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2021-02-28-accounts

Charity Registra�on Number: 1143542 Company Registra�on Number: 06812087 (England and Wales)

Pe�t Miracle Interiors Limited (Limited by guarantee) Trustees’ Report and Accounts For the Year Ended 28th February 2021

Pe�t Miracle Interiors Limited (Limited by guarantee) Legal and Administra�ve Informa�on

Trustees Vincenzo Dalaimo Allison Gislason Maurizio Garro (resigned 20th September 2020) Victoria Campbell (resigned 16th January 2021) Gary Roberts (appointed 22nd February 2021) Charity Number 1143542 Company Number 06812087 Registered Office Address 64 Southwark Bridge Road London SE1 0AS Independent Examiners Aviatrix Accountancy Terminal E2/3B Farnborough Airport Hampshire GU14 6XA Accountants Whitby Accoun�ng Ltd 34 Oaks Way Carshalton Surrey SM5 4NQ

Pe�t Miracle Interiors Limited (Limited by guarantee) Contents

Page
Trustees Report 1
Independent Examiner’s Reports 6
Statement of Financial Ac�vi�es 7
Balance Sheet 8
Notes to the Accounts 9

Pe�t Miracle Interiors Limited (Limited by guarantee)

Trustees’ Report

For the Year Ended 28th February 2021

the year ending 28 February 2021. The Trustees confirm that this report and statements comply with the charity’s Memorandum and Ar�cles of Associa�on.

1.1 Structure and governance

Cons�tu�on

Pe�t Miracle Interiors Limited is a registered charity (1143452) and company limited by guarantee (06812087) and is governed by its Ar�cles of Associa�on. The Trustees of the charity are the Directors and Members of the company. All mee�ngs must, at a minimum, have a quorum present, which is set at two. At each annual general mee�ng one-third of the directors must re�re. In the event of the company being wound up, members are required to contribute an amount not exceeding £1.00.

The charity’s place of business is Penhurst House, 352-356 Ba�ersea Park Road, London, SW11 3BY. The trading address is Unit C, West 12 Shopping Center, Shepherd Bush Green, London, W12 8PP.

Trustees

Any person who is willing to be and may lawfully act as a Trustee may be appointed by ordinary resolu�on. New appointments are only made if such person is deemed capable of providing relevant skills and determined to further the aims of the charity. In the event of par�cular skills being lost due to re�rement, individuals are approached to offer themselves for elec�on to the Trustee board.

Risk management

The risk register is updated annually however, a second review was conducted as a result of Covid-19. Risks range from those associated with sources of income, or lack thereof due to unforeseen ma�ers such as Covid-19, and lone working. Our systems have been reviewed and addi�onal support measures in place to help cope with the loss of key-staff and changes in the trading environment. Procedures are in place to ensure compliance with health and safety of staff, volunteers, clients and visitors to the premises. These procedures will be periodically reviewed to ensure that they con�nue to meet the needs of the charity.

1.2 Objec�ves and ac�vi�es

Objects

i) The relief of unemployment in par�cular but not exclusively by providing training and work experience in the pain�ng and decora�ng and interior design trades for the homeless, formerly homeless, vulnerable women, and other socially or economically disadvantaged members of society (“the beneficiaries”).

ii) helping them build their confidence and meet their own needs.

1

Pe�t Miracle Interiors Limited (Limited by guarantee)

Trustees’ Report

For the Year Ended 28th February 2021

future ac�vi�es. The trustees are sa�sfied that the aims are carried out in pursuit of the charitable aims and are for the public benefit.

Our Year

The 2020-2021 year was overshadowed by the Covid-19 pandemic, which severely limited our ability to deliver our usual programmes. Staff were on full furlough from March to June 2020, then par�al furlough from July 2020 - February 2021. Many of our beneficiaries were unable or reluctant to come out to our workshop. The retail shop was closed.

However, we were able to make good use of par�al furlough by implemen�ng organiza�onal improvements, including:

staff con�nued to upcycle and sell furniture online.

In early 2021 we redesigned our website with low-cost support from Fuller Times. The new website features our new branding which emphasises the people behind the furniture.

2

Pe�t Miracle Interiors Limited (Limited by guarantee) Trustees’ Report

For the Year Ended 28th February 2021

engage young people (ages 18-30) in 2019, we have been awarded a 3-year grant from John Lyon’s Charity star�ng December 2020 to provide job and personal skills training through furniture upcycling. In February 2021 we received a 3 year grant from The Henry Smith Charity for our core costs.

