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2021-03-31-accounts

Company no. 08015625 Charity no. (England & Wales) 1146896 Charity no. (Scotland) SC045327

Animal Free Research UK Ltd Report and Audited Financial Statements

31 March 2021

Animal Free Research UK Ltd

Reference and administrative details

For the year ended 31 March 2021

Company number 08015625 Charity number 1146896 and SC045327 Registered office and 27 Old Gloucester Street operational address London WC1N 3AX Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

L Sheridan Chair
M Ashby Appointed 22 November 2021
N Barbosa Resigned 24 October 2021
C Byatt Resigned 30 November 2021
D Cameron
M Chan Appointed 24 July 2021
C Cunniffe Resigned 18 April 2020
A Ellison Resigned 24 October 2021
S Honess Appointed 24 July 2021
J Jones
Chief executive officer Carla Owen
Bankers Ecology Building society Yorkshire Bank
7 Belton Road 2-4 George Street
Silsden Luton
Keighley Beds
West Yorkshire LU1 2AN
BD20 0EE
HSBC Bank PLC Julian Hodge Bank Limited
1 Market Place 29 Windsor Place
Hitchin Cardiff
Herts CF10 3BZ
SG5 1DR
Manchester Building Society Virgin Money Plc
125 Portland Street Jubilee House
Manchester Gosforth
M1 4QD Newcastle upon Tyne
NE3 4PL
Cambridge & Counties Bank Limited
Charnwood Court
5B New Walk
Leicester
LE1 6TE

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Animal Free Research UK Ltd

Reference and administrative details

For the year ended 31 March 2021

Solicitors Withers LLP Anthony Collins Solicitors
16 Old Bailey 76 King Street
City of London Manchester
Greater London M2 4NH
EC4M 7EG
Investment consultant Ethical Investors
3rd Floor, Formal house
60 St George's Place
Cheltenham
GL50 3PN
Legacy consultant Brian James
Kettering
Employment advisors Your People Ltd
Arune House
2 Kings Road
Haslemere
Surrey
GU27 2QA
Auditors Godfrey Wilson Limited
Chartered accountants and statutory auditors
5th Floor Mariner House
62 Prince Street
Bristol
BS1 4QD

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2021

The trustees present their report along with the financial statements of the charity for the year ended 31 March 2021.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

About Animal Research UK

Animal Free Research UK funds pioneering animal free research that saves humans and animals - and is forging a future where animals are replaced with modern, human relevant techniques. The scientists we fund are pushing the latest animal free technological and research boundaries towards a cure for major diseases like cancer, heart disease and dementia.

We engage with policy makers, the scientific community, pharma and the public to accelerate the use of ethical, pioneering lab technologies that save lives, money and time – and we champion regulatory change to end the use of animals in laboratories.

Together we are creating powerful change and making Britain an inspiring world leader in ethical research that will find cures for diseases and save the lives of humans and animals.

Founded in 1970 and funded solely by charitable donations from individuals, schools, trusts and foundations and corporations, we have given over £10 million in grants to fund pioneering human relevant research projects into diseases including Covid-19, cancer, brain tumours, diabetes and dementia, and our work has saved the lives of countless animals whilst advancing human medical research.

Vision

Our vision is a world where human diseases are cured faster without animals.

Purpose

Our purpose is to enable scientists to stop using animals in medical research.

Mission

By pioneering excellence, inspiring and supporting scientists and influencing change, we will end the use of animals and improve medical research.

Values

Objectives and activities

Our objects are “the prevention of the suffering of animals and the advancement of human health, in particular but not exclusively by the promotion and funding of human-relevant replacements to the use of animals in scientific and medical experimentation”.

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2021

To mark the 50th anniversary of Animal Free Research UK, the Trustees this year - April 2020 to March 2021 - launched a new strategy to transform medical research for the benefit of animals and people.

Our strategic goal is to transform medical research and regulation so there is a clear pathway to develop and deliver effective treatments for human diseases faster and without animals.

The long-term impact we seek is that research and development of treatments for human diseases are entirely animal free.

To create this impact, we are working to achieve two key outcomes:

To this end, the activities the charity undertakes focus on the following four areas:

1. Funding transformational research & development and technology that has the potential to replace animals

The cornerstone of our work is replacing the use of animals in medical research by funding innovative world-class research that advances scientific and medical knowledge. Building on our substantial track record of awarding successful grants, we fund the development of pioneering new approach methodologies that are making animal research redundant, and we support research which focuses on understanding disease directly in humans.

This year we have seen our first pilot study grants take place. Designed to support researchers to obtain proof of concept, these grants are supporting scientists to gain access to major sources of funding.

We award grants for research carried out in universities, medical schools, teaching hospitals and research institutes within the UK. Our grants include the cost of salaries, minor equipment and consumables; the charity does not directly employ staff on grants awarded for research projects.

We do not support research that involves any use of animals, even if the ultimate aim may be to replace their use. Nor do we fund the purchase or maintenance of animals for any reason. Prior to award, all our research is rigorously reviewed by a panel of expert scientific advisors.

2. Funding and enabling the career pathway of exceptional scientists, from PhD to fellowship, who use only human relevant research methods Animal Free Research UK is passionate about enabling the next generation of medical researchers to embark on a scientific career free of animal testing. We believe it is essential to invest in young researchers so as to enable the cultural shift needed for animal free research to be considered the gold standard.

We work with university partners to operate Animal Replacement Centres of Excellence (ARCs) that support exceptional early careers scientists to use human relevant, animal free medical research methods. This year the charity has continued to support two ARCs based at Queen Mary University of London and the University of Exeter.

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3. Collaborating with universities, high-impact journals and industry to enable animal free research

To achieve the charity’s new goal of transforming policy and regulation so that they actively enable rather than prevent the use of animal free research from laboratory bench to patient bedside, we have embarked on a programme to break down the barriers to animal free research within academia and industry.

As a first step, we have initiated a workstream to support scientists to switch to non-animal products in a bid to phase out a prolific yet hidden source of animal suffering in research, the use of animal-derived biomaterials.

Following on from a research project we recently funded at the University of Portsmouth into whether current human in vitro methods can be used to replace animal experiments in brain tumour research, we are now working with a leading cancer researcher to facilitate the establishment of best practice criteria for human relevant cancer research and pre-clinical testing to ensure it is credible, reproducible and take up is exponential.

We have also been commissioned by Cruelty Free International to deliver a series of expert workshops with Safer Medicines Trust to create a roadmap for human relevant drug development.

4. Influencing decision makers to change policy to enable human relevant research We believe that animal free research is best for both people and animals, and we understand that creating transformational change is complex and often only finally achieved through updates in policy, legislation and regulation.

Building on our existing work as a stakeholder recognised by the Home Office’s Animals in Science Regulation Unit, we have now initiated this fourth focus area to influence robust public policy and regulatory change. By harnessing public support and placing scientific evidence at the heart of our message, we have begun to encourage politicians and decision-makers to act so that public policy prioritises cutting edge animal free research which is best placed to find cures for human diseases. To achieve this work, we have boosted our team with experts in public policy, advocacy and communications to ensure we are positioned to effectively influence Government.

We have also continued to play an active role in the Alliance for Human Relevant Science, an inclusive collaboration of like-minded companies, organisations and individuals, which promotes the development and use of human-relevant biological research and testing methods. As an active member of the Alliance, we have supported the formation of an All-Party Parliamentary Group on Human Relevant Science - a discussion forum for politicians, the human relevant life sciences sector, third sector groups, scientists and stakeholders to promote new approach methodologies that provide unique insights into human biology, transform our ability to understand human disease and can develop effective new medicines more quickly and without the use of animals.

Fundraising

Animal Free Research UK is grateful to the thousands of people who have generously supported the charity’s work this year and helped to fund our activities. We receive no government or lottery funding, and it is only because of the kindness of our supporters that we can continue our vital work.

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2021

We employ a range of fundraising approaches to raise money, including working with professional fundraisers, philanthropists, trusts and foundations and the many generous individuals who donate through our appeals and take part in fundraising events. During the year our new Fundraising, Marketing & Communications team implemented digital technology to develop our proposition and help ensure that every individual supporter can have a meaningful relationship with Animal Free Research UK.

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

Strategic report

Chair of trustees statement

2020 was to be a year brimming with celebration. We had planned to mark our 50th Anniversary – our Golden Jubilee – in style. After all, we have come a long way since our remarkable organisation was founded on 27 May 1970 as the Dr Hadwen Trust for Humane Research, dedicated to Dr Walter Hadwen, a leading champion in the campaign against animal experiments in the early 1900s.

