPENDITURE ON: Raising funds 7 Charitable actvites 8 TOTAL EXPENDITURE NET INCOME BEFORE TRANSFERS Transfers between funds 21 NET INCOME FOR THE YEAR AFTER TRANSFERS BEING NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS: Total funds brought forward TOTAL FUNDS CARRIED FORWARD	RESTRICTED UNRESTRICTED TOTAL TOTAL FUNDS FUNDS FUNDS FUNDS 2021 2021 2021 2020 £ £ £ £ 592,725 750,418 1,343,143 1,312,238 - 258,804 258,804 202,770 - 41,978 41,978 11,351 - 18,752 18,752 25,824 - 100,000 100,000 -
	592,725 1,169,952 1,762,677 1,552,183
	- 59,717 59,717 42,071 561,955 796,183 1,358,138 1,488,869
	561,955 855,900 1,417,855 1,530,940
	30,770 314,052 344,822 21,243 39,847 (39,847) - -
	70,617 274,205 344,822 21,243 3,301 1,650,512 1,653,813 1,632,570
	73,918 1,924,717 1,998,635 1,653,813

The notes on pages 43 to 61 form part of these financial statements.

REGISTERED NUMBER: 07073259 BALANCE SHEET AS AT 31 DECEMBER 2021

NOTES FIXED ASSETS Tangible assets 14 Investments 15 CURRENT ASSETS Stocks 17 Debtors 18 Investments 19 Cash at bank and in hand CREDITORS: amount falling due within one year 20 NET CURRENT ASSETS NET ASSETS CHARITY FUNDS Restricted funds 21 Unrestricted funds 21 TOTAL FUNDS	2021 2020 £ £ £ £ 16,726 11,540 100,000 100,000
	116,726 111,540
	500 500 198,648 211,269 1,318,157 1,311,271 628,578 354,986
	2,145,883 1,878,026 (263,974) (335,753)
	1,881,909 1,542,273
	1,998,635 1,653,813
	73,918 3,301 1,924,717 1,650,512
	1,998,635 1,653,813

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

The financial statements were approved and authorised for issue by the Trustees on 24 August 2022 and signed on their behalf, by:

Julian Richmond-Watson Chairman

The notes on pages 43 to 61 form part of these financial statements.

Annual Report and Accounts l 2021

THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee) TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES

		2021	2020
	NOTES	£	£
Cash fows from operatng actvites
Net cash fow from operatng actvites	23	264,142	(144,957)
Cash fows from investng actvites
Dividends, interest and rents from investments		18,752	25,824
Purchase of tangible fxed assets		(9,301)	(6,166)
Net cash provided by investng actvites		9,451	19,658
Change in cash and cash equivalents in the year		273,592	(125,299)
Cash and cash equivalents brought forward		354,986	480,285
Cash and cash equivalents carried forward		628,578	354,986

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

		2021	2020
	NOTES	£	£
Increase/(Decrease) in cash in the year being
movement in net funds in the year	24	273,592	(125,299)
Net funds at 1 January		354,986	480,285
Net funds at 31 December		628,578	354,986

1.1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

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) (effective 1 January 2019) - Charities SORP (FRS 102), and the Companies Act 2006.

The Thoroughbred Breeders’ Association meets the definition of a public benefit entity under FRS 102 and is incorporated in England and Wales, United Kingdom.

The financial statements are presented in Sterling and are rounded to the nearest £.

1.2. COMPANY STATUS

The company is a company limited by guarantee not having share capital. There are currently 12 (2020 – 12) Trustees who are also the members of the company named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company. The charity is a registered charity. The registered office of the charity is Stanstead House, 8 The Avenue, Newmarket, Suffolk, CB8 9AA.

1.3. GOING CONCERN

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Whilst the Covid – 19 outbreak did suppress income in 2020, the conservative forecasts for income in 2021 were exceeded and the sale of the interest in the joint venture has released further cash in 2021. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4. FUND ACCOUNTING

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

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

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

1.5. INCOME

All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Donations and income from voluntary levies are recognised when the company has been notified in writing of both the amount and settlement date.

Income from grants is recognised when the company has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income from training courses and meetings and event income is recognised in the period that the meeting or event takes place.

Income from subscriptions is recognised over the period to which it relates.

Annual Report and Accounts l 2021

THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee) TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

1. ACCOUNTING POLICIES (continued)

1.6. EXPENDITURE

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

Software development costs are allocated against educational activity and written off as incurred.

Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

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

1.7. INTEREST RECEIVABLE

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

1.8. TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write

off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Office equipment - 20% Straight Line

Library assets - Not depreciated as these are regularly replaced.

1.9. INVESTMENTS

Fixed asset investments in unlisted bonds are carried at historical cost less any impairment provision.

Current asset investments include liquid assets with maturity of between three and twelve months. These are held at fair value with movements in valuation through the Statement of Financial Activities.

1.10. INVESTMENT IN JOINT VENTURE

The joint venture, Owner Breeder Media Group Limited (OBMG Ltd) (Formerly Thoroughbred Owner and Breeder Limited), a company limited by guarantee and established in 2005. Thoroughbred Breeders Association had joint control over the Company by way of being able to appoint directors to the board. OBMG Ltd generates trading losses each year and requires contributions from the members to continue operating. Given the nature of the joint venture’s activities, all contributions towards the operating costs of the company have been treated as ‘expenditure on charitable activities’ in the Statement of Financial Activities.