We were grateful that the London Borough of Hammersmith and Fulham awarded us a contract through their Economic Development Team to deliver job and enterprise training to borough residents. With their support we have been able to reopen our Community Enterprise programme (now rebranded as The Market).

senior team in place we are cau�ously op�mis�c about the year ahead.

Projects

Pe�t Miracle Interiors is a combined workshop and retail space, where we teach furniture restora�on, interior design and basic DIY, then sell the upcycled furniture made by trainees to help fund the project. The core of the programme is job training and personal skill development. Pe�t Miracle Interiors ac�vi�es provide up-skilling and social inclusion opportuni�es by providing work experience roles and volunteer posi�ons for long-term unemployed people and/or facing mul�ple barriers to employment and/or leisure pursuits.

In prepara�on to reopen in April 2021, we reorganised our Makerspace to increase the amount of space allocated to the workshops and divided them into sec�ons. This enables social distancing, whilst s�ll maintaining all other health and safety and safeguarding requirements. We are able to fit 6 people per session into our woodworking and pain�ng area. Furniture from the showroom has now been combined with the Market, which runs a shop at street level.

response to feedback from staff, volunteers and students who said they enjoyed upholstery and wanted to make it a bigger part of the Interior's experience. To date, upholstery training has been limited to work experience students working one-on-one with a staff member and small group sessions. However, the new space alloca�on has given us the opportunity to incorporate regular upholstery sessions into our 4- and 12-week traineeship courses, and to offer weekly sessions to adult volunteers concurrently with training on wooden pieces.

While on par�al furlough, we delivered workshops to exis�ng users, including people with learning disabili�es, by sending materials in advance and conduc�ng the training online.

The Pe�t Miracle Market (formerly “The Hub”) is a retail business incuba�on package for local residents, providing opportuni�es for people to create their own jobs. The project is geared to people who have a disadvantaged background, and the drive and talent to start their own business. People are provided with an 8-week business plan course, business workshops, coaching and free trading space. The Market brings professional training, opportunity and personalized support to their doorstep, which keeps them close to vital emo�onal, social and cultural support networks. The Market is a pla�orm for community events and services that invites residents, local businesses, as well as local council and other chari�es to learn and share knowledge all in an effort to create community cohesion and further our objec�ves.

3

Pe�t Miracle Interiors Limited (Limited by guarantee) Trustees’ Report

For the Year Ended 28th February 2021

During 2020 the need for more digital support for hub members became pressing. During the winter we started a pilot programme with a local business mentoring service to deliver support for 10 members. This includes a review of the business strategy incorpora�ng online marke�ng, provision of a func�oning Wordpress site with all legally required documenta�on, and a bespoke domain for a URL and email address.

year on year. Due to the exper�se and experience of the team, our beneficiaries receive quality support from everyone who works at Pe�t Miracles. The Trustees unreservedly and with great apprecia�on thank you for everything that you do and your dedica�on to ensure we achieve our charitable objec�ves. We would like to take this opportunity to thank all our funders and stakeholders who support the work of our charity.

1.4 Financial Review

(-100%), rental fees (-100%) and trading (-79%). Grants increased by 13% and training fees by 14%. Grant funding made up approximately 90% of the charity’s total turnover. Income generated from all these ac�vi�es was £172,273 with a net surplus of £30,521.

The current aim is to return pre-Covid levels of trading income through the improvement of our web presence and marke�ng. Grant funding will remain essen�al and trustees aim to have grant funding represent 30% of total income. We con�nue to look to diversify our income base and increase the surpluses generated by social enterprise ac�vi�es to cover more opera�ng costs.

Reserves policy

Previously, Trustees examined the requirements for free reserves in 2018 for 3 months. Since the onset of Covid, this has increased to 6 months, to ensure the charity can meet all its obliga�ons. Therefore, the aim is to build enough reserves for a period of 6 months of unrestricted funds with the long-term goal of building no more than 12 months of reserves: maintain a level of free reserves (unrestricted reserves less the value of fixed assets), equivalent to six months’ essen�al opera�ng costs, which currently amount to £70,000. The current reserves are held in the charity bank account.

At the end of FY 2020-21, free reserves stand at £5,215 which is below the threshold stated in our policy. This is largely due to a significant decline in trading (unrestricted) income. We expect that the updated website and brand refresh will help us improve sales, enabling us to save money into our free reserves.