Last year was to be a time to laud our transformation from a modest, hitherto little-known charity into a pioneering and respected world leader in animal free research. However, Covid-19 struck, a oncein-a-lifetime global crisis upended the entire world’s plans, and we all had cause to question our fragile existence on this equally fragile and remarkable planet.

Yet from the past 12 months and more of adversity, I hope you, like me, have found reasons to cheer and to feel immensely proud. Because despite the foreboding backdrop of the pandemic and lockdowns, Animal Free Research UK rode out the worst of the Covid-19 storm well. In fact, as the world's attention turned to the importance of medical research, we thrived.

Whilst some planned fundraising and events - including our flagship summer student programme - were cancelled or postponed, the core of our work continued, and the beating heart of our charity - our loyal supporters - remained committed to our mission. Indeed, looking back, 2020 is the year animal free medical research took significant steps towards becoming the reality we aim for.

If there is one relevant positive to be had from the pandemic, it is how it placed medical research science front and centre of the public’s imagination.

The global health emergency saw international regulatory authorities agree to advance animal free new approach methodologies for drug development and safety assessment in the context of Covid19. This saw the trialling of a vaccine for the virus in humans in parallel to animals – a significant break from the normal linear process which requires animal tests before human trials.

The UK was a vaccine leader, inventing and rolling out lifesaving medicine. This emboldened the government to speak volumes about how it wants to make the UK a science superpower. Simultaneously, it said it was committed in the post-Brexit era to setting and maintaining the high bar of animal welfare.

All this is good news for our mission because we lead the way in funding ground-breaking science that is not only animal free, but which is speeding up the discoveries of treatments and cures for human diseases.

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We were in the thick of the Covid-19 testing and vaccine race. We funded Professor Lorna Harries and her team at our Animal Replacement Centre (ARC2.0) at the University of Exeter to develop an animal free Covid-19 antigen test able to detect how much active virus an infected person is carrying.

Among many notable achievements, we also launched the Rapid Response Grant Programme in partnership with Kirkstall Ltd. This saw a call for proposals from scientists centred around the innovative use of organ-on-a-chip technology. Our collaboration offered cutting edge Quasi Vivo organ-on-a-chip systems to researchers free of charge so they could target solutions to the Covid-19 pandemic. We also awarded four grants to scientists to explore new ideas using animal free approaches and focusing on human-based biology and human relevant technology.

As part of our 50th anniversary strategy revamp, we also ramped up our public affairs work, appointing a dedicated Head of Public Affairs to inform our lawmakers about our pioneering work, primarily through the newly established All-Party Parliamentary Group for Human Relevant Science – formed to accelerate the development and uptake of human relevant sciences in the UK. Again, along with our friends and partners at the Alliance for Human Relevant Science, which acts as the APPG’s secretariat, we were in the thick of things.

In May 2020, we organised and published an open letter signed by over 70 leading medical scientists and charities, and which was sent to UK and international bodies – government departments, regulatory councils, et al. - calling for a change of mindset and a clear timetable for regulatory change to enable accelerated development of medicines which are likely to be safer, more effective and cheaper, without the use of animals.

We thank our patron, Joanna Lumley, who amplified our messages in a Christmas op-ed in the Daily Telegraph - media that is widely read including by government and other policy influencers. Our thanks also to our patrons Carol Royle, Judi Dench and Brian May. We also took the pulse of the nation via a YouGov opinion poll which showed 68% support a policy ending animal research and 70% support a phase out by 2040.

Our fundraising work also moved up a gear, embracing the online world most of us found ourselves in during those long lockdowns. During a time when many charities suffered a loss of donations, we saw an increase in giving across the board.

The pandemic has been an extreme paradox. On the one hand it forced us to cancel, postpone and rethink much of our work. On the other, it provided a serendipitous boon around activity and animal free research awareness increased, not fell.

As this report details, the pandemic thrust medical research and global health to the fore and the spotlight shone intensely on the potential of new approach methodologies, and we took the cue to change up and grab opportunities whenever they arose.

Our charity might have turned 50 during a turbulent time but as we emerge from the pandemic it is clear it has come of age. It has never been so nimble, agile, bold, resilient and sharp.

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Of course, all the above is, as always, all thanks to our loyal supporters whose generosity and unswerving belief in our mission empowers us to influence policy makers and to fund the next generation of scientists to make animal free, human relevant, research the gold standard.

Laura-Jane Sheridan Chair of Trustees

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2021

Achievements and performance

1. Funding transformational research and development and technology that has the potential to replace animals

Opportunities

Responding to the immense need during the global pandemic, we awarded funds for the development of an animal free Covid -19 antigen test that assesses the viral load (the amount of the virus within individual patients) and active virus (whether or not someone is infectious). We also collaborated with Kirkstall Ltd to provide their organ-on-a-chip Quasi Vivo® cell test chambers and expert technical support without charge to research teams, together with a grant of up to £500 each for consumables to research teams focused on Covid-19.

Challenges

Inevitably, this year our research programmes were impacted by Covid-19, and five projects had delayed starts due to the pandemic. We postponed a planned grants call for a second round of pilot studies due to many researchers not having access to laboratories. We made available costed extensions to our PhD students and no-cost extensions to post-doctoral researchers to support them to continue their work post-lockdown.

Planned activity review

▪ Publish an impact review of research funded to date

In progress:

As a first step, we commissioned an expert impact review to assess how effectively our current processes measure and demonstrate our impact and to recommend a bespoke route to effective impact measurement at Animal Free Research UK.

▪ Identify new and joint funding opportunities

Achieved:

We partnered with Professor Val Speirs at the University of Aberdeen to successfully apply for funding from Medical Research Scotland for a PhD project to predict breast cancer metastasis using bespoke humanised 3D in vitro models. Animal Free Research UK will provide £18,000 which will contribute towards the student stipend, provide lab costs for training at the Centre for Doctoral Training in Engineered Tissues for Discovery, Industry and Medicine (lifETIME CDT) at the University of Glasgow, and facilitate a six-month industrial placement at the charity.

▪ Fund research into a Covid-19 animal free antigen test

Achieved:

We provided £52,351 to fund a Laboratory Technician for 12 months in Professor Lorna Harries’ laboratory at the University of Exeter to develop an animal free test to detect how much active Covid-19 virus an infected person is harbouring, known as viral load. This could help healthcare workers and others know when they are safe to return to work. The preliminary research was so successful it attracted match-funding from an external source and was converted to a three-year PhD research project at no extra cost to the charity.

▪ Fund medical research which replaces the use of animals

Achieved:

The charity provided continuing financial support for 14 research projects, paying out £562,161 during the year, and committed funds to two new projects totaling £63,600.

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Strategic grants

NEW: COVID-19 research at University of Exeter

As noted above, we provided £52,351 to fund a Laboratory Technician for 12 months in Professor Lorna Harries’ laboratory at the University of Exeter to develop an animal free test to detect how much active Covid-19 virus an infected person is harbouring, known as viral load. This could help healthcare workers and others know when they are safe to return to work. The preliminary research attracted external match-funding and the Technician role, undertaken by a former Animal Free Research UK summer student, was converted to a three-year PhD research project at no extra cost to the charity.

NEW: Organs-on-a-chip for Covid-19

We collaborated with Kirkstall Ltd to provide their organ-on-a-chip Quasi Vivo® cell test chambers and expert technical support without charge, together to research teams selected by Animal Free Research UK. We awarded a total of £1,500 in consumables to the following research teams:

Thiel embalmed cadavers for medical device testing at University of Dundee

In its final year, this pioneering five-year £311,409 strategic grant has helped to teach doctors potentially life-saving surgical interventions such as advanced abdominal aortic stent graft repair without attempting to practice these methods on animals including pigs. Heart, stroke, kidney and liver patients are among those who are benefiting directly from the training that clinicians have undergone.

Post-doctoral awards

NEW: Skin cancer research at University of Bristol

We have sponsored a Daphne Jackson Trust Fellow at the University of Bristol to undertake post-doctoral research into subcutaneous skin tissue absorption of drugs, providing a grant of £102,532 over three years. Currently, pharmaceutical companies developing drugs for injection into the subcutaneous tissue rely heavily on animal testing to determine absorption, despite the difficulties in predicting human drug absorption from animal-based research. The project will develop a laboratory tool that acts as a model of the human subcutaneous tissue to replace animal testing by developing a tissue-on-a-chip device that replicates the composition, structure and mechanisms of the subcutaneous tissue controlling drug absorption. This project will be revolutionary in offering a unique solution for the drug development of subcutaneously injected formulations and developing a pioneering model of the human subcutaneous tissue.

