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2021-06-30-accounts

Emmaus Bradford

Charity No. 1142210

Company No. 07611104

Trustees' Report and Unaudited Accounts

30 June 2021

Emmaus Bradford Contents

Pages
Trustees' Annual Report 1
Independent Examiner's Report 2
Statement of Financial Activities 3
Summary Income and Expenditure Account 4
Balance Sheet 5
Statement of Cash flows 6
Notes to the Accounts 7
Detailed Statement of Financial Activities 8 to 20

Page 1

Emmaus Bradford Trustees Annual Report

The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the year ended 30 June 2021.

REFERENCE AND ADMINISTRATIVE DETAILS

Company No. 07611104

Charity No. 1142210

Principal Office

Unit 12 Accent Business Centre Barkerend Road Bradford BD3 9BD

Registered Office

Unit 12 Accent Business Centre Barkerend Road Bradford BD3 9BD

Directors and Trustees

The Directors of the charitable company are its Trustees for the purposes of charity law. The following Directors and Trustees served during the year:

J.M. Andrew R.L. Deluca S.E.A. Dixon D.S. Hall S.K. Rafiq

A.S. Treasure

Key Management Personnel

Chair

Treasurer

KMP Name 1 Mrs Rachel Louise DeLuca Ms Janet Margaret Andrew

Accountants

Pro Active Accounting Forester Building 29-35 St Nicholas Place Leicester LE1 4LD

Page 2

Emmaus Bradford Trustees Annual Report

Bankers

Address Line 5

Solicitors

Address Line 5

Investment Advisors

Address Line 5

OBJECTIVES AND ACTIVITIES

The Charity's objects are specifically restricted to the alleviation and relief of poverty, hardship and distress arising therefrom, in conformance with the principles of the Emmaus Movement as published from time to time by Emmaus UK, to those in need without distinction by:

The company was operating one charity shop on Cross Lane during this period, and opened a new city centre store on Sunbridge Road, Bradford in April 2021 with no rent required until October 2021, and preferential terms from October 21. The increased awareness of a city centre location has enabled Emmaus Bradford to increase turnover, engage more volunteers, and attract more public support for our future plans.

In addition to the two charity shops, Emmaus Bradford leases a commercial unit for storage of donated items. Emmaus Bradford also trades online through ebay and other online sales platforms. Trading during the year was affected by the global pandemic, but the charity has received support from grants and government furlough scheme and recovered well as trading resumed. The Cross Lane shop and all Emmaus Bradford services closed down during lockdowns – effectively reducing trading to 6 months of this financial year. However the opening of the new shop on Sunbridge Road has introduced a healthy new income stream to Emmaus Bradford, work has taken place to increase online sales, and the charity received rates relief, grant funding, and furlough income to support it through this period.

Emmaus Bradford’s recovery from lockdowns has been swift and effective, exceeding pre-COVID trading levels quickly, and attracting high levels of goods donations, and increased cash donations and gift aid. The addition of software to record sales, services and gift aid donations has enabled the charity to operate more efficiently and with more agility to market changes that effect the finances.

The Trustees continue to raise awareness of Emmaus Bradford's plans, in the city and surrounding areas. A strong relationship exists with Accent Housing Association, which provides their tenants with vouchers for spending at the Charity Shop. New relationships with Hope Housing have been established, and awareness of the organisation with third sector organisations who purchase goods for their clients has increased.

The main target of the company is the acquisition of suitable accommodation to address homelessness. In 2020/21 work was undertaken to attract funding for this scheme, and the charity placed unsuccessful offers on two properties. The goal to acquire a suitable property continues, with increased support from Emmaus UK, and support from an external fundraising consultant. A funding plan to buy a property and refurbish it for residential use has been established, bringing the charity closer to achieving its goal.

Page 3

Emmaus Bradford Trustees Annual Report

The trustees have had due regard to the guidance issued by the Charity Commission on public benefit.Trustees are involved in the operational aspects of managing the shops but to a lesser degree since the recruitment of a General Manager, and a transition is in progress enabling the trustees to begin take a more strategic role. The focus of the General Manager is to increase trading income and other income (e.g. fundraising), to purchase and refurbish a property, to establish a community providing accommodation and work for the homeless, and to establish new income streams through community café, events space, and other.

