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← Mission Motorsport

2022-02-28-accounts

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

Charity Registration No. 1146159

Company Registration No. 07862605 (England and Wales)

MISSION MOTORSPORT

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2022

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Mr A D Compson Lieutenant General R E Nugee (Appointed 15 June 2022) Mr M Cornelius (Appointed 15 June 2022) Mr M P J Garside (Appointed 2 September 2022) Mr J B Baguley (Appointed 2 September 2022) Lieutenant Commander C Chew (Appointed 3 September 2022) Mr C J Tate (Appointed 2 September 2022)

Secretary Ms C Favier-Tilston Key management Mr A J Cameron (CEO) Charity number 1146159 Company number 07862605 Principal address Unit 11, W&G Industrial Estate Faringdon Road East Challow Oxfordshire United Kingdom OX12 9TF Registered office Unit 11, W&G Industrial Estate Faringdon Road East Challow Oxfordshire United Kingdom OX12 9TF Auditor Carpenter Box Amelia House Crescent Road Worthing West Sussex BN11 1RL Bankers Lloyds Bank 25 Gresham Street London EC2V 7HN

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

CONTENTS

Page
Trustees' report 1 - 5
Statement of trustees' responsibilities 6
Independent auditor's report 7 - 9
Statement of financial activities 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 24

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 28 FEBRUARY 2022

The Trustees present their report and financial statements for the year ended 28 February 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Charities Act 2011, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (effective 1 January 2019).

Objectives and activities

The Charity's objects are to assist wounded, injured and sick (WIS) service personnel and veterans, by advancing any lawful charitable purpose at the discretion of the directors and in particular but not exclusively:

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

The period reflected in this report is Mission Motorsport - The Forces’ Motorsport Charity’s tenth year, and covers activities spanning the withdrawal of Covid restrictions to preparations for a celebration of the charity’s first decade in existence. Approaching that ten-year milestone has encouraged an introspective look at the organisation’s roots, its direction and motivation – and it is in difficult and changing times that organisations should look to their values. The focus is on the outcomes for service families through Race / Retrain / Recover, that is: sport, training and vocation continues to be relevant and impactful, and the charity’s reputation in these areas is very strong.

Sport: This period has seen significant changes to the charity environment, even as Covid restrictions have eased the legacy impact on charities remains significant. Nevertheless, the charity launched a new flagship national karting program, re-established community initiatives including the 3 Sisters events in the North West and Veterans@Heritage in Bicester, and a sold out Race of Remembrance returned in expanded form to the calendar in November 2021.

Training: New technical training courses saw the highest output yet through the Training Wing, with a significant external piece of work on behalf of motorsports governing body MotorsportUK leading the way in providing a commercial training service in High Voltage and EV training across the UK as the charity upskilled rescue and recovery volunteers.

Vocation: The charity’s sector initiative Mission Automotive has shown strong growth, raising the profile of the armed forces community across the automotive sector including within Jaguar Land Rover and Stellantis, and providing new, supported pathways into training and employment for beneficiaries. New members include exciting companies, amongst them an iconic British manufacturer, with strong interest too from aftermarket and accident repair companies.

Governance: The charity remains well served by engaged and passionate Trustees, and a governance review after the end of this reporting period resulted in a significantly expanded Board later in 2022. The work of the income generation and financial management committees has given direction and unlocked new opportunities, arising from the connections of these new board members and has also allowed the broadening of the charity’s executive structure of CEO and COO by resourcing a new CFO post. Previous board members and professional advisors also support the charity, bringing pastoral, legal and HR expertise.

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2022

Financial review: The charity has been able to continue to meet its responsibilities and has weathered the challenges of the pandemic while maintaining output to beneficiaries. Ensuring that key beneficiary events also performed as fundraisers has been key - changing the way the charity conducted Race of Remembrance in Anglesey was a stand out success with new partners BRSCC, the motorsport organising club, but also that weekend a new Karting Race of Remembrance added breadth and depth with the support of BARC, the Thruxton based club.

A comprehensive review of fundraising mechanisms has seen a change to the charity’s staffing of fundraising, with a new, experienced fundraiser taking over. By professionalising fundraising, and bringing in house a Chartered Accountant as CFO the charity is well placed to make the most from Covid recovery.

Commercial activity: Primary purpose trading through the automotive livery work has made a significant contribution to the charity’s bottom line as well as reputation. Work for a world renowned manufacturer saw beneficiaries working in teams in Munich; learning new skills, finding employment and returning significant value to the charity. A full time professional livery manager has been appointed to develop this work with a strong business development forecast in place.