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The Daphne Jackson Trust aims to enable talented individuals to return to research with confidence after a career break, maintaining a talented research workforce by offering flexible and part-time Fellowships and supporting equality, diversity and inclusion in the workplace.

Diabetes research at University of Exeter

Now in its final year, Animal Free Research UK is supporting a £174,860 three-year postdoctoral position at the University of Exeter to investigate the molecular mechanisms behind the development of type 2 diabetes. Our researchers are building on their discovery that the pancreas cells which produce insulin are not dying as originally thought but instead transforming into a different type of cell that does not produce insulin, a process that could be reversed. Our continued funding is enabling the researchers to design tools to reverse this cell transformation, paving the way to a new treatment and cure.

Brain tumour research at University of Portsmouth

Brain tumours and other neurological diseases are particularly difficult to treat as the bloodbrain barrier renders many drugs inaccessible to the brain. Now in its final year, our groundbreaking £150,000 post-doctoral research project at the University of Portsmouth is using a pioneering human-relevant blood-brain barrier model to evaluate how small ‘nano’ systems can be used to deliver effective drugs into the brain to treat neurological diseases.

Systematic review of brain tumour research at University of Portsmouth

Also in its final year, Animal Free Research UK has funded a £71,074 post-doctoral research project at the University of Portsmouth into whether current human in vitro methods can be used to replace animal experiments in brain tumour research. The results of this work will provide the basis to evidence whether these methods can be used to replace animal research in other disease areas.

PhDs

NEW: Testing novel treatments for childhood lung infections at University College London

We are providing a grant of £85,219 to fund research into the highly contagious respiratory syncytial virus (RSV) bronchiolitis, a distressing and potentially life-threatening lung infection that affects over 33 million babies and infants worldwide every year.

Almost 10% of cases, mostly premature babies and those under six months of age, will develop pneumonia and can end up spending long periods in intensive care on mechanical ventilators. Despite this, there is no licensed RSV vaccine or effective anti-viral treatment available. Currently, scientists rely heavily on animal research for the early assessment of new therapies to target lung infections which does not accurately replicate the virus, and infected animals exhibit little or no symptoms of disease. During this PhD studentship, our researchers will develop a new 3D model of the infant lung that reproduces conditions during RSV bronchiolitis to test new RSV drugs. This will support the replacement of animals for human anti-viral testing and further understanding of drug discovery for this devastating condition.

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Animal Free Research UK Ltd

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NEW: Finding new drugs for patients with multiple brain tumours at Plymouth University

There are currently no drug treatments for patients suffering from a hereditary disease called Neurofibromatosis Type 2 (or NF2), which can lead to multiple brain tumours. We have awarded £84,370 for an innovative research project which will test whether existing drugs can be used to successfully treat patients with this devastating disease. Our researchers have already developed an animal-free human cell culture model to study NF2 tumours. They will now use this to test repurposed drugs, allowing a faster ‘bench to bedside’ transition without additional animal tests. It is hoped that this research will contribute to new effective drug treatment for NF2 patients as well as better understanding of this disease.

Breast cancer research at University of Aberdeen

Breast cancer is the most common cancer in the UK, affecting both genders, and despite billions being spent on research worldwide, it remains a major public health issue and incidence is rising. A chief gap in current research is identifying preventative strategies. In its third year, this £90,000 three-year PhD project jointly funded by Animal Free Research UK and Breast Cancer UK, is exploring the effects of the environment on human breast fibroblast cells and their impact on cancer development to help identify an effective strategy for breast cancer prevention.

New: Pilot studies

Creating human stem cell disease models for the study of vascular dementia at University of Manchester

We have awarded £5,000 for a 12-month research project to create human disease models of vascular dementia (dementia caused by problems in small blood vessels supplying the brain). Using CRISPR/Cas9 genome editing technology, genetic mutations associated with vascular dementia will be introduced into human induced pluripotent stem cells (iPSC). These stem cells will be cultured into neurons and blood vessels, which allow the mechanisms responsible for vascular dementia to be investigated in a human context. Ultimately, this should identify means of treating the disease, and has direct applications to replacing animals. It should also help facilitate the use of iPSCs in modelling other human diseases.

Developing a miniature cell culture model of the brain to test drugs for stroke at University of

Oxford

We have awarded £4,919 for a nine-month research project to develop a 3D mini cell culture model of stroke as a new way to test drugs. Stroke is a leading cause of death and disability, yet of over 1,000 neuro-protective drugs tested in animals none have been approved. New methods to test drugs in human cells are urgently required. By working with leaders in stroke and neuro-vascular disease, this work will boost visibility and acceptance of organ-on-a-chip platforms, allowing this technology to gain traction in replacing animal research and improving pre-clinical testing, not only for stroke but in future other diseases with neurovascular dysfunction, including Alzheimer’s, MS and epilepsy.

Assessing vascular function from a blood sample at Kingston University

We have awarded £5,000 for a six-month research project to grow cells from a donor blood sample that are representative of blood vessel lining. Our researchers will use these cells to investigate the health of blood vessels which will provide the groundwork for a model for future analysis of vascular health. This novel project has the potential to examine the health of people with cardiovascular disease to better understand poor vascular function. It will also help to replace the use of genetically modified mice.

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Animal Free Research UK Ltd

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2. Funding and enabling the career pathway of exceptional scientists, from PhD to fellowship, who use only human relevant research methods Opportunities

We capitalised on the exponential growth in digital necessitated by the pandemic by hosting online events that connected our researchers with young scientists and our supporter base, and we hosted a successful online workshop to explore establishing a community of practice for animal free researchers.

Challenges

Inevitably some planned activities had to be postponed this year due to the pandemic, including our flagship summer student programme, science conference and community of practice events. The Trustees intend to reinstate these activities in the coming year as far as possible.

Planned activity review:

▪ Hold an annual summer student programme for undergraduates to gain animal free laboratory experience

Delayed:

Due to the pandemic our annual summer student programme was postponed and funds were reallocated to support our Covid-19 research. The Trustees reinstated this programme in 2021.

▪ Build a respected network of animal free researchers by developing a community of practice, delivering a programme of scientific communications and holding virtual science events

In progress:

We hosted social media events connecting our funded researchers with early careers scientists and supporters, and, with Systems Thinking in Practice experts from the Open University, hosted an online workshop to explore establishing a community of practice for animal free researchers.

▪ Fund Animal Replacement Centres of Excellence (ARCs)

Achieved:

The charity funded two ARCs, spending £249,331. An outline of their research follows:

Animal Replacement Centre of Excellence at Queen Mary University of London

Now in its fifth year, the Animal Replacement Centre of Excellence (The ARC) at the Blizard Institute, Queen Mary University of London, is funded by the charity via a five-year strategic grant of £1,000,000. Using cutting-edge scientific research, Professor Mike Philpott and Dr Adrian Biddle, together with two post-doctoral scientists have created a unique centre of excellence dedicated to the fight against skin, head and neck cancer.

The ARC is accelerating the development of human models for human disease and reducing the number of animals used in cancer research. By developing robust research methods that are directly applicable to humans and which address the limitations of the use of animals, we believe we can accelerate the development of treatments for human cancers.

Animal Replacement Centre of Excellence at University of Exeter

Led by Professor Lorna Harries, the Animal Replacement Centre of Excellence at the University of Exeter (ARC 2.0) is providing a career pathway for exceptional early careers researchers with a commitment to human relevant research to start their own laboratory. Animal Free Research UK plans to award more than £500,000 over the next nine years - and expects to invest beyond that.

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In its second year of an initial 3-year grant of £84,973, our researchers are investigating how repurposing drugs that are already on the market, and have been found to be safe for humans, could help people have a healthier body for longer during their life. The findings could help to identify drugs which have a beneficial impact on age-related diseases such as dementia and diabetes without additional animal research.

3. Collaborating with universities, high-impact journals and industry to enable animal free research

Opportunities

In the initial year of this new focus area, we have made significant progress despite the pandemic, in part thanks to the widespread uptake of digital technology to facilitate meetings with external partners.

