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 2023** ## **Pe�t Miracle Interiors Limited (Limited by guarantee) Legal and Administra�ve Informa�on** **Trustees** Vincenzo Dalaimo (resigned 18.09.23) Allison Gislason Paul Kelly **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 Farnborough 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**|**8**| |**Statement of Financial Ac�vi�es**|**9**| |**Balance Sheet**|**10**| |**Notes to the Accounts**|**11**| ## **Pe�t Miracle Interiors Limited (Limited by guarantee)** ## **Trustees’ Report** ## **For the Year Ended 28th February 2023** The Trustees present this annual report together with the financial statements of Pe�t Miracle Interiors Ltd for the year ending 28 February 2023. 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 Centre, 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 & 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) The relief of need for the beneficiaries by providing educa�on, training and work experience with a view to 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 2023** ## **Public benefit** The Trustees are aware of the Charity Commission’s guidance on public benefit in reviewing and planning its 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** Over the past year we supported 175 people through our programmes and 60% of the people we supported considered themselves to have a disability. People who have disabili�es suffer dispropor�onately with isola�on and a lack of support services. We are thrilled we were able to increase the support to more people and we con�nued to surpass many of our funder requirements and overachieved our own goals. We were successful in our applica�on to Garfield Weston with a generous dona�on for 1 year. We also received the posi�ve news that we have been successful with both the City Bridge Trust and the Na�onal Lo�ery Fund grants. We were delighted to be nominated for three awards at the pres�gious West London Business Awards: Manufacturing / Reprocessing Business of the Year , West London Company of the Year and Community Investment Award. We were thrilled to win the Community Investment Award! It’s a wonderful achievement for our team and we are very proud. It is wonderful to be recognised for the work we do in our community, and we hope it will provide more opportuni�es for us to reach more people to engage in our programmes for years to come. Our Interiors programme was able to divert 7160kg from landfill vs just 2173kg the previous year- an increase of 4,987kg (up 229%). Although 2022-2023 was to be the first year, since the onset of Covid, where we could engage with beneficiaries without covid restric�ons, it s�ll influenced our outreach, with what we refer to as the post covid malaise. Our team has found that this affects both programmes, in different ways. Since the pandemic, Market members have experienced heightened fear in taking the next steps in their business; we s�ll see this effec�ng our members to date. We are taking smaller steps, which feel safer and more comfortable to support members to reach their business goals. When it comes to outreach and onboarding for the Interiors projects, we see our staff chasing possible partners to get dates booked in for free training. For years now, we have seen that once students experience our programme they almost always would like to con�nue. And, if they do not, it is for reasons beyond our control, i.e. low support staff numbers from their organisa�ons, or �metable conflicts. We hope this will become less of an issue and therefore take up less staff resources in the future. Last year, we focused on our brand image, comple�ng a refresh of our brand imagery, and designing and launching our new website. This year saw us build on previous efforts to con�nue to improve. - Partnering with a new web agency who helped us create a more cohesive website, adding pages, and crea�ng a smoother customer experience. We s�ll have improvements to make, as the site is s�ll slow. 2 ## **Pe�t Miracle Interiors Limited (Limited by guarantee) Trustees’ Report** ## **For the Year Ended 28th February 2023** - A volunteer photographer (recruited through Reach Volunteering) helped us create imagery that was on brand for both the website, and our social media. This year we would like to improve the staff's photography skills, and we hope the photographer can help. - A copywriter, created copy for the website and for use on our communica�on materials in an effort to solidify our voice as an organisa�on. - We overhauled the social media presence, taking