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2020-12-31-accounts

Guts UK Charity

Annual Report and Financial Statements

31 December 2020

Charity Registration Number 1137029 Company Limited by Guarantee Registration Number 07274105 (England and Wales)

Contents

Reports
Reference and administrative information 1
Trustees’ report 3
Independent auditor’s report 32
Financial statements
Statement of financial activities 38
Balance sheet 39
Statement of cash flows 40
Principal accounting policies 41
Notes to the financial statements 46

Guts UK Charity

Reference and administrative information

Royal Patron HRH Princess Alexandra
Trustees Professor D AdamsMD FRCP FMedSci
Professor R Arasaradnam*MB BcH, C Clin Ed, PhD, FRCP, FEBGH
(EU)
Mrs K AuBSc(Resigned 4thMarch 2021)
Dr L Bradley (Appointed 29thApril 2020)
Mr G Christian-LimBSc
Professor A FordMBChB, MD, FRCP
Professor C HawkeyDM FRCP FMedsci– President
Dr M LomerMBE PhD
Professor J McLaughlinMBChB PhD FRCP– Deputy Chair
Ms S Murray (Renewed 2ndDecember 2020)
Professor J RhodesMD FRCP FMedSci- Chair
Dr P SmithBMedSci BMBS MRCP MSc– Medical Director
(Renewed 2ndDecember 2020)
Mr H TranBSc FCA– Honorary Treasurer (Resigned 30thApril
2020)
Mr S WilliamsBA ACA(Appointed 13thMarch 2020, Honorary
Treasurer from 1stMay 2020)
* nominee of the British Society of Gastroenterology (BSG)
Chief Executive Ms J Harrington
Principal office 3 St Andrews Place
Regent’s Park
London
NW1 4LB
Telephone 0207 486 0341
Website www.gutscharity.org.uk
E-mail info@gutscharity.org.uk
Company registration number 07274105 (England and Wales)
Charity registration number 1137029

Guts UK Charity 1

Reference and administrative information

Auditor Buzzacott LLP 130 Wood Street London EC2V 6DL Bankers National Westminster Bank plc 1 Cavendish Square London W1A 4NU Investment managers Cazenove Capital Management 12 Moorgate London EC2R 6DA Solicitors Hempsons 40 Villiers Street London WC2N 6NJ

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Trustees’ Report 31 December 2020

The trustees present their report together with the financial statements of Guts UK Charity (“Guts UK”) for the year ended 31 December 2020. The report has been prepared in accordance with Part 8 of the Charities Act 2011 and constitutes a directors’ report for the purposes of company legislation.

The financial statements have been prepared in accordance with the accounting policies set out on pages 41 to 45 and comply with the charitable company’s memorandum and articles of association, applicable laws and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

Structure, governance and management

Guts UK is a charitable company limited by guarantee. Its governing document is its Memorandum and Articles of Association.

The trustees have overall responsibility for setting the strategic direction of the charitable company. The trustees delegate specific responsibility to several committees as follows:

The policies of the charity are determined by its board of trustees whose membership is listed on page 1. The research policy of the charity is decided by the trustees in consultation with the Research Committee of the British Society of Gastroenterology (BSG). Guts UK is a member of the Association of Medical Research Charities.

Guts UK advertises for new trustees as required. Prospective trustees are interviewed by the Chairman or other fellow trustees and are asked to submit a CV for review by the trustees. Candidates must be approved by a majority of trustees and the usual term of office is three years, renewable on approval by the board up to a maximum of 9 years total.

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Structure, governance and management (continued)

New trustees are provided with information concerning the finances, fundraising activities, grant-making and research policies of the charity. Those who are not familiar with the legal obligations and responsibilities of a trustee are provided with information published by organisations such as the Charity Commission. Training opportunities are offered to trustees on an ongoing basis.

Guts UK continues to work closely with the BSG to provide strong links with the main professional community and to improve its ability to disseminate research and patient information. The Chairman of the BSG’s Research Committee is a member of the board.

The day-to-day operation of Guts UK is delegated to the Chief Executive who is supported by a team of staff.

Key management personnel

The key management personnel are those involved in managing the organisation, fundraising, communications, research and finance. These comprise the trustees, the Chief Executive and the Finance and Research Managers.

The pay of all staff members, including members of key management, is reviewed annually by the trustees. Remuneration details in relation to key management personnel are provided in Note 10 to the financial statements.

Risk management

Guts UK maintain a risk register covering the major risks to which the charity is exposed. This covers governance and compliance, operational and administration, financial and investment and reputational risks.

Guts UK rates potential risks by likelihood and impact. The risk register is reviewed regularly by the trustees and the key risks together with the policies to mitigate them have been identified as:

Failure to comply with GDPR regulations

Policies and procedures have been developed and communicated to all staff. Ongoing training is provided. Data protection is a standing item on the ARC Committee and trustee meeting agendas to ensure trustees are kept up to date with actions taken to ensure compliance with the regulations. There will be ongoing monitoring of compliance with regulations.

Failure to meet strategy to increase donations

Management accounts are prepared and regularly reviewed by the ARC Committee to monitor fundraising performance. The fundraising strategy has been reviewed by the Chief Executive and trustees with a view to increasing the number of individual supporters and donors alongside developing different income sources to include approaching former funded researchers and gastroenterologists and industry/pharma for support. The trustees review income generation, reserves and strategy at each Board meeting to ensure the strategy is still the right one and that the charity has sufficient funds to meet it.

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Risk management (continued)

Impact of COVID-19

The COVID-19 Pandemic has led to some increased risks. Financial risks have increased as a result of the decline in the value of the charity’s assets and income from investments and fundraising which will affect future spending plans. The trustees will continue to monitor income and expenditure and adjust as required. Changes in operational practices which have been required, such as the move for staff to work from home, has created risks. Guts UK has taken measures to support staff working from home, including weekly virtual staff meetings held via MS Teams. No staff have been furloughed to-date. There is also the risk that the charity will not be able to hold any Science of Digestion or other public awareness events. This will affect the charity’s ability to fulfill its charitable objectives of raising awareness as well as impact on the recruitment of new supporters and fundraisers. As far as possible the public awareness programme will be converted to a digital format.

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WHO WE ARE

Guts UK is the charity for the digestive system.

“People are suffering. People are dying. All because of a lack of knowledge about our guts. Guts UK exists to change that. Our guts have been underfunded, understaffed and undervalued for decades. Together, we will join forces and bring about important change in this misunderstood area of health.”

Guts UK is the only UK charity funding research into the digestive system from top to tail: the gut, liver and pancreas. Since 1971 we have funded almost 300 projects and invested nearly £16 million pounds into medical research that leads to better diagnoses and treatments for the millions of people who do not have the luxury of taking their guts for granted.

“With new knowledge, we will end the pain and suffering for the millions affected by digestive diseases.”

OUR VISION

A world where digestive disorders are better understood, better treated and everyone who lives with one gets the support they need.

OUR MISSION

     - **Provide expert information**

  - **Raise awareness of digestive diseases**

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Objectives and activities

Guts UK’s charitable objectives are:

To achieve these objectives, Guts UK works across six areas:

When setting the objectives and planning the work of Guts UK for the year, the trustees give careful consideration to the Charity Commission’s general guidance on public benefit.

The trustees always ensure that the activities undertaken are in line with the charitable objectives and aims of Guts UK. As highlighted in this report, we are continuing to develop our information provision and public education programme thereby helping the general population to better understand digestive diseases.

Digestive diseases include diseases and disorders of the oesophagus, stomach and intestines, colon and rectum, liver, gall bladder, bile ducts, and pancreas; including inflammatory, neoplastic and functional disorders.

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Achievements and performance

A) Research strategy

In 2020 we updated our research strategy with the main aim being to support research that can make a difference to patients affected by digestive disorders.

WHY IS RESEARCH IMPORTANT?

We renewed our commitment to focus on areas we believe are less well-resourced than other gastrointestinal (GI) disease areas and where our funding can make a meaningful difference for patients.

Priority areas

We will continue to support the development of future leaders in academic gastroenterology and research training for the next generation of clinical and non-clinical science professionals.

Investment in medical research keeps doctors, nurses, surgeons, dietitians and health care professionals at the top of their game enabling them to deliver the best healthcare they can and every patient benefits from this.

Research is everyone’s business. We need a dramatic shift in perception and levels of research in this hugely important area. We want to start a national conversation about our guts and engage all ages with the fascinating facts, ignite interest, raise awareness and help the UK get to grips with guts by giving digestive disorders their time in the spotlight.

We will prioritise funding of junior doctors at the start of their career by working in partnership with the British Society of Gastroenterology (BSG) to support more research in the specialty of gastroenterology, including hepatology and pancreatic disease.

We will encourage research that draws on innovation and achievements of other fields to speed up progress in gastroenterology and hepatology, and develop joint collaborations with other organisations that can help us meet our aims sooner.

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Achievements and performance (continued)

A) Research strategy (continued)

We will continue to campaign for better survival rates for digestive cancers as an active founder member of the Less Survivable Cancers Taskforce http://lesssurvivablecancers.org.uk/.

B) Research grant funding

Guts UK had research commitments at the start of the year totalling £1,721,855 (2019: £1,147,961). In 2020 the charity further awarded grants totalling £61,950 (2019: £790,566) with payments totalling £322,733 (2019: £211,498) and net commitments no longer required of £3,513 (2019: £5,174). Research commitments still to be paid at the end of the year were £1,454,984 (2019: £1,721,855).

As a result of the Coronavirus pandemic, many of Guts UK’s research projects were put on hold during 2020 as some of our funded researchers were called back to clinical duties and their projects were postponed. Some researchers have already requested no-cost extensions. Several projects that were due to start in 2020 will now be starting in 2021. This was a common experience across the sector and many charities cancelled their grant rounds in 2020. We did postpone some of the awards we had initially included in the budget for 2020 but were still able to award some grants to specialty trainee and foundation stage doctors as well as prizes to medical students, nurses and dietitians.