Vocational programmes: Programmes under the banner ‘Mission Automotive’ continue to grow. The logic of a sector initiative, linked to the industry body, SMMT (Society of Motor Manufacturers and Traders), delivering support to companies exploring armed forces engagement and developing supportive veteran communities has proved effective, and powerful. At the request of the Ministry of Defence, we moved into a conjoined sector – ‘renewables’ has shown a very real opportunity for new, relevant careers in a fast growing area.

Financial position

During the year the charity generated income of £725,299, an increase of £141,060 compared to the previous year. Expenditure for the year also increased to £801,343 from £678,909 in the previous year resulting in an overall deficit of £75,945 compared to a deficit of £94,643 in the previous year, so a slight improvement. This result led to a net liabilities position of £16,027. However, when the assets held by the charity's two wholly owned subsidiaries are included the charity still shows a positive overall reserves position at the end of the year.

Strategic Aims

The Mission Motorsport strategy is to: be a force for good in MoD recovery sport, to offer training insight and provision to those in transition and those in need, and to drive the development of pathways into relevant, sustainable employment for service leavers, veterans, and their families.

The long-term financial security of the charity remains paramount, and this is currently being shaped by several ambitious projects:

Risks

The Trustees have assessed the major risks to which the charity is exposed. They are briefed at regular Trustee meetings and are satisfied that systems are in place to mitigate exposure to major risks. One of the newly appointed Trustees is an expert in risk and compliance matters and is taking the lead in ensuring the board is aware of all relevant matters. Significant risks and appropriate measures to be taken include:

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2022

Fundraising

Mission Motorsport receives voluntary donations, gifts from individuals and corporate donors, alongside grants from other grant giving charities and amounts raised via key events held during the year. Mission Motorsport is registered with the Fundraising Regulator and adheres to their Code of Fundraising Practice as well as following the Charity Commission advice on best practice. All personal data is processed in line with the General Data Protection Regulations and Data Protection Act 2018. Mission Motorsport will only process data of supporters and donors if they have given their opt-in consent.

Mission Motorsport organise all its fundraising internally and does not engage third parties to seek donations from individuals. The board is mindful of people’s privacy and do not exert undue pressure on potential donors. There have been no complaints about the fundraising methods.

Reserves Policy

Whilst it remains the Charity's aim that unrestricted funds which have not been designated for a specific use should ideally be maintained at a level equivalent to 6 months expenditure, this has not proven possible in recent years in difficult economic circumstances where our focus has had to have been on the continued provision of core charitable activities. Reserves have reduced during this period.

Whilst it is anticipated that gradual accumulation of reserves is possible while being grant funded, it is the commercial and other larger scale planned projects that the Trustees consider will show the most promising path to lift reserves back towards the level to which the Charity aspires.

Increased focus on income generation across all areas of activity in addition to current activity is key in achieving this goal.

At the end of the year the charity had net liabilities of £16,027, a result of the shortfall of £75,945 in the year. However, when the assets held by the Charity's 2 wholly owned subsidiaries are included the Charity still shows a positive overall reserves position at the end of the year.

Future Plans

Mission Motorsport has set clear financial targets to its staff in striving to deliver against its charitable objectives including:

Whilst presenting slightly different challenges to 20/21 the year under review to 28 February 2022 was a difficult one with resources again being stretched in order to deliver the increased output made possible as we came out of the worst of the pandemic and lockdowns.

The Charity retains a strategy based around five core income generating activities:

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2022

Going concern

The financial statements have been prepared on a going concern basis. As per the accounting policy of the Charity the Trustees have considered all relevant information, including the annual budget, forecast future cashflows and income scenarios until the end of December 2023 together with the impact of subsequent events in making their assessment. The Charity has at all times been able to meet its liabilities as they fall due supported by the income generated by the Charity’s two wholly owned trading subsidiaries

The Trustees have performed a robust analysis of future cashflows, taking into account the potential impacts of external events, including consideration of the effectiveness of available measures to assist in mitigating the impact. Based on these assessments and having regard to the resources available to the entity and the support from the Charity’s trading subsidiaries the trustees have concluded that there is no material uncertainty in relation to the appropriateness of continuing to adopt the going concern basis in preparing the annual report and accounts.