guidance from our designer who set out some basic ideas and templates for the team to follow. They staff have developed the templates and we have no�ced an increase in our engagement and the overall look, consistency and message we are able to portray on social media: - FB reach increased by 84%, profile visits up by 33% - IG reach increased by 515% and profile visits are up by 40% - IG has over 400 new followers and our most viewed video has over 12K views - We gained over 1000 followers in less than 8 weeks with our new TikTok account |**Our General Outcomes for both Programmes**|| |---|---| |% Were very happy with the training that was provided (top box)|100%| |% Learned a lot from the training? (top box)|86%| |% Enjoyed �me at Pe�t Miracles?|97%| |% Met new people whilst working with Pe�t Miracles|89%| |% Would strongly encourage people to par�cipate in Pe�t Miracles ac�vi�es? (top box)|96%| |% Felt more confdent|88%| |% Felt more mo�vated|100%| |% Felt they had enhanced their employability poten�al|86%| |% Enhanced their understanding of workplace safety|100%| |% Increased confdence in being in a work environment|100%| |% Improved environmental awareness and prac�ce|87%| |% Expanded outlook on working and learning|100%| |% Improved networking skills?|93%| ## **Programme 1 - Pe�t Miracle Interiors** 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. 3 ## **Pe�t Miracle Interiors Limited (Limited by guarantee) Trustees’ Report** ## **For the Year Ended 28th February 2023** Last year, we reorganised our Makerspace to increase the amount of space allocated to the workshops and divided them into sec�ons. Furniture from the showroom is combined with the Market, which operates from a second shop at street level. We think that this, combined with the li�ing of covid restric�ons and fears, has enabled us to increase our s ales figures of £47,614 compared to £19,863 the previous year- an increase of £27,751 (up 140%). The team have no�ced an increase in new, and repeat customers, with us building rapport with local community members who regularly shop with us. Foo�all has increased, too. In June, we lost a senior member of staff which caused some uncertainty. We hired a new workshop manager which was �me-consuming, but also brought about new staff training needs. It enabled us to create a new job opportunity for a former beneficiary who is excelling in her role as the Workshop Assistant. This staffing was a challenge but, even with these issues we managed to deliver the project to a high standard, surpassing our outcomes. As well, we are now trading on eBay, seeing our first sale in October! The new team have also developed new hands-on workshops which have been popular, including ‘Learn how to Restore Furniture’, and ‘Upcycle Your Own Chair’. A�er comple�ng our phased training programme, we were able to secure a short Service Level Agreement with ‘Op�ons Day Centre’, a council supported support service for adults living with disabili�es. Our aim for this coming year is to create more sustainable rela�onships to provide longer term training opportuni�es. We started crea�ng substan�al por�olios for our beneficiaries, to document their projects throughout their �me with us. It includes grading, staff feedback, and pictures. We con�nue to struggle to find reliable and affordable delivery services for our sold furniture items. As a small organisa�on, we do not have our own vehicle, and this can create an expensive and �me-consuming issue, as many of our customers require their items to be couriered. We see that some�mes the cost of this, when using third party drivers is just too much and puts people off their sale. This year we are op�mis�c about a new partnership with a courier company with history working with chari�es and providing a high-quality service. We saw a high level of returning organisa�ons to our training, with many including us in their college or organisa�onal curriculum. A goal of ours, since receiving the ini�al pilot grant from John Lyons, was to create a programme which was sustainable and embedded in our partners’ schedules. This year, we saw returns from; Queensmill, Love4Life, St. Mungos, City of Westminster College, Cer�tude, Burlington Academy, and Pursuing Independent Paths. We also engaged with new organisa�ons; Riverhouse Trust, West London Welcome, The Upper Room, South London Refugee Support, and Urban Partnership Group. 4 ## **Pe�t Miracle Interiors Limited (Limited by guarantee) Trustees’ Report** ## **For the Year Ended 28th February 2023** |**Pe�t Miracle Interiors Limited (Limited by guarantee)**