Guts UK Charity has awarded several new grants in 2020:

Funding trainee doctors in gastroenterology research

To promote research amongst gastroenterology trainees and in particular support the development of trainee research networks Guts UK has partnered with the British Society of Gastroenterology (BSG) to award five grants of up to £10,000 each to trainee doctors:

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Achievements and performance (continued)

Guts UK/Dr Falk Awards

Guts UK continues to work with Dr Falk Pharma UK to award prizes and grants to medical students, SpR trainees, F1/F2 clinicians, nurses and dietitians. These awards aim to acknowledge those who bring new insight into gastroenterology and hepatology through research or the improvement of patient care. They also provide the opportunity for foundation stage doctors to engage in research.

The Guts UK/Dr Falk 2020 award winners were:

William Cambridge, University of Edinburgh Meta-analysis and Meta-regression of Survival After Liver Transplantation for Unresectable Perihilar Cholangiocarcinoma

Sarah Coleman, Royal Hallamshire Hospital, Sheffield

Assessment of Gluten-Free Diet adherence in adults with Coeliac Disease: The largest prospective study from the NHS England National Centre

Aaminah Mohammed, University College London Medical School Sex related differences in alcohol-related liver disease

Moksh Sharma, University College London A Genome-wide Association Study of Severe Alcoholic Hepatitis

Dylan McClurg, University of Cambridge

Characterising the heterogeneity of Barrett’s oesophagus and oesophageal adenocarcinoma using a panel of patient-derived organoid models for translational research and precision medicine

Cristian Costas Batlle, Bradford Teaching Hospitals Impact of a New Secondary Care Dietetic-Led Coeliac Service in Bradford

Louise Downey, University Hospital of Southampton A Data Driven Service Evaluation of an IBD Help Line

Dr Maja Kopczynska, Salford Royal NHS Foundation Trust Psychosexual function and quality of life in Chronic Intestinal Failure

Dr Nicole Cianci, Nottingham Digestive Diseases, Biomedical Research Centre Biomarkers for all-cause mortality in Non-alcoholic fatty liver disease (NAFLD): A systematic review and meta-analysis

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Achievements and performance (continued)

C) Completed research projects: sharing some final reports

IBD: Professor David Wilson and his team at the University of Edinburgh have investigated a population of more than two million children born in Scotland between 1981 and 2017. This included almost 1,800 Paediatric Inflammatory bowel disease (PIBD) patients, diagnosed under 16 years of age. They have found a reassuring lack of relationship between perinatal factors, such as mode of delivery, gestational age or type of infant feeding and the risk for an infant to develop inflammatory bowel disease in the future. This means that whether children are born vaginally or via caesarean section, whether they are born prematurely or at term and whether they are breast fed or bottle fed does not appear to impact on their chance of being diagnosed with PIBD in the future. This is an important negative result given the suspected role of environmental factors in causing PIBD.

The team also investigated this population for further health risks. The risk of additional health problems (ischaemic heart disease, stroke, and cancer in early adult life) and mortality related to active IBD and its treatment is a major concern to both patients and families as well as clinicians, especially when IBD is diagnosed in childhood. The research team are currently analysing this data and will provide a further update when this is completed.

IBD: Dr Konstantinos Gerasimidis, based at the University of Glasgow, undertook a pilot study to assess the clinical efficacy of the novel CD-TREAT diet in patients with active Crohn’s disease (CD). The investigators have tested CD-TREAT in more than 20 children and adults with Crohn’s disease (CD) who needed treatment to help with their CD symptoms. They provided them with the CD-TREAT diet, as their only diet source, for a maximum period of 12 weeks. CD-TREAT meals were prepared and provided to the patients free, using a catering company for consistency. The preliminary results were very promising. Sixty-seven percent of the children who completed the CD-TREAT diet had reduced symptoms, while 60% had complete symptom resolution. In adults, 79% who took the CDTREAT diet had reduced symptoms, while 71% had complete resolution.

The researchers plan to extend this study to explore the efficacy of the CD-TREAT diet in a larger cohort of patients in many centres looking after patients with CD and in comparison to other mainstream therapies. In the future, if CD-TREAT is proven to be effective, it may be possible to control disease symptoms and prevent flares with dietary-treatment-only for some patients. Moreover, the researchers hope that clinical teams will be able to decrease

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Achievements and performance (continued)

C) Completed research projects: sharing some final reports (continued)

or even replace drugs with the diet and potentially avoid drug side-effects or even surgery in some CD patients.

IBD: Dr Dipesh Vasant, based at the University of Manchester, conducted a cross-sectional survey of anorectal dysfunction in ulcerative colitis. This project aimed to raise awareness amongst health professionals, and to find out how many people with IBD without active inflammation are unable to control their bowels. The research showed that regardless of how inflamed the bowel is, two thirds of ulcerative colitis patients suffer with leakage of stools, even when they are in remission.

No more poo taboo!

Controlling our bowels is something that we take for granted. People affected by inflammatory bowel disease (IBD) will have regular 'accidents' and are understandably worried about controlling the release of wind, liquid or solid stools from the bowel. These distressing symptoms lead to suffering, social embarrassment and reduced quality of life. Many will be too embarrassed to even tell their doctor. Some will not improve their bowel control even with the most effective anti-inflammatory medications. There is very little research in this area which is why we need to get to grips with guts and find better treatments for this group of often neglected patients.

IBD: Dr Polychronis Pavlidis, based at King’s College London led a multi-centre audit into the quality-of-care transition in adult IBD patients transferring between health care providers. Dr Pavlidis and GLINT research network reported that the commonest reason to transfer IBD patient to a new health care provider is due to moving and change of address. IBD care is predominantly provided in hospital as outpatient (secondary or tertiary care). Researchers showed with this investigation that general practitioners (GPs - primary care) perform most of these referrals. However, more complete and informative medical history data for each patient, are kept in secondary care. Therefore, medical history can be partially or totally lost changing doctors and hospitals. One possible explanation for this, is the lack of resources and the many technical barriers that are present in accessing healthcare records between primary and secondary-tertiary care. This study highlights the importance of good communication between patient, primary and secondary/tertiary care providers to facilitate a smooth transfer of care. The investigators suggest that patients should be empowered to be ‘in charge’ of their IBD by keeping their own, hard copy or digital, clinical records. Dr Pavlidis and GLINT propose the use of digital health and smartphone technologies (such as the use of ‘apps’). They also believe that

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Achievements and performance (continued)

C) Completed research projects: sharing some final reports (continued)

gastroenterologists working in secondary care should take a proactive role in ensuring high-quality referral to the patient’s receiving team.

Microscopic Colitis: Dr Suneil Raju, based at the University of Sheffield, reviewed current diagnostic procedure and management of patients with microscopic colitis. Microscopic colitis is a common cause of long-term diarrhoea, faecal incontinence, arthralgia and abdominal pain; symptoms which have a significant impact on a patient’s quality of life. If microscopic colitis is diagnosed correctly, with effective management, symptoms can be controlled and the patients’ quality of life improved. The study found that the incidence of microscopic colitis is increasing over time, therefore doctors need to be aware of this diagnosis to assure that patients aren’t missed. Dr Raju also found that this condition can be more serious than initially thought as almost 8 in 100 patients with microscopic colitis were admitted to hospital because of the severity of their symptoms. They then stayed in hospital for on average 12 days which may have been preventable had they been diagnosed earlier and treatment initiated. This work has highlighted an important gap in the diagnostic work up for patients with diarrhoea and the first step to improving this is to increase the number of biopsies taken. Research into this condition needs to continue in order to find the best way to treat these patients to improve their symptoms.

D) Public education and awareness

• Patient information

We provide evidence-based information written by medical experts in the area of human digestive diseases in order to empower people to ask the right questions of the health professionals, to help get a timely diagnosis and the right treatment. Knowing more about what triggers a condition, learning about lifestyle factors or diet and nutrition can help people to better manage their condition and feel in control. This information is produced and co-branded with the BSG.

Our own research shows that 51% of people wait six months or longer with their digestive symptoms before seeking professional advice. People are suffering alone, due to embarrassment or stigma and don’t know where to go for help. For some, that waiting can prove deadly.

The recruitment of our first ever Information Manager in January 2020 has dramatically improved the service we are able to offer people suffering from digestive diseases, their families and friends. It is important to note we do not run a helpline, nor do we advertise or promote such a service. Yet people email and phone when they find our website. Requests for information in 2019 averaged 43 a month but this increased four-fold in 2020. The Information Manager sent over 1500 personal information support emails and responded to over 500 information phone calls. Our news posts online during the pandemic relating to COVID-19 and digestive conditions were particularly well received rising from an average of 300 readers to over 20,000 which reflects the concern felt by our community.

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Achievements and performance (continued)

D) Public education and awareness (continued)

“Thank you so much for your supportive and helpful letter. It was such a relief to have someone actually take me seriously. … I feel empowered and positive (and a little overwhelmed, happy tear) Thank you again, keep up the good work (not thriving after GI surgery).”

As our profile and presence rises as a charity facing the public, the requests for information also rise. The demand for this service has continued to rise into 2021.

Imagine if we could resource and run a helpline? Imagine we could then afford to promote and advertise that helpline? How many more people suffering in silence could we reach?

During 2020, our new Information Manager undertook a thorough review of the charity’s patient information which included an update by experts in the field as well as input and feedback from lay readers and people affected by these conditions. The printed leaflet range has been redesigned to improve readability and to put people affected by digestive disorders at the centre of our work.

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Achievements and performance (continued)

D) Public education and awareness (continued)

Getting our leaflets into clinics in the UK: Despite many clinics and endoscopy services not operating during the lockdown periods or operating only telephone clinics we have still distributed 112,240 (2019: 195,810) patient information leaflets covering 16 digestive conditions to 89 (2019: 108) hospitals around the UK and Ireland. There are some 230 plus clinics in total and we will promote Guts UK leaflets to these in 2021 to improve our reach.