ACHIEVEMENTS AND PERFORMANCE

Between and after the Covid-19 lockdowns – the Cross Lane store and Sunbridge Road store have traded well, able to respond to the market need for affordable goods, and to respond to the increased appetite for second-hand goods, deliveries, collections, online purchasing. With the help of volunteers, the Charity continued to provide solidarity donations of furniture, appliances and household essentials to people in need during the lockdown. In total, Emmaus Bradford saved 7000 items from going to landfill during 20/21, which were sold second-hand or given to people in need.

The Covid-19 lockdown meant the closure of the charity shop. For the difficult times up till the re-opening of the shop the company benefited from grants from the local Council and from the Emmaus UK, a reduction in rental agreed with the landlord of the premises, and a one-year business rate holiday. The shop re-opened on 22nd June and sales were at a record level in that week. With the economic downturn ahead, it is expected that more and more people will be reliant on charity shop purchases.

Work to identify funding for the Cross Lane community café, and an events space at Sunbridge Road re-started in May 2021, as did efforts to secure a property to establish the Emmaus Bradford community. Significant progress has been made in the last two months of the financial year, with 4 potential properties optioned for purchase. Offers were placed on two buildings during this period but were unsuccessful due to the buoyant, post-lockdown market which is highly competitive and fast-moving. The lack of residential accommodation to fulfil the Emmaus mission has not prevented the charity from successfully supporting new volunteers referred through local mental health workers and wellbeing charities. Emmaus Bradford has been able to provide the chance to regain confidence, gain new skills and improve health and wellbeing. In June 2021, Emmaus Bradford successfully applied to the Government KickStart Scheme, enabling a young person from Bradford to gain paid employment on a 6 month contract.

The company has recruited 1 new trustee during 30 June 2021 and a long-standing trustee has stepped down. It has attracted voluntary advisors with expertise in property development. This renewed support has enabled Emmaus Bradford to undertake professional building feasibility work on a pro bono basis assessing the viability of 4 properties, and enabling the charity to manage financial risk effectively.

Emmaus Bradford introduced a new EPOS system (Mikromarket) during the pandemic, which is enabling the charity to operate more efficiently with regard to delivering customer purchases and collecting furniture from the district. The investment in the new EPOS means Emmaus Bradford can measure the impact of our recycling work. In 6 months during the pandemic, the charity saved 7,000 items from landfill to recycle (sell or give) to local people.

The acquisition of the financial accounting package Xero has increased the efficiency and reliability of our financial reporting and we have continued to benefit from the advice and support of our accountants in implementing the new system

FINANCIAL REVIEW

Page 4

Emmaus Bradford

Trustees Annual Report

Net income for the year was £25,055, an increase of 709% over the previous year, sourced £67,751 from trading income from the charity shops, £9,222 from donations, and £35,387 from grants. However, after the payment of premises costs, employee costs, financing costs for the van and other costs, there was £87,307 spent on charitable activities and a net income for the year of £25,055. Funds brought forward from June 2020 were £8,698 giving a total of £33,753 at year end to take forward.

The charity has drafted an official reserves policy which will be approved by the Trustees in the new financial year, with the intention of working towards three months reserves to cover staffing and operational costs, but in the interim reserving £10,000 in order to retain working capital to support the acquisition of a residential property and fulfil Emmaus Bradford’s core mission.

PLANS FOR FUTURE PERIODS

In 2021/22 the charity aims to: In 2021/22 the charity aims to: Purchase and refurbish residential accommodation for 15-25 homeless adults. Establish a community café at Cross Lane

Establish an events space at Sunbridge Road

Introduce new revenue streams (from the above initiatives)

Increase revenue through the existing charity shops, online trading and other services e.g. house clearances, housing vouchers.

Increase awareness and engagement from customers, supporters, partners and donors. Fundraise for a second van and driver to support increased trading.

