Charlty number: 1134679 Company number: 07156633 (England and Wale8J THE FOUNDATION FOR LIVER RESEARCH (a company Ilmited by guarants8) REPORT AND ACCOUNTS YEAR ENDED 30 JUNE 2024
THE FOUNDATION FOKLIVER RESEARCH ._ CONTENTS Year ended 30 June 2024 Pag8 General infomiation R2POrt of the Trustees Independenlauditofs report Consolidated Statement of FinancHI Activities (IrudIng an Income & Expen(fthre AOunt) 13 ConsolTdated and Company Balance Sheets 15 Consolidated Staternent of Ca4)flows 16 Notes to the financial statements 17
THE.FOUNDATION F.OR.LIVER RESEARCH. GENERAL INFORfMTION Year ended 30 June 2024 Charfty number 1134579 Compary number 07156633 (England and Wates) Address Institute of Hepatology 111 Coldharbour Lane London SE5 gNT Webslte www.liver-research.org.uk Trustees Sir Jeremy Elwes CBE Col Hamon Massey (Chaiman) Prof Atan McGregor Prof Sir lan Gilmore Lord Hunt of lfjngs Heath (resigned 12 Jan 2024) Mr Simon Wainwright Mr Charles Hopkinson-woolley Prof Rebecca Fitsgerald FRS Prof Christopher Day Mrs Anna Bennett (appointed 1 Nov 2024) Banke National Westminster Bank plc PO 8ox4NU 1 Cavendish Square London W1A4NU HSBC Bank 421 Brixton Road London SW9 8HE Cambridge & Countles Bank Chamwood Court 5B N6w Walk Leicester LE16TE Solkitors Pitmans LLP 48 The Avenue Southampton S017 1AX Audltols Caton Fry & Co Ltd 7 The Shrubberies. South Woodford. London E18 1BD Investment advisors James Hambro & Partners 45 Pall Mall London SW1Y 5JG Key managemont team Director Chief Operaiing Offlcer Acting Director & Chief Scientiffc Offir CEO Professor Philip Newsome (appointed 3 June 2024) Mr Jarnes Poynton (appointed 20 Feb 2024) Professor Shilpa Chokshi (resigned 10 Octob2r 2024) Miss Natalie Day (resigned 20 March 2024)
THE-FOUNDATION FOKL-WEKRESEARCH-_
REPORT OF THE TRUSTEES (INCLUDING DIRECTORS REPORT)
For the ended 30 June 2024
The Trustees of the FoundatK)n for Liver Research Ohe Fcxmdafjon) submit theirreport arKI audited accounts for the
year ended 30 June 2024. The financial statements have been prepared in accordan wilh the accwnling polioes
sat out on pages 17 to 20 and comply 1th the Charitys Trust Deed, the Charities Act 1993 and the SLqtement of
Recommended Practice: Accounti ar Rwting by Chaities 2015.
Hlstory and Background
The Foundation for Liver Research was eStabshed urKler a Trust Deed dated 7 August 1974 with a mission to
develop and extend research into liw arKJ its diseases and to enhance medical research generalty.
Initially the Foundation supported r6searth carried out by Professor Roger Willians and his team at lQng's College
Hospital and in 1994, the Trustees enlered into an arrangement VAth Universty College Lonthjn to estabfish a new
Institute of Hepatologrf on the UniVersiS central LorKh2n campus. acquiring a freehold site and conslructing
purpose-buÈlt research factlty. In 2009, the Trustees decided to enswe the InstThrte's long4enn Independence by
re-focusing work on basic scItifiC research and enthng Ihe arrangement with UCL. At the same time a decision
was made to Incorporate the Foundation. The agsets and undertaktng of the FOK18110n were transferred vlth effect
from q July 2010 to a new charitable company limited by guarantee and registered under the same name.
Between 2011 and 2014 Ihe Instttute was affifRted to Brkbeck Cdlege, ryth fomial scientific and research links
ekn the two Ir6tttutlon& In January 2014. the Trustees of ts Foundatton signed a new agreement wtth Klng's
College London (KCL) and lfjng's Cdlege HospiiaI O
THE.FOUNDATION FOR LIVER RESEARCH REPORT OF THE TRUSTEES (INCLUDING DIRECTORS REPORT) continued For the year ended 30 June 2024 The VBlu8 of tha Foundation's InveSrt portfolio dwing the yew ¥er review ieased by £1.564,T18 (2023 - £583,92n wlich is reftected in the consol(kted statement of ffinancial adivities and exceeds the objedive set at the beginning cf the ffinancial yew of 8.5%. The Foundations Fry)ety portfolio has signtficanlly dropped in value by £2,357,00012023- £1,815,0(KJ) refiecliThJ NTent market condiliorts. dHiges in govemment and is in line general commerdal ryopety values of lls Ilk The Foundatmjn's firw]¢ial powtion at the balan sheet da is 5uffiaent to meet (N01ng expenditure and exlsliTVJ plans and ccmmltrnents. Accordlngly. the finandal ststernents are PTesented on a goiTrg CLmcem basi& Fundlng Pollcy Durtng th8 Perfod under revi8w. the Foundation funded all ts core costs of Instiiute. besrfnnlng the period a total of 23 staff and ending with 27. The principal SOU of the Foundatton's funding is the income received from the investment portfolio and thts suppts the W obj8dives and the ne research themes of the Inslituie. In 2022 and En memory of Professor Roger lliaMs. the Tnjstees declded to estsb]h the Roger Willlams Legacy Programme representing 8 8troNJ commitmént to the fijiure of re38arch In hepatology and lo, growlng seientlflc expertise In the specialty. Thls truded a new Small Grants Programme open to applicants based in Ihe UK. Thè Tru8te8s also dedded lo fund iwo PhD studentships each year for students regislered wlth Klntys Collage London and carying out their research in the Insbtirt•. Th• FLR also fundéd a bienriaj Clnical Research F8llMhlp In conlunclion wllh KIn8 College Hospital. In January 2021 the Foundauon slgned a Memoranduffl of Underntarbjtng th the Brittsh Liver Trust, refi8cting the d88ire of both charille3 to wark twher In Ihe area of raislng publlc awareness of liver (Ksg8se and advocatlng for improvements in patlent Care. The FourKlation has aweed ID Jolnlly fund a Policy and Publlc Affal(5 Manager. employed by the Bfjtlsh Llver Trust, to Yffjrk on this FKogramm& The Iwo tharilies hav8 agreed lo endorse the Ind8pend8nt work w08MMeS of th8 other charity vhKfevw ap{Koale. and to speak togelher In areas of mutual Interest. The Truslees continue to delegate management of the RW-ILS arKI specmc txjdgetary decislons In relatlon to research theme8 io the Dlrector [Prol Phlmp Newsom8). Supp by the Chief Operating Officer (Mr James Poynton), and the Trustees revlew progress at each of the quarterty meetlngs. Poynton 18 also Chlef Operatin9 Officer of the Foundallon and has delagaied responsibility for malrrtalning an over¥law of the Foundatlon's expenditure and rentavlnveslment income. as well as human resources, advertising and other administrative actlvltiès. The Trustees are exploring oplKXts to promots acllve furKtraising. This will enhance the Chari8 pubtlc profile and provlde greater ¥cope to expand Ihawork of Ihe In8tituie Tn4in8with th8 new Partnar8hlp Agreement vAth KCL. Annual Rovlow During tho pgrlrxl under revlthv, the Foundation contiThJ8dtofoO ils research firng on the RW-ILS. In partlcular, the Foundalion's main objective for the period was lo conlinue to support and develop a refullY seleced portfolio of researth programme3 based around the overall theme of Palhways Undertying Liver Injury and Dlsease Progrnssion. The research pol10 of the Instiiute compT+ses: Alcohol related Ilver dtsease.. IndlIng tox and Injury, changes to the ht8stinal baar, 8ySt8mic infiammation. immune suppression. and gerth predtspo&bon to INer iryury ConI¢ Hepaltis B Infectlon: Induthrvj LLrke ts long HBVlhèrapy wllhdrawal, use of Precis10CUt Llver s118 (PCLS) In development of an ex-vivo immwK)competenl model of HBV infection and the aLrelerated progression of (r$& In patients C<HMrbidities Lipidomlcs, metabolomics & fluxomlcs In Metabofic Diseax SteatTrhepatths WKI NoTbalcoholic fatty Ilver disea8e (NAFLD) GIrrs1$ and Its coMplS Acute-on-chronic Liver Falure (ACLF): addres8ww unmet needs indurfiThJ devdopment of targeted Iherapies The liver-braln axls: understa]ng pathologlcal methanisms that Under the aggoctatlon of neurodegeneration in patients with chronic fNer thsease The gut-ltver axis: role of the gut mlcroblome in injury and disease progression Models of liver disease. Iury and rngeneration: indurfirwJ precision cJJt fver slicas. extracellular matrix models and organoids
THE.FOUNDATION FOLNER-RESEARCH - REPORT OF THE TRUSTEES (INCLUDING DIRECTORS REPORn contlnued For the year ended 30 June 2024 LiveTOMICS: development of in silico models to improve (rease outcomes Primary and secondary liver cancers: tackling thè lack of effective ttwapies for liver carKer. the sixth most common forni of cancer worldwide All groups continue to make research and cf5nical links b(th nationally and internationally. The Foundation accepts that it is difficult to apply fixed measures of su(Eess to research acbirity of the kind carried out within the Instilule. Accordingly, in assessing research achievements the Trustees give considerable weight to the nuTnber of publications in peer r8vi8wed ioumals, the number of presentaliorts at national and intemational conferences and success in obtaining extemal grant support for new and extsting projects. The numbers of papers published in peer reviewed publicalions has continued to grow year on year and the annual totats for the last four years to date are given beIow. tptib"kncatiOllS'.jTiIPJibToédl 2021 32 30 31 The Foundation was in receipt of several legacies durirHJ the year Trustees also acknowledge with gratiiude the unsollcltsd donatlons trom members of the public, many made in memory of family and frlends. The Foundation relies heavily upon income from these Sour 8nd the TN5tees continue to be most gftgteful to those who support Its vmrk. The Ttustees madè the de(ision to revalue lh8 Insliiubb wemises at their meeting M 16th June 2021. on the recommendation of Mr Simon Wainwright. our Trustee with property expertise. He suggested that the value of the loH premises should be recorded in the accounts using a deprectaled replacemenl c05t rathei than an open market valualion, the latter being less appropriate b8caus6 of restrictions on use of the propertyisale. The land remaln as a fjxed value in the accounts vth replacement costs kn th& buil(fing writtén ov8r 50 years. Meetings ofthe Tw5tees were held orfne vla Zoom orL 10 July 21r23. 