**Trustees’ Report**
**For the Year Ended 28th February 2023**|**Pe�t Miracle Interiors Limited (Limited by guarantee)**
**Trustees’ Report**
**For the Year Ended 28th February 2023**| |---|---| ||| |**March 2022 – February 2023: Interiors Programme Outcomes**|| |% Enjoyed �me at Pe�t Miracles?|96%| |% Learned a lot from the training?|86%| |% Met new people whilst working with Pe�t Miracles|88%| |% Felt more confdent as a result of coming to Pe�t Miracles|87%| |% Felt their mental wellbeing had improved as a result of coming to Pe�t Miracles|95%| |% Felt their communica�on skills improved as a result of coming to Pe�t Miracles|89%| |% Felt they had enhanced their employability poten�al|85%| |% Said the staf were friendly and suppor�ve - "Very friendly and suppor�ve"|100%| |% Said they would encourage people to par�cipate in Pe�t Miracles ac�vi�es|95%| |% Improved safe working prac�ces in the workshop|94%| |% Environmental awareness and prac�ce improved|100%| |% Outlook on working and learning expanded|94%| |% Increased confdence around taking part in hands-on, prac�cal training|100%| |% Increased confdence in being in a work environment|100%| ## **Programme 2 - Pe�t Miracle Market** 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 business workshops, coaching and free retail trading space in our highstreet shop. The Market brings professional training, opportunity and personalised 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. During 2020 the pressing need for more digital support for market members became obvious and con�nues to be vital to this day. As we worked towards our outcomes and services, we realised our members had addi�onal needs: o�en things that need to be in place to deliver wider business goals. To that end, we are helping many Market members create websites. However, our support was needed to create logos as well as professional photos, product descrip�ons, along with designing leaflets and business cards. We created a page on our website that showcases Market members, their products, their story with links to social media and websites. Members wanted to diversify trading op�ons, so we helped research and support members to trade at local makers markets. One member started to stock her jewellery in a shop in Kensington and Chelsea, approaching them once her confidence grew from engaging in our programme. 5 ## **Pe�t Miracle Interiors Limited (Limited by guarantee) Trustees’ Report** ## **For the Year Ended 28th February 2023** Many of our Market members expressed their need for work/studio space to develop and create their products, but also somewhere to store their materials and tools. This would have been a huge expense for even the most established businesses. In response, we reimagined our retail and storage space to provide 4 members with their very own product development and produc�on space, taking the financial pressure off and enabling them to develop their products and services. |**March 2022 – February 2023: Market Programme Outcomes**|| |---|---| |% Were very happy with the training that was provided|100%| |% Learned a lot from the training?|87%| |% Enjoyed �me at Pe�t Miracles?|100%| |% Met new people whilst working with Pe�t Miracles|93%| |% Would strongly encourage people to par�cipate in Pe�t Miracles ac�vi�es?|100%| |% Felt more confdent|93%| |% Felt more mo�vated|100%| |% Felt they had enhanced their employability poten�al|87%| |% Increased confdence in being in a work environment|80%| |% Improved environmental awareness and prac�ce|87%| |% Expanded outlook on working and learning|100%| |% Improved networking skills?|93%| In summary, like last year and all the years before it, the Pe�t Miracle staff team and volunteers are the reason for all our successes. The Trustees acknowledge their hard work, dedica�on and exper�se which our beneficiaries benefit from. With gra�tude and apprecia�on, the Trustees thank the team for their efforts and their dedica�on to our charitable work. Our team would not be able to share their exper�se without the generous support from all our funders, we would like to take this opportunity to thank all our funders and stakeholders who support the work of our charity: - **Henry Smith Founda�on** - **John Lyon’s Founda�on** - - **Landsec** - **London Borough of Hammersmith and Fulham** 6 ## **Pe�t Miracle Interiors Limited (Limited by guarantee) Trustees’ Report** ## **For the Year Ended 28th February 2023** ## **1.4 Financial Review** increases in training fees (8%) and in trading (131%) Grant funding made up approximately 68% of the charity’s total turnover. Income generated from all these ac�vi�es was £168,553 with a net deficit of £42,472. 