4

Pe�t Miracle Interiors Limited (Limited by guarantee) Statement of Financial Ac�vi�es For the Year Ended 28th February 2021

Note
Income From:
Dona�ons
5
Charitable ac�vi�es
5
Other trading ac�vi�es
(rental)
5
Total income
Expenditure on:
Charitable ac�vi�es
6
Total expenditure
Net movement in funds
before transfers
Transfers between funds
Net movement in funds
Reconcilia�on of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£
36,375
4,850
11,756
52,981
43,180
43,180
9,801
0
9,801
(4,586)
5,215		 Restricted
Funds
£
119,292
0
0
119,292
98,572
98,572
20,720
0
20,720
16,187
36,907		 Total 2021
£
155,667
4,850
11,756
172,273
141,752
141,752
30,521
0
30,521
11,601
42,122		 Total 2020
£
137,463
6,258
59,647
203,368
254,625
254,625
(51,257)
0
(51,257)
62,858
11,601

7

Note 2021 2020
E £
Fixed Assets
Tangible Assets 1 3,946 5,261
CurrentAssets
Debtors 23,431 9,356
Cashatbank 74,971 14,953
98,402 24,309
Creditors:amountsfalling due (60,226) (17,969)
withinoneyear 11
Netcurrentassets 38,176 6,340
Totalassetslesscurrentliabilities 42,122 11,601
Netassets
Thefundsofthecharity
Restrictedfunds 13 36,907 16,187
Unrestrictedfunds 5,215 (4,586)
42,122 11,601

Pe�t Miracle Interiors Limited (Limited by guarantee) Notes to the Accounts For the Year Ended 28th February 2021

1. Company Status

Pe�t Miracle Interiors Limited is a charitable company limited by guarantee and registered in England and Wales. The members of the company are the Trustees. In the event of the company being wound up, the liability is limited to £1 per member. The charity meets the defini�on of a public benefit en�ty under FRS102. The specific public benefits can be found in the Trustees’ Report.

2. Going concern

has adequate resources to con�nue in opera�onal existence for the foreseeable future. Thus the charity con�nues to adopt the going concern basis of accoun�ng in preparing the financial statements.

3. Accoun�ng Policies

2011 and Accoun�ng and Repor�ng by Chari�es: Statement of Recommended Prac�ce applicable to chari�es preparing their accounts in accordance with the Financial Repor�ng Standards (FRS 102, effec�ve January 2015). The financial statements have been prepared under the historical cost conven�on. The Ins�tute is exempt from preparing group accounts in accordance with §402 of the Companies Act 2006 and the Chari�es SORP (FRS 102).

3.2 Cash Flow Statement

In accordance with the Chari�es SORP (FRS 102) the charity is claiming exemp�on from the requirement to prepare a cash flow statement on account of it being a small charity.

3.3 Fund accoun�ng

Funds held by the charity are either:

Unrestricted general funds - these are funds which can be used in accordance with the charitable objects at the discre�on of the trustees and which have not been designated for other purposes

donors which have been raised by the charity for par�cular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the note to the accounts.

3.4 Expenditure

Expenditure is accounted for on an accruals basis with the irrecoverable element of VAT included with the item of expense to which it relates.

Cost of raising funds includes costs incurred by the Charity in fundraising.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its ac�vi�es and

9

Pe�t Miracle Interiors Limited (Limited by guarantee)

Notes to the Accounts

For the Year Ended 28th February 2021

Governance costs include those costs associated with mee�ng the cons�tu�onal and statutory requirements of the charity and include audit fees and costs linked to the strategic management of the charity. These are included in support costs.

resource. Costs rela�ng to a par�cular ac�vity are allocated directly, others are appor�oned based on es�mated usage as a propor�on of directly a�ributable expenditure.

3.5 Income

Incoming resources are included when the charity has en�tlement to the funds, certainty of receipt and the amount can be reliably measured. Other trading income is recognised on an accruals basis, excluding value added tax.

deprecia�on and any impairment losses. Deprecia�on is recognised so as to write off the cost or valua�on of assets less their residual values over their useful lives on the following basis:

Leasehold improvements - 25% straight line Fixtures and fi�ngs - 25% straight line Computer equipment - 25% straight line Plant and machinery - 25% straight line Office equipment - 25% straight line

and the carrying value of the asset, and is recognised in the net income/(expenditure) for the year.