Structure, governance and management

The charity is controlled by its governing document, a Deed of Trust, and is constituted as a limited company, limited by guarantee, as defined by the Companies Act 2006.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr A D Compson Ms A J Abbott (Resigned 15 June 2022) Rev A J Feltham-White (Resigned 15 June 2022) Lieutenant Colonel C L Coton (Resigned 6 October 2022) Mr I M Comerford (Appointed 18 March 2021 and resigned 27 May 2022) Lieutenant General R E Nugee (Appointed 15 June 2022) Mr M Cornelius (Appointed 15 June 2022) Mr M P J Garside (Appointed 2 September 2022) Mr J B Baguley (Appointed 2 September 2022) Lieutenant Commander C Chew (Appointed 3 September 2022) Mr C J Tate (Appointed 2 September 2022)

The board of Trustees are responsible for appointing all Trustees. The Charity is currently governed by a board of seven Trustees who are committed to the objects of the charity.

None of the Trustees have any beneficial interest in the company. All of the Trustees are either current members of the company or are in the process of becoming members and will guarantee to contribute £1 each in the event of a winding up.

An induction programme is in place for new Trustees.

Auditor

In accordance with the company's articles, a resolution proposing that Carpenter Box be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2022

The Trustees' report was approved by the Board of Trustees.

.............................. Mr A D Compson Trustee 11/29/2022 Dated: .........................

.............................. Mr C J Tate Trustee 11/29/2022 Dated:.........................

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 28 FEBRUARY 2022

The trustees, who are also the directors of Mission Motorsport for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

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

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements 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 prevention and detection of fraud and other irregularities.

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF MISSION MOTORSPORT

Opinion

We have audited the financial statements of Mission Motorsport (the ‘charity’) for the year ended 28 February 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF MISSION MOTORSPORT

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

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

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF MISSION MOTORSPORT

As a result of these procedures, we considered the opportunities and incentives that may exist within the charity for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: health & safety, employment law and compliance with the UK Companies Act.

In addition to the above, our procedures to respond to risks identified included the following:

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Robin Evans BA FCA CTA (Senior Statutory Auditor) 11/29/2022 for and on behalf of Carpenter Box ......................... Chartered Accountants Statutory Auditor Worthing

Carpenter Box is a trading name of Carpenter Box Limited

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 28 FEBRUARY 2022

Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income from:
Donations and legacies
3
468,171
177,500
Charitable activities
4
14,115
-
Other trading activities
5
65,511
-
Investments
2
-
Total income
547,799
177,500
Expenditure on:
Raising funds
6
16,904
-
Charitable activities
7
627,090
155,770
Other
10
1,579
-
Total resources
expended
645,573
155,770
Gross transfers between
funds
-
-
Net (outgoing)/incoming
resources
(97,774)
21,730
Other recognised gains and losses
Other gains or losses
99
-
Net movement in funds
(97,675)
21,730
Fund balances at 1
March 2021
59,086
832
Fund balances at 28
February 2022
(38,589)
22,562		 Total
Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
645,671
437,827
70,000
14,115
888
-
65,511
75,519
-
2
5
-
725,299
514,239
70,000
16,904
13,869
-
782,860
445,033
219,231
1,579
776
-
801,343
459,678
219,231
-
(32,679)
32,679
(76,044)
21,882
(116,552)
99
27
-
(75,945)
21,909
(116,552)
59,918
37,177
117,384
(16,027)
59,086
832		 Total
2021
£
507,827
888
75,519
5
584,239
13,869
664,264
776
678,909
-
(94,670)
27
(94,643)
154,561
59,918

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

BALANCE SHEET

AS AT 28 FEBRUARY 2022

2022
Notes
£
Fixed assets
Tangible assets
12
Investments
13
Current assets
Stocks
14
8,477
Debtors
15
10,025
Cash at bank and in hand
59,062
77,564
Creditors: amounts falling due within
one year
17
(134,120)
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
18
Net (liabilities)/assets
Income funds
Restricted funds
20
Unrestricted funds
The financial statements were approved by the Trustees on .........................
..............................
..............................
Mr A D Compson
Mr C J Tate
Trustee
Trustee
11/29/2022		 2021
£
£
76,162
200
76,362
9,776
24,798
109,088
143,662
(148,740)
(56,556)
19,806
(35,833)
(16,027)
22,562
(38,589)
(16,027)		 £
110,629
200
110,829
(5,078)
105,751
(45,833)
59,918
832
59,086
59,918