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 2022-23, free reserves stand at £32,010 which is below the threshold stated in our policy. However in the FY 2022-23, there was an increased salary cost due to the overlap in management staff and an addi�onal staff member staying three months longer than an�cipated. This contributed to why the charity has not yet reached their goal in successfully holding 6 months of unrestricted funds. The charity has also now successfully confirmed new income streams for FY 2023-24 which will support the unrestricted funds. ## **1.5 Trustees’ responsibili�es** The Trustees are responsible for preparing this report and the financial statements in accordance with applicable law and UK Accoun�ng Standards. Company law requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of the charitable company and of the incoming resources and applica�on of resources, including the income and expenditure, of the charitable company for that year. In preparing the Directors’ Report and financial statements, the Trustees are required to: (i) select suitable accoun�ng policies and apply them consistently; (ii) make judgements and es�mates that are reasonable and prudent; and (iii) prepare the financial statements on the going concern basis unless it is inappropriate to assume that the charitable company will con�nue in business. The Trustees are responsible for keeping adequate accoun�ng records that are sufficient to show and explain the company’s transac�ons and disclose with reasonable accuracy at any �me the financial posi�on of the charity and to enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the preven�on and detec�on of fraud and other irregulari�es. The Trustees are responsible for the maintenance and integrity of the corporate and financial informa�on included on the Ins�tute’s website. The report has been prepared in accordance with the provisions of the Companies Act 2006 rela�ng to small companies. Paul Kelly Signed on behalf of the Board of Trustees, Date 7 ## **Pe�t Miracle Interiors Limited (Limited by guarantee)** ## **Independent Examiner’s Report** ## **For the Year Ended 28th February 2023** I report to the Trustees on my examina�on of the financial statements of Pe�t Miracle Interiors Limited for the year ended 28 February 2023. ## **Responsibili�es and basis of report** As the Trustees of the (and also its directors for the purposes of company law) you are responsible for the prepara�on of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act). Having sa�sfied myself that the financial statements of the are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examina�on, I report in respect of my examina�on of the ’s financial statements carried out under sec�on 145 of the Chari�es Act 2011 (the 2011 Act). In carrying out my examina�on I have followed all the applicable Direc�ons given by the Charity Commission under sec�on 145(5)(b) of the 2011 Act. ## **Independent examiner's statement** I have completed my examina�on. I confirm that no ma�ers have come to my a�en�on in connec�on with the examina�on giving me cause to believe that in any material respect: 1 accoun�ng records were not kept in respect of the as required by sec�on 386 of the 2006 Act; or 2 the financial statements do not accord with those records; or 3 the financial statements do not comply with the accoun�ng requirements of sec�on 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a ma�er considered as part of an independent examina�on; or 4 The financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Prac�ce for accoun�ng and repor�ng by chari�es applicable to chari�es preparing their accounts in accordance with the Financial Repor�ng Standard applicable in the UK and Republic of Ireland (FRS 102). I have no concerns and have come across no other ma�ers in connec�on with the examina�on to which a�en�on should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. Ms Ella M Doherty FCCA For and on behalf of Aviatrix Accountancy Limited Terminal E2/3B Farnborough Airport Farnborough Hampshire GU14 6XA Date 8 ## **Pe�t Miracle Interiors Limited (Limited by guarantee) Statement of Financial Ac�vi�es For the Year Ended 28th February 2023** |**Note**
**Income From:**
Dona�ons
6
Charitable ac�vi�es
6
Other trading ac�vi�es
(rental)
6
**Total income**
**Expenditure on:**
Charitable ac�vi�es
7
**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**
**£**
64,000
6,131
48,422
**118,553**
142,692