Challenges

Due to the pandemic, the recruitment of a PhD student to undertake detailed research on animalfree alternatives to animal-derived biomaterials as part of a year-long industrial placement at Animal Free Research UK research was postponed.

Planned activity review:

▪ Support universities to use non-animal products in research and phase out animalderived biomaterials

In progress

Initial scoping activity undertaken. Due to the pandemic, the recruitment of a PhD student to produce a report and database as part of a year-long industrial placement at Animal Free Research UK research was postponed. The placement is now due to take place next year.

▪ Facilitate establishment of best practice criteria for human relevant cancer research and pre-clinical testing

In progress

This project is being managed in conjunction with our Scientific Advisory Panel member and grant holder, Prof Geoff Pilkington. An initial scoping activity has been undertaken and cancer research experts have been identified and appointed to a roundtable event which is due to take place early next year.

▪ Work with expert partners to create a roadmap for human relevant drug development In progress

Animal Free Research UK and Safer Medicines Trust have been commissioned by Cruelty Free International to deliver a series of expert workshops to investigate how new approach methodologies can be incorporated into preclinical pharmaceutical safety assessment. The initial planning activity has been undertaken and participants with a range of expertise and backgrounds have been secured for workshops which are due to take place next year.

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4. Influencing decision makers to change policy to enable human relevant research Opportunities

In a time of global health emergency, international regulatory authorities agreed to advancing animal free new approach methodologies for drug development and safety assessment in the context of Covid-19, trialling a vaccine for the virus in humans in parallel to animals – a significant break from the normal linear process which requires animal tests before human trials. This then is a key moment to replace invasive animal experiments and avoid the unreliability inherent in extrapolating from species with very different immune systems. Launching our new public affairs function this year has perfectly placed Animal Free Research UK to call on decision makers to develop the vision to adopt this approach for all human disease and illness – from Covid-19 to cancer, dementia to diabetes, so that something good can come from the Covid-19 emergency.

Challenges

The road to cultural and regulatory change is long and complex. There can be a tendency for policymakers to view the goal of ending animal experiments as an extreme position - and it can be challenging to convey that Animal Free Research UK is an evidence-based, scientific organisation.

There is ongoing concern among some decision makers and members of the public about charities engaging in campaigning activities, although we feel that these are vital to achieve change – though we unreservedly adhere to Charity Commission guidelines. A standout challenge for 2020-21 has been the Covid-19 pandemic preventing in-person meetings with decision makers which requires substantial parliamentary time.

Planned activity review:

▪ Influence UK Government to establish an official function to accelerate human relevant research

In progress

Initial scoping activity has been undertaken and a YouGov opinion poll commissioned by Animal Free Research UK found that 70% of respondents would support animal experiments in medical research being phased out by 2040. A campaign to modernise medical research and outline how Britain can become a global leader in animal free science is due to be launched next year.

▪ Play a leading role in the Alliance for Human Relevant Science to accelerate awareness and use of animal free approaches within industry and the scientific research community

Achieved and ongoing

We have continued to play a leading role in the Alliance, coordinating an open letter on its behalf calling for the acceleration of human-focussed medical research supported by 65 scientists and academics, and carrying out a membership survey to help determine future direction.

▪ Support the establishment and coordination of an All-Party Parliamentary Group on Human Relevant Science to ensure a strong voice in Parliament Achieved and ongoing

We have supported the establishment of the All-Party Parliamentary Group (APPG) on Human Relevant Science with Grahame Morris MP as Chair to bring together MPs and Peers of all parties to accelerate the development and uptake of human relevant science in the UK. With colleagues in the Alliance for Human Relevant Science, we have supported members of the APPG to produce a workplan and have helped to coordinate meetings.

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We have re-joined ICAPPP to collaborate with international partners towards our shared goal.

5. Fundraising, Marketing and Communications Opportunities

2020 was planned as a year for increased professionalisation of fundraising, marketing and communications, with an increased focus on digital transformation. Key opportunities realised include introducing new functions for broader and more effective engagement of audiences, stronger marketing integration to fundraising, and the introduction of new software to enhance digital engagement, advocacy and campaigning initiatives.

We have implemented structured data analysis and segmentation to enable better planning and execution of fundraising activities aimed at retention, reactivation and upgrade of existing donors. Stronger digital engagement with more opportunities via social media and frequency of emails to supporters has led to a gradual increase of digital income generation.

Finally, we implemented a new philanthropy programme to diversify income and reduce the charity’s significant dependency on legacies.

Challenges

The Covid-19 pandemic, resulting lockdown and move to remote working have greatly impacted our plans this year, with two signature annual initiatives - our summer student programme and science conference - postponed until 2021.

As flexible working was already a reality for our charity, we were well placed to adapt to full time remote working, however we faced a learning curve in how to operate effectively and pursue the objectives we set out pre-pandemic.

From a funding perspective, we experienced challenges in initiating contact with trusts and foundations, many of which suspended their grant awarding processes and/or reprioritised criteria, which led to lower performance than budgeted for this income stream.

The second area where performance was lower than expected is individual single gifts – for a combination of factors, including delays in implementation of new digital systems. This, combined with tougher competition for share of voice during the pandemic, decreased our ability to reach out to the general public and acquire new supporters.

16

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2021

Planned activity review:

▪ Inspire, engage and grow public and private support for animal free research Achieved and ongoing

We have increased brand awareness, visibility and engagement through the launch of our Covid-19 related emergency appeal, and in line with digital transformation plans and to replace in-person participation hindered by the pandemic, we launched a series of Facebook Live Events for our supporters to meet and engage with the scientists we fund. We also piloted a scientist-led virtual briefing series called “Engaging Human Science”. We appointed a Media and PR Manager and developed and delivered workshops for our staff team and Trustees on our key messages and tone of voice.

▪ Operate a robust business model by drafting donor retention, proposition and engagement plans, optimising current income sources

Achieved and ongoing

We successfully launched Trusts and Foundations grants as a new income stream, albeit more slowly than originally projected due to Covid-19. Retention of regular givers has performed better than expected given the pandemic, which speaks to the generosity and loyalty of our supporters for whom we are very grateful. Gaining new supporters has proven more challenging and it is too early to separate the pandemic’s impact versus a more generalised trend when it comes to single gifts. We have continued to work on acquisition after promising results with our “Take the Pledge” campaign, and have doubled our online engaged supporters, inspiring more people to take action and get involved with the charity. More people are giving to Animal Free Research UK online and this has continued to grow. We are also grateful for contributions via third party platforms including Amazon Smile and Just Giving. We have launched a new event named ‘Challenge for Change’ which has proven successful during its pilot phase and we are grateful to the supporters who kindly undertook challenges to raise much-needed funds for our charity.

6. Ensure effective governance, systems and processes

Opportunities

The need for staff to work remotely due to the pandemic, instead of within in a single physical location has meant that we have been able to improve our offer to colleagues by offering flexible working opportunities. Another benefit is being able to recruit from a nationwide pool of talent, instead of from a specific region, building the best possible team to deliver our mission.

Challenges

The switch to remote working also presented us with challenges. We have worked hard to support and engage our colleagues during a tumultuous year by investing in technology, prioritising transparency and well-being, and providing reassurance around flexible working arrangements.

17

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2021

Planned activity review:

▪ Designing and delivering processes which minimise administrative burden and control risk, and monitoring key metrics to track performance

In progress

The quest to reduce bureaucracy, increase efficiency and minimise administrative burden is one of continuous improvement with no end date. During the year, our achievements included a successful transition to a fully remote working environment, migration of paperbased files to a cloud-based database for enhanced efficiency, information sharing and access, improved financial reporting with forecasting, and commissioning of an expert impact review to assess how effectively our current processes measure and demonstrate our impact and to recommend a bespoke route to effective impact measurement at Animal Free Research UK.

Achieved and ongoing

We have undertaken a substantial revision of the organisational risk register with a working group of Trustees and senior management team developing a comprehensive new risk register. We undertook a review of the Trustee succession plan and identified the need to recruit new trustees, with successful recruitment campaigns resulting in the appointment of three new probationary trustees.

Financial review

Due to the unique conditions of the global pandemic, the charity scaled back some of its activities and prioritised investment in its fundraising efforts, leading to a sizable increase in income on the prior year and a weathering of the storm.