OBMG Ltd’s activities further the charitable purpose of Thoroughbred Breeders Association and there was not a financial incentive for making the investment. Amounts paid to OBMG Ltd were considered to be a concessionary loan and therefore the investment was treated as a Programme Related Investment. This was held at cost less provision for impairment until its sale, see below.

An agreement between the TBA and The Racehorse Owners Association was reached in the first half of 2021 and the TBA’s share in OBMG Ltd was sold to the ROA for a sum of £100,000, along with a repayment of the £100,000 investment. The TBA then signed a supply agreement with OBMG Ltd to secure the supply of the Owner Breeder magazine to members for a further year as of 1 July 2021.

1. ACCOUNTING POLICIES (continued)

1.11. STOCKS

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost is calculated using average cost and includes all direct costs.

1.12. DEBTORS

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

1.13. CASH AT BANK AND IN HAND

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

1.14. LIABILITIES

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

1.15. FINANCIAL INSTRUMENTS

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs).

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Fixed assets are recorded at depreciated historical cost and all other assets and liabilities are recorded at cost which is their fair value.

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

bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.16 PENSIONS

The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year. The assets of the scheme are held separately from those of the charity in an independently administered fund.

2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY

SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Charity’s accounting policies, which are described in note 1, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts 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 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The critical accounting estimates or judgements applied by the Trustees which have a significant impact on the amounts disclosed in the financial statements are as follows:

Deferred Membership Income

Deferred membership income is reviewed annually to ensure the best estimate for each period. Membership subscriptions run annually from the start of the month they are paid.

Annual Report and Accounts l 2021

THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee) TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

3. INCOME FROM DONATIONS AND LEGACIES


Donatons Grants Voluntary levies Total donatons and legacies 2020 - Comparatve Donatons Grants Voluntary levies Total donatons and legacies	RESTRICTED UNRESTRICTED TOTAL FUNDS FUNDS FUNDS 2021 2021 2021 £ £ £ - 25,855 25,855 574,637 - 574,637 18,088 724,563 742,651
	592,725 750,418 1,343,143
	RESTRICTED UNRESTRICTED TOTAL FUNDS FUNDS FUNDS 2020 2020 2020 £ £ £ - 23,822 23,822 434,477 - 434,477 18,687 835,252 853,939
	453,164 859,074 1,312,238

4. INCOME CHARITABLE ACTIVITIES

Subscriptons and publicatons income Training courses Total charitable actvites 2020 - Comparatve Subscriptons and publicatons income Mare owners prize scheme initatve Total charitable actvites	RESTRICTED UNRESTRICTED TOTAL FUNDS FUNDS FUNDS 2021 2021 2021 £ £ £ - 216,676 216,676 - 42,128 42,128
	- 258,804 258,804
	RESTRICTED UNRESTRICTED TOTAL FUNDS FUNDS FUNDS 2020 2020 2020 £ £ £ - 202,020 202,020 - 750 750
	- 202,770 202,770

5. OTHER TRADING ACTIVITIES

6. INVESTMENT INCOME Meetngs and events income 2020 - Comparatve Meetngs and events income	RESTRICTED UNRESTRICTED TOTAL FUNDS FUNDS FUNDS 2021 2021 2021 £ £ £ - 41,978 41,978 RESTRICTED UNRESTRICTED TOTAL FUNDS FUNDS FUNDS 2020 2020 2020 £ £ £ - 11,351 11,351
Bank interest 2020 - Comparatve Bank interest	RESTRICTED UNRESTRICTED TOTAL FUNDS FUNDS FUNDS 2021 2021 2021 £ £ £ - 18,752 18,752 RESTRICTED UNRESTRICTED TOTAL FUNDS FUNDS FUNDS 2020 2020 2020 £ £ £ - 25,824 25,824

Annual Report and Accounts l 2021

THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee) TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

7. COST OF RAISING FUNDS

Fundraising and publicity Meetng and events costs Total cost of raising funds 2020 - Comparatve Fundraising and publicity Meetng and events costs Total cost of raising funds	RESTRICTED UNRESTRICTED TOTAL FUNDS FUNDS FUNDS 2021 2021 2021 £ £ £ - 20,908 20,908 - 38,809 38,809
	- 59,717 59,717
	RESTRICTED UNRESTRICTED TOTAL FUNDS FUNDS FUNDS 2020 2020 2020 £ £ £ - 22,538 22,538 - 19,533 19,533
	- 42,071 42,071

8. ANALYSIS OF EXPENDITURE BY ACTIVITIES

	ACTIVITIES	GRANT
	UNDERTAKEN	FUNDING OF	SUPPORT
	DIRECTLY	ACTIVITIES	COSTS	TOTAL
	2021	2021	2021	2021
	£	£	£	£
Research	27,100	71,920	193,348	292,368
Educaton	364,506	-	193,349	557,855
Promoton of awareness of the breed	307,347	-	200,568	507,915
Total 2021	698,953	71,920	587,265	1,358,138

Total expenditure on charitable activities attributable to restricted funds is £561,955 (2020 - £656,382).