**142,692**
**(24,139)**
**0**
**(24,139)**
**56,199**
**32,010**|**Restricted**
**Funds**
**£**
50,000
0
0
**50,000**
68,333
**68,333**
**(18,333)**
**0**
**(18,333)**
**22,500**
**4,167**|**Total 2023**
**£**
**114,000**
**6,131**
**48,422**
**168,553**
**211,025**
**211,025**
**(42,472)**
**0**
**(42,472)**
**78,699**
**36,227**|**Total 2022**
**£**
**185,750**
**5,700**
**20,981**| |---|---|---|---|---| |||||**212,431**| |||||**175,854**| |||||**175,854**| |||||**36,577**
**0**| |||||**36,577**| |||||**42,122**| |||||**78,699**| 9 ## **Pe�t Miracle Interiors Limited (Limited by guarantee) Balance Sheet** ## **For the Year Ended 28th February 2023** |**Note**
**Fixed Assets**
Tangible Assets
10
**Current Assets**
Debtors
11
Cash at bank
**Creditors: amounts falling due**
**within one year**
12
**Net current assets**
**Total assets less current liabili�es**
**Net assets**
**The funds of the charity**
Restricted funds
14
Unrestricted funds|**2023**
**£**
**£**
**2,220**
105,855
23,408
**129,263**
**95,256**
**34,007**
**36,227**
**4,167**
**32,010**
**36,227**|**2022**
**£**
**£**
**2,960**
24,829
81,925
**106,754**
**(31,015)**
**75,739**
**78,699**
**22,500**
**56,199**
**78,699**|**2022**
**£**
**£**
**2,960**
24,829
81,925
**106,754**
**(31,015)**
**75,739**
**78,699**
**22,500**
**56,199**
**78,699**| |---|---|---|---| ||**129,263**
**95,256**|**106,754**
**(31,015)**|| ||||| ||||**78,699**| ||||**22,500**
**56,199**| ||||**78,699**| For the financial year ended 28 February 2023 the company was en�tled to exemp�on from audit under sec�on 477 of the Companies Act 2006 rela�ng to small companies. The directors acknowledge their responsibili�es for complying with the requirements of the Companies Act 2006 with respect to accoun�ng records and the prepara�on of financial statements. The members have not required the company to obtain an audit of its financial statements for the year in ques�on in accordance with sec�on 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime. Mr Paul Kelly: Date: Company Registra�on No: 06812087 The notes on the following pages are part of these financial statements. 10 ## **Pe�t Miracle Interiors Limited (Limited by guarantee) Notes to the Accounts** ## **For the Year Ended 28th February 2023** ## **1. Company Status** Pe�t Miracle Interiors Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 64 Southwark Bridge Road, London, SE1 0AS. ## **2. Going concern** At the �me of approving the financial statements, the Trustees have reasonable expecta�on that the charity 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. There is a more detailed explana�on in the reserves policy note in the Trustees Report. ## **3. Accoun�ng Policies** ## **3.1 Basis of prepara�on of financial statements** The financial statements have been prepared in accordance with the 's [governing document], the Companies Act 2006 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 Standard applicable in the UK and Republic of Ireland (FRS 102) (effec�ve 1 January 2019)". The is a Public Benefit En�ty as defined by FRS 102. The charity has taken advantage of the provisions in the SORP for chari�es applying FRS 102 Update Bulle�n 1 The financial statements are prepared in sterling, which is the func�onal currency of the . Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost conven�on, modified to include the revalua�on of freehold proper�es and to include investment proper�es and certain financial instruments at fair value. The principal accoun�ng policies adopted are set out below. ## **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 funds are available for use at the discre�on of the Trustees in furtherance of their charitable objec�ves. Restricted funds are subject to specific condi�ons by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. ## **3.4 Income** Income is recognised when the charity is legally en�tled to it a�er any performance condi�ons have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash dona�ons are recognised on receipt. Other dona�ons are recognised once the has been no�fied of the dona�on, unless performance condi�ons require deferral of the amount. Income tax recoverable in rela�on to dona�ons received under Gi� Aid or deeds of covenant is recognised at the �me of the dona�on. Legacies are recognised on receipt or otherwise if the has been no�fied of an impending distribu�on, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a con�ngent asset. 11 ## **Pe�t Miracle Interiors Limited (Limited by guarantee) Notes to the Accounts** ## **For the Year Ended 28th February 2023** ## **3.5 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 services for its beneficiaries. 