Total incoming resources for the year amounted to £1,505,965 (2020: £634,993), of which £1,496,503 (2020: £619,022) was generated from donations and legacies. Trading activities were ceased at the charity and consequently no income was generated (2020: £679). Donations represented 33% (2020: 63%) of income while legacies accounted for 66% (2020: 35%).

Total resources expended for the year amounted to £720,166 (2020: £1,158,629).

The charity incurred an overall increase in funds in the year of £785,799 (2020: decrease of £523,636) and total funds carried forward on the 31 March 2021 were £1,782,651 (2020: £996,852).

Investment policy

The charity seeks to avoid investing its funds with institutions which are either directly involved or affiliated with practices that are in conflict with its deeply held views about the ethical treatment of animals. The respective positions of these institutions are kept under regular review. The Trustees have absolute discretion to invest and confirm that Animal Free Research UK’s assets are available and adequate to fulfil all the obligations of the charity. All decisions are taken by the Board of Trustees at its quarterly meetings.

18

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2021

Reserves policy and going concern

The Trustees consider that the reserves policy should be that the free reserves be sufficient to cover non-grant expenditure (and to settle any contractual commitments) for a period of no less than six months. A significant portion of the charity’s income is derived from legacy gifts, which by its nature is unpredictable, and the Trustees consider that reserves at this level (£460,000) will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised or cost-saving measures may be implemented.

The charity held funds of £1,782,651 (2020: £996,852) at year end of which £48,017 (2020: £81,328) were restricted and £768,000 (2020: £Nil) were designated for making future grant awards leaving a general fund of £966,634 (2020: £915,524). Free reserves, excluding the value of tangible fixed assets, stood at £959,479 (2020: £907,043) which represents 12 months of non-grant expenditure, and is in excess of the target set out in the reserves policy. The Trustees have agreed to draw down on free reserves to fund an increase in charitable activities and develop a new grantmaking strategy, and to invest in developing sustainable and enduring income streams.

The Trustees take a prudent view of legacies due and commit general reserves to charitable activity as soon as appropriate. The Trustees are confident that the charity remains a going concern.

Public benefit

The Trustees confirm that they have paid due regard to the public benefit guidance published by the Charity Commission and Office of the Scottish Charity Regulator. The charity refers to the public benefit guidance when reviewing and setting its aims and objectives and in future planning.

Our fundraising practices

Animal Free Research UK aims to carry out only the best fundraising practice and ensures that our supporters and the wider public are treated fairly and with respect. Our supporters are at the heart of our charity and enjoying relationships of trust and respect with them is of the highest importance to us.

Fundraising standards

Animal Free Research UK uses a range of fundraising activities to raise vital funds towards our vision of a world where human diseases are cured faster without animal suffering.

Our Board of Trustees and Senior Management Team are deeply committed to building trust with our supporters. We are members of the Fundraising Regulator and follow the Code of Fundraising Practice and the Fundraising Promise.

Working with third party fundraisers

We acknowledge that the use of third parties in fundraising can enhance our ability to raise funds and support our activities; however, it is imperative that we have the right safeguards in place to protect our supporters, our reputation and our financial position.

19

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2021

Animal Free Research UK requires that any agency or third party with whom we work complies with relevant standards and regulations such as the Code of Fundraising Practice and data protection legislation. We follow a robust procurement process and review their work against performance targets to ensure we are delivering the best value for money for the charity and our supporters. Quality assurance includes briefing the team on the charity’s vision, mission, values and work, regular reviews of complaints and other feedback, and audits of telephone calls made by agency fundraisers. Our fundraising, marketing and communications sub-committee has responsibility for all aspects of quality assurance and compliance relating to fundraising and associated activities.

Protecting vulnerable people

We are aware that any charity which operates in the public domain may come into contact with people who may be vulnerable. We set ourselves high standards and we work regularly with third party agencies and fundraisers to review policies, procedures and performance.

Over the course of 2020-21 we received 0 complaints (2020: two complaints received) related to our fundraising activities. We are committed to studying any expression of dissatisfaction and identifying ways to improve. Our team is committed to looking into every case that may arise and doing all we can to resolve complaints and ensure supporters are happy with our work. Our complaints procedure is publicly available on our website.

Plans for future periods

During the year ahead we plan to:

1. Fund excellent high impact animal free research by:

2. Fund and enable the career pathway of exceptional scientists who use only human relevant research methods by:

3. Collaborate with universities, high-impact journals and industry to enable animal free research by:

20

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2021

4. Influence decision makers to change policy to enable human relevant research by:

5. Inspire, engage and grow public and private support for animal free research by:

6. Operate a robust business model by:

7. Ensure effective governance, systems and processes by:

Structure, governance and management

The charity is a company limited by guarantee.

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

N Barbosa (resigned October 2021)

M Ashby (appointed November 2021)

C Byatt (resigned November 2021)

D Cameron

M Chan (appointed July 2021)

C Cunniffe (resigned April 2020)

A Ellison (resigned October 2021)

S Honess (appointed July 2021)

J Jones

L Sheridan

21

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2021

The Company Secretary, which is a voluntary role, who served during the year was: S Luther (appointed January 2020)

Our team included the following key senior management personnel: Chief Executive: Carla Owen Finance Director: Nicola Reeves Fundraising Director: Mimmo Di Giacomo Science Director: Jarrod Bailey (appointed July 2021) Public Affairs Director: Isobel Hutchinson (appointed December 2021)

Governing document

Animal Free Research UK is a company limited by guarantee and the governing document is its Articles of Association. The charity is registered in England and Wales (1146896) and Scotland (SC045327). The charity has two linked charities, The Alan and Kathie Stross Research fellowships charity (1146896-1) and the Dr Hadwen Trust for Humane Research (1146896-2). The Dr Hadwen Trust was dormant until 30 September 2013, at which time a transfer agreement was signed by the Trustees of Dr Hadwen Trust for Humane Research and the Dr Hadwen Trust, the intended effect of which was to transfer all assets, liabilities and activities, to the Dr Hadwen Trust (now renamed as Animal Free Research UK).

Appointment of Trustees

All Trustees are appointed by the Board following a process of open competition. After a probationary period of three quarterly meetings, Trustees-elect are agreed as full Trustees if the Board decrees. The Trustee Board must consist of not less than five and not more than twelve Trustees. They are recruited from amongst those who apply and demonstrate a firm commitment to the ethos of the Animal Free Research UK, are aligned to the aims of the charity and have a range of appropriate skills.

Trustee induction and training

An induction pack is provided to all new Trustees, and they are invited to attend an intensive induction during which they are provided with information on the key activities of Animal Free Research UK. Where collective training needs are established, these are delivered to the Board as a whole. Currently trustee training takes the form of mentoring from existing Trustees, external networks and professional courses, conferences and seminars detailing the latest Charity Commission and office of the Scottish Regulators requirements for Trustees and effective governance practice.

The charity is run by the board of directors, who are the charity’s Trustees. All directors give of their time freely and no director received remuneration in the year. Details of directors’ expenses are disclosed in note 6 to the accounts. The board administers the charity and meets a minimum of four times a year, taking all important strategic, policy and financial decisions which are formally tabled for approval at the Trustees’ quarterly meetings. To aid governance, the Board has sub-committees which meet quarterly:

22

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2021

Organisation

Animal Free Research UK operates on a day-to-day basis with a team of 15 full and part-time personnel who work under the direction of the Chief Executive who reports directly to the Trustees and has delegated responsibility from the Trustees for the day-to-day management of the charity.

The Trustees gratefully acknowledge the generous support of volunteers and fundraisers who freely gave their time to assist Animal Free Research UK, and of supporters whose kind donations enable the continued work of the charity.

Related parties and co-operation with other organisations

None of the Trustees receive remuneration or other benefit from their work with the charity. None of them has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Pay policy for senior staff

The pay of senior staff is reviewed annually by the HR and Governance Committee which takes into account retention of staff against affordability and benchmarking against pay levels in other charities of a similar size.

Risk management

The Trustees have a risk management strategy which comprises:

The Trustees have assessed the major risks to which the charity is exposed and have delegated responsibility to the Chief Executive to put in place robust processes to mitigate exposure to these. We have a comprehensive risk register which is reviewed regularly by the senior management team with noteworthy changes and risks shared with the Trustees on a quarterly basis.

In response to the Covid-19 pandemic, these risks were reviewed again in detail with a particular focus on income and mitigating actions to address a potential decline in donations. The Trustees remain of the view that the charity’s income and current level of free reserves will permit it to continue to operate for the foreseeable future.