At each repor�ng end date, there are reviews on the carrying amounts of its tangible assets to determine whether there is any indica�on that those assets have suffered an impairment loss. If any such indica�on exists, the recoverable amount of the asset is es�mated in order to determine the extent of the impairment loss (if any).

3.8 Financial instruments

The charity has elected to apply the provisions of Sec�on 11 ‘Basic Financial Instruments’ and Sec�on 12 ‘Other

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

there is a legally enforceable right to set off the recognised amounts and there is an inten�on to se�le on a net basis or to realise the asset and se�le the liability simultaneously.

price including transac�on costs and are subsequently carried at amor�sed cost using the effec�ve interest method unless the arrangement cons�tutes a financing transac�on, where the transac�on is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amor�sed.

10

Pe�t Miracle Interiors Limited (Limited by guarantee) Notes to the Accounts

For the Year Ended 28th February 2021

the arrangement cons�tutes a financing transac�on, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabili�es classified as payable within one year are not amor�sed.

Trade creditors are obliga�ons to pay for goods or services that have been acquired in the ordinary course of opera�ons from suppliers. Amounts payable are classified as current liabili�es if payment is due within one year or less. If not, they are presented as non-current liabili�es. Trade creditors are recognised ini�ally at transac�on price and subsequently measured at amor�sed cost using the effec�ve interest method.

Financial liabili�es are derecognised when the ’s contractual obliga�ons expire or are discharged or cancelled.

The cost of any unused holiday en�tlement is recognised in the period in which the employee’s services are received.

terminate the employment of an employee or to provide termina�on benefits.

3.11 Debtors

Trade and other debtors are recognised at the se�lement amount due. Prepayments are valued at the amount prepaid.

3.12 Creditors and provisions

Creditors and provisions are recognised where the Ins�tute has a present obliga�on resul�ng from a past event that will likely result in the transfer of funds to a third party and the amount due can be reliably measured.

3.13 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments.

4. Cri�cal accoun�ng es�mates and judgements

In the applica�on of the charity’s accoun�ng policies, the Trustees are required to make judgements, es�mates and assump�ons about the carrying amount of assets and liabili�es that are not readily apparent from other sources. The es�mates and associated assump�ons are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these es�mates.

The es�mates and underlying assump�ons are reviewed on an ongoing basis. Revisions to accoun�ng es�mates are recognised in the period in which the es�mate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

11

Pe�t Miracle Interiors Limited (Limited by guarantee) Notes to the Accounts

For the Year Ended 28th February 2021

5. Income

. Income
Income from dona�ons and grants
Grants
Income from charitable ac�vi�es
Training fees
Workshop fees
Income from other trading ac�vi�es
Rental income
Trading income
. Expenditure
Staf
costs £
Charitable ac�vi�es
Charitable projects
93,242
Support costs
11,032
104,274
Analysis of support costs
Wages and salaries
Deprecia�on
Ofce and Admin
Accountancy fees
Independent examiner
fees		 Unrestricted
funds £
36,375
36,375
4,850
0
4,850
0
11,756
11,756
Deprecia�on £
0
1,315
1,315		 Unrestricted
funds £
36,375

Restricted
funds £

119,292

119,292

0

0

0

0

0

0
Other costs £
5,330
30,833
36,163		 Restricted
funds £
119,292








Total 2021 £
155,667		 Total 2020 £
137,463
36,375 119,292 155,667 137,463
4,850
0		 0
0		 4,850
0		 4,229
2,029
4,850 0 4,850 6,258
0
11,756		 0
0		 0
11,756		 2,985
56,662
11,756 0 11,756 59,647
Total 2021
£
98,572
43,180
141,752
11,032
1,315
29,110
1,023
700
43,180		 Total 2020
£
167,798
86,827
254,625
16,758
1,754
66,531
1,084
700
86,827

6. Expenditure

12

Pe�t Miracle Interiors Limited (Limited by guarantee) Notes to the Accounts For the Year Ended 28th February 2021

The Independent Examiner was paid £700 (2020 - £700) for examining and £nil (2020 - £nil) for other services.

Wages and salaries
Social security costs
Pension costs		 2021
£
99,788
3,466
1,020
104,274		 2020
£
125,778
7,212
1,400
134,390

There were no employees whose annual remunera�on was £60,000 or more. The average number of workshop staff during the year was 4 (2020 - 4) and administra�ve staff was 3 (2020 - 3).