2020 - Comparative

2020 - Comparatve
	ACTIVITIES	GRANT
	UNDERTAKEN	FUNDING OF	SUPPORT
	DIRECTLY	ACTIVITIES	COSTS	TOTAL
	2020	2020	2020	2020
	£	£	£	£
Research	34,035	96,908	205,537	336,480
Educaton	428,668	-	205,537	634,205
Promoton of awareness of the breed	305,461	-	212,723	518,184
Total 2020	768,164	96,908	623,797	1,488,869

9. ANALYSIS OF GRANTS

	GRANTS TO	GRANTS TO
	INSTITUTIONS	INDIVIDUALS	TOTAL
	2021	2021	2021
	£	£	£
Grants, Research	51,020	20,900	71,920
2020 - Comparatve
	GRANTS TO	GRANTS TO
	INSTITUTIONS	INDIVIDUALS	TOTAL
	2020	2020	2020
	£	£	£
Grants, Research	88,508	8,400	96,908

Grants to institutions totalled £51,020 (2020 – £74,918) which was granted wholly to the Horserace Betting Levy Board, for Infectious Disease Surveillance (2020 - £50,000). HBLB Veterinary research projects in 2021, £1,020 (2020 - £24,918) and University College London Royal Veterinary College, £Nil (2020 - £13,590) were suspended due to there being no grant application process in place in 2020 for 2021 projects at the HBLB, who validate all veterinary research projects the TBA contribute to. Grants of £200 each towards the costs of foetal post mortems were distributed to 18 individuals (2020 – 17) and two veterinary advisors were granted honorariums of £5,000 each (2020 - £2,500 for six months) for their continued dedication to the TBA and imparting knowledge for the good of the industry. Development and production of TBA Equine welfare guidelines cost £7,300 (2020 - £Nil).

10. DIRECT COSTS

Producton and distributon of magazine Stud staf training scheme Marketng and promoton Wages and salaries Natonal Insurance Pension cost	PROMOTION OF AWARENESS TOTAL RESEARCH EDUCATION OF THE BREED 2021 £ £ £ £ 27,100 27,100 - 54,200 - 299,707 - 299,707 - - 307,347 307,347 - 30,952 - 30,952 - 4,271 - 4,271 - 2,476 - 2,476
	27,100 364,506 307,347 698,953

Annual Report and Accounts l 2021

THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee) TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

10. DIRECT COSTS (continued)

2020 - Comparative

2020 - Comparatve
Producton and distributon of magazine Stud staf training scheme Marketng and promoton Wages and salaries Natonal Insurance Pension cost	PROMOTION OF AWARENESS TOTAL RESEARCH EDUCATION OF THE BREED 2020 £ £ £ £ 34,035 34,036 - 68,071 - 358,031 - 358,031 - - 305,461 305,461 - 30,050 - 30,050 - 4,147 - 4,147 - 2,404 - 2,404
	34,035 428,668 305,461 768,164

11. SUPPORT COSTS

Property costs Library and ofce expenses Legal and professional fees Miscellaneous expenditure Printng and statonery Computer costs EFTBA subscripton Consultancy Auditors remuneraton ITBF subscripton Meetngs, commitee and travel Accountancy and tax advisory Wages and salaries Natonal insurance Pension cost Depreciaton Reversal of previous TOB investment impairment	PROMOTION OF AWARENESS TOTAL RESEARCH EDUCATION OF THE BREED 2021 £ £ £ £ 9,444 9,444 9,444 28,332 8,146 8,147 8,146 24,439 4,618 4,618 4,618 13,854 3,759 3,759 3,759 11,277 867 867 867 2,601 3,804 3,804 3,804 11,412 - - 7,220 7,220 1,100 1,100 1,100 3,300 2,983 2,983 2,984 8,950 751 751 751 2,253 2,324 2,324 2,324 6,972 108 108 108 324 154,415 154,415 154,415 463,245 16,700 16,700 16,700 50,100 16,290 16,290 16,290 48,870 1,372 1,372 1,372 4,116 (33,333) (33,333) (33,334) (100,000)
	193,348 193,349 200,568 587,265

Property costs
Library and ofce expenses
Legal and professional fees
Miscellaneous expenditure
Printng and statonery
Computer costs
EFTBA subscripton
Consultancy
Auditors remuneraton
ITBF subscripton
Meetngs, commitee and travel
Accountancy and tax advisory
Wages and salaries
Natonal insurance
Pension cost
Depreciaton
Reversal of previous TOB investment impairment

PROMOTION OF
AWARENESS
TOTAL
RESEARCH
EDUCATION
OF THE BREED
2021
£
£
£
£
9,444
9,444
9,444
28,332
8,146
8,147
8,146
24,439
4,618
4,618
4,618
13,854
3,759
3,759
3,759
11,277
867
867
867
2,601
3,804
3,804
3,804
11,412
-
-
7,220
7,220
1,100
1,100
1,100
3,300
2,983
2,983
2,984
8,950
751
751
751
2,253
2,324
2,324
2,324
6,972
108
108
108
324
154,415
154,415
154,415
463,245
16,700
16,700
16,700
50,100
16,290
16,290
16,290
48,870
1,372
1,372
1,372
4,116
(33,333)
(33,333)
(33,334)
(100,000)