29 SeFthber 2023. 14 December 2023 On person). and 25 Marth 2024. Future Plans Uniting expertise from KCL and the FoLffldation. the RW4LS will allwforthe integrallon of [daMental, translational and nical investigative research across a wide range of tiver rftseases vthile the Foundation's TNsteès arKI its Infrastructwe wil] continue to maintain financial indeperrflence and monitor te5eard] wojects. The RW-ILS viill ontinue to bull d upon intemational col]th)rations es[shed by ils founthng institutions and be committed to training the next generation of scientists wtthin the kld. It wtll bring together researchers. professiDnal staff, and the Clinic fiver services of King's College Hosptid. thus wlhancing the Foundation's clinirA translalional research objectives ultimately leading to improvements in ts (we of Patits with Itver (fjsease both locally and in a wider contaxL The Foundation also continues lo fom links vllth other academic and dinical certres nati(*taty and inteTnationally. The new vision of the Instituie is: 1. To txjild the best liver unit in the UK Or that is ranked in the top 10 grfobally. 2. To continue the legacy of the Instilute of Hepatd(w as a driver of policy in the UK and globally. The 0tr4ectives of ts tnstituie are: Integration. Integrating livw research at Denmark Hall Campus and urufying ts delivery a single lethship.
THEFOUNDATION FQR-LIVER.RESEARCH REPORT OF THE TRUSTEES (INCLUDING DIRECTORS REPORT) continued For the year ended 30 June 2024 2. Resource Utlllsatlon. Moving fr(xn the current model where Pls have constituiNe resowE in temis of personnel and consthnable IxKlget to a model where Pls generate ayrdrds extemalty and ere a greater proportion of the fun(fing can be used to pump-prime new r8srch bringing in the n8Xt g8neralion of researchers. 3. Co4ocatlon. cloCatIng a5 many colleagues as possible in one Spa and promotiNd collaboration. 4. Research Prforftlsatlon. Focus on 5 research trmes: Steatolic Disease Cirrhosis and Girt-LiverAxis LTver Regeneration, Transplantation advanced therapies Hepatobffw Cancer Paediatric Hepatology and associated Rare Diseases Board of Trustees Cdonel Hamon Massey continues In the role of Chairnian of Trustees viith Professor Man ItH¢Gregor as Vice Chaimian, the iwo roles refiecting betsyeen them lay expertise 8rKI medcallsL7entific expertise. The Twstee5 have agreed thal the ChairmarVWio Chairrnan should each serve a lemi of 3 yeas. renewable once, and Trustees serve for an irlltiat terni of 5 years. the option to renEw by gewal consent of the Board. The Trust Deed Imlts the number of Trusiees to ten and in c(rnleMg the appolntrnerrt of new Twstees the Faundatton seeks lo maintain a balan of experien from (rrfrerir¥J bad(grw#ts to maximise the effectiveness of Ihe Board. The Tnlee8 colle¢tivety have the autholty to appoint and thsmiss Tntstees by resotulion at a meeting of the Trustees. On appointmert Trustees are provided Vthith infonFthon on the strUcre and admiry5tration of the CTr1ty. induding copies of the most rent Amual RewKt & AccixThts and the scientific Annual Report together rith details of the way in whith Searth (xrtput is rneasured. They are also invited to visii the laboratories at the Instiiute and meet with Ihe DirectLY and [Or staff. Tr TNstees' agreed to Commen GlIment of additional trustees to develop a balan of skills across Ihe Board. This commenced sn JLme 2024 an advert being placed for a ttpaswer.trustee. Th8 Tnjstees delegate day.ttrday maroJement of Irtstitute to the COO of the Instiiute who reports on the aCtiVeS ofthe Institute atthe quartetty meetings of the TtU5tees arKI speaks Tegularly with the ChaiTrnan and other Trustees as and when necessary. Natar Day. the forrrw long seNing CEO of the Institute retired in March 2024. Investment Pollcy The Twstees. Investrnent p(wers pemit ts Foundatworf5 furth lo be Invested In a wide of secunlles and assets. Capital incne can be applied for general troritable pjrposes at of the Trustees. Seeklng to tiknr&fy the Foundati,8 investments and secure a regular income stream. in August 2013 the Foundation compleled the purchase of a building an ¢)ffice parf< in ndOn. In November2014 a leasehold property in Bfistoi was purchased and in Marth 2015 8 fiJrthergroup of five properfies was bought from the Rufford Foundalion. Further wrclwses have be made In January 2018 (Isle of Wght) and June 2019 (Polegats, East Sussex). Tr BTistcA Kyopty was solj in 2018 ts a small profft and the Foundatlon retnvested In a propety th Hedge EThJ, S(MJthampkn. In Octobw 2019 Flxmdation completed the purchase of 4 (fisltibuiion warehouses. Followng this purGhase, the Foundation has approximately 60% of its assals AMsted in commerclal prapety. All properties have been pur(3sed a5 going GonGems ilh tenants in pl. Tcgather the properties brirKJ the FoundaScxJ an annual iOe of £2m. Rent collection is handled by the Institute finance team and property agents are taIned to insped and repjrt the conthlion of the prop8rti8s on an annual basis.
THE.FOUNDATION FOR-LIVER-RESEARCH- REPORT OF THE TRUSTEES (INCLUDING DIRECTORS REPORT) continuod For the year ended 30 June 2024 Following a resolution ai the meting in June 2017. the Fojndation's investment portfo0 was moved from Waverton Investrnent Fund Managernent to Jarnes Hambro & Partners, and from active to passive fund management. The decision was made on the ba515 that the investments in commerctal rental properties had at that time. reduced the investmenl portrolio by approximately 50% and the fees in(xJtred for active management of the funds were UnaGptab1Y htgh and (riffict to justify in the CUTrent financial cfJmate.Th6 FoundatiC>n n¢Jfif trAs approximately 4D% of ils assets managed by James trlambro & PartneT& Tre Foundation is committed to ensuring that it makes investment decisions responsibly and with integriiy. having due regard to ethtcal. soci81. envtronmental and g0Vwn iswes. This Pdicy for Soctalty Responsible Inveslment fSRII has been developed to alJow the Foundation to pursue an ethicat approach while minimising any negalive impacl cm ils inveslment retums. Investment decisions infoned by soually responsible and ethicat consrderations V11 also take inlo account the Charity Comrnission position that trustees have a duty to maxtmise retums on invesiment for charitable benèfiL Appo5ntment of auditors and consideration of tsx Issues The Foundation has appointed Caton Fry as auditor& A subsi(fjary company. LNer Research and Developrnent Limited CN 7944232. was registered and all Trustees seNing as at 28 February 2012 became Directors of the new charitable company. BDO LLP conlinue to advise the Foundation wilh respect to an annuat daim for a research and development tax rebat Publlc Benefit At some polnl durfng thelrl]fe, one in ten peoplewill haveaproblem with theirliver. In the UKthere are approximately 5,000 deaths 8ach year from arrhosts and chrontc Iver rfisease, a figure which Is steadliy Increasthg. and Ilver disease Is one ofthe top ten causes of death in the worfd. The Trustees believe that by scientific research into fiver rfisease at the Institute, the Foundation fulfils its mlsslon to extend and develop knowledge of the human and the various ways in which it rnay become rfisea5ed. In doing so they consider that the Foundalion Is ¢ontrlLxrttng to the developmenl of new methods of diagnosis and treatmentwhi¢h will tiMatelY be to the benefft of everyon8 aff&Xed by fwer disease. The Foundation's C(H•Tk vAth Ihe British Liver Tnrst is supptementary to the core mission of research and represents only a small port of totsl charitable expenditure each year. It is however regarded as extremety important. contributing as it does lo wider public benefiL As the two leading fiver charities in the UK. though with very different rts. the ¢hari1s are committed to a stffjnr fLyth8rapproach in support of improvtng care and treatment for people in the UK affected by liver thsease. The Trustees have paid due regard to the guidan issued by the aHity Commission on public benefft in deciding what activtties the charity should undertake. Pay Pollcy for Instltute Staff The pay of senior staff is reviewed annu arKi [Km in¢8as8d in accordan with averag8 eamrng& In view of the rdure of the FndatiOn and its 8nhancwJ partnership with KCL salaries for all res&grch staff are benchmarked against pay levels of 8C8demics and cliniaans of the relevant seniority and experien working within the university and the health sector in the UK Salartes of nOnrCh staff are benthmarked against comparable role5 in the charity secknr. structure. Governance and Management Governlng Document Th8 Foundation for Liver Résearch (s a company limited by guarantee govemed by its Memorandum and Artides of Assoaation dated 12 February 2010. It is registered as a charity ryth the Chanty cnmISSIon arKI as a company Ydith Companies House.