Company Registration No. 07862605

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 28 FEBRUARY 2022

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
25
Investing activities
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed
assets
Investment income received
Net cash generated from investing
activities
Financing activities
Proceeds of new bank loans
Repayment of bank loans
Net cash (used in)/generated from
financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2022
£
(1,058)
3,522
2
-
(4,167)		 £
(48,325)
2,466
(4,167)
(50,026)
109,088
59,062		 2021
£
(4,038)
4,971
5
50,000
-		 £
39,199
938
50,000
90,137
18,951
109,088

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2022

1 Accounting policies

Charity information

Mission Motorsport are a charity whose aim is to aid in the recovery and rehabilitation of those affected by military operations, by providing opportunities through motorsport.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document and a deed of trust, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The charity was incorporated and is registered in England and Wales, is a company limited by guarantee and has no share capital.

The charity is parent of a small group and therefore consolidated accounts have not been prepared.

1.2 Going concern

The financial statements have been prepared on a going concern basis. The trustees have considered the relevant information, including the annual budget, forecast future cashflows until the end of December 2023 and the impact of subsequent events in making their assessment. The charity has at all times been able to meet its liabilities as they fall due supported by the income generated by the charity's two wholly owed trading subsidiaries. The aftermath of the COVID-19 pandemic together with its economic impact coupled with the current economic environment has had a significant impact on the charities operations, in particular the changing and challenging nature of fundraising. Whilst the war in Ukraine has heightened public awareness of military issues this is not directly beneficial to the charity and indeed puts a further call on already limited available funding. However, the trustees have performed a robust analysis of future cashflows, taking into account these potential impacts, including consideration of the effectiveness of available measures to assist in mitigating the impact.

Based on these in depth assessments and having regard to the resources available to the entity, the trustees have concluded that there is no material uncertainty in relation to the appropriateness of continuing to adopt the going concern basis in preparing the annual report and accounts.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Donations, grants and gifts are recognised when receivable. In the event that a donation is subject to fulfilling performance conditions before the charity is entitled to the funds, the income is deferred and not recognised until it is probable that these conditions will be fulfilled in the reporting period. Income from Gift Aid tax reclaims is recognised for any donations with relevant Gift Aid tax reclaims is recognised for any donations with relevant Gift Aid certificates recognised in income for the year.

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2022

1 Accounting policies

(Continued)

1.5 Resources expended

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment 33.33% per annum on cost Fixtures and fittings 10% to 33.33% per annum on cost Computers 33.33% per annum on cost Motor vehicles 25% per annum on reducing balance / 20% per annum straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Fixed asset investments

Fixed asset investments are measured at transaction price excluding transaction costs.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

1.11 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 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 charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities 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 intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2022

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction 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 amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.12 Government Grants

Government grants relate to amounts received under the Coronavirus Job Retention Scheme ("CJRS") and are recognised in the period to which they relate.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate 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.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2022
2022
£
£
Donations and gifts
429,115
177,500
Grants
39,056
-
468,171
177,500		 Total
Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
606,615
337,039
70,000
39,056
100,788
-
645,671
437,827
70,000		 Total
2021
£
407,039
100,788
507,827

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2022

4 Charitable activities

Merchandise Fundraising Merchandise Total
income events income 2021
2022 2021 2021
£ £ £ £
Sales within charitable activities 14,115 (500) 1,388 888

All income from charitable activities is unrestricted in the current and comparative periods.

5 Other trading activities

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Recharge of staff costs 65,511 75,519

6 Raising funds

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Fundraising and publicity
Advertising 3,804 585
Other fundraising costs 13,100 13,284
Fundraising and publicity 16,904 13,869
16,904 13,869

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2022

7 Charitable activities

Other costs
Support costs
2022
2022
£
£
Audit fees
7,450
Other fees paid to
auditor
-
20,424
Administration costs
-
22,727
Delivery costs
155,770
509,034
Building overheads
-
67,455
155,770
627,090
155,770
627,090
Analysis by fund
Unrestricted funds
-
627,090
Restricted funds
155,770
-
155,770
627,090		 Total
2022
Other costs
2021
£
£
7,450
20,424
-
22,727
-
664,804
219,231
67,455
-
782,860
219,231
782,860
219,231
627,090
-
155,770
219,231
782,860
219,231		 Support
costs
2021
£
6,965
13,859
10,254
365,679
48,276
445,033
445,033
445,033
-
445,033		 Total
2021
£
6,965
13,859
10,254
584,910
48,276
664,264
664,264
445,033
219,231
664,264