The breadth and depth of the information available on the website has been increased. Three new subject areas have been added: anal fistulas (Mid December, 64 views), gastroparesis (October, 1991 views), how to increase your fibre intake (February, 4,494 views), plus 11 recipes (throughout the year 5,471 views).

The range of subjects we cover includes:

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Achievements and performance (continued)

D) Public education and awareness (continued)

“So pleased to discover your website and updated advice about fibre and diverticulosis. In contrast to other older advice still there on the internet, I now know there is no need to avoid nuts, seed, skins etc. Hooray! Thanks also for directing us to NICE recommendations and other sources of research on this topic.” - Kirsty

We are committed to continuing to develop a digital platform so our patient facing information is accessible for all. We have improved our digital profile and visibility through a concerted effort to reach and serve people affected by digestive disease, growing and engaging our community with relevant content that our supporters share and channel.

• Public awareness

It is worth remembering we have only been known as Guts UK Charity since June 2018; we are not yet three years old as a public facing charity.

We changed our name to Guts UK charity to say exactly who we are ‘on the tin’. And crucially because people had to find us when searching the internet. But we also knew that people didn’t search for digestive conditions – they don’t know what they have. People search their symptoms. Our task, through a Search Engine Optimisation (SEO) strategy was to bring those people searching digestive symptoms to Guts UK.

We have grown our online presence organically, writing content and delivering articles and information on digestive health that people wanted to hear about. They find our website and sign up for more via our newsletter. This is how we have grown our presence and profile.

In the last year we were Core we had just 30,000 users of the website in a whole year.

Web analytics

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Achievements and performance (continued)

D) Public education and awareness (continued)

“I came across Guts UK online after having my gallbladder removed. For a long time, I thought my symptoms were just life post-gallbladder removal, but I found Guts UK’s information online, printed it out, highlighted and took to my doctor. I was finally referred to gastroenterology and have been diagnosed with Bile Acid Malabsorption.” - Natalie

Social media activity

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Achievements and performance (continued)

D) Public education and awareness (continued)

Reached 800,000 on Twitter in 2020 (190% increase from 2018, 44% from 2019)

“I was diagnosed with diverticular disease last May after presenting at A&E with a perforated bowel, resulting in life threatening peritonitis. It’s something I’m learning to live with at just 43. I cannot thank Guts UK enough for your literature & online support at what has been a very scary time for myself and my family. Thank you for sharing uplifting stories like this (William’s DD SkyDive on Facebook) and for all the important work your charity does” - Lucy.

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Achievements and performance (continued)

D) Public education and awareness (continued)

We continue to take opportunities to provide information and articles for local media. A major success was coverage for less survivable cancers on World Cancer Day (4th February 2020) reaching a whopping 9,863,515 people.

Our hopes of delivering a public engagement programme were hampered by COVID-19 but we will be working on possible digital delivery of engaging presentations on digestive health until we are able to organise and attend public events again.

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Achievements and performance (continued)

We continue to fund the only research fellowship focussed on pancreatitis in the UK. We first launched our Kranky Panky pancreatitis awareness campaign in November 2018. In 2019 we saw our Kranky Panky community grow even more and in 2020 we again shared a story a day, for the month of November, putting the patient voice at the heart of our awareness raising. Many families affected by this devastating condition have expressed relief in finding, via Guts UK, a community that truly understands them.

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Achievements and performance (continued)

Fundraising Standards at Guts UK

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Achievements and performance (continued)

Income generation

Growing our income through fundraising is vital to enabling us to fund more much needed research and provide information to improve the lives of people affected by digestive disorders. Increasing the number of donors and exploring the potential of all income streams will diversify income sources and in the longer term reduce dependency on investment income. To this end, in 2020, we spent time preparing our 50[th] year case for support to put people affected by digestive diseases at the heart of our fundraising.

Medical research into gastroenterology has been woefully underfunded for decades. Guts UK is a small charity with a huge ambition, to make a transformational change to the levels of research into our gut, liver and pancreas. To do this we need to grow our supporter base and grow our income.

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Achievements and performance (continued)

Income generation (continued)

Just as we were building our brand as Guts UK and recruiting new audiences, along came COVID-19. As a team of 8 we had thankfully moved to Cloud based technology in 2019 so we were all able to revert to working from home from the start of lockdown. Like all other charities struggling due to the cancellation of mass participation fundraising events, Guts UK was not untouched. We had planned our biggest ever events year with 66 places in Ride London and our events income dropped through the floor. We had neither the resources nor skills to pivot to a home grown virtual event as many other charities with larger numbers of staff could do. This was a huge blow to our fundraising targets. However, our supporters continued to inspire us by coming up with innovative ways to raise money with their own virtual events. Such as James who got sponsored to grow his hair and Yasmin who climbed the equivalent of Mount Everest on the stairs in her home!

As we adapted to a whole new fundraising context, the sources of income from individual supporters grew in 2020.

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Achievements and performance (continued)

Income generation (continued)

Income from grant-making trusts dropped by 60% and totalled just £15,125 (2019: £40,443). Trusts and foundations have suffered investment losses, and many were not accepting applications or were only accepting applications for funding of COVID-19 related activities or local activities.

Despite the COVID-19 pandemic, voluntary income has increased by £54K in 2020

In December 2020 we tested paid-for digital advertising for the first time. This is part of the fundraising strategy to increase our profile and expand our supporter base. The adverts also help to raise awareness of the suffering experienced by people with digestive conditions. We reached 190,014 on Facebook and saw a 280% increase in income via the website compared to 2019.

In addition, we had direct feedback from new supporters responding to the adverts;

“I suffer with pancreatitis myself and am aware of how much pain it causes. Unbearable for children” – new regular giver

“It's Christmas and this is a good reminder that not all of us are fortunate with our health” - brand new supporter

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Achievements and performance (continued)

Income generation (continued)

Following on from the Kranky Panky awareness campaign we took part in the Big Give Christmas Appeal which raised a total of £11,767 including gift aid and matched funding from Candis.

Plans for 2021

Research

Priority Setting Partnerships (PSP) for pancreatitis and Irritable Bowel Syndrome (IBS) research are scheduled to begin in April with the arrival of a new member of staff, a Patient and Public Involvement and Engagement Officer. The BSG have agreed to co-fund the IBS PSP and will contribute funding to the pancreatitis PSP for which we are also seeking further funding. The PSPs will be facilitated by the James Lind Alliance (JLA) and the aim is to find the top ten research priorities to support calls for research funding in these desperately underfunded areas.

Proposed Grant Funding

This year we will also advertise two fellowships:

Fundraising, patient engagement and raising awareness

We will continue to develop new patient information material and resources in different media for different audiences such as introducing patient focused videos and spoken versions of the patient information leaflets. We will also be getting our leaflets translated into Urdu and other languages.

We will continue to raise public awareness through an enhanced digital presence, building our communities through all social media channels.

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Plans for 2021 (continued)

Fundraising, patient engagement and raising awareness (continued)

When circumstances allow, we will restart our public Science of Digestion events adapting content for different audiences. We will also get Colin the Colon back on the road to fascinate children and adults alike.

Colin the Colon at the Piece Hall in Halifax.

For 2021, our 50[th] year, we have ambitious targets in place to further strengthen our financial supporter base:

Staff, Resources and Capacity building

In 2020 the charity employed an Information Manager to focus on providing an enhanced programme in outreach, patient engagement and information. This appointment has been incredibly successful, greatly improving the service we offer to people affected by digestive disorders. The role has been made full time from February 2021. We have had considerable success with various graduate placements and have encouraged several young graduates to continue in the charity sector. We have employed an Individual Giving Manager who has already made a significant impact on income generation and raising our profile. In 2021 we will appoint a Public and Patient Involvement and Engagement Officer who will be responsible for delivering the Priority Setting Partnerships.

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Plans for 2021 (continued)

Office space

Guts UK occupies a small office located within the premises occupied by the BSG, the current leaseholder of 3 St Andrews Place. The existing lease expires in December 2021 and earlier this year we negotiated, directly with the Royal College of Physicians, a new 5- year tenancy agreement with a break clause at 3 years. Whilst this will mean an increase in costs, it gives us security in the medium term, is good value for an office in a prime location, allows us to retain our registered office address and continue to work alongside the BSG.

To maintain our status as a national charity we continue to occupy office space in the Media Centre in Huddersfield which provides a northern base in addition to our base in the capital.

Impact of COVID-19

Like all charities, we have experienced a fall in the value of our investments and investment income. The ongoing impact of the pandemic along with the as-yet unknown long-term effects of BREXIT may mean investments continue to fall and dividend income is increasingly uncertain. The trustees are currently reviewing investment strategy to mitigate this risk. Our services are in demand more than ever as we serve the community of people affected by digestive disorders with relevant information. Income generation may continue to be affected by the cancellation and postponement of fundraising events. In addition, the economic situation may mean people have less disposable income to donate to charity or are worried about losing their jobs so do not want to commit to regular giving. However, we will continue to sail out our 50 year campaign to support people with digestive conditions by getting to grips with guts.

Guts UK Charity 27

Trustees’ Report 31 December 2020

Financial review

The charity recorded income for the year of £550,019 (2019: £921,532) and expenditure of £583,135 (2019: £1,219,712). This resulted in net expenditure, before investment losses, of £33,116 (2019: £298,180). The deficit is due to the loss of fundraising event income and reduced investment income.

Income

During a year of tough fundraising conditions, total voluntary income increased by 21%. Total voluntary income was £308,435 (2019 £254,447). We receive no government funding so continue to depend on donations for everything we do.

We are grateful to those who so generously include us in their wills enabling us to continue to support people with digestive disorders and fund essential research. Our increased profile has meant that people are more easily able to find us which is particularly important for those who have recently lost a loved one. In memoriam donations have more than doubled over the last year; families and friends often find consolation in the thought that their fundraising may go some way to alleviating the suffering of others in the future.