THE.FOUNDATION FOR LIVER RESEARCH REPORT OF THE TRUSTEES IINCLUDING DIRECTORS REPORTI contlnued Forthe year ended 3D June 2024 Rekted Partles and Co<•peratK)n with Other Organlsatlons None of the Trustees receTve remLnerat•)n or other benefft fr(Yn their work the FrKlatIOn. Ary cmnectlon between a Trustee or senior managemert of Ihe Foundatian with anolher medical research charity rnt be rfjsclosed to the full Board of Trustees tn ts same as any otherwtr relatlonshtp wIth a related party. In the current ye¥ such relaled paty transathns were rep. In November 2022. the Trustees of the Foundation SiLned a parinership agreement I(nS College London (KCL), commlttlng to Strengthen cooperation and to the appointment of a newlolntly funded Director of the Instltute, 100% employed by KCL. This relalion5hip 15 govemed through th8t8rn18 0ftr agreementwhich indudes a blannual Partnership Oversight 8oard wilh Trustee representakn. Rlsk Ilanallement The TnJste85 marttain a rfsk regist•rwNch thay reviaw hnuallY. Tfts assessment hp$ to identify the major rfsks to whlth the Foundatlon Is exposed, the fikeIihood of occwrenGe WKI the lrnpax upon Crtinlon of adivities. In revlevAng the rtsks. the Trustees senior management of the Instit have pjt In place GyStem8 to mitigate these rfsk& The Foundatlon's prlnclpal risk8 are a8 foltow8: The risk that live spedmens armllor valuable research Is lost as a result of Por failure at the In8titute. Mltlgatlon measures Indude fadllty for gentratar support of key am8 and detals of gen8rator 8uppIy contract prominently dtsplayed in the Institute. Retentlon of key personnel. Mltlgated through regular mentorfng meetings. annual appratsals and benchm8rklng o18aJarfes agalnst Gomparable wlsations In the seckf. L05s of Income. Mitigated through dlverslficth of Investments th 80% of FLR assgts now In propertles providlng rental Income and remalnder managed on behalf of FLR wilh regular T8view of invgstsnent oblecUveB and perfomiance of James Hamiyo. Tru8tee8' Responslbllitlos In R•laflon to the Flnanclal Staternènts The charlty Trustees (WI are also Dir[8 of The Fourrflation for Liver Research for the purpose8 of company law) are responsible for preparfng a Trustees. Annual Report {IncoTporatlng Ihe Directors. Report) and the financlal statements In accofdance wlth appllcable law and Unlted Kkngdom Accountlng StaThJards Iuntted Klngdom Generally Accepted AcLounling PractiC8). Company Eaw requlres the Tru8tee8 to wepare financial staiements for each financlal yearwhich glve a true and falr vlew of the stste of affalrs of Ihe charltable company and group and of the OrIng reSCAr and appllcatlon of resource4 induding the Income and expendlture. of the charitable group for that period. In preparfng the finan(ial 8tatemeth, Tnth are rewlred t. select ¥uRoble aGntIng p1¢188 and 8Wy thn 081•. <)bserye Ihe methots and rleS In the Charltles SORP IFRS 102); make judgm5 and estlmates thal are reasonable arKI FKudent state ether appllcabla UK Accounting Standards have been follUd, SleI to material departures disdosed and explained in ffinandal Ststentr. and preparethe fjnanoaj statemats on the golng concem bass urless it is inappropriate to that tha dTaritable conyny VAII conlinue in IneSS. The Twslees are responsible ts keeping 8tyu8te accolIng (Eciyds that disdose wilh reasonable accuracy at any time. the finanaal position of the tharitable eornpany and the group8. transacoons and to ensure that the finanrial statements mpty wilh the Comp&ues Act 2006.
THE FOUNDATION FOR LIVER RESEARCH REPORT OF THE TRUSTEES (contlnued) For the ygar ended Xl June 2024 They are also responsible for8afeguarding the assets of fhe charitable Gompany and the group and hence for taking rBasonable steps ft)r the prevention and detection of tra1 and other wregularities. The Trustees are respon&bte for the rnahrtenan and TTrtegty of the corporate and financial InfomTation included on chttable company's websit& LegIStiOn in the United Kingdom govemtng the preparation and dissemination of financial slatements may differ from legislalions in otheriurisdictsons. In so far as the Directors are aware.. statement as to Disclosure to our Audltoys there is no relevant audit informatton of which the charitable company's auditor is unaware. and the Directors have taken all steps that they ought io have laken to make theelveS aware of any relevant audit infonnation and lo e£tablish that the auditL 18 awere of that Infornptlon. Small Company Provlslons The report has been prepad accotdar#x with specpl provisions for small ¢>)mpanies under Part 15 of the Companies Act 2006. ApprthRd arKI signed on behaf of the Tntslee&' Col Hamon Massey Chaimian Date 2J Ha2)25
THE FOUNDATION FOR UVER RESEARCH Independent Audltor's Report to the Members of The Foundation for Llver R88earch Forthe year ondgd 30 June 2024 Oplnion We have audited the financial statements of The Foundation for Liver Research fthe Parent Charitable Company.) and its subsidiary (°the Group.) for the year ended 30 June 2024 which comprise the consolidated statement of financial activities, the consolidated and company balance sheet, the consolidatsd cash flow statement and notes to the financial statements, including a summary of significant accountlng pollcies. The financlal reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. induding Financial Reporting StarKlard 102 The Financial Reporttng Stsndard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion. the financial statements: give a true and fair wew of the state of the Group's and of the Parent Charitable Company's affairs as at 30 June 2024 and of the Group's incoming reSoUrS and application of resources for the year then ended: have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Pract1. and have been prepared In accordan wEth the requirements of the Companle8 Act 20D6. Basis for opinlon We conducted our audit in accordan with Intemational Standards on Auditing (UIQ (ISAS (UK)) and applicable law. Our responsibifilies under Ihose standards are further described in the Auditorfs responsibilities for the audit of the financial statements seclion of our repori We are independent of the Group and the Parent Charitable Company in accordance with the ethical requirements relevant to our audit of the financial statements in the UK. including the FRC'S Ethical Standard. and we have fulfilled our other ethicat responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and approprtate to provKJe a basis for our opinion. Concluslons related to going concern In auditing the financlal statements, VE have concluded that the trustees. use of the going concem basis of accounting In the preparatton of the financial statements is approprlate. Based on the work we have perfomd, we ha4e not identified any material uncertainties relating to events or condttions thaL individually or collectively. may cast significant doubt about the Group or the Parent Charitable Cornpany's ability to continue as a going concern for a period of at least twelve rnonths from the date when the financial statements are authorised for issue. Our responsibilities and the responsil)if]lies of the trustees with respect to going conrn are descnTr)ed In the relevant sectton of this reporL other informatlon The olher infonnation comprises the infomiatk)n inGluded in the Trustees Annual ReporL other than the financial ststements and our auditorfs report thereon. The trustees are responsible for the other information contained within the annual reporL Our oplnlon on the financial statements does not cover Ihe other Inforniation and, except to the extent otheTwise explicilly stated in our report, we do not express ary form of assuran condusion thereon. Our responsibility is to read the other informatlon and, In doing so, conslder whether the informatton is material]y Inconsistent with the financial statements. or our knowledge obtained in the course of the audit or othewise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a rtTaterial misstatement in the financial statement themselves.