Double the number of items saved from landfill to a minimum of 14,000 items. Establish an Emmaus Community, providing accommodation and work for the homeless

The trustees are confident that Emmaus Bradford is growing and developing well and in a strong position to achieve the core aims of the charity.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Emmaus Bradford is a company limited by guarantee and it is governed by its Articles of Association. It is constituted as a branch of Emmaus UK Registered Charity No 1064470 and is bound by the Emmaus UK Constitution and its Membership Agreement.

Trustees are selected on the basis of their skills and expertise as well as their dedication to the charitable objects.

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

The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102).

Signed on behalf of the board

R.L. Deluca Trustee 22 September 2021

Page 5

Emmaus Bradford Independent Examiners Report

Independent Examiner's Report to the trustees of Emmaus Bradford

I report to the charity trustees on my examination of the accounts of Emmaus Bradford for the year ended 30 June 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Statement of Cash Flows and the related notes.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act.

Having satisfied myself that the accounts of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Mahmood Reza FCCA Pro Active Accounting Forester Building 29-35 St Nicholas Place Leicester

LE1 4LD 22 September 2021

Page 6

Emmaus Bradford Statement of Financial Activities

for the year ended 30 June 2021

Notes
Income and endowments
from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Other
7
Total
Expenditure on:
Charitable activities
8
Other
9
Total
Net gains on investments
Net income
10
Transfers between funds
Net income before other
gains/(losses)
Other gains and losses
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricte
d funds
2021
£
9,222
24,347
67,751
2		 Restricted
funds
2021
£
-
11,040
-
-		 Total funds
2021
£
9,222
35,387
67,751
2		 Total funds
2020
£
30,522
-
49,544
4
101,322
700
84,734		 11,040
-
1,873		 112,362
700
86,607		 80,070
682
76,291
85,434
-		 1,873
-		 87,307
-		 76,973
-
15,888
-		 9,167
-		 25,055
-		 3,097
-
15,888 9,167 25,055 3,097
15,888
8,698		 9,167
-		 25,055
8,698		 3,097
5,601
24,586 9,167 33,753 8,698

Page 7

Emmaus Bradford Summary Income and Expenditure Account

for the year ended 30 June 2021

Income
Gross income for the year
Expenditure
Interest payable
Depreciation and charges for
impairment of fixed assets
Total expenditure for the year
Net income before tax for the year
Net income for the year		 2021
£
112,362
112,362
82,865
-
4,442
87,307
25,055
25,055		 2020
£
80,070
80,070
73,923
588
2,462
76,973
3,097
3,097

Page 8

Emmaus Bradford Balance Sheet

at 30 June 2021

Company No.
07611104
Notes
2021
£
Fixed assets
Tangible assets
12
13,328
13,328
Current assets
Debtors
13
25
Cash at bank and in hand
39,530
39,555
Creditors:Amount falling due within one year
14
(19,130)
Net current assets
20,425
Total assets less current liabilities
33,753
Net assets excluding pension asset or liability
33,753
Total net assets
33,753
The funds of the charity
Restricted funds
15
Restricted income funds
9,167
9,167
Unrestricted funds
15
General funds
24,586
24,586
Reserves
15
Total funds
33,753		 2020
£
8,507
8,507
-
16,141
16,141
(15,950)
191
8,698
8,698
8,698
-
-
8,698
8,698
8,698

These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

For the year ended 30 June 2021 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

Approved by the board on 30 September 2021

And signed on its behalf by:

R.L. Deluca Trustee

30 September 2021

Page 9

Emmaus Bradford Statement of Cash flows for the year ended 30 June 2021

Cash flows from operating activities
Net income per Statement of Financial Activities
Adjustments for:
Depreciation of property, plant and equipment
Dividends, interest and rents from investments
Increase in trade and other receivables
Increase in trade and other payables
Net cash provided by operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Dividends, interest and rents from investments
Net cash (used in)/from investing activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Components of cash and cash equivalents
Cash and bank balances		 2021
£
25,055
4,442
(2)
(25)
3,180
32,650
(9,263)
2
(9,261)
-
23,389
16,141
39,530
39,530
39,530		 2020
£
3,097
2,462
(4)
-
6,319
11,874
-
4
4
(6,160)
5,718
10,423
16,141
16,141
16,141

Page 10

Emmaus Bradford Notes to the Accounts

for the year ended 30 June 2021

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Change in basis of accounting or to previous accounts

There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.