Statement of responsibilities of the trustees

The trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 income and expenditure of the charity for that period. In preparing those financial statements the trustees are required to:

23

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2021

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

In so far as the trustees are aware:

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

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditors

Godfrey Wilson Limited were appointed as auditors to the charitable company during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 26 January 2022 and signed on their behalf by

Laura-Jane Sheridan (Chair) Daniel Cameron (Treasurer) Trustee Trustee

24

Independent auditors' report

To the members of

Animal Free Research UK Ltd

Opinion

We have audited the financial statements of Animal Free Research UK Ltd (the 'charity') for the year ended 31 March 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. 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.

25

Independent auditors' report

To the members of

Animal Free Research UK Ltd

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

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

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 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 the trustees

As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they 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 charity or to cease operations, or have no realistic alternative but to do so.

Our 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.

26

Independent auditors' report

To the members of

Animal Free Research UK Ltd

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 procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.

(2) We reviewed the charity’s policies and procedures in relation to:

(3) We inspected the minutes of trustee meetings.

(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.

▪Testing transactions that are unusual or outside the normal course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

27

Independent auditors' report

To the members of

Animal Free Research UK Ltd

Use of our report

This report is made solely to the charityʼs 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 charityʼs members those matters we are required to state to them in an auditorʼs 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 charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.

Alison Godfrey

Date: 27 January 2022

Alison Godfrey FCA (Senior Statutory Auditor)

For and on behalf of:

GODFREY WILSON LIMITED

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

28

Animal Free Research UK Ltd

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2021

Restricted Unrestricted
Note
£
£
Income from:
Donations and legacies
3
105,489
1,391,014
Other trading activities
-
-
Investments
-
9,462
Other
-
-
Total income
105,489
1,400,476
Expenditure on:
Raising funds
-
258,100
Charitable activities
15,894
446,172
Total expenditure
5
15,894
704,272
Net income / (expenditure)
89,595
696,204
Transfers between funds
(122,906)
122,906
Net movement in funds
8
(33,311)
819,110
Reconciliation of funds:
Total funds brought forward
81,328
915,524
Total funds carried forward
48,017
1,734,634		 2021
Total
£
1,496,503
-
9,462
-
1,505,965
258,100
462,066
720,166
785,799
-
785,799
996,852
1,782,651		 Restated
2020
Total
£
619,022
679
11,762
3,530
634,993
170,175
988,454
1,158,629
(523,636)
-
(523,636)
1,520,488
996,852

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 19 to the accounts.

The 2020 comparatives have been restated for changes in accounting policies and other prior period adjustments, as set out in note 23 to the accounts.

29

Animal Free Research UK Ltd

Balance sheet

As at 31 March 2021

Note
Fixed assets
Tangible assets
11
Investment property
12
Investments
13
Current assets
Debtors
14
Current asset investments
15
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year
16
Net current assets
Total assets less current liabilities
17
Net assets
18
Funds
19
Restricted funds
Unrestricted funds
Designated funds
General funds
Total charity funds
Creditors: amounts falling due after more than
1 year		 £
945,595
591,712
1,304,939
2,842,246
(720,907)		 2021
£
7,155
-
-
7,155
2,121,339
2,128,494
(345,843)
1,782,651
48,017
768,000
966,634
1,782,651		 Restated
2020
£
8,481
30,000
1
38,482
345,126
586,980
1,564,349
2,496,455
(616,120)
1,880,335
1,918,817
(921,965)
996,852
81,328
-
915,524
996,852

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 26 January 2022 and signed on their behalf by

Laura-Jane Sheridan (Chair) Daniel Cameron (Treasurer) Trustee Trustee

30

Animal Free Research UK Ltd

Statement of cash flows

For the year ended 31 March 2021

Note
Cash used in operating activities:
Net cash used in operating activities
20
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of tangible fixed assets
Proceeds from the sale of investments
Net cash provided by investing activities
Decrease in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Comprised of:
Cash at bank and in hand
Current asset investments (prior period figure restated)		 2021
£
(290,697)
9,462
(3,444)
30,001
36,019
(254,678)
2,151,329
1,896,651
1,304,939
591,712
1,896,651		 2020
£
(126,411)
11,762
(7,758)
-
4,004
(122,407)
2,273,736
2,151,329
1,564,349
586,980
2,151,329

The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements.

31

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Animal Free Research UK Ltd meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a going concern.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

d) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.

32

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies (continued)

e) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.

Transfers from restricted funds to unrestricted funds represent income received during the year which carries donor imposed conditions to be expended upon specific projects. The cost of these projects has been recognised through the Statement of Financial Activities in a prior period when the grant commitment was originally made and therefore when the income is received it is transferred to unrestricted funds to follow the treatment of the expenditure when it was recognised.

f) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

g) Allocation of support and governance costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities on the same basis of as staff costs:

Restated
2021 2020
Raising funds 33.7% 27.1%
Charitable activities 66.3% 72.9%

h) Grants payable

Grants payable are charged in the year in which the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attached have been fulfilled. Grants offered subject to conditions at the year end are noted as commitment but are not accrued as expenditure.

i) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Computer equipment 33% straight line

j) Debtors

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

33

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies (continued) k) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

l) Current asset investments

Cash held in liquid investment accounts with maturity dates in excess of 30 days are classed as current asset investments.

m) Creditors

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

n) Financial instruments

The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.

o) Pension costs

The company operates a defined contribution pension scheme for its employees. There are no further liabilities other than that already recognised in the SOFA.

p) Foreign currency transactions

Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Balances denominated in foreign currencies are translated at the rate of exchange prevailing at the year end.

q) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

34

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies (continued)

q) Accounting estimates and key judgements (continued) Depreciation

As described in note 1i to the financial statements, depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.

Legacy valuations

Determining the value of legacy debtors requires an estimation of the future cash flows expected to be received from the legacy. Actual results may differ from these estimates because the value of legacy is usually dependant on the amount of cash realised from the estate in which the legacy relates, and the recognition of a debtor as per the SORP usually precedes the cash receipt. The charity uses the expertise of a professional to estimate future amounts based on supporting evidence.

2. Prior period comparatives: statement of financial activities

Income from:
Donations and legacies
Other trading activities
Investments
Other income
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net income / (expenditure)
Transfers between funds
Net movement in funds		 Restricted
£
£
105,329
513,693
-
679
-
11,762
-
3,530
105,329
529,664
-
170,175
37,494
950,960
37,494
1,121,135
67,835
(591,471)
(61,875)
61,875
5,960
(529,596)
Unrestricted		 Restated
2020
Total
£
619,022
679
11,762
3,530
634,993
170,175
988,454
1,158,629
(523,636)
-
(523,636)

35

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2021

3. Income from donations and legacies

Donations
Legacies
Total income from donations and legacies
Prior period comparative:
Donations
Legacies
Total income from donations and legacies		 Restricted
£
£
49,938
448,466
55,551
942,548
105,489
1,391,014
Restricted
£
£
105,329
292,699
-
220,994
105,329
513,693
Unrestricted
Unrestricted		 2021
Total
£
498,404
998,099
1,496,503
Restated
2020
Total
£
398,028
220,994
619,022

Restricted donation income has been restated to reclassify £10,360 of gift aid, previously accounted for via the transfers between funds line of the SoFA.

4. Government grants

The charitable company received no government grants in the current or prior period.

36

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2021

5. Total expenditure

Total expenditure
Grants payable (note 6)
Other charitable expenditure
Staff costs (note 9)
Other fundraising costs
Other and temporary staff costs
Depreciation
Print, postage and stationary
Light and heat
Rent and rates
Sundry expenses
Bad debt
Telephone
Travel expenses
Insurance
Bank and other charges
Computer costs
Advertising and marketing
Accountancy
Legal and professional
Sub-total
Total expenditure
Allocation of support and
governance costs		 Raising
funds
£
-
-
85,314
40,253
-
-
7,002
-
-
-
-
-
-
-
2,789
15,294
22,998
-
-
173,650
84,450
258,100		 Charitable
activities
£
55,255
6,243
167,940
-
348
-
8
-
-
-
-
-
-
-
-
10,402
13,835
-
41,796
295,827
166,239
462,066		 Support and
governance
costs
£
-
-
141,241
-
10,635
4,770
6,462
(215)
1,212
14,649
3
3,665
374
1,938
315
22,233
1,646
12,225
29,536
250,689
(250,689)
-		 2021 Total
£
55,255
6,243
394,495
40,253
10,983
4,770
13,472
(215)
1,212
14,649
3
3,665
374
1,938
3,104
47,929
38,479
12,225
71,332
720,166
-
720,166

Total governance costs were £35,121 (2020: £67,853).

