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2022-03-31-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 2022

Animal Free Research UK Ltd

Reference and administrative details

For the year ended 31 March 2022

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
A Ellison Resigned 24 October 2021
S Honess Appointed 24 July 2021
J Jones
G Pilkington Appointed 23 April 2022
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
Cambridge & Counties Bank Limited Julian Hodge Bank Limited
Charnwood Court 29 Windsor Place
5B New Walk Cardiff
Leicester CF10 3BZ
LE1 6TE
Manchester Building Society Virgin Money Plc
125 Portland Street Jubilee House
Manchester Gosforth
M1 4QD Newcastle upon Tyne
NE3 4PL
Solicitors Withers LLP Anthony Collins Solicitors
16 Old Bailey 76 King Street
City of London Manchester
Greater London M2 4NH
EC4M 7EG

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Animal Free Research UK Ltd

Reference and administrative details

For the year ended 31 March 2022

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 2022

The trustees present their report along with the financial statements of the charity for the year ended 31 March 2022.

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 faster and save the lives of more 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 relevant 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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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.

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

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.

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

To achieve the charity’s 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 a programme to break down the barriers to animal free research within academia and industry.

This year our focus has been on collaborating with universities to provide high quality animal free project placements for early careers scientists to help train innovation leaders for the non-animal technology and medical research sectors. This has included a year-long placement to develop a database for researchers to transition away from animal-derived antibodies.

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We have also participated in collaborations with national and international partners, including to tackle animal reliance bias in scientific journals, and were commissioned to deliver a series of expert workshops 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.

We aim to influence robust public policy and regulatory change. By harnessing public support and placing scientific evidence at the heart of our message, we 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, our team includes 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 support the All-Party Parliamentary Group on Human Relevant Science which brings together MPs and Peers of all parties to accelerate the development and uptake of human relevant science in the UK.

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. It is only because of the kindness of our supporters that we can continue our vital work.

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. Our development team 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

The 12 months between March 2021 and March 2022 was a time when plans for many of us were subject to sudden change or cancellation because of lockdowns and restrictions as the UK sought a way out of the Covid-19 pandemic.

Like everyone, everywhere, we had to roll with the disappointments and adapt.

As you will read in the pages below, adapt we did – becoming stronger, smarter, nimbler, and more determined. Amid all the uncertainty of another pandemic riven year, we managed to thrive.

We performed well beyond expectation and achieved a great deal, epitomised by an increase in spending on animal free research – to help scientists adopt the latest approaches and replace animal experiments.

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The success we witnessed was down to astute financial stewardship, smart fundraising, clever marketing, targeted advocacy, cutting edge science and creative communications.

Indeed, we were able to expand our team, whose talent in turn has expanded our recognition and reach – and pushed our mission a great deal further towards our goal.

We pounced on any easing of restrictions and partial openings of laboratories to forge partnerships with universities to fund vital research projects. We also were able to reach out across the ‘pond’ and establish a partnership with the American Fund for Alternatives to Animals in Research (AFAAR), which has provided funds for exciting research grants.

We awarded new strategic grants, including to the lifETIME (Engineered Tissues for Discovery, Industry and Medicine) Centre for Doctoral Training, which has a strong commitment to develop technologies that replace and reduce the use of animals in research.

We gave out post-doctoral awards and PhD funding – one through the Daphne Jackson Trust to support a Fellow at the University of Bristol to undertake post-doctoral research into subcutaneous skin tissue absorption of drugs.

And we paid a lab visit in February to inspect our funded ‘mini-hearts’ project at the University of Nottingham’s Biodiscovery Institute, where Professor Chris Denning and his team are developing cutting edge human stem-cell technology to combat cardiac fibrosis – a major cause of heart failure in the UK, affecting 900,000 people annually.

We provided financial support for three new pilot study research projects in 2021-22, including the establishment of a human ex vivo keratitis model at University of Sheffield, and developing coculture microfluidic devices to study breast cancer at University of Aberdeen. These are just two of several exciting and vital research areas to better human health.

We also continued to support our Animal Replacement Centres of Excellence (ARCs) at Queen Mary University of London and University of Exeter. At Queen Mary, Professor Mike Philpott, Dr Adrian Biddle, and their team successfully developed a 3D metastasis-on-a-chip model which led to the discovery of cells which change shape and appear to be major players in cancer spread.

This amazing human relevant science resulted in Dr Biddle being awarded a major New Investigator Grant Award by the Medical Research Council to continue this ground-breaking work.

We upped the ante on our Public Affairs advocacy work, launching a campaign calling for the UK Government to establish an official function to accelerate animal free science. We commissioned an expert report on the economic potential of new approach methodologies, and we supported the All-Party Parliamentary Group on the Human Relevant Science workplan.

We collaborated with universities, high-impact journals and industry to enable animal free research to take place, letting our science and our scientists do the persuading and explaining. And we enjoyed a good year getting our name in the national and regional media to enhance public understanding and support, including a well-received op-ed by our Patron Joanna Lumley printed in The Times.

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New approaches to fundraising, marketing and communications resulted in enhanced supporter experience, which saw higher retention levels and stronger alignment to the charity’s values. Loyalty, trust and active support in the form of donations all increased. We introduced Trusts and Foundations as a new income source and it flourished, and we built relationships with new funders.

It is this creative, sophisticated diversification that strengthened engagement and boosted income generation.

We took disappointment on the chin – forced as we were to postpone our conference and the intended launch of our community of practice for animal free researchers, among other switches in the schedule.