The number of people regularly giving to our work has grown and continues to do so despite these turbulent economic times. We finished the year on a high with our Big Give Christmas campaign raising nearly £12,000 and digital advertising resulting in increased website donations. We were pleasantly surprised when one of our supporters donated a painting that raised an incredible £19,520 at auction. Community fundraising increased by 58% as our supporters went to incredible lengths with their virtual challenges.

Research partner funding came from Dr Falk Pharma (UK) Ltd and the BSG. We also received funding from forCrohn’s for a research grant round in 2021. The Parabola funding for Professor Rees colorectal cancer research was put on hold for the year but will resume in 2021. We will continue our current partnerships alongside building new partnerships to fund more research in the future.

As many hospitals and clinics were closed or went virtual during the pandemic sales of leaflets to hospitals were reduced and income from this source was just over half that of last year.

----- Start of picture text -----
Total Income 2020
£39,000
Legacies and in
memoriam
£148,430
Voluntary donations
£163,694
Public education
Investment income
Partner research
£38,890
£160,005 funding
----- End of picture text -----

Guts UK Charity 28

Trustees’ Report 31 December 2020

Financial review (continued)

----- Start of picture text -----
Total Income 2019
£113,902 Legacies and in
memoriam
Voluntary donations
£408,966 £140,545
Public education
£54,364 Investment income
Partner research
£203,755 funding
----- End of picture text -----

Expenditure

We have worked hard to keep costs under budget whilst continuing to improve service provision for people with digestive disorders. Our salary costs increased to £297,321 (2019: £226,204) due to building the capacity of the team to 8 FTE (2019: 6.5 FTE). Operational costs and overheads were slightly less than last year despite the expansion of activities. During the year, we spent £325,732 on charitable activities, which represents 56% of total expenditure in the year. This is significantly lower than 2019 when we invested heavily in research. This year, whilst medical research was on hold, it was decided to focus on investment into income generation and raising awareness, reaching and recruiting new supporters to build a sustainable future for the charity hence the increase in fundraising costs.

----- Start of picture text -----
Total Expenditure 2020
£154,802
£257,403
Cost of raising funds
Research
Public education
£170,930
----- End of picture text -----

Guts UK Charity 29

Trustees’ Report 31 December 2020

Financial review (continued)

----- Start of picture text -----
Total Expenditure 2019
£136,681
£170,379
Cost of raising funds
Research
Public education
£912,652
----- End of picture text -----

Balance Sheet

In line with the performance of investments globally the investment portfolio contributed unrealised losses of £76,009 and realised losses of £210,087 (2019: unrealised gains of £548,718 and realised gains of £73,504). Of this amount, total realised and unrealised losses of £117,933 (2019: £297,132 total realised and unrealised losses) related to the endowment fund.

As at 31 December 2020, Guts UK had net assets of £5,645,054 (2019: £5,964,266) a decrease of £319,212 with £5,992,360 held in listed investments. These include the Derek Butler endowment fund for research into upper gastrointestinal conditions of £3,039,127. The income from this fund will continue to finance the three-year fellowship awarded in 2017 to be completed in 2021. A new fellowship will be advertised in 2021 to be awarded and begin in 2022.

Unrestricted funds which can be spent at the discretion of the trustees were £2,706,357 of which £1,609,369 has been designated to contribute to research grants awarded by the charity. In March 2020, the trustees agreed that half of the value of the designated investments should be designated specifically towards research in pancreatitis (the Amelie Waring fund) with the remaining half to be designated to more general gastrointestinal research.

General funds amounted to £1,096,988. More details of the disposition of Guts UK net assets can be found in the financial statements on page 39.

The principal liability of Guts UK Charity is to complete the research programme it has committed to of £1,454,984 at 31 December 2020 as set out in detail in note 18. Of these commitments, £222,205 is covered by endowed or designated funds, £280,066 is due from funding partners and £952,713 is to be funded from Guts UK’s general unrestricted fund.

Guts UK Charity 30

Trustees’ Report 31 December 2020

Financial review (continued)

Reserves policy

Guts UK has reviewed the amount of reserves it regards as a minimum prudent requirement and has concluded that provision for twelve months administration, public education and fundraising costs is sufficient. This would allow time to manage cost reductions or fund appeals as required whilst minimising the impact on service provision. Based on the forecast for 2021, the desired minimum reserve is £600,000. Currently general unrestricted funds total £1,096,988 less amounts held as fixed assets of £3,520 i.e. £1,093,468. Additional funds are to be utilised for research expenditure, building capacity and expanding the public information programme going forward.

Investment policy and performance

The charity’s listed investments are managed by Cazenove. Investment in tobacco companies is not permitted. The investment strategy is set by the trustees and takes into account income requirements, the risk profile and the investment manager’s advice on the market prospects in the medium term. Guts UK’s investment objectives are to achieve a balance of capital growth and income.

The performance of the portfolio is regularly monitored by the trustees and an annual meeting is held where the performance against benchmarks and the overall investment policy is reviewed.

The performance of the portfolio has been satisfactory in the tough market conditions of 2020 and within the agreed risk profile. In March 2021 the trustees reviewed the current investment strategy and agreed with the advice from Cazenove that investments should be moved to a Responsible Multi-Asset Fund. This fund adopts a total return approach and has the advantage of providing an even distribution payment as well as an ethically responsible investment policy.

Going concern

There is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The trustees believe that there are no material uncertainties that call into doubt the charity’s ability to continue operating as a going concern. In making this decision, the trustees have taken into consideration the risks and uncertainties arising from the Coronavirus pandemic including the potential impact on fundraising and return on investments, and conclude that the charity can sustain its operations for a period of at least twelve months from the date of signing these accounts. Consequently, the financial statements have therefore been prepared on the basis that the charity remains a going concern.

Guts UK Charity 31

Trustees’ Report 31 December 2020

Statement of trustees’ responsibilities

The trustees (who are also directors of Guts UK for the purposes of company law) are responsible for preparing the trustees’ report and 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 which give a true and fair view of the state of affairs of Guts UK and the income and expenditure of Guts UK for that period.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of Guts UK and enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of Guts UK and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the trustees confirms that:

Guts UK Charity 32

Trustees’ Report 31 December 2020

Statement of trustees’ responsibilities (continued)

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

The trustees are responsible for the maintenance and integrity of corporate and financial information included on Guts UK’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the trustees and signed on their behalf by:

Professor J Rhodes

Trustee

Approved by the trustees on: 10 June 2021

Guts UK Charity 33

Independent Auditor’s Report 31 December 2020

Independent auditor’s report to the trustees of Guts UK Charity

Opinion

We have audited the financial statements of Guts UK Charity (the ‘charitable company’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, and the related notes to the financial statements, including a summary of 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 our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Guts UK Charity 34

Independent Auditor’s Report 31 December 2020

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report and performance review 2020, and financial statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

Responsibilities of trustees

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

In preparing the financial statements, the trustees are responsible for assessing the 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.

Guts UK Charity 35

Independent Auditor’s Report 31 December 2020

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

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

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

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

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

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

Guts UK Charity 36

Independent Auditor’s Report 31 December 2020

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

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

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

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

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

Use of our report

This report is made solely to the 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 as a body, for our audit work, for this report, or for the opinions we have formed.

Shachi Blakemore (Senior Statutory Auditor) For and on behalf of Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

Dated: 29 July 2021

Guts UK Charity 37

Statement of financial activities Year ended 31 December 2020 (including the income and expenditure account)

Unrestricted
funds
£
Restricted
funds
£		 Endow-
ment
funds
£		 2020
Total
funds
£		 2019
Total
funds
£
Income and expenditure
Income
Donations and legacies
1
Other trading activities
2
Investment income
3
Charitable activities
4
. Grants for research
Total income
Expenditure
Cost of raising funds
5
Expenditure on charitable activities
6
. Grants for research
. Public education and Science of Digestion
Total expenditure
8
Net expenditure before transfers
9
Transfers between funds
19
Net (expenditure) / income after transfers
Net (losses) / gains on investments
14
. Realised
. Unrealised
Net (expenditure) / income and net movement in
funds for the year
Reconciliation of funds:
Funds balances brought forward
Fund balances carried forward		 290,459
17,976
—
38,890
—
—
86,493
77,201
—
—
39,000
—		 308,435
38,890
163,694
39,000
254,447

54,364

203,755

408,966
415,842
134,177
—		 550,019
921,532


244,883
—
12.520

103,980
66,950
—
154,802
—
—		 257,403
170,930
154,802
170,379

912,652

136,681
503,665
66,950
12,520		 583,135
1,219,712

(87,823)
67,227
(12,520)

(20,588)
62,018
(41,430		 (33,116)
)
—
(298,180)

—
(108,411)
129,245
(53,950)


(162,987)
—
(47,100)
(5,176)
—
(70,833)
 (33,116)
(210,087)
(76,009)
(298,180)

73,504

548,718
(276,574)
129,245
(171,883)


2,982,931
126,037
2,855,298
 (319,212)
5,964,266
324,042

5,640,224
2,706,357
255,282
2,683,415		 5,645,054
5,964,266

All of the charity's activities derived from continuing operations during the above two financial periods.

All recognised gains or losses are included in the above statement of financial activities.

A full comparative Statement of Financial Activities for the year ended 31 December 2019 is shown in note 28 to the financial statements.