193,348
193,349
200,568
587,265

11. SUPPORT COSTS (continued)

2020 - Comparative

2020 - Comparatve
Property costs Library and ofce expenses Legal and professional fees Miscellaneous expenditure Printng and statonery Computer costs EFTBA subscripton Consultancy Auditors remuneraton Meetngs, commitee and travel Accountancy and tax advisory Wages and salaries Natonal insurance Pension cost Depreciaton Bad debts Irrecoverable VAT	PROMOTION OF AWARENESS TOTAL RESEARCH EDUCATION OF THE BREED 2020 £ £ £ £ 9,605 9,605 9,605 28,815 9,587 9,587 9,587 28,761 167 167 167 501 4,891 4,891 4,891 14,673 757 757 757 2,271 5,023 5,023 5,023 15,069 - - 7,186 7,186 1,100 1,100 1,100 3,300 2,850 2,850 2,850 8,550 2,096 2,096 2,096 6,288 406 406 406 1,218 130,858 130,858 130,858 392,574 19,471 19,471 19,471 58,413 16,042 16,042 16,042 48,126 1,207 1,207 1,207 3,621 1,472 1,472 1,472 4,416 5 5 5 15
	205,537 205,537 212,723 623,797

2020 - Comparatve

Property costs
Library and ofce expenses
Legal and professional fees
Miscellaneous expenditure
Printng and statonery
Computer costs
EFTBA subscripton
Consultancy
Auditors remuneraton
Meetngs, commitee and travel
Accountancy and tax advisory
Wages and salaries
Natonal insurance
Pension cost
Depreciaton
Bad debts
Irrecoverable VAT

PROMOTION OF
AWARENESS
TOTAL
RESEARCH
EDUCATION
OF THE BREED
2020
£
£
£
£
9,605
9,605
9,605
28,815
9,587
9,587
9,587
28,761
167
167
167
501
4,891
4,891
4,891
14,673
757
757
757
2,271
5,023
5,023
5,023
15,069
-
-
7,186
7,186
1,100
1,100
1,100
3,300
2,850
2,850
2,850
8,550
2,096
2,096
2,096
6,288
406
406
406
1,218
130,858
130,858
130,858
392,574
19,471
19,471
19,471
58,413
16,042
16,042
16,042
48,126
1,207
1,207
1,207
3,621
1,472
1,472
1,472
4,416
5
5
5
15

205,537
205,537
212,723
623,797

Support costs have been allocated on a basis consistent with the use of resources which principally is derived from time spent in different activities. Governance costs have been allocated to research, education and promotion of awareness of the breed in proportion to the other total costs incurred on each activity.

During the year, the Charity incurred the following governance costs:

£8,950 (2020 - £8,550) included within the table above in respect of auditors remuneration

£324 (2020 - £1,218) included within the table above in respect of accountancy and tax advisory
£2,083 (2020 – £2,005) included within the table above in respect of meetings, committee and travel
£36,518 (2020 - £36,096) included within the table above in respect of wages and salaries, pensions and national insurance.

Annual Report and Accounts l 2021

THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee) TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

12. NET INCOME FOR THE YEAR

This is stated afer charging:
	2021	2020
	£	£
Depreciaton of tangible fxed assets owned by the charity	3,904	3,620
Auditors’ remuneraton – audit	8,950	8,550
Auditors’ remuneraton – other	324	1,218
Operatng lease rental	25,798	22,509

13. STAFF COSTS, TRUSTEES EXPENSES AND COST OF KEY MANAGEMENT PERSONNEL

Staf costs were as follows: Wages and salaries Social security costs Other pension costs	2021 2020 £ £ 493,388 439,461 54,372 49,526 51,345 46,725
	599,105 535,712

Pension costs above are unrestricted as the income received to be spent on staff costs is unrestricted.

14. TANGIBLE FIXED ASSETS

COST At 1 January 2021 Additons Disposals At 31 December 2021 DEPRECIATION At 1 January 2021 Charge for the year Eliminated on disposal At 31 December 2021 NET BOOK VALUE At 31 December 2021 At 31 December 2020	OFFICE LIBRARY EQUIPMENT ASSETS TOTAL £ £ £ 25,721 100 25,821 9,301 - 9,301 (3,306) - (3,306)
	31,716 100 31,816
	14,281 - 14,281 3,904 - 3,904 (3,095) - (3,095)
	15,090 - 15,090
	16,626 100 16,726
	11,440 100 11,540

The average number of persons employed by the charity during the year was 10 (2020 - 9) as detailed in the table below. The gender split was 9 female and 1 male (2020 - 8 female and 1 male):

15. INVESTMENTS

Research Educaton Marketng and promoton Management and administraton The number of higher paid employees: In the band of £130,001 - £140,000 In the band of £120,001 - £130,000	2021 2020 £ £ 2 2 2 2 3 2 3 3
	10 9
	2021 2020 No. No. 1 0 0 1

COST At 1 January 2021 and 31 December 2021 INVESTMENTS AT COST COMPRISE: Unlisted investments All the fxed asset investments are held in the UK.	UNLISTED SECURITIES £ 100,000
	2021 2020 £ £ 100,000 100,000

£10,100 (2020 - £10,000) was paid into a defined contribution pension scheme on behalf of the above higher paid employee.

Key management personnel of the charity comprises the Trustees and the Chief Executive Officer. The total employment benefits of key management personnel, including employers pension contribution and employers national insurance were £157,181 (2020 - £153,887).

The Charity trustees were not paid and did not receive any other benefits from the Charity during the current or previous year.

During the year, three Trustees (2020 - three Trustees) received reimbursement for travel and subsistence expenses of £2,083 (2020 - £1,816).