But we were resilient and remained ambitious and committed as always. And as a result, we rode out the tail end of the pandemic storm well – more so perhaps than many others in the third sector.

However, at the time of writing the nation is facing the worst cost of living crisis since the 1950s and there is no denying that it will greatly impact almost all facets of society. We are expecting our bills to increase by a significant margin and our income may not keep pace with those rising costs.

We are privileged to have loyal supporters who do not waver in their generosity and unswerving belief in our mission to make animal free, human relevant research the gold standard. We are confident that together we will deliver. On behalf of the Board of Trustees, my grateful thanks to you all.

Laura-Jane Sheridan Chair of Trustees

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Achievements and performance

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

Opportunities

With the easing of Covid-19 restrictions and partial reopening of laboratories, we were able to partner with universities to fund two new significant research projects – one on breast cancer research and the other in support of a major centre for doctoral training. Following the cancellation of last year’s pilot studies grants call due to the pandemic, we were this year able to reinstate it and allocate funding for three new pilot projects.

Challenges

With scientific research still impacted by Covid-19 and Brexit, 2 projects with delayed starts due to the pandemic were concluded this year, having taken advantage of the extensions we offered to support researchers to continue their work post-pandemic.

Planned activity review

▪ Identifying new and joint funding opportunities to maximise funding for animal free research

Achieved:

We entered a partnership with the American Fund for Alternatives to Animals in Research (AFAAR), which has provided funds for the following research grants:

  1. £36,000 for a project on neurodegeneration and the effect of biological sex differences

  2. £36,000 for a tissue on a chip project at Bristol University through the Daphne Jackson Trust

▪ Implementing effective impact measurement and processes In progress:

In line with sector best practice, we have implemented a range of effective impact measurements including the impact of animal free approaches in scientific research.

▪ Revising our grant making strategy to increase our impact In progress:

Work has begun on revising our grant making strategy to increase its impact and a range of options considered by the Board for implementation during the next phase of our strategy from 2023.

▪ Funding a diverse range of post-doctoral and PhD level research into human diseases using animal free new approach methodologies at universities across the UK Achieved:

We provided financial support for three new research projects with grant funding totalling £148,000. Five papers were published disseminating the outcomes of our funded research (three about cancer and metastasis, one on diabetes and one on Covid-19). An outline of funded research follows:

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Strategic grants

NEW: lifETIME CDT at University of Glasgow, University of Birmingham, Aston University and CÚRAM – Science Foundation Ireland

The Engineered Tissues for Discovery, Industry and Medicine Centre for Doctoral Training (lifETIME CDT) focuses on developing animal free technologies for drug discovery, toxicology screening and regenerative medicine. It has a strong commitment to develop technologies that replace and reduce the use of animals in research. Animal Free Research UK strategically partnered with lifETIME CDT and awarded funding totalling £80,000 to support the first five years of the CDT in order to advocate for new ways to perform research and provide enhanced training to students – both helping to improve drug discovery in the future.

All research projects undertaken at the lifETIME CDT which meet our strict criteria are recognised as supported by Animal Free Research UK. One example is a PhD project which aims to develop a 3D bone marrow model system to test a range of drugs which could help to treat acute myeloid leukaemia.

Thiel embalmed cadavers for medical device testing at University of Dundee

Finishing in October 2021, this 5-year strategic project used the Thiel embalming method for human cadavers, which allows the preservation of texture and colour, joint mobility, open heart and blood vessels, resulting in cadaveric models with more life-like properties. It has saved the lives of both animals and people by training consultants who are now delivering treatments to patients.

There are ambitious plans to develop this resource as a global Centre for Excellence, championing the widespread adoption of this approach as the gold standard, and ultimately delivering the goal of providing superior scientific alternatives to replace the use of animals in this context. The success of the program is evidenced by exponential growth in the demand for these services, attracting multimillion-pound capital investment and engagement with world leading talent as the expert faculty.

Post-doctoral awards

Skin cancer research at University of Bristol

We are funding Daphne Jackson Trust Fellow at the University of Bristol to undertake postdoctoral research into subcutaneous skin tissue absorption of drugs, providing a grant of £102,532 over three years. A post-doctoral researcher is developing 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.

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.

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‘Mini-hearts’ and heart disease at University of Nottingham

Animal Free Research UK is funding the Biodiscovery Institute at the University of Nottingham to develop cutting edge human stem-cell technology to combat cardiac fibrosis – a major cause of heart failure in the UK, affecting 900,000 people annually. Dr Chris Denning and his team have been awarded £146,740 for a 3-year project to use special cells (human induced pluripotent stem cells), which can be coaxed into forming the major cell types of the heart (called cardiomyocytes, cardiac fibroblasts and endothelial cells). They are making ‘triculture’ microtissues to mimic patient heart function, including contraction, arrhythmia, failure and death. This will provide an alternative route to mechanistic insight and therapeutic development for cardiac fibrosis, without animals or products derived from animals.

Brain tumour research at University of Portsmouth

Brain tumours and other neurological diseases are particularly difficult to treat as the bloodbrain barrier (BBB) renders many drugs inaccessible to the brain. Our ground-breaking £150,000 post-doctoral research project at the University of Portsmouth finished in August 2021, having identified further uses of the BBB model, which could be extended to therapeutic emulsions and a variety of cancer cell types in brain metastasis studies as possible candidates for investigation.