THÈ FOUNDATION FOR LIVER RESEARCH -_ Independent Auditors Report to the PAembers of The Foundation for Liver Research (contlnued) For the year ended 30 Juno 2024 If, based on the work we have perfompd. we condude that there is a nterial mlsstatent of thls other information, we are required to report this facL We have nothing to report in this regard. Oplnlons on other matters prescrfbed by the Companles Act 2006 In our oplnlon, based on the VIrk undertaken in the course of the audlL" the InfOrntiOn given in the Trustees. Report {Incorporatu Ihe Dlrectors. Report) for the fanCIal year for whictt the fmancial statements are prepared Is consistent with the financial statements,. and the OIrecto. Report induded in the Trustses Report has been prepared in accordance wtth applkabl8 legal requirements. Matters on which we are requlred to report by exceptlon In the light of knowledge and understsndlng of the Group and the Parent Charitable Company and its environment obtained in thè course of ts audh, we have not Identified material misstatement in the Trustee's repotL We have nothing to report in respect of the follrnviry matters in relation to which the Companle8 Act 2006 reqUS us to report to you if, in our opinion: adequa16 accounting records have not been kept by the Parent CharlIre Company, or retums adequat8 for our audlt have not been received from brath not vi18d by us; or the ParentCharTiablo Cornpary finandal statennts are not in agreementwith the accountlng records and returns; or certain di8cI(>sures of Directors, remuneration specified by law are not made; or we have not recelved all the tnforrrHtlon and explanatIts we requlre for our auditr, or the trustees were not entitled to Prepa the financlal stslements In aCcdan wllh the small cornpani8S' reglme and take advantage of the small companles. exemption In preparfng tha dlrectors, rew)tL R08ponslbllftles of Tntst••8 As explalned rnore fully in the Trustees. responsiblliles Sn lelatlon to the finandal Statemen the Truste8S (who are also the dlrectors of the Gharitable company for purposes of company kn) are responsible for the preparation of the financial ststements and for being Saled that they give a Irue and falr view, and for such Intemal control as the Trustees demiines Is necessary to enable the preparation of financial statements that are free from mat121 ffisst2temenC whether due to fraud or error. In preparing the financial statem8nts. the Trustees are re5POTthle for assessing the Group's and the Parent Charitable Company's ability to contlnue as 8 golng concern, discloslng, as applicable. matters related to going conwn and using the golng concern basis of accounllng unless the Trustees either intend to liquidate the Group or the Pwent Charitable Company or to operations, or have no realistic alternaiNe but to do so. Audito8 re8PODslbllltles for the audit of the financial statements Our objeclives are to obtain reasonable assurance al)crtwhether the financial state18 as a whole are fre& from material misstatemenL whether due to fraud or error. and to issue an auditorfs report that indudes our opinton. io
THE FOUNDATION FOR LIVER RESEARCH Independent Auditor's Report to tho Members of The Foundation for Llver Research (contlnued) For the year ended 30 June 2024 Reasonable assurance is a high level of assurance but Is not a guarantee that an audit conducted In accordan with ISAS (UK) will always detect a materfal mlsststement when it exists. Misstatements can arise from fraud or error and are considered rnaterial rf, Indivldually or In the aggregate, they could reasonably be expected to infiuence the economic declslons of users taken on the basis of these financial statements. A further description of our re8POTisibilities for the audit of the financial statements is located at the Financial Reporting Council's ("FRC's') website at: htt "Ilwww.frc.or .uklauditorsres onsibilities. This descrSption fonns part of our auditors reporL Extent to whlch the audlt was considered capable of detecting irregularities, Includlng fraud Irregulatities, including fraud, are instances of non-compliance with laws and regulations. We design ProdureS in Ilne wlth our responsibilitie5, Outlined above, to detect Matla1 misslatements in respect of irregularities, including fraud. The extent to which our procedur&s arè capable of detecting irregularities, Indudlng fraud Is detslled below. Our approaGh was as follows: We obtained an understandlng of the legal and regulatory frameworks that are applicable to the entty and determined that the most are significant are those that relate to: Compliance with Statement of Recommended Practice: Accounting and Reporting by ChaTities 2015 as this is financial reporting framework that the financtal statements are based on. The key laws and iegulattons we have considered in Ihis context included the Compante5 Act and Charilies ACL In addttion, we have considered provisions of other laws and regulation that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's abillty to operate or to avoid a material penalty. The extent to which our predur&9 are capabla of d8t8Ciing irregularities. including fraud is detailed belovr. We assessed the risks of materlal mi55tatements in respect of fraud a8 follows: Enquiry of senior rnanagement and those charged with governance around actual and potential litigation and clatms as well as actual, suspected and alleged fraud: Used analylical pri)cedures to identify any unusual or unexpected relationships: - Discussed areas of the financial statements with management that were SUSPtib1e to misstatement Based on the results of our tisk assessment we designed our audit procedures to idenlify no ompliance with SUGh laws and regulations identified above by:. Carrying out an accounts dlsclosure checkllst to confirm that the financial 8taternents comply with the financial rewrting framework. Vve corroborated our enquirieg through: review of correspondence wlth HMRC, Charities Commission and Companies House; review of correspondence with other regularity bodies.
THE FOUNDATION FOR LIVER RESEARCH Independent AuditoVs Report to the Members of The Foundatlon for Liver Research Iconttnued) Forthe year ended 30 June 2024 We considered the risk of fraud through management ovetrtde. and, in response, we incorporated testlng of manual joumal entries into our audit approach both at the year end and during the course of the year. We tested journal entrtes and other adjustments for appropriateness and evaluating the business rationale of significant transactions outside the nomial course of business and reviewing accounting estimates for indicators of potential bias. Based on the results of our risk assessrnentwe designed our audit procedures to identify and to address material misstatements in relation to fraud. induding: Vve corroborated our enquiries through- reviewing a sarnple of payments to documentatlon and procedures belng followed in line wtth the financial prOdureS and controls in place: reviewed the accounting policies adopted by the entity were in line with standard practi and were being fcllowed appropriately by the company. The engagement partner considers the eroagement team collectively had the apppriate competence and capabilities to identify or recognise non<0mplian with laws and regulatlons. There are Inherent Ilmitatlons In the audit procedures, descTibed above and the further removed non- compliance with laws and regulations is from events and transactions ret]ected in the fInancial statements. the less likely we would become aware of IL AISD, the risk of not detecting a material mi5Stat6ment due to fraud Is hlgher than the rlsk of not detecting one from error, as fraud may Involve deliberat8 COnalment by, for example, forgery or intentional tnisrepresentations. or through collusion." Use of our roport This report is made solely to the Charitable Company's members. as a b(KJy. in accordance with Chapter 3 of Part 16 of the Companie5 Act 2006. Our audit work has been undertaken so that we might state to the Charltable Company's members those matters w& are requlred to state to them In an auditorfs report and for no other purpose. To the fullest extent permitted by law. we do not accept or assum8 responsibility to anyone othBr than the Charitable Company and the Charitable Company's rnembers as a body, for our audtt work, for thls report, or for the opinions we have formed. Ray Chaplin FC For and on beha A (Senior Statutory Auditor) of Caton Fry & Co Ltd, Statutory Auditor Essex House, 7 The Shrubberies. George Lane. South Woodford, London E1B 1BD 21 M-L2a25 12
TIIE FOUNDATION FOR LIVER RESEARCH CONSOLIDATED sfATEMEKf OF FINANCIALACTMTIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) Yoar ended 30 June 2024 Expendable Unrestricted Restrlcted Endowment Income Income Capilal Fund Fund Fund Total 2024 Total 2023 Note Incomlng resources Volunlary incorne: Investment income 519,027 1351.143 463.774 982.801 1351.143 740,919 1274,873 Tolal Incomlng resources 2.370.170 463.T14 3.333.944 3.015,792 Resources expended Costs of generatlng funds: Investment management fees Investrnent propety experk8es 47.995 332.978 47,995 331978 46.602 127,849 Chafftable Expendlture: Medicai researth actiwlles: Subsidiary company Chartty rasearch activrfies 2.168.074 769,829 2168,074 974.448 1,558.674 1.516.695 204,819 Total resources expended Net Incomlngl{outgolng) resources before transfers & Investment galn5 2,937,903 .619 380,973 324495 3.245,820 (67.733) 259.155 {380P73) {18W1) {234,028) (LossesyGains on change In maTket value of investments 10 1,564.778 1,564.778 267.983 ILossesyGains on revaluatt¢)n of Investment propertles 11 357,000) P.Wf.l)00) (1.815,000) Nat Incomlngl{outgolng) resources before transfers (87.733) 259.155 (1.173.195) (.773) (1.781,045) 14 (381229) 30.110 351119 Net movements In funds (447.671) 289.265 1821,076) 1981.773) (1.781.045) Reconcillation of Funds: Funds balances brouJht forwwd 10.831513 340.880 39.687.592 50,860.985 51642.03D Funds balances carried forKrd 10.W4551 630.145 34866.516 49,879,212 50.860,985 NJI aboye amounts derived from con1Awn 0wati0 and all gains and losses for the year are Sho above. The ncrtes on pages 17 10 29 forffl part of these final statem 13