Annual Report and Accounts l 2021

THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee) TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

16. PROGRAMME RELATED INVESTMENTS

COST At 1 January 2021 and 31 December 2021 Disposals IMPAIRMENT At 1 January 2021 and 31 December 2021 Reversal of impairment at point of sale 1 July 2021 NET BOOK VALUE At 30 June 2021 At 31 December 2020 PROGRAMME RELATED INVESTMENTS COMPRISE: Concessionary loan to Owner Breeder Media Group Limited	UNQUOTED PROGRAMME RELATED INVESTMENT £ 100,000 (100,000)
	100,000 (100,000)
	-
	-
	Total Total 2021 2020 £ £ - -

18. DEBTORS

19. CURRENT ASSET INVESTMENTS DUE AFTER MORE THAN ONE YEAR Other debtors DUE WITHIN ONE YEAR Trade debtors Other debtors Prepayments and accrued income	2021 2020 £ £ 15,909 15,909 100,907 76,100 49,235 96,372 32,597 22,888 198,648 211,269
Cash deposits	2021 2020 £ £ 1,318,157 1,311,271

20. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

The unquoted programme related investment represents an unsecured loan to Owner Breeder Media Group Limited (Formerly Thoroughbred Owner and Breeder Limited), a company in which the Association had a 50% interest (see note 25 below). This loan had previously been impaired fully as the primary purpose of the loan had been fulfilled through the provision of the publication to members.

During the year an offer was made to the TBA for their 50% stake in Owner Breeder Media Group Limited, which was received favourably due to escalating costs of producing a print magazine. As such the TBA sold its 50% stake on 1 July 2021 to the Racehorse Owners Association, the other 50% owners in the venture. In addition to the initial loan, impairment was reversed in full and was fully repaid at the time of sale.

Trade creditors Other taxaton and social security Other creditors Accruals and deferred income	2021 2020 £ £ 58,034 133,579 21,440 17,110 2,516 1,659 181,984 183,405
	263,974 335,753

Included within creditors due within one year is £2,517 (2020 - £3,819) payable to contribution pension schemes.

17. STOCKS

	2021	2020
	£	£
Finished goods and goods for resale	500	500

Deferred Income brought forward Income recognised in the year Income deferred in the year Deferred Income carried forward	2021 2020 £ £ 79,675 76,415 (79,675) (76,415) 85,934 79,675
	85,934 79,675

Annual Report and Accounts l 2021

THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee) TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

21. STATEMENT OF FUNDS

STATEMENT OF FUNDS CURRENT YEAR

UNRESTRICTED FUNDS General Funds RESTRICTED FUNDS Educaton and Employment: Horseracing Betng Levy Board Racing Foundaton E2SE Great Britsh Bonus Scheme Health & Safety Project Environmental Sustainability Digital & Data Strategy Breeding Industry Strategy Staf Training and Development Evaluaton Veterinary Research Fund Total of funds	BALANCE BALANCE AT 1 JAN TRANSFERS AT 31 DEC 2021 INCOME EXPENDITURE IN/OUT 2021 £ £ £ £ £ 1,650,512 1,169,952 (855,900) (39,847) 1,924,717 - 73,688 (73,688) - - - 187,164 (131,000) - 56,164 - 247,285 (247,285) - - 3,301 - - - 3,301 - 20,000 (12,200) - 7,800 - 37,500 (75,000) 37,500 - - - - - - - 4,000 (4,694) 2,347 1,653 - 5,000 - - 5,000 - 18,088 (18,088) - -
	3,301 592,725 (561,955) 39,847 73,918
	1,653,813 1,762,677 (1,417,855) - 1,998,635

UNRESTRICTED FUNDS
General Funds
RESTRICTED FUNDS
Educaton and Employment:
Horseracing Betng Levy Board
Racing Foundaton E2SE
Great Britsh Bonus Scheme
Health & Safety Project
Environmental Sustainability
Digital & Data Strategy
Breeding Industry Strategy
Staf Training and Development
Evaluaton
Veterinary Research Fund
Total of funds

BALANCE
BALANCE
AT 1 JAN
TRANSFERS
AT 31 DEC
2021
INCOME
EXPENDITURE
IN/OUT
2021
£
£
£
£
£
1,650,512
1,169,952
(855,900)
(39,847)
1,924,717
-
73,688
(73,688)
-
-
-
187,164
(131,000)
-
56,164
-
247,285
(247,285)
-
-
3,301
-
-
-
3,301
-
20,000
(12,200)
-
7,800
-
37,500
(75,000)
37,500
-
-
-
-
-
-
-
4,000
(4,694)
2,347
1,653
-
5,000
-
-
5,000
-
18,088
(18,088)
-
-

3,301
592,725
(561,955)
39,847
73,918

1,653,813
1,762,677
(1,417,855)
-
1,998,635

21. STATEMENT OF FUNDS (continued)

STATEMENT OF FUNDS PRIOR YEAR

UNRESTRICTED FUNDS General Funds RESTRICTED FUNDS Educaton and Employment: Horseracing Betng Levy Board Racing Foundaton E2SE Great Britsh Bonus Scheme Health & Safety project Digital & Data Strategy Breeding Industry Strategy Staf Training and Development Evaluaton Veterinary Research Fund Total of funds	BALANCE BALANCE AT 1 JAN TRANSFERS AT 31 DEC 2020 INCOME EXPENDITURE IN/OUT 2020 £ £ £ £ £ 1,456,213 1,099,019 (874,558) (30,162) 1,650,512 - 45,800 (45,800) - - - 88,838 (172,500) 83,662 - - 253,339 (253,339) - - 3,301 - - - 3,301 118,056 37,500 (158,056) 2,500 - 50,000 - - (50,000) - - 4,000 (8,000) 4,000 - 5,000 5,000 - (10,000) - - 18,687 (18,687) - -
	176,357 453,164 (656,382) 30,162 3,301
	1,632,570 1,552,183 (1,530,940) - 1,653,813