Guts UK Charity 38

Balance sheet 31 December 2020

Notes
2020
£
2020
£		 2019
£
2019
£
Fixed assets
Tangible fixed assets
13
Investments
14
Current assets
Debtors: due within one year
15
Short term cash deposits
Cash at bank and in hand

Liabilities:
Creditors: amounts falling due
within one year
16
Net current assets
Total assets less current
liabilities
Liabilities:
Creditors: amounts falling due
after one year
17
Total net assets
The funds of the charity
Unrestricted income funds
. General
. Designated funds
20
Restricted funds
19
Endowment fund
21




358,480
526,860
332,599		 3,520
5,992,360

532,275
690,003
180,107		 1,984
6,318,604
5,995,880













81,487		 6,320,588




257,351
1,217,939
(1,136,452)		 1,402,385
(1,145,034)














6,077,367




(432,313)
 6,577,939
(613,673)
5,645,054 5,964,266



1,096,988
1,609,369
255,282
2,683,415		 1,286,865
1,696,066
126,037
2,855,298
5,645,054 5,964,266

Approved by the trustees and signed on their behalf by:

Professor J Rhodes

Trustee

Approved on: 10 June 2021

Guts UK Charity

Registered Company Number: 07274105 (England and Wales)

Guts UK Charity 39

Statement of cash flows 31 December 2020

Notes
2020
£		 2019
£
Cash inflow used in operating activities:
Net cash used in operating activities
A
Cash inflow from investing activities:
Dividends and interest from investments
Purchase of tangible fixed assets
Proceeds from the disposal of investments
Purchase of investments

Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 January
B
Cash and cash equivalents at 31 December
B

**(211,571) **		 (245,648)


163,694
(2,921)
1,390,982
**(1,454,396) **		 203,755
(2,301)
1,128,341
(987,808)
97,358 341,987

(114,213)


1,436,190		 96,339
1,339,851

1,321,977		 1,436,190

Notes to the statement of cash flows for the year to 31 December

A Reconciliation of net movement in funds to net cash (used in) provided by operating activities

2020
£		 2019
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Losses / (gains) on investments
Dividends and interest from investments
Decrease / (increase) in debtors
(Decrease) / increase in creditors
Net cash used in operating activities		 (319,212)
1,386
286,096
(163,694)
173,795
(189,942)		 324,042
488
(622,222)
(203,755)
(327,354)
583,153
(211,571) (245,648)

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2020
£		 2019
£
Cash at bank and in hand
Short term cash deposits
Cash held by investment managers
Total cash and cash equivalents		 332,599
526,860
462,518		 180,107
690,003
566,080
1,321,977 1,436,190

Guts UK Charity 40

Principal accounting policies Year ended 31 December 2020

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 December 2020 and are presented in sterling and are rounded to the nearest pound.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these 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 United Kingdom and Republic of Ireland (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The charity constitutes a public benefit entity as defined by FRS 102.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the trustees and management to make significant judgements and estimates.

The full impact following the recent emergence of the global coronavirus pandemic is still unknown. It is therefore not currently possible to evaluate all the potential implications for the charity’s activities, beneficiaries, funders, suppliers and the wider economy. Estimates used in the accounts, particularly with respect to the value of listed investments (see note 14) are subject to a greater degree of uncertainty and volatility. As set out in these accounting policies under “going concern”, the trustees have considered the impact of the pandemic on the charity and have concluded that although there may be some negative consequences, it is appropriate for the charity to continue to prepare its financial statements on the going concern basis.

The items in the financial statements where these judgements and estimates have been made include:

Guts UK Charity 41

Principal accounting policies Year ended 31 December 2020

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements and have made this assessment in respect to a period of one year from the date of approval of these financial statements. They have taken into consideration the potential uncertainty in relation to COVID-19 on the charity’s operations and finances. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.

The trustees have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are confident that the charity has sufficient funds to cover its existing liabilities.

With regard to the next accounting period, the year ending 31 December 2021, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the trustees’ report for more information).

Income recognition

Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is probable.

Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity. Entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity or the charity is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset having being transferred to the charity.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Guts UK Charity 42

Principal accounting policies Year ended 31 December 2020

Income recognition (continued)

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.

Research funding income is recognised in the period in which the charity receives a written commitment from the funder. Research funding is deferred only when the charity has to fulfil conditions before becoming entitled to it or the donor has specified that the income has to be spent in a future period.

Expenditure recognition

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

All expenditure is accounted for on an accruals basis and is stated inclusive of irrecoverable VAT. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:

Research grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the grant, and has satisfied all relevant conditions. Grants approved but not paid at the end of the financial year are accrued for. Grants where the beneficiary has not been informed or has to meet certain conditions before the grant is payable are not accrued for but are noted as financial commitments in the notes to the financial statements.

The provision of a multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the charity that would permit the charity to avoid making the future payments, settlement is probable and the effect of the discounting is material. The discount rate used is the average rate of investment yield in the year in which the grant is made. This discount rate is regarded by the trustees as providing the most current available estimate of the opportunity cost of money reflecting the time value of money to the charity.

Guts UK Charity 43

Principal accounting policies Year ended 31 December 2020

Allocation of support costs and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of financial procedures, provision of office services and equipment and a suitable working environment.

Governance costs comprise the costs directly attributable to the governance of the charity, including audit costs and the necessary legal procedures for compliance with statutory requirements. Support costs and governance costs are allocated between activities with the allocation based on staff time.

Fixed asset investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

The charity does not acquire put options, derivatives or other complex financial instruments.

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand and short term deposits

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits.

Creditors and provisions

Creditors and provisions 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. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Guts UK Charity 44

Principal accounting policies Year ended 31 December 2020

Tangible fixed assets

Depreciation of fixed assets is calculated on cost at rates estimated to write off the assets, by equal instalments, over their expected working lives.

Items used in the day to day running of the charity and with a cost in excess of £500 are capitalised, and are stated at cost less accumulated depreciation.

Financial instruments

The charity only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the charity and their measurement basis are as follows:

Financial assets – other debtors are basic financial instruments and are debt instruments measured at amortised cost. Listed investments are a basic financial instrument as detailed above. Prepayments are not financial instruments.

Cash at bank – classified as a basic financial instrument and is measured at face value.

Financial liabilities – accruals and other creditors are financial instruments, and are measured at amortised cost.

Fund structure

The charity has various types of funds for which it is responsible, and which require separate disclosure. These are as follows:

General funds

Funds which are expendable at the discretion of the trustees in furtherance of the objects of the charity.

Designated funds

Funds which are set aside as part of the charity’s unrestricted funds for particular purposes in the future as determined by the trustees from time to time.

Restricted funds

Funds raised for, and their use restricted to, a specific purpose, or donations subject to donor imposed conditions.

Endowment funds

Funds which must be held indefinitely as capital. Income therefore is credited to general funds and applied for general purposes unless under the terms of the endowments such income must be used for specific purposes in which cases it is credited to restricted funds.

Pension costs

The charity operates a defined contribution scheme on behalf of its employees. The assets are held in separately administered funds. Costs are charged to the statement of financial activities in the period to which they relate.

Guts UK Charity 45

Notes to the financial statements 31 December 2020

1. Donations and legacies

Donations and legacies
Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£
Donations
Legacies & In Memoriam donations
2020 Total funds		 143,636
146,823		 16,369
1,607		 160,005
148,430
290,459 17,976 308,435
Unrestricted
funds
£		 Restricted
funds
£		 2019
Total
funds
£
Donations
Legacies & In Memoriam donations
2019 Total funds		 125,139
110,530		 15,406
3,372		 140,545
113,902
235,669 18,778 254,447

2. Other trading activities

Other trading activities
Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£
Public education
Science of Digestion
Public Education – one off donation
2020 Total funds		 28,890
—
10,000		 —
—
—		 28,890
—
10,000
38,890 — 38,890
Unrestricted
funds
£		 Restricted
funds
£		 2019
Total
funds
£
Public education
Science of Digestion
Public Education – leaflet sponsorship
2019 Total funds		 50,364
2,500
1,500		 —
—
—		 50,364
2,500
1,500
54,364 — 54,364

3. Investment income

Investment income
Unrestricted
funds
£
187
38,743
20,898
14,937
6,103
3,303
2,322
86,493


Restricted
funds
£		 2020
Total
funds
£
Interest – fixed interest securities
Dividends - UK and international equities
Bonds - UK and international
Multi asset funds
Charities property fund
Other funds
Interest on cash deposits
2020 Total funds		 486
36,558
18,683
12,936
4,775
3,763
—		 673
75,301
39,581
27,873
10,878
7,066
2,322
77,201 163,694

Guts UK Charity 46

Notes to the financial statements 31 December 2020

3. Investment income (continued)

Investment income(continued)
Unrestricted
funds
£


Restricted
funds
£		 2019
Total
funds
£
Interest – fixed interest securities
Dividends - UK and international equities
Bonds - UK and international
Multi asset funds
Charities property fund
Other funds
Interest on cash deposits
2019 Total funds		 624
65,651
12,590
19,975
6,862
3,376
2,537		 1,546
55,674
8,482
18,719
5,369
2,350
—		 2,170
121,325
21,072
38,694
12,231
5,726
2,537
111,615 92,140 203,755

4. Income from charitable activities

Income from charitable activities
Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£
New grants for research
2020 Total funds		 — 39,000 39,000
— 39,000 39,000
Unrestricted
funds
£		 Restricted
funds
£		 2019
Total
funds
£
New grants for research
2019 Total funds		 — 408,966 408,966
— 408,966 408,966

Guts UK Charity 47

Notes to the financial statements 31 December 2020

5. Cost of raising funds

Cost of raising funds
Unrestricted
funds
£		 Restricted
funds
£
—
12,520
—
12,520		 2020
Total
funds
£
48,040
26,364
182,999
257,403
Fundraising costs
Investment manager’s fees
Support costs (note 8)
2020 Total funds		 48,040
13,844
182,999
244,883
Unrestricted
funds
£		 Restricted
funds
£
—
13,155
—
13,155		 2019
Total
funds
£
16,744
27,807
125,828
170,379
Fundraising costs
Investment manager’s fees
Support costs (note 8)
2019 Total funds		 16,744
14,652
125,828
157,224

6. Expenditure on charitable activities

Expenditure on charitable activities
Direct
costs
£		 Research
grants
awarded
(note 7)
£		 Support
costs
(note 8)
£		 2020
Total
funds
£
Gastroenterology research
Public Education
2020 Total funds		 1,893
48,204		 58,437
—		 110,600
106,598		 170,930
154,802
50,097 58,437 217,198 325,732
Direct
costs
£		 Research
grants
awarded
(note 7)
£		 Support
costs
(note 8)
£		 2019
Total
funds
£
Gastroenterology research
Public Education
2019 Total funds		 3,564
44,977		 785,392
—		 123,696
91,704		 912,652
136,681
48,541 785,392 215,400 1,049,333

7. Research grants awarded

New research grants
Less grants no longer required – research commitments
Researchgrants awarded(note 6)		 2020
Total
funds
£
2019
Total
funds
£
61,950
(3,513)
790,566
(5,174)
58,437
785,392

Research grants awarded represent commitments made for research, and are set out in detail in note 18.