37

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2021

5.
Total expenditure (continued)
Prior period comparative
Grants payable (note 6)
Other charitable expenditure
Staff costs (note 9)
Other fundraising costs
Other and temporary staff costs
Depreciation
Print, postage and stationary
Light and heat
Rent and rates
Repairs, maintenance and shop
expenses
Sundry expenses
Bad debt
Telephone
Travel expenses
Insurance
Bank and other charges
Computer costs
Advertising and marketing
Accountancy
Legal and professional
Sub-total
Total expenditure
Allocation of support and
governance costs		 Raising
funds
£
-
-
42,547
11,456
-
-
2,478
-
-
-
-
-
-
-
-
2,552
300
15,710
-
-
75,043
95,132
170,175		 Charitable
activities
£
534,621
15,126
114,584
-
8,866
-
5,317
-
-
-
-
-
-
1,756
-
-
391
51,590
-
-
732,251
256,203
988,454		 Support and
governance
costs
£
-
-
154,254
-
31,682
3,005
5,605
4,132
32,219
364
4,190
1,209
6,162
4,093
3,272
431
28,770
5,950
12,820
53,177
351,335
(351,335)
-		 Restated
2020 Total
£
534,621
15,126
311,385
11,456
40,548
3,005
13,400
4,132
32,219
364
4,190
1,209
6,162
5,849
3,272
2,983
29,461
73,250
12,820
53,177
1,158,629
-
1,158,629

The prior period comparatives have been restated for reclassification and allocation of support and governance costs only. Total expenditure has not been affected.

38

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2021

6. Grants payable to institutions

Grants are made for the purpose of developing new techniques for non animal research. The amount payable and committed in the period for this period and future periods comprise the following:

2021
No.
Research grants:
University of Exeter (COVID-19)
1
The Daphne Jackson Trust Fellowship
1
University of Nottingham
-
University College London
-
University of Exeter (ARC 2.0)
-
Plymouth University
-
University of Hertfordshire
-
Kingston University
-
University of Leeds
-
University of Manchester
-
University of Southampton
-
University of Oxford
-
University of Bedfordshire
-
Queen's University Belfast
-
Total grants committed during the period
Grants overspent / (written back) from prior periods
Total grant expenditure
7.
Grants commitments
Grants payable to institutions:
Grant commitments brought forward
Grants committed during the period
Grants paid during the period
Less: Overspent / (written back) grants from prior periods
Grant commitments carried forward		 2021
£
52,351
11,249
-
-
-
-
-
-
-
-
-
-
-
-
63,600
(8,345)
55,255		 2020
No.
-
1
1
1
1
1
1
2
1
1
1
1
1
1
2021
£
1,513,684
63,600
(562,161)
(8,345)
1,006,778		 Restated
2020
£
-
91,283
146,740
85,218
84,973
84,370
40,000
9,966
5,000
5,000
5,000
4,919
4,600
3,320
570,389
(35,768)
534,621
Restated
2020
£
1,162,238
570,389
(183,175)
(35,768)
1,513,684

39

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2021

8. Net movement in funds

This is stated after charging:

Net movement in funds
This is stated after charging:
2021 2020
£ £
Depreciation 4,770 3,005
Trustees' remuneration Nil Nil
Trustees' reimbursed expenses 53 2,544
Auditors' remuneration:
Statutory audit (including VAT) 9,000 11,500
Other services - 1,320

Trustees reimbursed expenses relate to subsistence and postage costs for 2 trustees (2020: 6 trustees, for travel, hotel and childcare costs).

9. Staff costs and numbers

Staff costs were as follows:

Staff costs were as follows:
Salaries and wages
Social security costs
Pension costs
Redundancy costs		 2021
£
355,824
32,379
6,292
-
394,495		 Restated
2020
£
267,655
25,743
5,423
12,564
311,385

One employee earned between £60,000 and £70,000 during the year (2020: No employees earned more than £60,000 during the year).

The key management personnel of the charitable company comprise the Trustees, Chief Executive Officer, Director of Fundraising and Marketing and Finance and Operations Director. The total employee benefits of the key management personnel were £182,677 (2020: £158,860).

Average head count:

Science and education
Fundraising
Management and finance
CEO
Average head count		 2021
No.
4
2
2
1
9		 2020
No.
2
2
2
1
7

10. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

40

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2021

11. Tangible fixed assets

Cost
At 1 April 2020
Additions in year
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
On disposals
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 £
29,600
3,444
(15,835)
Computer
equipment
17,209
21,119
4,770
(15,835)
10,054
7,155
8,481

12. Investment property

Investment property
Market value at 1 April 2020
Disposals proceeds
Market value at 31 March 2021		 £
30,000
(30,000)
-
Investment
property		 2021
£
30,000
(30,000)
-		 2020
£
30,000
-
30,000

The investment property represents an interest of 9.75% of a single property. The fair value of the invesment property had been arrived at on the basis of its market value when acquired in 2014 and had been subsequently revalued by Brian James, the company's legacy advisor. It was disposed of in full during the year to 31 March 2021.

41

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2021

13. Investment in subsidiary

Investment in subsidiary
2021 2020
£ £
Investment in Dr Hadwen Retail Limited - 1

Dr Hadwen Retail Limited, company number 09586397 and a wholly owned subsidiary of Animal Free Research UK, was struck off on 22 September 2020. It had been dormant since its incorporation on 12 May 2015. Consolidated accounts had therefore never been produced by reason of immateriality.

14. Debtors

Accrued legacy income and other debtors
Other accrued income
Prepayments
Current asset investments
Advance notice deposit accounts		 2021
£
923,160
7,675
14,760
945,595
2021
£
591,712		 Restated
2020
£
329,009
4,471
11,646
345,126
Restated
2020
£
586,980

15. Current asset investments

The prior period comparatives have been restated to recognise amounts held in accounts requiring greater than 30 days notice, but which are still considered liquid, as current asset investments. They were previously held in cash at bank and in hand.

16. Creditors : amounts due within 1 year

Other taxation and social security
Grants payable
Trade creditors
Other creditors
Accruals		 2021
£
10,779
660,935
26,613
12
22,568
720,907		 Restated
2020
£
-
591,719
15,167
458
8,776
616,120

42

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2021

17. Creditors : amounts due after 1 year

Grant accruals
18. Analysis of net assets between funds
Tangible fixed assets
Current assets
Current liabilities
Non current liabilities
Net assets at 31 March 2021
Prior period comparative (restated)
Tangible fixed assets
Investment properties
Investments
Current assets
Current liabilities
Non current liabilities
Net assets at 31 March 2020		 £
-
48,017
-
-
48,017
£
-
-
-
81,328
-
81,328
Restricted
funds
Restricted
funds		 Designated
funds
£
-
768,000
-
-
768,000
Designated
funds
£
-
-
-
-
-
-
-		 2021
£
345,843
£
7,155
2,026,229
(720,907)
(345,843)
966,634
£
8,481
30,000
1
2,415,127
(616,120)
(921,965)
915,524
General
funds
General
funds		 Restated
2020
£
921,965
Total
funds
£
7,155
2,842,246
(720,907)
(345,843)
1,782,651
Total
funds
£
8,481
30,000
1
2,496,455
(616,120)
(921,965)
996,852

43

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2021

19. Movements in funds

Movements in funds
Restricted funds
ARC 2.0
Bailey legacy
Barratt legacy
Brain tumour
COVID-19
Diabetes
Dogs
Skin cancer
Stross legacy
Other restricted funds
Total restricted funds
Unrestricted funds
Designated funds
Grant making fund
General funds
Total unrestricted funds
Total funds		 At 1 April
2020
£
-
-
27,340
20,417
-
-
-
-
33,546
25
81,328
-
915,524
915,524
996,852		 Income
£
2,685
55,551
-
235
15,894
28,042
315
1,444
-
1,323
105,489
-
1,400,476
1,400,476
1,505,965		 £
-
-
-
-
(15,894)
-
-
-
-
-
(15,894)
-
(704,272)
(704,272)
(720,166)
Expenditure		 £
£
(2,685)
-
(55,551)
-
-
27,340
-
20,652
-
-
(28,042)
-
(315)
-
(1,444)
-
(33,546)
-
(1,323)
25
(122,906)
48,017
768,000
768,000
(645,094)
966,634
122,906
1,734,634
-
1,782,651
Transfers
between
funds
At 31 March
2021
48,017
768,000
966,634
1,734,634
1,782,651

Purposes of restricted funds

These funds arise where donations and legacies are granted to the charity with conditions imposed that restrict the use of the funding. These conditions tend to be broad, and are mostly as described. The following further explanations are provided:

ARC 2.0

Refers to funds donated specifically to support the Animal Replacement Centre of Excellence at University of Exeter.