UNRESTRICTED FUNDS
General Funds
RESTRICTED FUNDS
Educaton and Employment:
Horseracing Betng Levy Board
Racing Foundaton E2SE
Great Britsh Bonus Scheme
Health & Safety project
Digital & Data Strategy
Breeding Industry Strategy
Staf Training and Development
Evaluaton
Veterinary Research Fund
Total of funds

BALANCE
BALANCE
AT 1 JAN
TRANSFERS
AT 31 DEC
2020
INCOME
EXPENDITURE
IN/OUT
2020
£
£
£
£
£
1,456,213
1,099,019
(874,558)
(30,162)
1,650,512
-
45,800
(45,800)
-
-
-
88,838
(172,500)
83,662
-
-
253,339
(253,339)
-
-
3,301
-
-
-
3,301
118,056
37,500
(158,056)
2,500
-
50,000
-
-
(50,000)
-
-
4,000
(8,000)
4,000
-
5,000
5,000
-
(10,000)
-
-
18,687
(18,687)
-
-

176,357
453,164
(656,382)
30,162
3,301

1,632,570
1,552,183
(1,530,940)
-
1,653,813

The restricted funds represent funding from the Horseracing Betting Levy Board (HBLB) for education, the Racing Foundation (RF) for various strategic projects within the TBA and the foal levy for veterinary research.

The HBLB grant supports various educational items, including the annual seminar, regional training and development of qualifications.

The RF agreed to bring forward the grant allocation for the E2SE funding for 2021-2023 into one block at the start of 2021, in order that the TBA could fully support this programme whilst dealing with the expected economic fallout following the Covid – 19 pandemic. As such the RF money fully funded the programme in 2021, rather than the TBA matching funding as originally intentioned. The underspend was carried forward to 2022.

The continuation of the E2SE programme to encourage new staff to the industry who have previously found difficulty finding a route in.
The Digital and Data Strategy, to develop a digital learning environment to support breeders and staff, as well as providing insight into the breeding community to support the same.
Staff Training and Development, a fund for executive training in order to carry out these strategies to the highest possible standard, due to more use of remote learning, costs were not as high as expected and the RF agreed that the underspend could be carried forward to 2022.

The Veterinary Research Fund represents amounts received from foal levies to contribute towards furthering the long term health of the thoroughbred breed.

Annual Report and Accounts l 2021

THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee) TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

21. STATEMENT OF FUNDS (continued)

The Great British Bonus Scheme grant was reimbursement from HBLB for costs involved in administering the scheme. This included employing a scheme manager, improving the website for easier registrations and tracking the scheme, as well as marketing the scheme.

The Environmental Sustainability fund was a small grant from the Racing Foundation to fund two carbon footprint studies at different stud farms as a benchmark, and produce guidance for members based on those findings on increasing their sustainability credentials on their own farms.

The Health & Safety project is the remainder of a grant to carry out a Stud Farm Injury and Accident Survey from the Racing Foundation, alongside the BHA. The project was completed under budget and we are seeking clarification from the RF as to the remainder of the grant.

23. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the year (as per Statement of Financial Actvites) Adjustment for: Depreciaton charges Loss on disposal of assets Dividends, interest and rents from investments Movement in current asset investment (Increase)/decrease in debtors (Decrease)/increase in creditors Net cash used in operatng actvites	2021 2020 £ £ 344,822 21,243 3,904 3,620 212 0 (18,752) (25,824) (6,886) (19,443) 12,621 (138,212) (71,779) 13,659
	264,142 (144,957)

22. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS – CURRENT YEAR

Tangible fxed assets Fixed asset investments Debtors due afer more than one year Current assets Creditors due within one year	RESTRICTED UNRESTRICTED TOTAL FUNDS FUNDS FUNDS 2021 2021 2021 £ £ £ - 16,726 16,726 - 100,000 100,000 - 15,909 15,909 73,918 2,056,056 2,126,142 - (263,974) (260,142)
	73,918 1,924,717 1,998,635

ANALYSIS OF NET ASSETS BETWEEN FUNDS – PRIOR YEAR

Tangible fxed assets Fixed asset investments Debtors due afer more than one year Current assets Creditors due within one year	RESTRICTED UNRESTRICTED TOTAL FUNDS FUNDS FUNDS 2020 2020 2020 £ £ £ - 11,540 11,540 - 100,000 100,000 - 15,909 15,909 3,301 1,858,816 1,862,117 - (335,753) (335,753)
	3,301 1,650,512 1,653,813

24. ANALYSIS OF CHANGES IN NET DEBT – CURRENT YEAR

31	DECEMBER		OTHER NON	31 DECEMBER
	2020	CASH FLOW	CASH CHANGES	2021
	£	£	£	£
Cash at bank and in hand	354,986	273,592	-	628,578
Net funds	354,986	273,592	-	628,578
ANALYSIS OF CHANGES IN NET DEBT – PRIOR YEAR
31	DECEMBER		OTHER NON	31 DECEMBER
	2019	CASH FLOW	CASH CHANGES	2020
	£	£	£	£
Cash at bank and in hand	480,285	(125,299)	-	354,986
Net funds	480,285	(125,299)	-	354,986

25. JOINT VENTURE – OWNER BREEDER MEDIA GROUP LIMITED

Following the sale of the TBA’s 50% stake in the Owner Breeder Media Group Limited (OMBG Ltd) the TBA no longer have access to the company’s accounts. The sale was completed on 1 July 2021 as described in Note 16.