Guts UK Charity 48

Notes to the financial statements 31 December 2020

8. Total expenditure

Total expenditure
Cost of
raising
funds
£		 Charitable activities 2020
Total
funds
£
Gastro-
enterology
research
£		 Public
education
and
Science
of
Digestion
£
Directly incurred
Grants payable (see note 7)
Research administration
Fundraising costs
Public education
Investment management fees
Support costs
Staff costs (see note 10)
Premises and donated facilities
Postage
Telephone
Stationery, printing, design and marketing
Insurance
Bank charges
Meeting costs
Subscriptions/publications
Equipment/maintenance and website
development
Depreciation
Training and recruitment
Governance costs:
. Audit & Accountancy
. Professional fees
. Bookkeeping costs
Brand development
2020 Total funds		 —
—
48,040
—
26,364		 58,437
1,893
—
—
—		 —
—
—
48,204
—		 58,437
1,893
48,040
48,204
26,364
74,404 60,330 48,204 182,938
135,957
5,101
183
1,694
1,632
529
1,597
2,210
3,073
8,760
634
7,084
3,833
956
2,281
7,475		 82,169
3,083
111
1,024
986
320
965
1,336
1,857
5,294
383
4,282
2,316
578
1,378
4,518		 79,195
2,971
107
987
951
308
930
1,288
1,790
5,103
369
4,127
2,233
557
1,328
4,354		 297,321
11,155
401
3,705
3,569
1,157
3,492
4,834
6,720
19,157
1,386
15,493
8,382
2,091
4,987
16,347
182,999 110,600 106,598 400,197
257,403 170,930 154,802 583,135

Guts UK Charity 49

Notes to the financial statements 31 December 2020

8. Total expenditure (continued)

Cost of
raising
funds
£		 Charitable activities 2019
Total
funds
£
Gastro-
enterology
research
£		 Public
education
and
Science
of
Digestion
£
Directly incurred
Grants payable (see note 7)
Research administration
Fundraising costs
Public education
Investment management fees
Support costs
Staff costs (see note 10)
Premises and donated facilities
Postage
Telephone
Stationery, printing, design and marketing
Insurance
Bank charges
Meeting costs
Subscriptions/publications
Equipment/maintenance and website
development
Depreciation
Training and recruitment
Governance costs:
. Auditor’s remuneration
. Professional fees
. Bookkeeping costs
Brand development
2019 Total funds		 —
—
16,744
—
27,807		 785,392
3,564
—
—
—		 —
—
—
44,977
—		 785,392
3,564
16,744
44,977
27,807
44,551 788,956 44,977 878,484
83,413
7,528
250
1,211
1,497
429
939
5,050
1,543
7,973
180
5,557
3,492
1,844
3,719
1,203		 81,999
7,401
246
1,191
1,472
421
922
4,964
1,517
7,838
177
5,463
3,433
1,813
3,656
1,183		 60,792
5,487
182
883
1,091
312
684
3,680
1,125
5,811
131
4,050
2,545
1,344
2,710
877		 226,204
20,416
678
3,285
4,060
1,162
2,545
13,694
4,185
21,622
488
15,070
9,470
5,001
10,085
3,263
125,828 123,696 91,704 341,228
170,379 912,652 136,681 1,219,712

9. Net income before transfers

This is stated after charging:

2020 2019
Total Total
funds funds
£ £
Staff costs (note 10) 297,321 226,204
Depreciation 1,386 488
Auditor’s remuneration (including VAT)
. Statutoryaudit services – currentyear 8,000 7,464

Guts UK Charity 50

Notes to the financial statements 31 December 2020

10. Staff costs and remuneration of key management personnel

Staff costs and remuneration of key management personnel
2020
Total
funds
£
2019
Total
funds
£
266,856
203,129
22,508
16,584
7,957
6,491
297,321
226,204
Salaries and wages
Social security
Pension costs

The average number of employees during the period was 8 (2019: 6.5). One employee earned between £60,001 and £70,000 during the year (2019: one employee earned between £60,001 and £70,000).

The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis comprise the trustees, the CEO, the Finance and Research Managers. The total remuneration (including taxable benefits and employer’s pension contributions) of the key management personnel for the year was £159,857 (2019: £148,276).

11. Trustees’ remuneration and expenses

£nil remuneration (2019: £nil) was paid or payable, directly or indirectly, out of the funds of the charity for the period to any trustee, or to any person or persons known to be connected with any of them.

Two trustees were reimbursed for travel expenses of £258 during the period (2019: six trustees: £1,687).

12. Taxation

Guts UK is a registered charity and is potentially exempt from taxation in respect of income and capital gains received within the categories covered by Section 505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied to exclusively charitable purposes.

13. Tangible fixed assets

angible fixed assets
Computer
equipment
£
Cost
At 1 January 2020
Additions in the year
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 6,642
2,922
9,564
4,658
1,386
6,044
3,520
1,984

Guts UK Charity 51

Notes to the financial statements 31 December 2020

14. Investments

Investments
Endowment
portfolio
£		 Unrestricted
portfolio
£		 2020
£		 2019
£
At valuation
Balance brought forward at 1 January
Additions
Disposal proceeds
Investment gains
. Realised (losses)/gains
. Unrealised (losses)/gains
Total investment (losses)/ gains
Balance carried forward at 31 December
Cash held by investment managers
Total investments
Analysis by Type
Listed investments at market value
. UK Equities
. Overseas Equities
. UK Bonds
. Overseas bonds
. Multi-asset funds
. Property funds
. Other
Total investments
Historic cost of listed investments (all are
listed in the UK) - excluding cash held by
investment managers		 2,734,531
667,910
(621,291)		 3,017,993
786,486

(769,691)		 5,752,524
1,454,396
(1,390,982)		 5,270,835
987,808
(1,128,341)
(47,100)
(70,833)
(162,987)
(5,176)		 (210,087)
(76,009)		 73,504
548,718
(117,933)
(168,163)		 (286,096) 622,222
2,663,217
375,910		 2,866,625
86,608		 5,529,842
462,518		 5,752,524
566,080
3,039,127 2,953,233 5,992,360 6,318,604
987,441
882,080
207,163
106,633
174,507
124,754
180,639		 1,162,937
784,626
264,918
118,228
196,319
159,444
180,153		 2,150,378
1,666,706
472,081
224,861
370,826
284,198
360,792		 3,009,441
1,071,659
594,058
87,772
403,391
294,814
291,389
2,663,217 2,866,625 5,529,842 5,752,524


2,388,768		 2,820,378 5,209,146 5,042,868

At 31 December the charity had the following material investment holdings:

Endowment
£		 Unrestricted
£		 Market
value
£		 Percentage
of portfolio
%
Listed investments within the portfolio are:
M&G Equities Investment Fund for charities
The Charity Equity Income Fund
Trojan Income Fund Class S
Fidelity Global Equity Income Fund Class D
LF Majede UK Equity Fund
Trojan Investment Funds – Trojan Fund
The Charity Equity Value Fund		 259,416
250,372
233,844
216,876
126,567
174,507
117,244		 274,514
228,295
269,820
220,558
237,664
196,319
152,641		 533,930
478,667
503,664
437,434
364,231
370,826
269,885		 10%
9%
9%
8%
7%
7%
5%

Guts UK Charity 52

Notes to the financial statements 31 December 2020

14 . Investments (continued)

The total unrealised gains as at 31 December 2020 constitute movements on revaluation and are as follows:

2020
£		 2019
£
Unrealised gains included above:
On investments
Total unrealised gains at 31 December
Reconciliation of movements in unrealised gains:
Unrealised gains at 1 January
(Losses) in respect to disposals in the year
Add: net (losses)/gains arising on revaluation in the year
Total unrealisedgains at 31 December		 320,696 709,656
320,696 709,656
709,656
(312,951)		 320,028
(159,090)
396,705
(76,009)		 160,938
548,718
320,696 709,656

15. Debtors

2020
£		 2019
£
Prepayments, accrued income and sundry debtors
Commitments due from funding partners		 78,414
280,066		 119,751
412,524
358,480 532,275

Included within debtors under commitments due from funding partners is £70,000 (2019: £30,067) which is due after one year

16. Creditors: amounts falling due within one year

2020
£		 2019
£
Other creditors
Accruals and deferred income
Research grants payable (see note 18)		 8,722
105,059
1,022,671		 5,693
31,159
1,108,182
1,136,452 1,145,034

17. Creditors: amounts falling due after more than one year

2020
£		 2019
£
Researchgrantspayable(see note 18) 432,313 613,673

Guts UK Charity 53

Notes to the financial statements 31 December 2020

18. Research grants payable

Research grants payable
2020
Total
funds
£		 2019
Total
funds
£
At 1 January
Research grants awarded in the year
Research grants no longer required
Paid during the year
At 31 December
Research grants at 31 December are payable as follows:
Within one year (see note 16)
After more than one year (see note 17)		 1,721,855
61,950
(3,513)
(325,308)		 1,147,961
790,566
(5,174)
(211,498)
1,454,984 1,721,855
1,022,671
432,313		 1,108,182
613,673
1,454,984 1,721,855

Details of research grants payable are provided overleaf.