PhDs

NEW: Breast cancer research at University of Aberdeen

Breast cancer is the most frequently diagnosed cancer in women, but early detection combined with contemporary treatments mean the outcome is often positive. Nevertheless, risk of disease recurrence through metastasis – the spread of cancer to a different part of the body – is ultimately what kills most patients and cannot be predicted easily by clinicians using current diagnostics. This four-year PhD project jointly funded by Animal Free Research UK (£18,000) and Medical Research Scotland (MRS), aims to develop animal free models to use as predictive platforms to investigate the likelihood of cancer spread.

Testing novel treatments for childhood lung infections at University College London

Now in its second year, our grant of £85,219 is funding 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 patients, 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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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. Now in its second year, our award of £84,370 is funding an innovative research project which is testing 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 are now using 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 patients as well as better understanding of this disease.

Smart materials for drug detection at University of Hertfordshire

Identifying the presence of opioids in a patient’s system can be conducted by immunoassay, using animal-derived antibodies, but this process is conducted in a pathology lab by specialists. This £40,000 four-year PhD project will develop an animal-free assay for detecting opioids, which gives a positive readout by turning from a liquid to a gel. This will allow for identification of opioid overdose rapidly by paramedics or nurses, allowing for immediate intervention, and ultimately saving lives.

Breast cancer research at University of Aberdeen

Breast cancer is the most common cancer in the UK, 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 final 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.

▪ Delivering a pilot study grant call to develop proof of concept for animal free research and unlock larger funding opportunities

Achieved:

We provided financial support for three new pilot study research projects in 2021-22. An outline of funded research follows:

Pilot studies

NEW: Establishing a human ex vivo keratitis model at University of Sheffield

We awarded a £5,000 pilot project to Dr Karunakaran to establish a human cornea model of a skin disease named ‘Pseudomonal keratitis’. This research aims to develop novel, humanrelevant infection models that can be used to test and refine the design of emerging antimicrobial drug candidates.

- NEW: Developing co culture microfluidic devices to study breast cancer at University of Aberdeen

This £5,000 pilot project awarded to Dr Liu and Prof Speirs focuses on developing an organon-a-chip to study the spread of breast cancer (metastasis). Current results using patient derived cancer cells suggest this animal free approach could offer advantages compared to other approaches. It also enables real time observation at the cellular level which is difficult to achieve in animals.

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- NEW: Vegetal based scaffolds for Tissue Engineering at University of Glasgow We have awarded a £4,000 pilot project to Dr Vassali and Prof Christie on the ‘VegFold’ project, which aims to produce scaffolds for tissue engineering entirely based on plants to study visceral myopathy, a rare intestinal disorder. The project aims to use leaves stripped of their own cells, that will be repopulated with human cells, with proteins produced in plants to obtain fully functional mini tissues.

Working towards an animal free model of human allergic immune responses at University of

Bedfordshire

This ongoing £4,600 pilot project awarded to Dr Furmanski aims to use a combination of in vitro techniques to study a subtype of human white blood cells, eosinophils, which are known to be involved in the allergic responses leading to the symptoms of asthma. Data and techniques established during this pilot project will be used for larger animal free funding applications and will attract new high-calibre scientists to the animal free field.

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

Manchester

This £5,000 research project to create human disease models of vascular dementia finished in October 2021. Using the gene editing technology CRISPR/Cas9, the researchers produced a very efficient pipeline to create DNA variants into a special type of cell called human induced pluripotent stem cells. The rapid and efficient gene editing pipeline established by this group will speed up future studies on the contribution of genetic factors to human diseases in general.

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

Completing in May 2021, this £4,919 nine-month research project developed a 3D mini cell culture model of stroke as a new way to test drugs. This work has helped develop an in vitro stroke model that uses organ-on-a-chip technologies to create 3D brain blood vessels which interact and communicate with brain cells to provide a system that much better reflects the structure of the human blood brain barrier. This Pilot Project enabled the team to secure a £150,000 grant with the University of Cambridge and an Oxford based biotech company to use this system to replace animal use in testing a novel therapeutic approach to treat genetic stroke disorders.

Investigating the nitric oxide pathway in Blood Outgrowth Endothelial Cells at Kingston This £5,000, six-month research project investigated the Nitric Oxide pathway in endothelial cells derived from Blood Outgrowth Endothelial Cells and completed in May 2021. The researchers found that this work mirrored work carried out in animals, but that also these cells may be a better model for examining human endothelial cells than other human models.

- Bioprinted 3D model screen to examine the safety and efficacy of drugs for bone pain at

University of Southampton

This twelve-month £5,000 project investigated the use of a new microfluidic 3D-bioprinting approach to selectively print nerve and bone progenitor cells for the fabrication of a threedimensional bone pain model. It finished in December 2021. The 3D model can be cultured in vitro for the development of novel therapies for the treatment of pain, using cells derived from patients. The model has a wide range applicability, with the ability to model multiple diseases involving pain (e.g. cancer-associated pain).

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Direct Replacement of Antibodies by Affimer Proteins for Glycan Detection at University of Leeds

This twelve-month, £5,000 project examined new artificial binding proteins (called ‘affimers’), used as animal free approaches for the detection of glycans produced during invasive fungal infections. It ended in February 2022. Unfortunately, the project was not concluded and efforts to screen for new affimers were not successful. Although disappointing, this could reduce work for other researchers aiming to do the same, and it encouraged the researchers to look for other suitable alternatives. Currently they are exploring the possible use of protein modules expressed in plants that recognize glycans.

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

Opportunities

Having cancelled our summer student programme due to the pandemic last year, we were this year able to run our flagship activity due to the partial easing of lockdown restrictions in laboratories and by hosting our two-day summer school online. This included hosting a virtual celebratory event that connected our young scientists with our supporter base.