Costs incurred were as per the cost sharing agreement related to the number of members that the magazine was distributed to.

In 2021 costs incurred were £39,200 to 1 July 2021, compared to £68,070 for the whole year of 2020.

£100,000 was paid to the TBA in consideration of its 50% share on 1 July 2021, as well as £100,000 repayment of the initial investment, so completing the sale of the TBA’s interest in the joint venture.

Annual Report and Accounts l 2021

THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee) TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

26. RELATED PARTY TRANSACTIONS

Membership of the charity is open to any person aged 18 years or over who are breeders of the thoroughbred horse and all others who declare their support for and are in sympathy with the charity’s objects. The trustees are all individual members of the charity but do not derive any enhanced benefits by virtue of their position.

As set out in note 18 above, the charity has made an interest-free unsecured loan of £15,909 (2020 - £15,909) to Horsemen Limited (The Horsemen’s Group) to assist that company to meet its forecast funding requirements and this sum is included in debtors. This loan has been provided on an interest free basis as The Horsemen’s Group provides benefits to the members of the Thoroughbred Breeders Association and it falls within the charitable objective to provide support to such an organisation. The TBA Chairman Julian Richmond-Watson is a director of Horsemen Limited.

During the year the charity incurred expenditure of £22,800 (2020 – £23,601) with Tattersalls Limited and as with other UK sales companies, Tattersalls Limited also collected the voluntary sales levy on behalf of the TBA. The Finance Director of Tattersalls Limited is the husband of the charity’s Chief Executive Officer, Claire Sheppard. Matthew Prior, Head of Sales at Tattersalls Ltd, is a trustee of the TBA. The amount outstanding at the year end was £5,700 (2020 - £Nil).

The TBA is a member of The British Horseracing Authority (BHA) and is represented on the stakeholder Members Committee by the Chairman. The TBA and BHA also collaborate on a number of racing related issues which affect breeders and the TBA is represented on the relevant BHA committees. During the year the charity made payments to the BHA totalling £2,934 (2020 - £36,833) for funding and sponsorship. No amount was outstanding at the year end (2020 - £Nil).

The TBA works with The Horserace Betting Levy Board (HBLB) in support of its objectives: Education, Veterinary Research, Bloodstock Promotion and Improvement of the breed. The HBLB provides funding for all objectives and the TBA in turn allocates a portion of its veterinary research budget to co fund specific scientific research projects in support of the Thoroughbred breed and related stud farm activities. During the year the charity received education funding of £73,688 (2020 - £45,800) from the HBLB and made payments of £50,000 (2020 - £69,500) towards veterinary research with the HBLB. In addition HBLB are the principal in the Great British Bonus Scheme (GBB), with the TBA acting as agent, as described under note 28. HBLB reimbursed £247,285 (2020 - £253,339) of GBB administration costs incurred by the TBA during the year. The funds received for reimbursement are included within income of the charity. At the year end £Nil (2020 - £14,950) was owed from HBLB to the TBA. Julian RichmondWatson, a trustee of the charity is a Director of the HBLB.

As set out in note 25 above, the TBA and The Racehorse Owners’ Association (ROA) owned a mutual trading company, Owner Breeder Media Group Limited, which publishes and circulates the magazine Thoroughbred Owner and Breeder, incorporating Pacemaker.’ All income and expenditure for the company is divided between the two Associations, with magazine production and distribution costs shared as a percentage of respective membership numbers. Philip Newton and Peter Mendham, both trustees of the charity were also directors of the company until the TBA sold its share on 1 July 2021.

During the year, the charity incurred expenditure of £15,000 (2020 - £15,000) towards funding with Great British Racing Limited (GBR). Philip Newton, a trustee of the charity, is also a director of Great British Racing Limited. No amount was outstanding at the year end (2020 - £Nil).

In 2021 the charity incurred £5,000 of expenditure (2020 - £Nil) with Retraining of Racehorses Ltd (RoR). The amount is used to support the charity with their work to support ex racehorses in their next career. Anita Wigan, a trustee of the charity, is a Director of RoR. No amount was outstanding at the year end (2020 - £Nil)

The TBA work with two regular veterinary advisors who supply expert knowledge on areas of relevant veterinary research, interpret risks and impact of disease outbreaks and input to Government consultations. James Crowhurst, a trustee of the TBA, is also a TBA veterinary advisor and received £5,000 as an honorarium for that role in 2021. (2020 - £2,500 for six months). No amount was outstanding at the year end (2020 - £Nil).

There are no other related party transactions.