Guts UK Charity 54

Notes to the financial statements 31 December 2020

18. Research grants payable (continued)

8. Research grants payable(continued)
Ongoing research
Professor Laurence
Lovat
Development award
Salivary EpigeNetics to Stratify Oesophageal Cancer
Risk (SENSOR)
Dr Wadiamu Gashau
Core-BSG Trainee
Research Network Award
RISE NoW (Regional IBD Surveillance Endoscopy
North West) study: A real world experience of
dysplasia and colorectal cancer surveillance in
Inflammatory Bowel Disease (IBD)
Dr Conor McCann
Core-Derek Butler
Fellowship
Enteric neural stem cell therapy for Oesophageal
Achalasia and Diabetic Gastroparesis
Mr James O'Kelly
Guts UK/Amelie Waring
Research Fellowship
Single cell definition of the mechanistic role of
kynurenine monooxygenase at the innate immune
interface in acute pancreatitis
Dr Sara Jamel
Olympus Guts UK
Endoscopy Fellowship
Profiling of Dysplastic Changes in Barrett's Oesophagus
and Early Oesophageal Cancer Using Non-Invasive
Volatile Organic Compound Analysis of Exhaled Breath
Professor Colin Rees
Parabola-Guts UK
Colorectal Cancer
Research Grant
COLO-COHORT Colorectal Cancer Cohort Study
Dr Marc-Emmanuel
Dumas
Guts UK Development
Award
Precision medicine through integrative metagenomics
and phenomics in a human NAFLD cohort
Dr Varinder Athwal
Guts UK Development
Award
Investigating fibrosis pathobiology in cystic fibrosis
related liver disease to improve clinical detection and
management
Dr Dipesh Vasant
Guts UK-Dr Falk SpR
Trainee Audit/Quality
Improvement Award
Anorectal dysfunction in ulcerative colitis: a cross
sectional survey
Balance carried forward		 At
1 January
2020
£
35,876
2,500
94,618
179,423
180,244
500,000
49,797
25,351
1,300
1,069,109		 Research grants
awarded
£
—
—
—
—
—
—
—
—
—
—		 Grants
no longer
required
£

(835)
—
—
—
—
—
—
—
—
(835)		 Grants
paid in
the year
£


—
—
(19,714)
(32,122)
(60,122)
(95,955)
—
(21,061)
—
(228,974)		 At 31
December
2020
£
35,041
2,500
74,904
147,301
120,122
404,045
49,797
4,290
1,300
839,300

Guts UK Charity 55

Notes to the financial statements 31 December 2020

18. Research grants payable (continued)

Ongoing research cont’d
Balance brought forward
Dr Gwo-tzer Ho
Guts UK Development
Award
Resolving Inflammation in IBD: Developing a new
therapeutic approach by targeting pro-inflammatory
mitochondrial formylated peptides on neutrophil FPR1-
pathway
Dr Michael Fitzpatrick
Guts UK-BSG Trainee
Research Network Award
Effect of diet, nutritional status, and body composition on
biologic therapy in IBD: The Oxford and Thames Valley
Young Gastroenterologists Network (OxYGEN)
Dr Polychronis Pavlidis
Guts UK-BSG Trainee
Research Network Award
Quality of care transition in adult IBD patients
transferring between healthcare providers: a multicentre
audit
Dr Nick Powell
For Crohns
TNFα responsive transcriptional networks in the human
intestinal epithelium - the key to predicting therapeutic
response to antic-TNFα in Crohn's disease
Dr Louise China
Guts UK-BSG Trainee
Research Award
Exploring Periodontitis in Cirrhosis (EPIC): a single arm
feasibility study to explore the relationship between
periodontitis and infection in patients with liver cirrhosis.
Dr Srivathsan Ravindran
Guts UK-BSG Trainee
Research Award
Developing a patient-reported safety incident tool in
endoscopy
Dr Mike Davies
Guts UK-BSG Trainee
Research Network Award
Getting to the bottom of acute Lower Gastrointestinal
Bleeding: Improving quality of care for patients with acute
lower gastrointestinal bleeding and assessing resource
implications of adherence to national guidelines
Dr Samuel Smith
Guts UK-BSG Trainee
Research Network Award
Improving key performance measures in inflammatory
bowel disease surveillance
Balance carried forward		 At
1 January
2020
£
1,069,109
19,525
2,000
2,499
48,737
4,980
3,775
3,000
5,000		 Research grants
awarded
£
—
—
—
—
—
—
—
—
—		 Grants
no longer
required
£
(835)
—
—
—
—
—
—
—
—		 Grants
paid in
the year
£
(228,974)
(5,695)
—
—
—
—
(1,888)
—
—		 At 31
December
2020
£
839,300
13,830
2,000
2,499
48,737
4,980
1,887
3,000
5,000
1,158,625 — (835) (236,557) 921,233

Guts UK Charity 56

Notes to the financial statements 31 December 2020

18. Research grants payable (continued)

Ongoing research cont’d
Balance brought forward
Professor Jonathan
Fallowfield
Development Grant
A molecular phenomic approach to define the high risk
NAFLD population
Dr Salvatore Papa
Development Grant
Starving livers of glucose for HCC prevention and
treatment
Professor Chris Probert
Development Grant
Evaluation of the gut metabolome, micro and myco biome
in ulcerative colitis patients undergoing anti-fungal
therapy: can we predict response to therapy?
Dr James Pritchett
Development Grant
Decoding Yes Associated Protein 1 driven hepatic
stellate cell activation
Dr Marnix Jenson
Development Grant
The TARGET study (TArgeted biopsies to Risk Stratify
Gastric cancer precursors for tailored Endoscopic
surveillance and Treatment)
Dr Catherine Williamson
Nutrition Development
Grant
Impact of cold exposure in conjunction with dietary
modification on metabolic regulation in children with non-
alcoholic fatty liver disease
Professor Christer Hogstrand Nutrition Development
Grant
Targeting “Leaky Gut“ with combined dietary zinc and
plant derived Aryl Hydrocarbon Receptor agonists
Dr Paul Henderson
Guts UK - BSPGHAN
Development Grant
The PINPOINT study – The Prospective Incidence of
Paediatric – Onset Inflammatory bowel disease in the
United Kingdom
Dr Matthias Zilbauer
Guts UK - BSPGHAN
Development Grant
Stratification of inflammatory bowel disease treatment in
children using human intestinal organoid derived
epigenetic signatures
Balance carried forward		 At
1 January
2020
£

1,158,625
49,623
50,000
48,099
29,138
49,560
48,283
50,000
39,936
40,000
1,563,264		 Research grants
awarded
£
—
—
—
—
—
—
—
—
—
—
—		 Grants
no longer
required
£
(835)
—
—
—
—
—
—
—
—
—
(835)		 Grants
paid in
the year
£
(236,557)
—
—
—
—
—
—
—
—
(25,229)
(261,786)		 At 31
December
2020
£
921,233
49,623
50,000
48,099
29,138
49,560
48,283
50,000
39,936
14,771
1,300,643

Guts UK Charity 57

Notes to the financial statements 31 December 2020

18. Research grants payable (continued)

Ongoing research cont’d
Balance brought forward
Professor Graham Lord
For Crohn’s Development
Grant
Modulation of the effector/regulatory T-cell balance by
targeting a causal genetic variant as a novel therapeutic
paradigm in Crohn’s disease
Dr Jorge Gutierrez-Merino
For Crohn’s Development
Grant
Understanding how gut bacteria induce beneficial type 1
interferon responses		 At
1 January
2020
£

1,563,264
43,336
49,055
1,655,655		 Research grants
awarded
£
—
—
—
—		 Grants
no longer
required
£
(835)
—
—
(835)		 Grants
paid in
the year
£
(261,786)
—
—
(261,786)		 At 31
December
2020
£
1,300,643
43,336
49,055
1,393,034

Guts UK Charity 58

Notes to the financial statements 31 December 2020

18. Research grants payable (continued)

18. Research grants payable(continued)
New commitments
Dr Robin Dart
Guts UK-BSG Trainee
Research Award
The cellular architecture of the human colonic mucosa
: a pilot and feasibility study to facilitate longitudinal
multi-centre studies
Dr James Ashton
Guts UK-BSG Trainee
Research Award
To establish a UK wide Paediatric IBD Research
network (PAIR network) to answer clinical research
questions and enable rapid decision making
Dr John Thomas
Guts UK-BSG Trainee
Research Award
Transcriptomic profiling of patient derived colonic
epithelial organoids exposed to Ulcerative Colitis-
relevant cytokines – a novel approach to uncover IBD
pathogenesis and inform precision medicine
strategies.
Dr Rebecca Harris
Guts UK-BSG Trainee
Research Award
Non-invasive risk stratification of patients with
compensated advanced chronic liver disease :
Results from a real world cohort from the Nottingham
Scarred Liver pathway
Dr Roosey Sheth
Guts UK-BSG Trainee
Research Network Award
A UK wide Audit of the Management of Primary
Biliary Cholangitis (PBC)
Falk Pharma 2020
awards - various
Guts UK-Dr Falk awards 2020
New commitments total		 At
1 January
2020
£
—
—
—
—
—
—
—		 Research grants
awarded
£
10,000
8,000
9,950
10,000
10,000
14,000
61,950		 Grants
no longer
required
£

—
—
—
—
—
—
—		 Grants
paid in
the year
£


—
—
—
—
—
—
—		 At 31
December
2020
£
10,000
8,000
9,950
10,000
10,000
14,000
61,950