Fund accounting

Income

Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets

Page 11

Emmaus Bradford Notes to the Accounts

Expenditure

Taxation

The charity is exempt from corporation tax on its charitable activities.

Stocks

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

Trade and other debtors

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

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Trade and other creditors

Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Page 12

Emmaus Bradford Notes to the Accounts

Pension costs

The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Receipt of donated goods, facilities and services

All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.

2 Company status

The company is a private company limited by guarantee and consequently does not have share capital.

3 Statement of Financial Activities - prior year

Income and endowments from:
Donations and legacies
Other trading activities
Other
Total
Expenditure on:
Charitable activities
Other
Total
Net income
Net income before other
gains/(losses)
Other gains and losses:
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
2020
£
30,522
49,544
4
80,070
682
76,291
76,973
3,097
3,097
3,097
5,601
8,698		 Total funds
2020
£
30,522
49,544
4
80,070
682
76,291
76,973
3,097
3,097
3,097
5,601
8,698

Page 13

Emmaus Bradford Notes to the Accounts

4 Income from donations and legacies

5
Income from charitable activities
6
Income from other trading activities
7
Other income
8
Expenditure on charitable activities
Expenditure on charitable
activities
Governance costs		 Unrestricted
£
24,347
24,347		 Unrestricted
£
9,222
9,222
Restricted
£
11,040
11,040
Unrestricted
£
67,751
67,751
Unrestricted
£
2
2		 Total
2021
£
9,222
9,222
Total
2021
£
35,387
35,387
Total
2021
£
67,751
67,751
Total
2021
£
2
2		 Total
2020
£
30,522
30,522
Total
2020
£
-
-
Total
2020
£
49,544
49,544
Total
2020
£
4
4
Unrestricted
£
700
700		 Total
2021
£
700
700		 Total
2020
£
682
682

Page 14

Emmaus Bradford Notes to the Accounts

9 Other expenditure

Other interest payable
Employee costs
Motor and travel costs
Premises costs
Amortisation, depreciation,
impairment, profit/loss on
disposal of fixed assets
General administrative costs
Legal and professional costs
10 Net income before transfers
This is stated after charging:
Depreciation of owned fixed assets
11 Staff costs
Salaries and wages
Social security costs
Pension costs
No employee received emoluments in excess
12 Tangible fixed assets
Cost or revaluation
At 1 July 2020
Additions
At 30 June 2021
Depreciation and
impairment
At 1 July 2020
Depreciation charge for the
year
At 30 June 2021
Net book values
At 30 June 2021
At 30 June 2020
13 Debtors
Prepayments and accrued income		 Unrestricted
£
-
44,438
4,696
24,920
4,442
4,430
1,808
84,734
of £60,000.		 Restricted
£
-
1,873
-
-
-
-
-
1,873
2021
£
4,442
44,098
1,289
749
46,136
£
-
9,263
9,263
-
2,316
2,316
6,947
-
2021
£
25
25		 Total
2021
£
-
46,311
4,696
24,920
4,442
4,430
1,808
86,607
£
14,622
-
14,622
6,115
2,126
8,241
6,381
8,507		 Total
2020
£
588
25,033
6,729
33,998
2,462
3,571
3,910
76,291
2020
£
2,462
25,033
-
-
25,033
£
14,622
9,263
23,885
6,115
4,442
10,557
13,328
8,507
2020
£
-
-

Page 15

Emmaus Bradford Notes to the Accounts

14 Creditors:

14 Creditors:
amounts falling due within one year
Other taxes and social security
Other creditors
Accruals and deferred income		 2021
£
8,804
9,622
704
19,130		 2020
£
12,950
-
3,000
15,950
15 Movement in funds
At 1 July
2020
Restricted funds:
Restricted income funds:
Emmaus UK
-
Emmaus UK 2
-
Total
-
Unrestricted funds:
General funds
8,698
Revaluation Reserves:
Total funds
8,698
Purposes and restrictions in relation to the funds:
Restricted funds:
Emmaus UK
Emmaus UK 2		 Incoming
resources
(including
other
gains/losses
)
£
10,000
1,040
11,040
101,322
112,362		 Resources
expended
£
(833)
(1,040)
(1,873)
(85,434)
(87,307)		 At 30 June
2021
£
9,167
-
9,167
24,586
33,753