We initiated and participated in additional online conferences, seminars and training sessions for early careers and seasoned researchers, including the World Congress on Alternatives and Animal Use in the Life Sciences, Advocates for Animals, University College London Bioethics society, the Canadian Animal Law Conference, the Advances in Cell and Tissue Culture conference, and the Center for Alternatives to Animal Testing at Johns Hopkins University.

Challenges

With the pandemic continuing into the year, inevitably some planned activities again had to be postponed, including our 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

▪ Continuing to support our Animal Replacement Centres of Excellent at Queen Mary University of London and University of Exeter

Achieved:

The charity funded two ARCs, making payments during the year totalling £164,238:

ARC 1.0 at Queen Mary University London: Cancer research

The initial funding for this ground-breaking centre ended in November 2021. During five years of £1m-funded research, Prof Mike Philpott, Dr Adrian Biddle and their team successfully developed a 3D metastasis-on-a-chip model. Using this model, Biddle’s group has trained computers (machine learning) to recognise and predict, from patients’ cancer biopsies, which tumours are most likely to metastasize. They also discovered that cells which change shape appear to be major players in cancer spread, and identified specific proteins at the cell membrane, allowing the researchers to isolate cells and track their behaviour in the new in-vitro metastasis model.

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This achievement has resulted in Dr Biddle being awarded a major New Investigator Grant Award by the Medical Research Council to continue this ground-breaking work. Building on this excellent success, Animal Free Research UK has this year awarded £50,000 co-funding for a three-year PhD project in Dr Adrian Biddle’s team. The aim of the project is to model head and neck tumour-induced changes to the normal cells, molecules, and blood vessels that surround and feed tumours, in a 3D in vitro system. The team will use mathematical modelling to predict the most important components of this environment that might be facilitating spread of the tumour to other parts of the body. This human-relevant 3D in vitro system can replace mice for this purpose.

- ARC 2.0 at University of Exeter: Diabetes, aging, and COVID 19 detection and prediction Led by Professor Lorna Harries, 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 six years.

Ending in April 2022, Animal Free Research UK supported a £174,860 three-year postdoctoral position at the University of Exeter to investigate the molecular mechanisms behind the development of type 2 diabetes. During this project, the researchers not only identified the gene causing changes in human beta cells under conditions of cell stress, but also identified potential means of targeting it in beta and retinal cells. Dysfunction of these cells is responsible for retinopathy – disease of the retina – which can lead to blindness and is one of the major complications of diabetes. This research could have future therapeutic potential.

Our initial 3-year grant of £84,973 for a research project on ageing has been extended due to restrictions resulting from the pandemic. 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. So far, they have validated 32 drugs from an initial screen of 230+ drugs. Part of this work has been analysed and forms the basis for further investigation into how synthetic female hormones may influence the ageing of cells. After this stage of the screen is complete, they hope to use bioinformatics-based techniques to identify any mechanisms involved in ageing.

Now in its second year, we provided funding totalling £52,351 to support Professor Harries’ research team in their VirAl Load In Covid-19 Disease (VALID) study. This aims to validate a novel, animal free technique for quantifying active viral load in Covid-19 positive individuals, and to explore its potential for use in predicting clinical outcomes and evaluating emerging treatments without the use of animals.

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▪ Delivering our annual Summer School Student programme

Achieved:

This year’s summer student programme provided opportunities to 11 undergraduate students to undertake an animal free research project over eight weeks during the summer. Due to the pandemic, we offered researchers the ability to provide placements in the laboratory where that was possible or via a virtual research project where lockdown restrictions were in place. We held the summer school as a virtual event over two days, providing the same high quality training programme including sessions science communications and career opportunities. In addition, we hosted an online celebration to connect the students with senior scientists and our supporters and to provide them with an opportunity to communicate their work to a range of audiences.

Parkinson’s disease: developing animal free methods to study genetic and environmental causes at University of Bath

This project developed a method to study the genetic and environmental causes of Parkinson’s disease in human brain cell lines, to assess whether the cells are entering a diseased state.

Creating an animal free approach towards regulatory (gene)toxicity testing methods at Swansea University

This project adopted a non-animal-based approach towards the construction of advanced physiological and anatomical models, and applying these to non-animal, regulatory-based, toxicological testing strategies for a variety of potential chemicals.

- Development of a high throughput screening tool to advance drug delivery in the eye at University of Birmingham

This project used a human cell-based membrane to act as a model for the cornea and allow the screening and monitoring of how different drugs penetrate across the cornea, and examined how drug penetration may be enhanced.

Cellular tools to study the function of the transcription factor TCF7L2 in organoids at University of Cambridge

This project investigated the function of the TCF7L2 molecule in the intestine and its role in colon cancer.

- Development of an ageing associated tumour predictive score using artificial intelligence approaches at Queen Mary University of London (ARC 1.0)

This project produced a list of genes associated with different prognoses for head and neck cancer. This comprehensive age-related gene list can be used to derive an ageingassociated tumour predictive score using artificial intelligence developed at ARC 1.0, which helps to predict response to treatment and chances of reoccurrence.

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- Designing an animal free method of culturing neuron like cells to study brain development at University of Exeter

This project, supervised by a former summer student, established a new method of growing neuron-like cells to eliminate the use of animal-derived materials. Our student tested an animal free version of the cell growth supplement, and her results were published in a peerreviewed journal.