Stross legacy

Refers to a legacy gift that is to specifically fund undergraduates participating in our annual Summer Studentship scheme.

Bailey legacy

Refers to a legacy gift that was donated for the purpose of supporting research into cancer.

Barratt legacy

Refers to a legacy gift that was donated for the purpose of supporting research into coronary thrombosis and stroke.

Other restricted funds Contains smaller restricted donations of less than £500.

44

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2021

19. Movements in funds (continued)

Purposes of designated funds

Grant making fund

The charity has earmarked funds for planned or aspired grant making, where grants have not yet been formally awarded. The designated fund as at 31 March 2021 is intended to cover new grant awards during the 2021-22 year, and continuation funding for existing projects when their current grants end.

Transfers between funds

Transfers from restricted funds to unrestricted funds represent income received during the year which carries donor imposed conditions to be expended upon specific projects. The cost of these projects has been recognised through the Statement of Financial Activities in a prior period when the grant commitment was originally made and therefore when the income is received it is transferred to unrestricted funds to follow the treatment of the expenditure when it was recognised.

Prior period comparative (restated)

Restricted funds
ARC 2.0
Barratt legacy
Brain tumour
Breast cancer
Cancer
Diabetes
Dogs
Pain
Skin cancer
Stross legacy
Summer studentships
Other restricted funds
Total restricted funds
Unrestricted funds
General funds
Total unrestricted funds
Total funds		 At 1 April
2019
£
-
32,259
9,273
-
-
-
265
-
-
33,546
-
25
75,368
1,445,120
1,445,120
1,520,488		 Income
£
28,638
-
11,144
1,315
1,119
35,269
352
7,856
3,501
-
16,036
99
105,329
529,664
529,664
634,993		 £
(28,638)
(4,919)
-
-
-
-
(617)
(3,320)
-
-
-
-
(37,494)
(1,121,135)
(1,121,135)
(1,158,629)
Expenditure		 £
£
-
-
-
27,340
-
20,417
(1,315)
-
(1,119)
-
(35,269)
-
-
(4,536)
-
(3,501)
-
-
33,546
(16,036)
-
(99)
25
(61,875)
81,328
61,875
915,524
61,875
915,524
-
996,852
Transfers
between
funds
At 31 March
2020		 £
£
-
-
-
27,340
-
20,417
(1,315)
-
(1,119)
-
(35,269)
-
-
(4,536)
-
(3,501)
-
-
33,546
(16,036)
-
(99)
25
(61,875)
81,328
61,875
915,524
61,875
915,524
-
996,852
Transfers
between
funds
At 31 March
2020
81,328
915,524
915,524
996,852

45

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2021

20. Reconciliation of net movement in funds to net cash flow from operating activities

Net movement in funds
Adjustments for:
Dividends, interest and rents from investments
Depreciation charges
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash provided by / (used in) operating activities		 2021
£
785,799
(9,462)
4,770
(600,469)
(471,335)
(290,697)		 Restated
2020
£
(523,636)
(11,762)
3,005
309,585
96,397
(126,411)

21. Funds held as a custodian trustee on behalf of others

The charity holds a 50% interest in a plot of land in Denmead, received in 2013 via a legacy, in trust partially as a custodian trustee on behalf of three other charities. It is held for reason of capital appreciation. Each of the four charities, including Animal Free Research UK, holds a 12.5% ultimate interest in the land.

The charities for which Animal Free Research UK acts as a custodian trustee for are The League Against Cruel Sports, International Fund for Animal Welfare and the Cruelty Free International Trust (formerly BUAV Charitable Trust).

The objects of the three other charities relate to the prevention of the cruelty to and/or suffering of animals and are therefore closely aligned to those of Animal Free Research UK. A Declaration of Trust is in place to ensure the safe custody and segregation of such assets from the charity's own assets.

22. Related party transactions

Natalie Barbosa, trustee until 24 October 2021, is employed as a Senior Associate at Anthony Collins Solicitors LLP. During the year, Anthony Collins Solicitors LLP was paid £900 by the charity for legal advice (2020: £2,400). No amounts were owing at year end (2020: £Nil).

During the year, 4 trustees made unconditional donations to the charity amounting to £1,095 (2020: £724 from 3 trustees).

There were no other related party transactions in the year.

46

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2021

23. Prior period restatements and changes in accounting policies

Legacy debtors

Prior period income, debtors and funds have been restated to remove a 15% reduction applied to year end legacy debtors in previous periods.

Grant commitments

Prior period expenditure, creditors and funds have been restated to recognise grant commitments in full when they are communicated to grantees. Previously, grant commitments were ringfenced as designated funds when committed, and expenses recognised in the SoFA on a claims basis against the designated fund.

Other income

Income has been restated to include £3,530 previously reported as a total under 'transfers between funds'. This adjustment has had no impact on the prior year results or fund balances.

Expenditure classifications

Expenditure has been restated for the reclassification of expenditure between SoFA headings.

Funds brought forward

This has affected funds brought forward, as follows:

Funds as originally stated at 1 April 2019
Adjustment to legacy debtors
Adjustment to grants payable
Funds as restated at 1 April 2019
Funds as originally stated at 31 March 2020
Adjustment to legacy debtors
Adjustment to grants payable
Funds as restated at 31 March 2020		 £
185,214
-
(109,846)
75,368
£
151,794
-
(70,466)
81,328
Restricted
funds
Restricted
funds		 £
1,221,717
-
-
£
1,225,503
-
(1,225,503)
-
Designated
funds
(1,221,717)
Designated
funds		 £
1,182,404
93,392
169,324
1,445,120
£
796,010
49,048
70,466
915,524
General
funds
General
funds		 Total
funds
£
2,589,335
93,392
(1,162,239)
1,520,488
Total
funds
£
2,173,307
49,048
(1,225,503)
996,852

47

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2021

23. Prior period restatements and changes in accounting policies (continued)
Debtors
Accrued income as originally stated at 31 March 2020
Adjustment to legacy debtors
Accrued income as restated at 31 March 2020
Creditors : amounts due within 1 year
Creditor balances have been affected as follows:
Creditor balances as originally stated at 31 March 2020
Adjustment for grants payable
Creditor balances as originally stated at 31 March 2020
Creditors : amounts due after more than 1 year
Long term creditor balances have been affected as follows:
Grants payable after 1 year as originally stated at 31 March 2020
Adjustment for grants payable
Grants payable after 1 year as restated at 31 March 2020
Income
Income balances shown in the SoFA been affected as follows:
Legacy debtors have been affected as follows:		 Trade
creditors
£
133,247
(118,080)
15,167		 £
279,961
49,048
Accrued
income
329,009
Grants
payable
£
170,101
421,618
591,719
Grants
payable
£
-
921,965
921,965
£
Income as originally stated at 31 March 2020
663,366
Adjustment to legacy debtors
(44,344)
Reclassification of balance from 'transfers between funds'
-
Income as restated at 31 March 2020
619,022
Donations
and legacies		 £
-
-
3,530
3,530
Other
income		 £
675,807
(44,344)
3,530
Total
income
634,993

48

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2021

23. Prior period restatements and changes in accounting policies (continued) Expenditure

Expenditure balances shown in the SoFA been affected as follows:

Expenditure as originally stated at 31 March 2020
Adjustment for grants payable charged to SoFA in year
Reanalysis for costs of raising funds
Expenditure as restated at 31 March 2020		 Raising
funds
£
8,655
-
161,520
170,175		 £
£
1,095,365
63,264
63,264
(161,520)
-
988,454
1,158,629
1,086,710
Total
expenditure
Charitable
activities		 £
£
1,095,365
63,264
63,264
(161,520)
-
988,454
1,158,629
1,086,710
Total
expenditure
Charitable
activities
1,158,629

49