16 Analysis of net assets between funds

Fixed assets
Net current assets		 Unrestricted
funds
£
13,328
20,425
33,753		 Total
£
13,328
20,425
33,753

Page 16

Emmaus Bradford Notes to the Accounts

17 Reconciliation of net debt

Cash and cash equivalents
Net debt		 At 1 July
2020
£		 Cash flows
£		 At 30 June
2021
£
16,141 23,389 39,530
16,141
16,141		 23,389
23,389		 39,530
39,530

18 Commitments

Operating lease commitments

Annual commitments under non-cancellable operating leases are as follows:

2021 2021 2020 2020
Land and
buildings		 Other Land and
buildings		 Other
£ £ £ £
Operating leases with expiry date:
Pension commitments
2021 2020
£ £
The pension cost charge to the company
amounted to: 749 -

19 Related party disclosures Controlling party

The company is limited by guarantee and has no share capital; thus no single party controls the company.

Page 17

Emmaus Bradford Detailed Statement of Financial Activities

for the year ended 30 June 2021

Income and endowments from:
Donations and legacies
Charitable activities
Other trading activities
Other
Total income and endowments
Expenditure on:
Charitable activities
Total of expenditure on charitable
activities
Other expenditure
Other interest payable
Employee costs
Salaries/wages
Employer's NIC
Pension costs
Staff recruitment
Motor and travel costs
Vehicles - General costs
Travel and subsistence
Premises costs
Rent
Rates
Light, heat and power
Premises cleaning		 Unrestricte
d funds
2021
£
9,222
9,222
24,347
24,347
67,751
67,751
2
2
101,322
700
700
700
-
-
42,225
1,289
749
175
44,438
3,466
1,230
4,696
10,400
3,685
5,424
1,308		 Restricted
funds
2021
£
-
-
11,040
11,040
-
-
-
-
11,040
-
-
-
-
-
1,873
-
-
-
1,873
-
-
-
-
-
-
-		 Total funds
2021
£
9,222
9,222
35,387
35,387
67,751
67,751
2
2
112,362
700
700
700
-
-
44,098
1,289
749
175
46,311
3,466
1,230
4,696
10,400
3,685
5,424
1,308		 Total funds
2020
£
30,522
30,522
-
-
49,544
49,544
4
4
80,070
682
682
682
588
588
25,033
-
-
-
25,033
2,499
4,230
6,729
26,616
2,179
4,894
-

Page 18

Emmaus Bradford

Detailed Statement of Financial Activities

Premises repairs and
maintenance
General administrative costs,
including depreciation and
amortisation
Depreciation of
Bank charges
General insurances
Postage and couriers
Software, IT support and related
costs
Stationery and printing
Subscriptions
Sundry expenses
Telephone, fax and broadband
Legal and professional costs
Audit/Independent examination
fees
Consultancy fees
Other legal and professional
costs
Total of expenditure of other costs
Total expenditure
Net gains on investments
Net income
Net income before other
gains/(losses)
Other Gains
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 4,103
24,920
4,442
869
2,580
85
45
17
100
202
532
8,872
455
525
828
1,808
84,734
85,434
-
15,888
15,888
-
15,888
8,698
24,586		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,873
1,873
-
9,167
9,167
-
9,167
-
9,167		 4,103
24,920
4,442
869
2,580
85
45
17
100
202
532
8,872
455
525
828
1,808
86,607
87,307
-
25,055
25,055
-
25,055
8,698
33,753		 309
33,998
2,462
823
2,183
3
-
-
-
68
494
6,033
3,500
-
410
3,910
76,291
76,973
-
3,097
3,097
-
3,097
5,601
8,698

Page 19