- THE FOUNDATION FOR LIVER RESEARCH CONSOLIDATED STATEMENT OF FINANGIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)- COMPARATIVE NOTE Year ended 30 June 2023 Expendable Restrlcted Endowment Income Capftai Fund Fund Unresirfcted Incomo Fund Total Note Incomlng resources Voluntsry income: Investment Income 547.578 2,274,873 193.341 740,919 2,274,873 Total incomlng r8sources 2,822A51 193,341 3,015,792 Resourc95 expended Costs of generdting funds: Investment management fees Imiestrnent property expenses 46.602 127,849 46,60 127.849 Charltabl6 Expendlture: r¥iedirAI research activiti sUdIary company Chanty research activlties 1,558,874 1.406.820 1,558,674 1,516,695 109,875 Total resource5 expended 6&494 109.875 174451 3,249,820 Net Incomlngl(outgolng) resources before transfers & Investment galns (143.043) 83.466 {1T4451} (234,028) (L055esyGains on change in matketvalue of investments 10 267.983 267.983 {LossesyGalng on revaluatton of Investment properttes 11 {1.815.000) (1,815,000> Net Incomlngl(outgolng) r880urces before trnnsfers (143.043) 8&466 {1,721,468) {1,781.046) TSfer8 beeen funds 14 (113.230) (251751 138,605 Nat movements In funds (256.273) 58,091 (1,582,863) (1,781,045 Reconclllatton of Funds: Funds balan$ brought forward 11.088,786 282,789 41.270.455 51642,030 Funds balances caTrl8d forward 10.832,513 340.880 39.687.592 80.860,985 All above amounts are derived from conttnuing operations and all gains and losse5 for the year are 5hcwm above. The note5 on page5 17 to 29 form part of these financial st*men 14
THE FOUNDATION FOR LIVER RESEARCH 8AIANGE SHEEr Company number. 07156633 At 30 June 2024 Group 2023 Charlty 2023 restated Note Flxed assets Tangible fixed assets Trading subsidiary inv8stsnt Investments Investment prowlies 6.346.074 6.545,655 6,346,074 5T1.808 16,236.516 22,630.000 45.790,399 6,545.855 1.678.413 14,700.592 24.987.000 47.911,680 10 11 16.236.516 22.630.000 45212.590 14,700.592 24.987,000 46233.247 Curr8nt assets Debiors Cash at bank and kn hand 12 1.IY22.882 4,671,375 5,700.257 1.890.510 3.753.288 5.643,798 745,174 4,677,375 5,422.549 563,404 3.753.288 4,318.692 Credltors.. amounts faltlng duewithin one year Net current assets 13 1.016.080 4.627,738 83.635 4.438.914 984.060 3.332,832 4,666.622 Net assets 49,874212 50.860.985 50,229.313 51.244,292 Funds 1416 Expendable erM1owment capta fund Unrestrictsd fimds Revaluation Reserve Restrided funds 38.866.516 8.907.899 1.474.652 630,145 49,879212 39,687,592 9.357.861 1.474.652 340.880 50mO.985 38.866,516 9,258,000 1,474.652 630.145 60,229.313 39.687.592 9,741.168 1,474,652 340.880 51,244,292 These financial slatements been prepared in accordance with the sp1 provisions for small companies under Part 15 of the Companies Act 20. The finarKÉal statements were approved by the Board ofTru8tee4 ar authortsed for Issu4 cn sign1 on its behalf by." 2035 Mrs Anna Bnett Ttee The notes an pages 17 to 29 forrn part of these ffflancial statements. 15
THE FOUNDATION FOR inlER RESEARCH . CONSOLIDATED STATEMENT OF CASHFLOWS For the Year ended 30 June 2024 Note 2024 2023 Cash used In operatlng actlvldes 17 1A10 89 .305,297 Cash llows from Investlng actlvltles Dividends. interesl rents fr investments Purchase of Propety. Flant & Equipmert Proceeds from Saks of Investments Purthase of Investm8nts 2.351.143 2.274.873 (45.321) (62,218) 2.509.876 2.357,540 (2.742.180) R929,T17) Net cash provlded by investlng acthillies 2,073,538 1,840,418 (DeSSeYIrrèaSe in cash and (2sh equiwdtents In the rep(xtir¥J wiod 862,949 (1,664,879) Cash & Cath equivalents at Ihe beginrw ofthe repor*ng peTh)d 4.126.381 5.791260 Total cash and cash equlvalents at the end of the year 18 4 126,381 The notes on pages 17 to 29 form part of these fincIal stateMts. 16
THE FOUNDATION FOR UIIER RESEARCH NOTES TO THE FINANCIAL STATEMENrs For the year ended 30 June 2024 ACCOUNTING POUCES statutory Infomiation The Foundation for Liver Research is a charttable company, fimited ty guarantee, domiciled in ENJLgnd and Wales. registration number 07156633. The reglstered office is 111 Coldharbour Lane, London SE5 9NT. Basls of preparation The financial stalements have been prepared in accordan with A(>>)unting and ReF•)rting by Charities". Statement of Recommended Practir£ applicable to thartlies preparrng their accounts in accordan with tha Flnanclal Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) {effectlve 1 January 2015) - (Charities SORP (FRS 102)) and tho Compan5es Act 2006. The FoundatiM meets the definilton of a publlc benefit Onlty urKler FRS 101 Assets and liabilities are inlbally recognlsed at historkal cost or transaclbn value as modffied ty adjustir Freehold Land and Bulldlngs and Investrnents to fair value at Ihe balan sheet date. The finandal statements are pres8nted in sterfng which18 the functlonal currency of Chaty and rwnded to the nearest pound. Group flnanclal statemonts The financial stslements consolidate the results of the chanly and 113 owned Subsidlary, Liver and Research Development Llmited. on a line-by-line b8sls. A separate Statement of Financial Activilie5 and Income and ExpendSture Account for the charlty has not been presenbj because Ihe Foundation has taken advantage of the exemptton afforded by section 408 of the Companies Art 2006. The delt for th6 Charlty only was £582,244 (2021" Surplus of £3.668,473). Golng Concam The Irustees assess whether the use of goirvJ concem Is approprlate i.& whetsr there are any material uncertaintles relaled to events or conditions that may cast signifunt doubt on the abillty of the company to ntinue as a golng concem. The trustees rnake thls assessment in respect of a period of at least one year from the date of authorisatlon for Issue of the financlal statements and have concluded that the Foundation has adequate resources to continue In operational existence for the foreseeable fulure and there are no material uncertaintles aboutlhe Foundallon's abillty to continu8 as a going concern bU88 of the endowment funds avadable. thus they continue to adopt the gotng corrt%m basi& of accounti in preparing the financlal 8tatements. Incom• Income Is recognlsed when ts charlty has entltlement to the fvrKls. any FErfrnc8 (x)fKIRlons attached to Ihe Item(s) of income have been nrt it is probable thatthe income will be receNed. and the amountcan be measured reliebly. IncoffR from donaiions are rwgnised on a receivablg basts (wheffj Ilwe are no perfomiance-related condltlons) where the receipt Is probable, and the amount can be rellabIy measured. Income from research 9rants is reo)gnised when charity ha5 entitlement to the fijnds, any perfomiance conditlons attached to the grants have been mec it is probalk UHt the in(x)rne will be received. and the armunt can be rneasured reliabty and is not deferred. For legacies. enlitlement Is tsl(en as the eaer of the date on elther. the charity Is aware that probate has been granted, the esL has been finalised and nobfKatk?n has been made by the execuior(s) to the Foundation that a distributK)n witl be madq or when a distribution 15 Teceived from the estate. Receipt of a legacy. in whole or in part, is only considered probable when the aKnt can be measured refiably. and the charity has bn rtified of the executorfs intention to make a distribution. ere legacies have been notified to the charity, or the carity is aware of Ihe granting of probate, and the uiteria for Y()[e recognition have not been mel, then the legacy is treated as a contlngent asset and rf105ed rf material 17
THE FOUNDATION FOR LNER RESEARCH NOTES TO THE FINANCIAL STATEMEMfs (contlnued) For tha year ended 30 June 2024 Income frorn investments and interest on funds held on deposit are induded when re1vable and the amounts can be measured re]iably by the chtty. this is normally upon notificalion of the intt or dNidend paid or payable. The rental incorne from the Inves properties is rwntsed on the basi5 of the rental period ft covers and is invoiced to the tenants on a quartety basis in adva ary income that 15 invoiced in advan of year end treated as deferred incom Fund accounting Unrestricted are availatrk to 8perKI on activilEs that further any of the wrposes of the charity. Restricted funds are clonations which the (kinor has SFeofEd to be solety used ts parttcular areas of the Foundation's work or forspecific ctsitable Fyojects being underta. The Foundation has an expendable erKI(ywrrent capital for which the trustees have the power to spend the capital as they deem fit for charitable purposes. Income eamed on the fvnd is unrestricted in nature. The costs of professTonal fees Inojrred in managing the inveslment assets and investsnent prcperties, which are part of the expendable endowment fund. are chwged against Ihe fund. Judgments In applying accountlng pollcles and key Sour$ of estlmatlon uncertalnty The preparation of financial staternents h COmpan with FRS 102 requires the use of certah crfrtlcal accounting estimates. It also requlre8 Company's managet to exercise judgement in apptylng the Company's accounting Pos. In the opinion of the Directors. there are no significant areas of Judgement or key assumptlons that affect ite£ sn the financial statement& The judgements thatwill have the most signiant effect on the affnts rgniSed in the finan¢Aal statements are as follows". Rates of depreoatiffl and useful Ilfe of an asseL The directors revi depriation rates however. the actual useful life of an asset wll