Guts UK Charity 59

Notes to the financial statements 31 December 2020

18. Research grants payable (continued)

Research completed in during the year
Professor David
Wilson
BSPGHAN Award
Health informatics research in paediatric
gastroenterology: nationwide data-linkage exploration of
perinatal risk factors for and consequences of paediatric-
onset Inflammatory Bowel Disease
Professor Chris
Probert
Core-BSPGHAN
Development Grant
Characterisation of the gut mycobiome in an inception
cohort of paediatric inflammatory bowel disease patients
Professor Sarah Ennis Core-BSPGHAN
Development Grant
Metabolo-genomic interactions in paediatric Crohn's
Disease (CD)
Dr Misha Kabir
Guts UK-Dr Falk SpR
Trainee Audit/Quality
Improvement Award
Developing a personalised patient decision aid to improve
the quality of shared decision-making between Ulcerative
Colitis patients diagnosed with dysplasia and their
clinicians
Dr Suneil Raju
Guts UK-BSG Trainee
Research Award
Review of current diagnostic procedure and management
of patients with microscopic colitis: Are we getting it right?
Dr Konstantinos
Gerasimidis
For Crohns
A pilot study to assess the clinical efficacy of the novel
CD-TREAT diet in patients with active Crohn's disease
Dr Rishi Fofaria
Guts UK-Dr Falk SpR
Trainee Audit/Quality
Improvement Award
Prospective observational study to investigate the role of
pre-procedure faecal calprotectin before scheduled IBD
surveillance colonoscopy to improve quality of care
Total grants for the year		 At
1 January
2020
£
23,694
993
12,898
1,400
2,500
19,566
5,149		 Research grants
awarded
£
—
—
—
—
—
—
—
—		 Research grants
awarded
£
—
—
—
—
—
—
—
—		 Grants
no longer
required
£
—
—
—
—
—
(104)
(2,574)		 Grants
paid in
the year
£
(23,694)
(993)
(12,898)
(1,400)
(2,500)
(19,462)
(2,575)		 At 31
December
2020
£
—
—
—
—
—
—
—
66,200 — (2,679) (63,522) —
1,721,855 61,950 (3,513) (325,308) 1,454,984

Guts UK Charity 60

Notes to the financial statements 31 December 2020

19. Restricted Funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust to be applied for specific purposes:

urposes:
At 1
January
2020
£		 Income
£		 Expenditure
£		 Transfers
£		 At 31
December
2020
£
Research grants
Restricted research grants
Restricted – Pancreatitis
Restricted – Stomach Cancer
Trust Application Donations
Derek
Butler
Endowment
Income fund		 —
—
—

—
—
126,037
14,000

28,000

8,114

1,362

5,500

77,201		 (14,000)
(47,950)
—
(2,000)
(3,000)

—
—

19,950
—

638

—
41,430		 —
—
8,114
—
2,500
244,668
126,037
134,177		 (66,950) 62,018 255,282
At 1
January
2019
£		 Income
£		 Expenditure
£		 Transfers
£		 At 31
December
2019
£
Research grants
Restricted research grants
Restricted - Pancreatitis
Derek
Butler
Endowment
Income fund		 —
—
8,938
57,699
16,575

407,466

3,703
92,140		 (19,149)
(439,102)
(12,641)

(20,786)
2,574

31,636

—
(3,016)
—

—

—
126,037
66,637
519,884		 (491,678) 31,194
126,037

The transfer represents the contribution from general funds towards the research grants.

The purposes of Guts UK’s restricted funds are as follows:

Guts UK Charity 61

Notes to the financial statements 31 December 2020

20. Designated Funds – Amelie Waring

At 1
January
2020
£
1,875,489
(179,423)
1,696,066		 Income
£
46,448
—
46,448		 Expenditure
£
Transfers
£

Investment
(losses)
£

(147,900)
—

(147,900)		 At 31
December
2020
£
Investments
Research
Commitments
Total Amelie
Waring Fund
(74,219)
(810,601)

32,123
—		 889,217
(147,300)

(42,096)
(810,601)		 741,917

Designated Funds – GI Research

Income
£
4,715
—
4,715		 Expenditure
£
Transfers
£		 Expenditure
£
Transfers
£

Investment
gains
£

51,624
—

51,624		 At 31
December
2020
£

20,462
810,601

(19,950)
—		 887,402
(19,950)

512
810,601		 867,452

Total Designated Funds

Total
Funds		 Designated
 1,696,066 **51,163 ** (41,584) — (96,276) 1,609,369
At 1
January
2019
£
1,685,450
(179,423)
1,506,027		 Income
£
77,847
—
77,847		 Expenditure
£
Transfers
£

Investment
(losses)
£
195,747
—
195,747		 At 31
December
2019
£
Investments
Research
Commitments
Total Amelie
Waring Fund
(83,555)
—

—
—		 1,875,489
(179,423)

(83,555)
—		 1,696,066

The Amelie Waring fund was initially established in memory of Amelie Waring to fund pancreatitis research, although the original bequest has been fully expended the trustees continue to designate funds to pancreatitis research in recognition of their ongoing commitment to funding research in this area.

The GI Research Fund is designated to general gastrointestinal research. During the year, the trustees designated £810,601 to this fund.

Guts UK Charity 62

Notes to the financial statements 31 December 2020

21. Endowment fund

Endowment fund
At 1
January
2020
£		 Income
£		 Expenditure/
transfers
£		 Investment
losses
£		 At 31
December
2020
£
Derek Butler Endowment 2,855,298 — (53,950) (117,933) 2,683,415
At 1
January
2019
£		 Income
£		 Expenditure
£		 Investment
losses
£		 At 31
December
2019
£
Derek Butler Endowment 2,558,166 — — 297,132 2,855,298

Income from the Derek Butler Endowment fund is credited to restricted funds and is to be spent on research into diseases of the upper gastrointestinal tract.

22. Analysis of net assets between funds

Fixed assets
£		 Investments
£		 Net current
(liabilities) /
assets
£		 Long-term
Liabilities
£		 2020
Total
£
Unrestricted funds
. General
. Designated funds – AW
. Designated funds – GI
Restricted funds
Endowment funds		 3,520
—
—
—		 1,287,659
889,217
887,402
244,667
2,683,415		 37,273
(102,480)
—
146,694
—		 (231,464)
(44,820)
(19,950)
(136,079)
—		 1,096,988
741,917
867,452
255,282
2,683,415
3,520 5,992,360 81,487 (432,313) 5,645,054
Fixed assets
£		 Investments
£		 Net current
(liabilities) /
assets
£		 Long-term
Liabilities
£		 2019
Total
£
Unrestricted funds
. General
. Designated funds
Restricted funds
Endowment funds		 1,984
—
—
—		 1,461,786
1,875,489
126,037
2,855,298		 (15,016)
(70,950)
343,311
—		 (161,889)
(108,473)
(343,311)
—		 1,286,865
1,696,066
126,037
2,855,298
1,984 6,318,604 257,351 (613,673) 5,964,266

Guts UK Charity 63

Notes to the financial statements 31 December 2020

23. British Society of Gastroenterology

Guts UK works closely with the British Society of Gastroenterology (BSG) (Charity Registration No. 1149074 and Company Registration No. 08124892 (England and Wales)) to provide strong links with the main professional community and to improve its ability to disseminate research and patient information. The Chair of the Research Committee of BSG is a member of Guts UK’s Board of Trustees. The Chair of Guts UK is an ex-officio member of BSG’s Council.

Transactions between the two charities during the period were as follows:

The BSG provided a grant of £25,000 (2019: £10,000) to support trainee research grants.

24. Contingent asset and liability

In 2018 the charity secured provisional funding amounting to £1,250,000 for the colorectal cancer research grant of which £250,000 has been received to date.

Up to £250,000 is receivable on an annual basis contingent on a satisfactory annual report being approved by the funding partner. Guts UK was therefore not entitled to these funds in the year ended 31 December 2020. Should the next stages of funding be received, Guts UK has agreed to distribute and monitor use of this funding as a sub-grant. As at 31 December 2020, £1,000,000 remains receivable, of which up to £250,000 is receivable and payable within one year.

25. Related party transactions

During the year the charity received donations of £1,680 from trustees (2019: £665). Transactions with the British Society of Gastroenterology are detailed in note 23.

There were no further related party transactions during the period requiring disclosure (2019: none).

26. Liability of members

The charity is constituted as a company limited by guarantee. In the event of the charity being wound up, members are required to contribute an amount not exceeding £1.

27. Commitments Under Operating Leases

At 31 December the charity had future minimum commitments under non-cancellable operating leases as set out below:

Payments which fall due: 2020
£
2019
£
772
772
1,932
2,704
2,704
3,476
Within one year
Within 2 to 5 years

Guts UK Charity 64

Notes to the financial statements 31 December 2020

28. Comparative Statement of Financial Activities for the year ended 31 December 2019

Unrestricted
funds
£		 Restricted
funds
£


Endow-
ment
funds
£		 2019
Total
funds
£
Income and expenditure
Income
Donations and legacies
1
Other trading activities
2
Investment income
3
Charitable activities
4
. Grants for research
Total income
Expenditure
Cost of raising funds
5
Expenditure on charitable activities
6
. Grants for research
. Public education and Science of Digestion

Total expenditure
8
Net expenditure before transfers
9
Transfers between funds
19
Net (expenditure) / income after transfers
Net gains on investments
14
. Realised
. Unrealised
Net (expenditure) / income and net movement in
funds for the year
Reconciliation of funds:
Funds balances brought forward
Fund balances carried forward
235,669

54,364

111,615

—		 18,778
—
92,140
408,966
—
—

—

—		 254,447
54,364
203,755
408,966
401,648 519,884
—		 921,532

157,224

434,129
136,681		 13,155
478,523
—
—

—
—		 170,379
912,652
136,681

728,034		 491,678
—		 1,219,712

(326,386)

(31,194)		 28,206
31,194
—

—		 (298,180)
—
(357,580)

42,071
283,019		 59,400
—
—
—
31,433
265,699		 (298,180)
73,504
548,718
(32,490)
3,015,421		 59,400
66,637
297,132

2,558,166		 324,042
5,640,224
2,982,931 126,037
2,855,298		 5,964,266

Guts UK Charity 65