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2022

9 Employees

Number of employees

The average monthly number of employees during the year was:

Management
Administration
Vocational
Workshop
Livery
Employment costs
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was £60,000 or more were:
£60,000 - £70,000
£70,001 - £80,000
10
Other
Net loss on disposal of tangible fixed assets		 2022
Number
3
3
6
2
-
14
2022
£
446,040
41,834
9,886
497,760
2022
Number
-
1
2022
£
1,579
1,579		 2021
Number
3
2
4
2
1
12
2021
£
410,959
39,951
9,151
460,061
2021
Number
1
-
2021
£
776
776

11 Non exchange transactions

There were no donations in kind made to the charity within the current year. In the prior year the charity was provided a track day free of charge with a market value of approximately £8,000, as well as two motor vehicles with an aggregate value of £10,500.

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2022

12 Tangible fixed assets
Plant and Fixtures and
Computers		 Motor vehicles Total
equipment fittings
£ £ £ £ £
Cost
At 1 March 2021 16,852 25,944 9,330 274,012 326,138
Additions - - 1,058 - 1,058
Disposals - - - (22,772) (22,772)
At 28 February 2022 16,852 25,944 10,388 251,240 304,424
Depreciation and impairment
At 1 March 2021 14,176 25,466 9,220 166,647 215,509
Depreciation charged in the year 1,314 466 375 28,269 30,424
Eliminated in respect of disposals - - - (17,671) (17,671)
At 28 February 2022 15,490 25,932 9,595 177,245 228,262
Carrying amount
At 28 February 2022 1,362 12 793 73,995 76,162
At 28 February 2021 2,676 478 110 107,365 110,629
13 Fixed asset investments
Other
investments
Cost or valuation
At 1 March 2021 & 28 February 2022 200
Carrying amount
At 28 February 2022 200
At 28 February 2021 200
2022 2021
Other investments comprise: Notes £ £
Investments in subsidiaries 23 200 200
14 Stocks
2022 2021
£ £
Finished goods and goods for resale 8,477 9,776

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2022

15
Debtors
Amounts falling due within one year:
Trade debtors
Amounts owed by subsidiary undertakings
Other debtors
Prepayments and accrued income
16
Loans and overdrafts
Bank loans
Payable within one year
Payable after one year
The bank loan is 100% guaranteed by the government.		 2022
£
1,484
6,549
591
1,401
10,025
2022
£
45,833
10,000
35,833		 2021
£
997
-
17,802
5,999
24,798
2021
£
50,000
4,167
45,833

The loan carries a fixed interest rate of 2.5% per annum and is payable over 6 years from the date of receipt.

17 Creditors: amounts falling due within one year

Notes
Bank loans
16
Other taxation and social security
Deferred income
19
Trade creditors
Amounts owed to subsidiary undertakings
Other creditors
Accruals
Creditors: amounts falling due after more than one year
Notes
Bank loans
16		 2022
£
10,000
33,817
66,403
3,619
-
3,925
16,356
134,120
2022
£
35,833		 2021
£
4,167
26,187
3,000
38,938
68,490
185
7,773
148,740
2021
£
45,833

18 Creditors: amounts falling due after more than one year

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2022

19 Deferred income

2022 2021
£ £
Other deferred income 66,403 3,000

Deferred income relates to income received pre-year end for training courses and track days which will happen in the coming year.

There was £3,000 of deferred income brought forward, which was released in the year and £66,403 deferred during the current year.

20 Restricted funds

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

Movement in funds
Balance at 1 Incoming Resources Balance at 28
March 2021 resources expended
February 2022
£ £ £ £
Occupational Therapy Support 832 - - 832
Barclays Grant - 25,000 (8,770) 16,230
ABF - The Army's National Charity - 20,000 (20,000) -
Armed Forces Covenant Fund Trust VPPP -
Midlands - 17,500 (12,000) 5,500
Armed Forces Covenant Fund Trust - Woodland
Experiences - 35,000 (35,000) -
Armed Forces Covenant Fund Trust - Three Sisters - 35,000 (35,000) -
Armed Forces Covenant Fund Trust - Recovery
Sport - 35,000 (35,000) -
Greenwich Hospital - 10,000 (10,000) -
832 177,500 (155,770) 22,562

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2022

20 Restricted funds

(Continued)

Occupational Therapy Support – to provide direct support for the purchase of OT equipment and to cover expenses for OT volunteers working in direct support of MM beneficiaries.