deperKI on a number of vaTi&le factOTS. Revaluation of investment properties. The directors obtain an indeFendent vakjation of the investrnent propetty portfolio however, the rrrarket value is dependent UFon net ¢ondiiions at tha time of valuation. valU10n of Freehokl Land and Building Expenditure Atl eenditUre is accounted for on an aUal basis and has been classifEd under headings that aggregate all costs related to the (xtegory. Expenditure is recognised On there is a legal or constructive obligation to tnake payment to a third party. it is probable Ihat settlernent will te requTfEd, and the amountof the obligation can be measured reliably. Redundancy and tennination r05ts are recogrxsed as an expense in the Statement of Financial Actrvibes and a liability on the Balance Sheet irnmediately at the point the Foundation 15 demonstrabty committed to either. terminate the employment of an ernOyee or group of employees before rM)mial retirerrEnt date: or provide temiination benefits as a result of an offer Trrdde in order to erKX)urage voluntsry redundancy. The Foundation is considered to be demonstrabty corrffiitted only when it has a detailed formal plan for the terniination and IS without realistic possibilty of withdrawal from the . Tanglble flxed assets Frre8 and Fittings costing £500 or more and Laboratory Equipment costing £2.500 or more are capitalised at cost and recognised when fuiure economic benefits probatAe. and cost of the asset can be measured reliabty. Freehold Land & Buiklings are inibally re(xgnised at arKI revalued after 5 yea[5 to Depreciated Replacernent C( 18
-THE FOUNDATION FOR LIVER RESEARCFt NOTES TO THE FINANCIAL STATEMENTS (conthiued) For Ihe year ended 30 June 2024 The change in poliGy relating to Freehold Land and buildings was initiated to better reflect the cost of rebuilifing in the current economic climate. Tangible Fixed Assets are depreciated over their expected useful lives on a straight-line basis as follows." Buildings Fixknres, fittings and equipment -2%- 5% perannum - under £50k 20% per annum - over £50k 10% per annum No depreciation has been provided on the freehold land. Valuation of Investment Propertie5 Investment properttes are either held freehDld or leasehold to eam rentals or for capltal appreciatson or both. The cost of a purchased investment property comprises its purchase prtce and any directly attributable expenditure. After initial recognition, the Foundation measures all of its investment propety at fair value and a desktop valuation is done by an independent RICS registered surveyor on an annual basis. A gain or loss arising from a change in the fair value of investment property shall be recognlsed In the SOFA for Ihe period in whlch It arises. An investment property is de-recognised on disposal or when the investment propety is perrnanenty withdrawn from use and no future economic benefits are expeGted from its disposal. Gains or losses arising from the retirement or disposal of investment propety are determined a5 the difference between the net disposal proceeds and the carrying amount of the a55et and the gains be recogni5ed in the SOFA. Investments Investments are initsally recognised * their transaction Val and subsequently measured at fair value at the Balance Sheet date using the closing market PTice. The SOFA includes the net gains and losses arising on the revaluation and disposals throughout the year. Valuatlon of Subsldlary The Foundation's shareholding in the wholly owned subsidiary. Liver Research & Development Ltd Is included at the cost of share capital owned. Debtors Debtors are amounts owed to the charity. They are measured on the basis of thelr recoverable amount Cash and cash 8quivalents Cash at bank is held to meet the day to day running costs of the charity as they fall due. Cash equivalents are short tetm, highly liquid investments. usualEy in 904ay notice interest bearing savlngs accounts. Llabilitles Liabilities are recogni5ed when there is an obligation at the balan 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. Liab71ities are recognised at Ihe amount that the foundation anticipates it will pay to settle the debt Dr the amount it has received as adVand payments for the goods or services rt must provid Financial instruments The Foundation only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are inilially rQgnISed at tranStIOn value and subsequenty measured at their settlement value. 19
THE FOUNDATION FOR LIVER RESEARCH NOTES TO THE FINANCIAL STATEMENTS (conllnued) For the year ended 30 June 2024 Taxatio The Foundation B c(NK8tdered to pass the tests set out in ParaJrdph 1 Schedu]e 8 of the Finance Act 2010 and therefore it meets the definition of a Charitable COMpry for UK Corporatu)n Tax purposes. Accordingty, the Foundafion 15 POtenlial]y exempt from taxatKin in respect of income and capital gains received thin categortes covered by Chapter 3 Part 11 of the cooratIon Tax Act 2010 or Sectton 256 of the TaXatn of Chargeable Gains Act 1991 to the eXt Ihat income or gains are applied exdusivety to charitable putP05e& Voluntary income 2024 Total 2023 Totsl Unrestrfcted Restrfctsd Legacles Research Grants Donations & Olher Incom8 57.465 6.895 57,465 458.185 469.442 77,190 241394 421.335 740 919 451290 521 18 Investment Income 2024 2023 tknbutions on UK fred irtterestand interest on deFM)sits DistrR)utions on UK equities (ftsted on a rettnised sl(J* exchange) and unit trusts Distnbutions on Ovetseas equftEs {listed a recogntsed stock exchange) and unit tNsis Rent receivable rime Deplt Interesl 76.058 17.990 51.887 175,959 1,991.405 51388 209,391 1.957,489 38.116 2A51.143 1274.873 Charitablfr Activitios 2023 Direct Support Diroct eosls Support Total Research undertaken by subsidiary rnPany 2.103,294 64.780 2.168.074 1.511.631 47.043 1.558,674 Medtcal research acfvities 906.787 67.661 974,448 1.452.396 84.299 1.516,695 010.081 132N41 3.14222 1964.027 141A42 3.075,369
THE FOUNDATION FOR LIVER RESEARCH NOTES TO THE FINANCIAL STATEIVIENTS (continued) Forthe year ended 30 June 2024 Allocatlon of costs 2024 2023 Medical Research activities Me(fKal Research tlvltles Support & Governance Support & Total Governance Total Staff costs Laboratory consumables and overheads 18,642 1,871,475 1,890.117 17.925 1,597,031 1.614,956 447,251 447,251 212223 212.223 576,924 293.323 578.924 293,323 Premtses Communications & Marketing 65,600 65,600 98,488 98,488 DeprlaOn 244,902 244,902 300,988 300,988 Audltors. remuneralon 16,020 16,020 15.420 15,420 Fees payabla in respect of accountlng and taxation sepilces 63,520 Legal and professional fees 34,259 63,520 34,259 47,043 30,954 47,043 30.954 Sundry expenses 188,630 168,630 3,010.081 3,142A22 97,273 97,273 1984,027 3,075,369 132A4q 111.342 Net incomelexpendilure for the year 2024 2023 This is stated after charging- DepTeciatton Authtors remuneralion: Audit Fees 244,902 300,988 16.020 15,420 Slaff costs 2024 2023 Wages and Salaries Redundancy Costs Social Security Cosls Pension Costs 1.526,189 1.339,433 5,708 20,OtK) 126,722 115,908 231,498 139,615 1.8go,117 1.614.956 Three of the Trustees received reimbursement of travel expenses relating to their attendan at Board meetings throughout the year. £2.608 {2023: £1,260). None of the Trustees received any remuneration during the year. Key management personnel's salary costs of £257.984 (2023: £210,578) are included in the ffigu abo Contrkwtions of £231,498 (2023. £139.615) were made to defined Gontributions pension scheme on behalf of employees. Of Ihese £52,752 (2023.. £38.932) related to key management personnel. 21
THE FOUNDATION FOR LIVER RESEARCH NOTES TO THE FINANCIAL STATEPEhrrs (conttnued) For the year ended 30 June 2024 Slaff costs (contlnued) Foundation had an average of 27 lOYeeS during the year u[er revpw (2023: 23). Emthees earning over £60.000 be broken (kn¥n as f01b. 2024 2023 £60.001- £ 70,000 £70,001- £ 80,000 £80.001-£ 90.000 £90.001- £100.000 £100.001-£11111)00 Tanglble flxed assets {Charfty and Group) Freehold land and bulklings Fixture5. fittings and equipment Total At 1 July 2023 Additions Dlsposals RevaluatKin 6,650.639 1.562,273 45,321 (67.337) 8212,912 45,321 (67,337) At 30 June 2024 6.650.839 1.540.257 8,q90,896 Depreciatlon At 1 July 2023 Charge for the year Disposa]s Revaluation 356214 178,107 1.311.043 66,795 (67,337) 1.667,257 244,902 (67,33n At 30 June 2024 534.321 1,310,501 1,844,822 Net book value At 30 June 2024 6.116,318 229,756 6,346,074 At 30 June 2023 6294,425 251230 6,545,655 Freehold larHJ & BudingS w& reialued with effect from 30 June 2021. this revalualton was done by Mr Simon wairW1ghl a Truste& Mr lthu)wright is a Fellow of the Royal Institution of Chartered Surveyors (FRICS) and is also a RICS Registered Valuer. He has more than 40 years. exper1ere in private ptacttce in London having specialised in the aquisilion, sale and valuation of commercial and mixed-use property throughout the UK and having sufficient local and national kncAvledge of the particxAar market fix this prop&fy arKt the skilLs and understanding nec&ssary to undertake the valuation competentty- Due to the SpeciaSed nature of property, restrictions in the planning use and title, the value has been estimated using a Depreciated ReplacerrEnt Cost (DRC) Meltr and is not based on the eviden of sales of similarassets in the market. The decision to use the Deprecid Replment CostlDRC} method of valuation has been discussed and agreed wIth the cllent for the followiThJ r&3son: 1. The building erected on the property is a specialised purpos&bullt laboratory designed and built spectfically for the Instiiute for Hepatology and there is rKI aotive market for Ihe asset and there is no useful or relevant evidence of recent sales transactions due to the specBlised nature of the asset and the restiictions placed upon its occupation. u and sale.