27. OPERATING LEASE COMMITTMENTS

Total future minimum lease payments under non-cancellable operating leases are as follows:

Land and Buildings Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years Other Not later than 1 year Later than 1 year and not later than 5 years	2021 2020 £ £ 20,500 20,500 82,000 82,000 37,583 58,083
	140,083 160,583
	2021 2020 £ £ 5,298 2,009 8,075 11,535
	13,373 13,544

28. FUNDS RECEIVED AS AGENT

The TBA acts as an agent for the Great British Bonus Scheme (GBB). GBB is an enhanced prizemoney scheme funded by the betting levy, generated from the public gambling on UK horse racing, and registration fees for UK sired and foaled fillies. The registration process comprises three stages; to be completed by the breeder, the owner of the filly as a yearling, and the owner of the filly as a 2/3 year old, dependant on whether she will race on the Flat or National Hunt. Once fully registered these fillies can win up to £20,000 extra prizemoney in qualifying races. Fillies with only one or two stages of registration completed can win a pro rated amount of the £20,000. The TBA administers the scheme, providing marketing and administration support and holding a separate bank account for the scheme. The main funding comes from the Horserace Betting Levy Board (HBLB) as part of their prizemoney distribution to the sport. It supports the UK racing and breeding industries as a whole, with the prizemoney being distributed to the owner, breeder, trainer, stable and jockey of the winning filly. The TBA do not take any management charge for running the Scheme, but TBA members qualify for discounted fees at the first stage of registration. The scheme is run along rules agreed by a GBB Management Group, which three TBA trustees sit on, as well as representatives of the British Horseracing Authority (BHA) and Racehorse Owners Association (ROA). HBLB and Weatherbys sit on the Group as observers.

Opening bank balance Receipts Payments Net Receipts for the year Closing bank balance	2021 2020 £ £ 63,648 - 3,427,025 1,069,551 (2,857,055) (1,005,903)
	569,970 63,648
	633,540 63,648

The GBB bank account had a closing balance of £633,540 at year end (2020 - £63,648). The TBA was due to be repaid £31,417 from the GBB scheme at year end (2020 - £42,097). HBLB provided a loan of £150,000 in 2020 which was repaid in full in 2021 to the GBB scheme.

Annual Report and Accounts l 2021

NOTES 62 Annu2] Re[[ and Accounts 1 2021

@TheTBA_GB

01638 661321 l info@thetba.co.uk l thetba.co.uk

2021 Annual Report and Accounts

CONTENTS

CHAIRMAN’S WELCOME

CHIEF EXECUTIVE’S MESSAGE

WHAT WE DO

Working purpose

Vision statement

Strategic Objectives

Values

Teamwork

Excellence

Active

TBA impact and reach in 2021

PROTECTING THE DIVERSITY AND PROMOTING THE DEVELOPMENT OF THE THOROUGHBRED BREED

The Great British Bonus

From GBB winner to broodmare: Dragon Bones

PEOPLE; LEARNING AND DEVELOPMENT

How the E2SE kickstarted Emily’s career journey

COMMUNITY

Dedicated Ron Lott honoured with TBA Award

NATIONAL AND INTERNATIONAL POLICY FOR THE THOROUGHBRED BREEDING INDUSTRY

International thoroughbred movements 2019 – 2021

GB <> EU

TOTAL GB <> EU

GB <> Rest of World (ie. non-EU)

TOTAL GB <> Rest of World

EQUINE HEALTH AND VETERINARY RESEARCH

Welfare Guidelines set the bar for industry best practice

AWARDS AND RECOGNITION FOR THE TBA’S WORK

Memcom Excellence Awards 2021

Highly Commended in the Best Integrated Marketing or Membership Campaign for the Great British Bonus.

British Association for Sustainable Sport (BASIS) Awards 2021

OUR PLANS

2022 ACTIVITY

AMBITION: Deliver learning and development opportunities via TB-Ed, improving accessibility and reach

HOW WE WILL ACHIEVE THIS

HOW WE WILL KNOW WE ARE SUCCESSFUL

AMBITION: Manage and develop the Great British Bonus Scheme

HOW WE WILL ACHIEVE THIS

HOW WE WILL KNOW WE ARE SUCCESSFUL

AMBITION: Promote and represent the British breeding industry

HOW WE WILL ACHIEVE THIS

HOW WE KNOW WE ARE SUCCESSFUL

AMBITION: Continued membership engagement and growth

HOW WE WILL ACHIEVE THIS

HOW WE KNOW WE ARE SUCCESSFUL

AMBITION: Delivery of the full thoroughbred breeding industry training and qualification pathway

HOW WE WILL ACHIEVE THIS

HOW WE KNOW WE ARE SUCCESSFUL

AMBITION: Support the delivery of a breeding industry people strategy

HOW WE WILL ACHIEVE THIS

HOW WE KNOW WE ARE SUCCESSFUL

AMBITION: Support and encourage veterinary research for the benefit of thoroughbred breeding stock

HOW WE WILL ACHIEVE THIS

HOW WE KNOW WE ARE SUCCESSFUL

AMBITION: Delivery of the TBA equine welfare strategy

HOW WE WILL ACHIEVE THIS

HOW WE KNOW WE ARE SUCCESSFUL

FINANCIAL REVIEW

Reserves policy

Principal funding

Programme related investments

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

Organisational structure and decision making

Method of appointment or election of trustees

Risk management

Policies adopted for the induction and training of trustees

Pay policy for senior staff

Public benefit

Trustees’ responsibilities statement

Disclosure of information to auditors

Auditors

OFFICERS AND CONTACTS 2021

Chairman

Patron

Trustees (per Companies House register)

James Crowhurst

Julian Richmond-Watson