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. All costs are allocated between expenditure categories of the SOFA on a basis designed to reflect the use of the 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. ## **3.6 Tangible fixed assets and deprecia�on** Tangible fixed assets are stated at cost less deprecia�on. Deprecia�on is calculated using a 25% straight line for the leasehold improvements, fixtures and fi�ngs, computer equipment, plant and machinery and office equipment. ## **3.7 Impairment of fixed assets** At each repor�ng end date, the reviews 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 Debtors** Trade and other debtors are recognised at the se�lement amount due. Prepayments are valued at the amount prepaid. Includes restricted grant income to be u�lised in 2023-243 ## **3.9 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. ## **3.10 Cash at bank and in hand** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturi�es of three months or less, and bank overdra�s. Bank overdra�s are shown within borrowings in current liabili�es. ## **3.11 Financial instruments** The charity has elected to apply the provisions of Sec�on 11 ‘Basic Financial Instruments’ and Sec�on 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the becomes party to the contractual provisions of the instrument. Financial assets and liabili�es are offset, with the net amounts presented in the financial statements, when 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. 12 ## **Pe�t Miracle Interiors Limited (Limited by guarantee) Notes to the Accounts** ## **For the Year Ended 28th February 2023** ## **Basic financial assets** Basic financial assets, which include debtors and cash and bank balances, are ini�ally measured at transac�on 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. ## **Basic financial liabili�es** Basic financial liabili�es, including creditors and bank loans are ini�ally recognised at transac�on price unless 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. Debt instruments are subsequently carried at amor�sed cost, using the effec�ve interest rate method. 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. ## **Derecogni�on of financial liabili�e** s Financial liabili�es are derecognised when the charity’s contractual obliga�ons expire or are discharged or cancelled. ## **Employee benefits** The cost of any unused holiday en�tlement is recognised in the period in which the employee’s services are received. Termina�on benefits are recognised immediately as an expense when the charity is demonstrably commi�ed to terminate the employment of an employee or to provide termina�on benefits. ## **Re�rement benefits** Payments to defined contribu�on re�rement benefit schemes are charged as an expense as they fall due. ## **4. Taxa�on** The charitable company is registered as a charity and all of its income falls within the exemp�ons under Part 11 of the Corpora�on Tax Act 2010. ## **5 Cri�cal accoun�ng es�mates** 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. 13 ## **Pe�t Miracle Interiors Limited (Limited by guarantee) Notes to the Accounts** ## **For the Year Ended 28th February 2023** ## **6. Income** |**. Income**||||||||| |---|---|---|---|---|---|---|---|---| |**Income from dona�ons and grants**
Grants
**Income from charitable ac�vi�es**
Training fees
**Income from other trading ac�vi�es**
Rental income
Trading income
**. Expenditure**
**Staf**
**costs £**
**Charitable ac�vi�es**
Charitable projects
101.804
Support costs
79,538
**181,342**
**Analysis of support costs**
Wages and salaries
Deprecia�on
Ofce & Admin
Accountancy fees
Independent examiner
fees|**Unrestricted**
**funds £**
64,000
**64,000**
6,131
**6,131**
123
48,299
**48,422**
**Deprecia�on £**
0
740
**740**|**Unrestricted**
**funds £**
64,000|

**Restricted**
**funds £**

50,000

**50,000**

0

**0**

0

0

**0**
**Other costs £**
19,983
8,960
**28,943**|**Restricted**
**funds £**
50,000|







|**Total 2023 £**
**114,000**||**Total 2022 £**
185,750| |||**64,000**||**50,000**||**114,000**||185,750| |||6,131||0||**6,131**||5,700| |||**6,131**||**0**||**6,131**||5,700| |||123
48,299||0
0||**123**
**48,299**||0
20,981| |||**48,422**||**0**||**48,422**||20,981| |||||||**Total 2023**
**£**
121,787
89,238
**211,025**
**79,538**
**740**
**6,730**
**1,090**
**1,140**
**89,238**||**Total 2022**
**£**
168,229
7,625
**175,854**
50,804
986
24,255
1,218
1,200