Computer simulation to study myocardial infarction and traumatic cardiac arrest as a fresh alternative to animal models at University of Nottingham

This summer project investigated the pathophysiological changes of heart attack and severe haemorrhage, as leading causes of cardiac arrest, using a computer simulation of pulmonary and cardiovascular systems. This replaced rats, pigs, mice and rabbits, normally used in this field of research.

Breaking down barriers to improved bowel cancer treatments at Sheffield Hallam University

This project developed better models of bowel tissue ‘barrier’. Using human tissue-derived material, our student engineered the models so that they became as dense and stiff as the tissue seen in advanced-stage bowel cancer.

- Developing a new cell based model to study dementia at Keele University

This project tested if an animal free media can be used to grow and differentiate a cellular model of dementia. Nerve cells were grown in a commercial animal free medium called BrainPhys, and were treated with retinoic acid, which makes them change their characteristics to form the range of different types of cells found in the brain.

Accelerating magnetic resonance image acquisition process using deep learning at Imperial College London

The project improved the current algorithm of magnetic resonance image (MRI) acquisition. To reduce the time of acquiring the images, our student developed a method that used incompletely sampled MR images to reconstruct full, detailed images. This was done via deep learning, a type of artificial intelligence-based method.

Validation of a cancer stem cell prognostic score in head and neck cancer using artificial intelligence approaches at Queen Mary University of London (ARC 1.0)

This project validated and refined scores previously developed for head and neck cancer samples using artificial intelligence approaches. This allowed our student to address an important unmet clinical need: can we predict tumour recurrence and spread for head and neck cancer? This contributed to the work at ARC1.0 seeking to bypass the use of animals using artificial intelligence.

▪ Delivering workshops for early careers researchers Achieved:

We collaborated with the international partners to organise an early-career researcher webinar series.

▪ Facilitating and growing a community of practice for animal free researchers Postponed:

Due to the pandemic, a relaunch of the Community of Practice has been postponed until it is possible to have a face-to-face meeting to kickstart it.

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2022

Postponed:

Whilst preparations were made and a full programme of talks and activities organised, our annual conference which was due to take place in December 2021 unfortunately had to be postponed until next year due to Covid-19.

▪ Developing an award scheme to recognise pioneers in animal free research Achieved:

We developed and launched a new Animal Free Research Pioneer Award for Medal to celebrate the achievements of scientists who drive forward medical research which replaces animals. To commemorate the award, we commissioned one of the UK’s oldest medal makers to design and make a bronze medal. We hope this medal will become a prestigious annual award that elevates the perception of animal free research – and researchers – in the wider scientific community, and ultimately contributes to the cultural shift where animal free research is considered the gold standard. Following a rigorous selection process and some exceptional nominations, we selected Dr Don Ingber, the founding director of Harvard University’s Wyss Institute for Biologically Inspired Engineering, as recipient of our inaugural award. We were due to present him with the award and medal at our science conference which was postponed until June 2022.

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

Opportunities

Collaborating with universities and third sector partners presents a major opportunity for Animal Free Research UK to increase our impact and influence.

We have this year collaborated with universities associated with the lifETIME CDT to initiate student placements at Animal Free Research UK as part of a programme to help train innovation leaders for the non-animal technology and regenerative medicine sectors with multidisciplinary, high-value skills in the design, creation and application of new knowledge to accelerate therapeutic discovery. These placements encourage students into the animal free research community, provide them with experience and contribute relevant knowledge that can help our work.

Our part-funded PhD project at University of Hertfordshire has also provided an opportunity for a year-long placement at Animal Free Research UK. As part of a Knowledge Exchange partnership between us and the university, the PhD student, who is a summer student alumnus, joined our team for a year to create an easy-to-use database to enable scientists to transition from animal derived antibodies to replacements. A team of international experts on antibodies was co-opted to form a steering group to support the project.

We have continued to build productive working relationships with international partners and have initiated a collaboration on a project designed to tackle animal reliance bias in scientific journals.

Challenges

As well as the significant opportunities of collaborating with third parties, partnership working can also present challenges, not least when the ongoing global pandemic impacts the possibility and/or desire for face-to-face meetings. Progress has inevitably stalled in some areas of work, including facilitating round table discussions to produce standardisation criteria for cell culture in cancer research and preclinical testing.

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2022

Planned activity review

▪ Publishing a report on the current state of play of animal-derived biomaterials and the animal-free alternatives

In progress:

The European Centre for the Validation of Alternative Methods (ECVAM) has recommended a major phase out of animal-derived antibodies. Building on this initiative, Animal Free Research UK and the University of Hertfordshire are collaborating to develop an animal free antibody database, which is due for completion in the next financial year.

In progress:

We have been involved in a collaborative international effort to tackle animal reliance bias in publishing with scientific journal editors. This year we formed a steering group and defined a programme of work to take forward including a workshop scheduled for the next financial year.

▪ Coordinating expert workshops and publishing papers on the results In progress:

Having been commissioned last year by Cruelty Free International, Animal Free Research UK in collaboration with Safer Medicines Trust has delivered a series of expert workshops to investigate how new approach methodologies can be incorporated into preclinical pharmaceutical safety assessment. The proceedings are being written up for publication in a scientific journal in the next financial year.

This activity was postponed due to the knock-on effects of Covid-19.

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

Easing of Covid-19 restrictions has made it possible to begin organising some in-person meetings and events again, which are a valuable means of engaging with decision makers.