The key management personnel of the charitable company comprises the Board of Trustees, CEO. During the year remunera�on £32,939 (2020 - £40,362) was paid to the CEO. No remunera�on was paid to the trustees.

8. Trustees

None of the trustees (nor any person connected with them) received any remunera�on or expenses during the year.

13

Pe�t Miracle Interiors Limited (Limited by guarantee) Notes to the Accounts

For the Year Ended 28th February 2021

Cost
At 1 March 2020
Addi�ons
At 28 February 2021
Deprecia�on
At 1 March 2020
Charge for the year
At 28 February 2021
Net book value
At 28 February 2021
At 29 February 2020		 Leasehold
improvements
£
Computer
equipment
£
Ofce
equipment
£
Plant and
machinery
£
Fixtures
and f�ngs
£
Total
£
10,107
3,329
3,783
1,526
423
19,168
0
0
0
0
0
0
10,107
3,329
3,783
1,526
423
19,168
8,261
2,559
2,328
515
244
13,907
462
193
364
253
43
1,315
8,723
2,752
2,692
768
287
15,222
1,384
577
1,091
758
136
3,946
1,846
770
1,455
1,011
179
5,261

10. Debtors

Trade debtors
Other debtors		 2021
£
22,232
0
22,232		 2020
£
7,192
2,164
9,356

14

Pe�t Miracle Interiors Limited (Limited by guarantee) Notes to the Accounts

For the Year Ended 28th February 2021

11. Creditors: due within one year

Accruals and deferred income
Borrowings and other creditors
Bank overdra�s and loans
Trade creditors
Social security and other taxes
12. Loans and overdra�s
Bank loans		 2021
£
1,950
5,552
45,000
1,505
6,219
60,226
2021
£
45,000
45,000		 2020
£
1,450
710
0
0
15,809
17,969
2020
£
0
0

The loan above represents the Bounce Back loan received following the consequences of COVID-19.

13. Restricted funds

LBHF
RBS
John Lyons
Furlough		 Balance
brought
forward £
0
16,187
0
0
16,187		 Incoming
resources
£
12,238
0
40,000
67,054
119,292		 Resources
expended
£
5,331
16,187
10,000
67,054
98,572		 Transfers
£
0
0
0
0		 Balance
carried
forward £
6,907
0
30,000
0
36,907

15

Pe�t Miracle Interiors Limited (Limited by guarantee) Notes to the Accounts

For the Year Ended 28th February 2021

LBHF - Funding for the provision of upcycling workshop training and business incuba�on services through the Start Your Own Enterprise Project for H&F residents

RBS/Natwest - Funding for the Hub manager salary

John Lyons - Funding for outreach project that promote the life-chances of children and young people through educa�on

Furlough - Funding from the government in rela�on to COVID-19

14. Analysis of net assets between funds

As at 28 February 2021
Tangible fxed assets
Current assets
Creditors: due within one year
At 29 February 2020
Tangible fxed assets
Current assets
Creditors: due within one year		 Unrestricted
funds £
3,946
61,495
(60,226)
5,215
Unrestricted
funds £
5,261
8,123
(17,970)
(4,586)		 Restricted
funds £
0
36,907
0
36,907
Restricted
funds £
0
16,187
0
16,187		 Total
£
3,946
98,402
(60,226)
42,122
Total
£
5,261
24,309
(17,969)
11,601

16

Pe�t Miracle Interiors Limited (Limited by guarantee) Notes to the Accounts

For the Year Ended 28th February 2021

15. Compara�ve funds - Statement of Financial Ac�vi�es for the year ended 29 February 2020

Income From:
Dona�ons
Charitable ac�vi�es
Other trading ac�vi�es (rental)
Total income
Expenditure on:
Charitable ac�vi�es
Total expenditure
Net movement in funds before
transfers
Transfers between funds
Net movement in funds
Reconcilia�on of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£
8,090
6,258
59,647
73,995
86,827
86,827
(12,832)
0
(12,832)
8,246
(4,586)		 Restricted
Funds
£
129,373
0
0
129,373
167,798
167,798
(38,425)
0
(38,425)
54,612
16,187		 Total 2020
£
137,463
6,258
59,647
203,368
254,625
254,625
(51,257)
0
(51,257)
62,858
11,601

17