THE FOUNDATION FOR LIVER RESEARCH NOTES TO THE FINANCIAL STATEMENTS (continued) For the year onded 30 June 2024 Tangible fixed assets (Charity and Group) 2. The planning permission authorising the construction and use of the premises 141062061FUL is exclusive to Ihe client and contains the fotlowing condition Tre d8V81opmenthehY approvedshalj be used solety for medical research (Class 8l(b)) by the Institute of HepaEokw and no olher purpos9 unless othenwse agreed in wnling by the Local PlannIngAuthr. 3. The freehold sits acquired from Ifjng's College Hosptsl Charitable Trust who have a we-emption right if the propety is offered for sale and rKJ charge or disposition is to be register8d without a certificate signed by King's College Hospitsl Charity that the 'Deed af Overa9e' has been complied with. If land and buildings were stated at historical cost rather than a fair vatue basis. the carrying atTr)unts would have been £5.081.CE6, beirKJ Cost £5,645,266 and depredafK>n to date of £564200. Trading Subsldlary Investment 2024 2023 Investment in Subsidiaries Loans to Subsidiarles 100 5T7 708 577 808 100 1678 313 678 Net Income from tradlng actlvtties of subsldlary The Chartty has a wholly cthined subsldiary incoTporated in England and Wale4 Liver Research and D8velopment Limited, (Company Number. 07944232) whtth was incorporated on 9 February 2012. Its registered olTice is the same as its parent Its principal activty is medical Tesearch into variou5 causes of liver damage wilh a viewto finding possible commer(xal ]labOration& The large deficit in the current financial year to 30 June 2024 is due to research prriect work being done years in adan of eamed income coming in. A sumtnary of 115 trading results for the pernd ended 30 June 2024 is as follows: 2024 2023 Turnover Cost of sales Gros8 Loss 473,498 103.294 (1,629.796) 355.063 1511831 {1,156,568) Admlnjslratre expenses Taxation Los8 for the year (64.780) (47,043) 1.694.576 1203.811 Current Assets Currenl Liabifrties 277,708 (7,455,491) 1.327,1C <6,810,313) Reseroes: Called up share capital Capital introduced frorn the parent undertaking Profit and loss account Shareholdefs funds 100 2.849.900 10 027.783 .177.783 10D 2,849,900 8 333,207 5.483,207 The Charty has given a Eetter of suppNt to Liver Researth & D0) Ltd to erwre tt can conbnue as a going concem unlil. at the eaTIE< 30th June 2(Y26.
-.THE FOUNDATION"FOR"LIVER RESEARCH -" "_' NOTES TO THE FINANCIAL STATEMENTS (continued) Forthe year ended 30 June 2024 10. Flxed asset Investments (Charity and Group) 2024 2023 Stocks. shares, unit trusts and cash Market value at 1 July Additions during the yearat $t Disposals at carying value Net (loss)Igains on investments 14,327.499 13.279,400 2.742.160 2,929,777 (2.509.876) {2.357,540) 1.564,778 475,862 16.124,561 14,327,499 111,955 373,093 16,238,516 14.700,592 13,09D,961 13,275,223 Cash baEances (held by investment managers) Mathet value at 30 June Historical Cost at 30 Juno 2024 2023 Analysis of investments at market Yaluv. UK fred interest and deposits UK equities (listed on a recognised stock exchange) and unit trusts UK other (cash balances) Ovets&% equtlie5 (listed on a recogni*d stock exchange) and unit trusts 2,309,713 1.485.383 111.955 12.329,465 16.236.516 1,832,014 1.369.638 3,441.724 8.057.216 14.700,592 11. Inveslment Properties (ChaTity and Group) Investrnent Property Cost At 1 Juty 2023 Addition of New Propety Revaluation At 30 Jun? 2024 24,987,000 2.357 000 22 630 000 Propèrty Investment valuation per property 2024 2023 Lanter Rufford Portfolio St Cross Business ParK low J1 & J2 Chaucer Business ParK Polegate Imperial House DX Portfolio Market Value at 30 June 1,250,000 10.415.000 3.285,000 935,000 2.470,000 4 275.000 22 630 000 1.480,000 11,550.000 3,618.000 950,000 3.240,000 4,149.000 24 987 000 The basis for the valuation, on all properties was an independentvaluation report to give a more accurate market value of the properties. This was carried out in June 2024 at the behest of Ihe Trustees by Mr J Sharp, a RICS registered surveyor employed by Vail Wlliams for the followtng properties Lancaster Pla, Rufford Portfolio, J1&J2 chaUr Business Park and lrnperial House and by Simon Wanwright for St Cross Business Park and DX Portfolio. 24
THE FOUNDATION FOR LIVER RESEARCH -_ _ . NOTES TO THE FINANCIAL STATEAIENTS (conlinued) For th8 year ondod 30 June 2024 12. Debtors Group 2024 Charlty 2024 2023 2023 Reclas81flod Trade debtors Taxation recoverable Prepayments and accnHI Income 470,122 441,345 470.122 441.345 552,760 1,449,165 275.052 122,069 1,022,882 I.89010 745.174 663M04 13. Creditors: amounts falfing due withln one year (Charity and Group) Group 2024 Chartty 2024 2023 2023 Trad8 cre(fitors Aud1( 8¢untancY and tsx fees Investment manageff*nt fees VAT Deferred Rent Olher Crediior5 and accruals 294,701 79,540 11,653 76,831 89.348 62.A163 11.653 91,542 428,004 333,050 294.701 16.020 11.653 76,831 363,908 220,522 983,635 89,348 15.420 11,653 91,542 428,004 348,093 984.080 207.0tr2 1,033,635 1.016.060
THE FOUNDATION FOR LIVÉR RESEARCH NOTES TO THE FINANCIAL STATEMEhTfs (continued) For the year ended 30 June 2024 Analy813 of movement in fund5- 2024 l July 2023 Other Expendithre gainsl(losses) Transfers 30 June 2024 Income Restrlcted Funds Sorenson Ochre Bio Hepion Pharma SPARC C & G Lawson Fdn Hobson Charitable Fdn Assoo of Physicians Kings College Hospital Charity PrDSitSole BV Boehrlnger Ingelhelm GUTS UK R J Cristin Wellcome Trust CCA Grant BRUK University of Bari Klngs College London Total Rostricted Fund8 124,625 114 29,e65 365 25.CrfJO 14833 124,625 114 32,085 365 25,000 13,833 (27,690) 30,110 8251 8,251 10,990 16,473 65,350 62,687 (40,232) P5,37n 25,118 101,816 64.506 11,307 250,000 113.211 3,000 6.766 12,484 2.500 (6,716) 4,591 249,564 13,326 (99,885) (3.OIK)) (6,766) 12,484 2,500 340.880 463.774 (204.619) 30.110 830,145 Exp?ndablo Endowment Capltal Fund8 39,687.592 {380,973) (7¥2.Z22) 352,119 38.866,516 Unrestrlcted Funds 10,832.513 2.870.170 (£937,3> (382.229> 10.382,551 Total Funds 50 860 985 3 333 944 3 523 495 91222 49,879.212 Restricted funds representthe followirvJ researth area5." Sorensen: Capital Expenditure fw new Lab Institute- to be swt ty 2030 Ochre Bio- Collaboration Researcth agreement for the SRI NA LTver sli Project Hepion - Investigation of the anhep3tills B and D efficacy and the anb-filxotic wterty of the cyclophllln8 Inhibitw CRV 431 SPARC- DeteTminlTrJ the Role of ExtralIlar Vesicles as CommunI(soMeS In progression to Multi Organ Failure in Advanced Liver Disease C & G Lawson Fdn- Contrsbulton towards tranSCrpt[C equlwnart to be purchased vthen rest of funds raised. Hobson Chartiable Foundation- The role of cell free DNA as a driver of coagulation dysfunction and critical illness In chronic Ver disease Association of Physicians - Applying drculatlng celkfree DNA methyla15on technologles to produce novel prognostic markers in chroniG liver failure syndromes lfjngs College Hospilal Chaiity- Evaluakn'on of point-of<are testing pathogen Infec1 and antimicrobial resistance in decompensated cirrhosis arKI acute-on-chronic liver failure (ALF) Prosii Sole BV- Pre-clinical evaluation of Pegylated Intarferon Lambda chtmera PSP001 for the treatment of chronic Hepatitis B