The Government has expressed its commitment to improving animal protection and has brought forward several bills to support this. While this is yet to translate into progress for animals used in research, it provides a useful foundation. In addition, the Government has continued to state its commitment to positioning Britain as a global leader in scientific research. The Government’s dual focuses on science and animal protection provide a helpful backdrop to our efforts to raise awareness about the benefits of replacing animals with more human relevant techniques.

Challenges

Pressures on parliamentarians’ time can make it difficult for them to engage with us. This challenge has been made more acute by recent global and national events, such as the war in Ukraine, the rising cost of living and the ongoing pandemic.

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2022

Since Public Affairs is a relatively new area of work for us, we have had to build relationships with policymakers from scratch. It can be challenging to reassure policymakers that we are an evidence-based, scientific organisation which is positive and solutions-focused.

Planned activity review

▪ Launching a campaign calling for the UK Government to establish an official function to accelerate animal free science

Achieved and ongoing:

We launched a detailed policy report on this subject which was widely shared with relevant decision makers. Over 1,500 people emailed their MP about it, three MPs raised the issue with the Prime Minister and five written questions were tabled following the report. An Early Day Motion was later tabled following the report and this was signed by 60 MPs before the end of March 2022.

▪ Commissioning an expert report on the economic potential of new approach methodologies

Achieved and ongoing:

We commissioned the Centre for Economics and Business Research (Cebr) to produce the report, which was published in October 2021, widely shared with decision makers and formed the basis of our submission to the Government’s spending review. The report found that NAMs are already making a significant economic contribution and predicted that this would continue to grow (contributing an estimated £2.5 billion to UK GDP by 2026).

▪ Supporting the delivery of the workplan of the All-Party Parliamentary Group on Human Relevant Science

Achieved and ongoing:

Together with partners in the Alliance for Human Relevant Science, we have continued to provide secretariat support for the APPG. The APPG held two further meetings over the course of 2021-22, hearing expert evidence about the funding of NAMs and regulatory environment. A report was produced summarising the evidence heard by the APPG and setting out key recommendations for policymakers, which was launched in March 2022.

▪ Playing a leading role in the Alliance for Human Relevant Science Achieved and ongoing:

As well as our work to support the APPG, we have played a leading role in improving the governance and strategic planning of the Alliance. Our CEO has now been appointed to the position of Chair of the Alliance.

▪ Working with partners to call on the UK Government to phase out the use of animals in medical research and phase in new approach methodologies

Achieved and ongoing:

We worked with two other organisations, Cruelty Free International and OneKind, to launch a government e-petition calling for a robust action plan to phase out animal experiments and replace these with human relevant techniques. This was debated in Parliament in October 2021 and gained over 100,000 signatures. In addition, we engaged with the Animals in Science Regulation Unit at the Home Office via virtual meetings and made the case for stronger enforcement of the legal requirement to use non-animal methods wherever possible.

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2022

As well as the activities listed above, we worked to raise awareness in Parliament of the benefits of replacing animal experiments with human relevant techniques. This included holding a drop-in session for MPs during British Science Week; arranging for an MP to visit a laboratory in her constituency where research funded by the charity is taking place; and meeting with MPs who have an interest in this area. We also submitted a detailed response to the House of Lords Science and Technology Committee’s inquiry into delivering the UK’s science strategy, emphasising the need to improve human relevance by replacing animals.

5. Fundraising, Marketing and Communications

Opportunities

This year saw some of the new approaches to fundraising, marketing and communications being stress-tested against a rather volatile sector, challenged by the ongoing pandemic restrictions and the new rising social, economic, and political issues which have made the plans of any charity more complex. Key opportunities remained in ongoing investment in digital transformation across teams, stronger integration of objectives and a growing focus on supporter experience.

We have continued the optimisation of our systems and processes, including development of tools for integration of supporter and public interaction with our cause, and a review of internal processes for increased accountability and transparency in donor management. The increased sophistication and effectiveness of our mini-campaign approach has proven particularly fruitful both in terms of income generation and strength of engagement. High retention levels have fostered a stronger supporter alignment to the charity’s values and, consequently, a high degree of loyalty and trust underpinning our mutually beneficial relationship.

Lastly, we continued to pursue a high level of income diversification, with Trusts and Foundations as a new income source introduced during the pandemic bearing the fruit of a strong pipeline and fast flourishing relationships with new funders. Therefore, dependency on legacy income has been reduced in part, whilst it continues to grow as we promote and disseminate information about the benefits of leaving a gift in will to our charity.

Challenges

We navigated the uncertainties of the pandemic, resulting in significant income growth against budget. The retention of our existing donor base and relaunch of flagship programmes such as the Summer Student School, and increased promotion of our projects through new audiovisuals, laboratory tours and increased interactivity have been key factors that favoured us.

However, the challenge of acquiring new and higher value lifetime donors proved bigger than estimated. Having been reassured by the level of uptake and support amongst the general public we pursued pre-pandemic ambitions. For example, engagement on advocacy campaigns and in support of our public affairs work has been extraordinary, however it has not translated into higher giving.

We are incredibly grateful for a surge in generosity from existing supporters who have supported us throughout the pandemic. Buoyed by their support we have continued to pursue growth, for example, of recurring donors, quickly realising the traditional approaches in telemarketing and payment processes (standing orders) are being replaced by digital subscription schemes and credit card sign-ups. This is where increased effort on how to improve and enhance the supporter experience through the digital medium is an ongoing area of development.

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2022

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 Integrated mini-campaigns with a spotlight focus on a disease-specific project. Our new audio-visual animation series, the Furry Five, has been introduced as an alternative to on-site video visits to laboratories and scientists so that supporters can experience our work and impact and to expand demographic reach.