78,463| |||||||||| |||||||||| |||||||||| ## **7. Expenditure** The 2022 support costs have been restated to show the correct percentage of costs a�ributable to support costs. 14 ## **Pe�t Miracle Interiors Limited (Limited by guarantee) Notes to the Accounts** ## **For the Year Ended 28th February 2023** The Independent Examiner was paid £1,140 (2022 - £1,200) for examining and £nil (2022 - £nil) for other services. ## **8. Staff costs** |Wages and salaries
Social security costs
Pension costs|**2023**
**£**
**167,595**
**11,349**
**2,398**
**181,342**|**2022**
**£**
112,514
5,361
1,302| |---|---|---| |||119,177| There were no employees whose annual remunera�on was £60,000 or more. The average number of workshop staff during the year was 4 (2022 - 4) and administra�ve staff was 3 (2022 - 3). The key management personnel of the charitable company comprises the Board of Trustees, CEO. During the year remunera�on £55,380 (2022 - £37,343) was paid to the CEO. No remunera�on was paid to the trustees. There was an increase in wages during the year due to the overlap in management staff and the new workshop manager was employed. ## **9. Trustees** None of the trustees (nor any person connected with them) received any remunera�on or expenses during the year. 15 ## **Pe�t Miracle Interiors Limited (Limited by guarantee) Notes to the Accounts** ## **For the Year Ended 28th February 2023** ## **10. Tangible fixed assets** |**Cost**
At 1 March 2022
Addi�ons
**At 28 February 2023**
**Deprecia�on**
At 1 March 2022
Charge for the year
**At 28 February 2023**
**Net book value**
**At 28 February 2023**
At 28 February 2022|**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**| ||9,069
2,896
2,965
958
320
16,208
260
108
205
142
25
740| ||**9,329**
**3,004**
**3,170**
**1,100**
**345**
**16,948**| ||**778**
**325**
**613**
**426**
**78**
**2,220**| ||1,038
433
818
568
103
2,960| ## **11. Debtors** |Trade debtors
Prepayments and accrued income
Other debtors|**2023**
**£**
**57,113**
**45,827**
**2,915**
**105,855**|**2022**
**£**
23,298
0
1,531| |---|---|---| |||24,829| 16 ## **Pe�t Miracle Interiors Limited (Limited by guarantee) Notes to the Accounts** ## **For the Year Ended 28th February 2023** ## **12. Creditors: due within one year** |Accruals and deferred income
Other creditors
Bank overdra�s and loans
Social security and other taxes
**13. Loans and overdra�s**
Bank loans
Payable within one year
**14. Restricted funds**
**Balance**
**brought**
**forward £**
Henry Smith
**12,500**
John Lyons
**10,000**
**22,500**|**Incoming**
**resources**
**£**
50,000
0
80,000|**Resources**
**expended**
**£**
58,333
10,000
83,333||**2023**
**£**
**60,675**
**842**
**12,910**
**20,829**
**95,256**
**2023**
**£**
**12,910**
**12,910**
**12,910**
**Transfers**
**£**
0
0
0||**2022**
**£**
3,003
881
22,013
5,118| |---|---|---|---|---|---|---| |||||||31,015| |||||||**2022**
**£**
22,013| |||||||22,013| |||||||22,013| |||||||**Balance**
**carried**
**forward £**
**4,167**
**0**| |||||||**19,167**| Henry Smith - Funding for core, staff, rental and u�li�es costs. John Lyons - Funding for outreach project that promote the life-chances of children and young people through educa�on 17 ## **Pe�t Miracle Interiors Limited (Limited by guarantee) Notes to the Accounts** ## **For the Year Ended 28th February 2023** ## **15. Analysis of net assets between funds** |As at 28 February 2023
Tangible fxed assets
Current assets
Creditors: due within one year
At 29 February 2022
Tangible fxed assets
Current assets
Creditors: due within one year|**Unrestricted**
**funds £**
2,220
125,096
(95,256)
**32,060**
**Unrestricted**
**funds £**
2,960
84,254
(31,015)
**56,199**|**Restricted**
**funds £**
0
4,167
0
**4,167**
**Restricted**
**funds £**
0
22,500
0
**22,500**|**Total**
**£**
**2,220**
**129,263**
**(95,256)**| |---|---|---|---| ||||**36,227**| ||||**Total**
**£**
**2,960**
**106,754**
**(31,015)**| ||||**78,699**| 18 ## **Pe�t Miracle Interiors Limited (Limited by guarantee) Notes to the Accounts** ## **For the Year Ended 28th February 2023** ## **16. Compara�ve funds - Statement of Financial Ac�vi�es for the year ended 28 February 2022** |**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**
**£**
31,928
5,700
20,981
**58,609**
7,625
**7,625**
**50,984**
**0**
**50,984**
**5,215**
**56,199**|**Restricted**
**Funds**
**£**
153,822
0
0
**153,822**
168,229
**168,229**
**(14,407)**
**0**
**(14,407)**
**36,907**
**22,500**|**Total 2022**
**£**
**185,750**
**5,700**
**20,981**| |---|---|---|---| ||||**212,431**| ||||**175,854**| ||||**175,854**| ||||**36,577**
**0**| ||||**36,577**| ||||**42,122**| ||||**78,699**| 19