Barclays – Providing funding to work with Mission Motorsport to support the Mission Motorsport Training Wing and provide all the tools required to make service leavers' studies a success.

ABF The Soldiers’ Charity – Provides grants to service charities to support those in or who have left the British Army. ABF provided £20,000 of funding to cover three elements of the charity, Race – Retrain – Recover, for Army beneficiaries.

Armed Forces Covenant Fund Trust – Veterans, Places, Pathways and People (VPPP) Midlands – One of 10 funded portfolio projects across the UK. The Midlands portfolio is managed by DMWS, ‘Joining the dots’ Midlands Veterans wellbeing alliance. Each portfolio works regionally to develop better, more joined up lasting support for local veterans with mental health needs.

Armed Forces Covenant Fund Trust - Woodland Experiences - The project will provide over 250 individual opportunities annually for veterans to attend a veteran-led, purpose designed 24hr outdoor experience in the North West of England. Delivered by partner Woodland Experiences, the project provides a welcome break for hard to reach veterans and their families creating memories and developing skills

Armed Forces Covenant Fund Trust - Three Sisters - This group will run activities at Three sisters circuit, created by Wigan Council and used for karting, biking and cars. The events offered by the group will draw veterans into sport and offer a 'level playing field' for disabled and able-bodied veterans. Sessions will include car control, a track experience and driver training.

Armed Forces Covenant Fund Trust - Recovery Sport - The group will offer outdoor, inclusive activities including visits to Goodwood, Silverstone, Anglesey & Thruxton, car control sessions, 4x4 experiences and driver training. Each activity is designed to be inspirational and inclusive, building confidence and friendships and being veteran led.

Greenwich Hospital – Provides grants to service charities to support those in or who have left the Royal Navy. Greenwich Hospital provided a grant for delivery of sport, training and vocational activities to Navy beneficiaries.

Unrestricted funds – funds obtained by the charity that do not have a limitation on use or that are not specified for a particular use by the donor or grant giving organisation.

21 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2022
2022
£
£
Fund balances at 28
February 2022 are
represented by:
Tangible assets
76,162
-
Investments
200
-
Current assets/(liabilities)
(79,118)
22,562
Long term liabilities
(35,833)
-
(38,589)
22,562		 Total
Unrestricted
funds
Restricted
funds
2022
2021
2021
£
£
£
76,162
110,629
-
200
200
-
(56,556)
(5,910)
832
(35,833)
(45,833)
-
(16,027)
59,086
832		 Total
2021
£
110,629
200
(5,078)
(45,833)
59,918

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2022

22 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2022 2021
£ £
Aggregate compensation 144,328 119,768

Transactions with related parties

Mission Consulting Services Limited (MCS)

Trading subsidiary

At 28 February 2022 the following balances are included within the financial statements:

Mission Motorsport Trading Limited (MMT)

Trading subsidiary

At 28 February 2022 the following balances are included within the financial statements

DocuSign Envelope ID: 77FA1E70-18EF-4820-9A79-B5C9F51B2E8B

MISSION MOTORSPORT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2022

23 Subsidiaries

These financial statements are separate charity financial statements for Mission Motorsport.

Details of the charity's subsidiaries at 28 February 2022 are as follows:

Name of undertaking Registered Nature of business Class of % Held
office shares held Direct Indirect
Mission Motorsport Trading England Vinyl wrapping Ordinary 100.00
Limited
Mission Consulting Services
England		 Employment services for Ordinary 100.00
Limited veterans
24 Analysis of changes in net funds
At 1 March 2021 Cash flows At 28 February
2022
£ £ £
Cash at bank and in hand 109,088 (50,026) 59,062
Loans falling due within one year (4,167) (5,833) (10,000)
Loans falling due after more than one year (45,833) 10,000 (35,833)
59,088 (45,859) 13,229
25 Cash generated from operations 2022 2021
£ £
Deficit for the year (76,044) (94,670)
Adjustments for:
Investment income recognised in statement of financial activities (2) (5)
Foreign exchange differences 99 27
Loss on disposal of tangible fixed assets 1,579 776
Donations of fixed assets - (10,500)
Depreciation and impairment of tangible fixed assets 30,424 44,230
Movements in working capital:
Decrease/(increase) in stocks 1,299 (2,255)
Decrease in debtors 14,773 100,126
(Decrease) in creditors (83,856) (1,530)
Increase in deferred income 63,403 3,000
Cash (absorbed by)/generated from operations (48,325) 39,199