Our social media communications plan has significantly intensified, featuring not only more fundraising and marketing opportunities, but also more advocacy and policy engagement calls to action.

We relaunched on-site lab visits, which also generated significant interest and increased income from those appeals. The mini-heart campaign is the perfect example of such new approaches, which has generated to date more than half the funds needed to fund a 3-year project.

We appointed a new Development and Engagement Manager to establish competences and skills that we have fostered throughout the year and we have plans for further growth of the team, responding to a need for upskilling.

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

Achieved and ongoing:

Trusts and Foundations grants as a newly started income stream have performed very well during the year. This allowed us to focus and test more new ways to grow individual giving via digital channels. Gaining new supporters remains challenging and generalised giving trends have become more muddled with the most recent Ukraine war emergency appeals, post-Brexit economic downturn and general socio-political changes. Despite this, we remained and continue to be optimistic about the future outlook. More people are engaging with Animal Free Research UK – online and beyond our geographic boundaries – and we believe this trend will continue. We are also grateful for contributions via third party platforms including AmazonSmile and JustGiving. Our third-party event new scheme, ‘Challenge for Change’ is evolving 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

Despite the challenges and Covid-19 restrictions, 2021 was a strong year for us. Thanks to the hard work of our colleagues and the generous support of our donors, we are in a sound financial position and have been able to grow the team and recruit for new roles.

Our colleagues have continued to work effectively from home despite needing to balance increased workloads and being affected by the pandemic themselves. The Trustees agreed to make remote working a permanent arrangement, freeing up valuable funds that would otherwise be spent on premises costs. This decision enables us to build the best possible team from a nationwide pool of talent to deliver our mission.

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2022

Challenges

Our small but expert and experienced staff team remain focused and immensely committed to the mission and we have ambitious plans to develop our charitable activity portfolio which inevitably puts strain across the organisation. We need to increase both capacity and capability if we are to continue being as effective as we have been.

The varying Covid-19 restriction levels and differing desires to come together in person has affected our plans to facilitate conversation and knowledge-sharing. We continue to embrace the ways technology can bring people together such as delivering our first ever virtual summer school.

Planned activity review

▪ Ensuring operational processes are fit for purpose

In progress:

The quest to reduce bureaucracy, increase efficiency and minimise administrative burden is one of continuous improvement with no end date. During the past year, our achievements included the successful charity-wide implementation of project management software, a substantial redesign of our use of grant management software, commissioning a data protection and cyber security assessment and the documentation of processes in our new internal knowledge base.

▪ Investing in a motivated and expert staff team Achieved:

During the year we successfully recruited for several newly created positions to meet our needs as a growing organisation. We welcomed new team members in projects, development, finance and operations.

We carried out a staff engagement survey and were delighted by the overwhelming positive response, which was a huge improvement on the survey two years prior, with 100% of respondents being proud to work for Animal Free Research UK and feeling motivated to go beyond what they would in a similar role elsewhere.

We take seriously our responsibility to ensure value for money in everything we do, including using our funding wisely to pay competitive and fair salaries to enable us to recruit and retain staff with the right values and skills to achieve our mission. We benchmarked our salaries by comparing ourselves with similar not-for-profit organisations using recognised salary data specialising in the charity sector.

We are passionately committed to being an organisation where everyone is welcome, respected, included and empowered to be their best. We commissioned an independent audit of our policies in relation to equality, diversity and inclusion (EDI) and to gather feedback from Trustees and staff to identify areas for improvement and the results will be reviewed in the new Financial Year.

▪ Regularly reviewing performance, flexing and innovating as needed Achieved:

We determined the metrics needed for effective impact measurement as well as organisational and team performance KPIs, and can now improve our regular reporting.

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2022

Following last year’s substantial revision of the risk register, we undertook a review of the charity’s risk appetite to ensure that the Trustees and senior management team are aligned. We also assessed board operations against the Charity Governance Code and formalised the use of a governance calendar.

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:

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

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2022

5. Inspire, engage and grow public and private support for animal free research by: ▪ Relaunching World Animal Free Research Day and Awareness Week in May, with an increase in campaigning and action-oriented activities;

6. Ensure effective governance, systems and processes by: Maintaining our focus on efficiency, staff and performance review with activities including:

Financial review

The charity achieved total income for the year of £1,408,763 (2021: £1,505,965) against a budget of £0.9m - an excellent result in the circumstances and we sincerely thank our supporters for their generosity. £827,183 (2021: £498,404) was generated from donations and grants while £561,467 (2021: £998,099) came from legacy gifts. We received a government grant of £165,759 from the Medical Research Charities COVID Support Fund for Early-Career Researchers.

The charity was determined to increase research expenditure during the year, having reduced our spending in the prior year as the pandemic hit. This year we funded three new medical research projects with net grant spend of £124,348 compared with net spend of £55,255 in the prior year.

We are delighted with the progress we have made in our key charitable objective of promoting human-relevant replacements to the use of animals in medical research, particularly with regard to influencing decision makers. We increased our spend in this area to £150,688 (2021: £77,030) and, as detailed earlier, have seen huge progress made in engaging with politicians both directly and through our supporters.

Total expenditure on charitable activities increased from £462,066 to £758,090.