THE FOUNDATION FOR LIVER RESEARCH--"- NOTES TO THE FINANCIAL sfATEMEKts Icontinued) For the year ended 30 June 2024 14. Analysis of movement in funds- 2024 continued Boehringer Ingelhelm - Integrative 'OnNc< modelling to charadm the INpact of ECM signatures on hepatocyte metabolism and fvnction In human4lerived bioengineered multt¢ellular models of NASH fibrosis GUTS UK - Early Career Researcher Development Grant - Devek)pment and edaluation of point-ofare diagnostics utilising clintcal metagenonic sequencing for rapid pathcrfJen and antimicrobial resistance detection in decompensated cirrhosis acut&on-chronic liver failure R J Cristin- Hanessing the gut Tnlcrobiome to improve thrywtic response rates in Liver Cancer. Wellcome Tt - Eary Career Award - 'The Nithe effect - A study of the celluLqr and extrdcellular microenvironment of foetal liverthat promotes haematopoietiG Stem cell expansion CCA Grant- Nell Blenkinsop Research Grant B¢Jwel Research UK- Sttjdying the mMX0QnEnt of brAvel carKer in patients ryth pjor prognosts and low survival Unwersity of Bari- Optimisation of a MASLD Organ On a Chip Model to study PPARGCIB therdpeutic usefvlness Kings College London - Matt Mfilson Scholatship Award TargetuyJ mth0ndria as a trErapth str*gy for alwhol-related liver di5eas&' Expendable EndowtrEntfunds rEprBsents the rental woperty p(xUok) arKI the irpoestrrEnt assets Fly010. Other gains and losses Other gainsllosses comprtse of gains cm the change In market value of the wwestTrt pcrfffolio of £1.564,778. a loss of £2,357.000 on the revaluation of the i[Nest propertles. 1& Analysis of movement fund5- Compath Nots for 2023 1Juty 2022 Other Incorne Exp8ndituro gainsl(losses) Transfers 30 June 2023 Restricted Funds Sorenson ERAB Ochre Bio Hepion Pham SPARC C & G Lawson Fdn Hobson Charilable Fdn Assoo of Physicians lfjngs Coilege Hospital Chaiity Prositsole BV Boehringer Ingelheim ToLql Restrlcted Funds 150.(100 25.611 114 18.774 365 25.000 13.833 (25.375) 124,625 (25,611) 114 29,665 365 25,000 13,833 41.270 (30,379) 14.12 (5.841) 8,251 35.000 P4,010} 10,990 67.761 84,310 (2.411) {21.623) 65.350 62.687 281789 193.341 (109,875) (25,375) 340,880 Expendable Endowment Capital Funds 41,270,455 (174,451) (1.547,01 n 138,805 39.687,592 UnreStrfod Funds 11.08&7 2.822.451 965.454) (113,230) 10,832,513 Total Funds 030 3015 792 1.547 017 50 860 985
THÉ FOUNDATION FOR LIVER RESEARCH NOTES TO THE FINANCIAL STATENIENTS Ictinlinuod) For the year end8d 30 June 2024 16. Analysls of Group net assets between funds 2024 Expendable Unrestslcted Restslctsd Endowment Income Income Gapltal Fund Fund Fund Total Analysis of Funds Tangible fixed assets Investrnent Assets Propety portfolio asset investments Net current assets 6,346,074 6,346,074 18,236,516 16,236,516 22,630,000 22,630,000 4.666,622 4.036,477 630,145 10,382,551 630,145 38,866,616 49.879,212 Analy818 of Group net assets between fvnd8- Comparativè Note for 2023 Unrestrictod Restrfcted Endowrnent Income Incomo Capltal Fund Fund Fund Total Analy818 of Fund8 Tanglble fed assets Investment Asseis Property portfollo asset Inveslrnents Net CUnEnt assets 6,545,855 6.545,655 14,700,592 14,700,592 24.987,000 24,987,000 4.627,738 4,286,858 340,880 10.832,513 340,880 39,687.592 50,860,985 Analy818 of Charity net assets between funds 21124 Expgndab Restrfcted Endowment Income Capltal Fund Fund Unrestrlcted Income Fund Total Analy818 of Fund Tanglblg fixed assets Investmant in trading Subsidiary Investmgnt Ass8ts Prop8rty portfolio asset Investrnenis Net current assets 6.346,074 677,808 6,348,074 577,808 16,236,516 16.238,516 22,630,000 22,630.000 4,448,914 3,808,769 630,145 10,731651 630,145 3B,866,516 50,229.313 Analysls of Charlty not assets between funds- Comparatlva Nots 2023 Expendable Unrestricted Restricted Endowment Income Income Capltal Fund Fund Fund Total Analysis of Fund Tangible fixed assets Invesbnent in Trading Subsidlary Investment Assets Property portfolio asset investments Net current assets 8.545,655 1.678,413 6,545,655 1.678.413 14,700,592 14,700,592 24.987.000 24,987,000 3,332.632 2.991.752 340.880 11.215,820 340,880 39,687,592 51.244.292 28
THE FOUNDATION FOR LIVER RESEARCH NOTES TO THE FINANCJAL STATEMENfs (continued) For the year endod 30 June 2024 17. ReconcFliation of net movemBnt in funds to net cash flow from operntlng actlvltles 2024 2023 Not income for th9 roportlng perjod (as per the ststgmont of flnancial activities) Adjustments for: Depreciation charges Lossl(Gain) on revaluation of fixed assets Lossl(Gains) on investments (Gains)ILosses on investrnent properties Dividends, interest and rents from investrrEnts (Increase)Idecrease in debtor5 Increasel(decrease) in creditors Not cash used In operatlng actlvftles (981,773) (1.781,045) 244.902 300,988 (1,564.778) {475,862) 2,357,000 1,815,000 (2,351,143) (2,274,873) 867,628 (758,941) 10,589 3 305 297 18. Anaty$l8 of changes In net debt 2024 2023 Cash in hand Un-lnvested cash with investrnent managers (see Note 9) 4,677,375 3,753.288 4 789,330 4.126 381 19. Related party Tr8n8actlo As explained In Note 9, LIv8r Research and Development Ltd {LRD) Is a wholly owned subsldlary of The Foundatton for Llver Research (FLR). In the year FLR incurred costs of £2.168,074 (2023.. £1.558.674) and reiVed £1,327.106 (2023: 0) on behalf of LRD. Atthe year-end £577,708 (2023: 1,678,313) was due from LRD to FLR and it has been deejded to re¢ognise th5s a8 a long-tem investment instsad of a loan and a8 8UGh this is now included In Note 9 within fixed 8SS8M this figure indudes impairrnents totalling £6.828m (2023: £5.1m) In FL There was one related party transaction. the nama of the related paty was Mr Slmon Ihlalnwrlgh( who is a Trustee and a Director of JP Walnwrtght The lotal amount of the transactions in tho year was £54,823 whlch related to professional fees and asset management fees for 5 properttes within th8 Foundatlon's property portyofio. The arnount outstanding at the year-end was £19,509 and TnBte88 confirm that th15 was carrf8d out at an arm's18ngth basis. 29