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2022

A successful year for fundraising and the continued shrewd and careful management of costs has allowed us to increase our spend on animal free research, increase our headcount, and generate an overall surplus of £357,955 (2021: £785,799), increasing our total funds on 31 March 2022 from £1,782,651 to £2,140,606. We plan to use the surplus and excess funds to further grow our charitable activities, diversify income and help cushion any impact that the current cost of living crisis will have on our activities. Our total funds includes £763,344 which has been designated for future grant-giving.

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. In 2021, the Trustees agreed a stricter ethical policy, with particular emphasis on prioritising investments in products and institutions that are aligned with the charity’s objects, values and policies.

The respective positions of these products and 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.

Reserves policy and going concern

We monitor and review the suitability of our reserves policy at least annually.

A sizeable portion of the charity’s income is derived from legacy gifts, which by its nature is unpredictable, and the Trustees consider that free reserves should be at a level where, 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 continues to operate a policy of retaining sufficient funding to cover at least six months of non-grant and operating expenditure and we remain in compliance with this policy.

These free reserves (being total reserves less restricted and designated funds and excluding the value of tangible fixed assets) stand at £1,237,693 (2021: £959,479) representing approximately ten months’ expenditure based on the 2022/23 budget. The charity aimed for – and achieved – compliance to ensure that any delayed impact of the pandemic on our income could be mitigated and the delivery of our strategy be protected. At the year end the charity held funds of £2,140,606 (2021: £1,782,651), comprising £8,721 of tangible fixed assets (equipment), £56,000 of investment property, and £2,754,656 of current assets (primarily cash at bank and fixed term deposits). The charity has £74,848 (2021: £48,017) of restricted funding and £763,344 (2021: £768,000) is designated for future grant giving. The remaining funds of £1,302,414 (2021: £966,634) are held as general funds.

The Trustees take a prudent view of legacies due and commit general reserves to charitable activity as soon as appropriate. Management and the Trustees regularly review detailed forecasts of income, expenditure and cash flows, and expected figures are carefully monitored against actual outcomes with variances highlighted and discussed. The Trustees are confident that the charity remains a going concern and have advised management to focus on sustainable income growth that will be sufficient to fund and create a step change in the culture of medical research.

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2022

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.

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 development 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 2021-22 we received 0 complaints (2021: 0 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.

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2022

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:

M Ashby (appointed November 2021) N Barbosa (resigned October 2021) C Byatt (resigned December 2021)

D Cameron M Chan (appointed July 2021) A Ellison (resigned October 2021) S Honess (appointed July 2021) G Pilkington (appointed April 2022)

J Jones LJ Sheridan

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.

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2022

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 8 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 committees which meet quarterly:

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, Legal 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:

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2022

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.

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:

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.

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2022

Auditors

Godfrey Wilson Limited were re-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 29 October 2022 and signed on their behalf by

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

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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 2022 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:

▪have been prepared in accordance with the requirements of the Companies Act 2006.

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.

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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 including the strategic 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.

32

Independent auditors' report

To the members of

Animal Free Research UK Ltd

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.

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.

(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:

33

Independent auditors' report

To the members of

Animal Free Research UK Ltd

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.

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: 30 October 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

34

Animal Free Research UK Ltd

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

For the year ended 31 March 2022

Restricted Unrestricted
Note
£
£
Income from:
Donations and legacies
3
374,670
1,013,980
Charitable activities
-
15,000
Other trading activities
-
235
Investments
-
4,878
Total income
374,670
1,034,093
Expenditure on:
Raising funds
-
290,968
Charitable activities
5,964
752,126
Total expenditure
5
5,964
1,043,094
Net income before losses
368,706
(9,001)
Net losses on investments
-
(1,750)
Net income
368,706
(10,751)
Transfers between funds
(341,875)
341,875
Net movement in funds
8
26,831
331,124
Reconciliation of funds:
Total funds brought forward
48,017
1,734,634
Total funds carried forward
74,848
2,065,758
14		 2022
Total
£
1,388,650
15,000
235
4,878
1,408,763
290,968
758,090
1,049,058
359,705
(1,750)
357,955
-
357,955
1,782,651
2,140,606		 2021
Total
£
1,496,503
-
-
9,462
1,505,965
258,100
462,066
720,166
785,799
-
785,799
-
785,799
996,852
1,782,651

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 18 to the accounts.

35

Animal Free Research UK Ltd

Balance sheet

As at 31 March 2022

Note
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
13
Current asset investments
14
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year
15
Net current assets
Total assets less current liabilities
16
Net assets
17
Funds
18
Restricted funds
Unrestricted funds
Designated funds
General funds
Total charity funds
Creditors: amounts falling due after more than
1 year		 £
640,360
578,106
1,536,190
2,754,656
(406,429)		 2022
£
8,721
56,000
64,721
2,348,227
2,412,948
(272,342)
2,140,606
74,848
763,344
1,302,414
2,140,606		 2021
£
7,155
-
7,155
945,595
591,712
1,304,939
2,842,246
(720,907)
2,121,339
2,128,494
(345,843)
1,782,651
48,017
768,000
966,634
1,782,651

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 29 October 2022 and signed on their behalf by

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

36

Animal Free Research UK Ltd

Statement of cash flows

For the year ended 31 March 2022

Note
Cash used in operating activities:
Net cash used in operating activities
19
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
Cash equivalents held in current asset investments
14		 2022
£
77,683
4,878
(7,416)
-
(2,538)
75,145
1,896,651
1,971,796
1,536,190
514,606
2,050,796		 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

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

37

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2022

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.

38

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2022

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:

2022 2021
Raising funds 29.6% 33.7%
Charitable activities 70.4% 66.3%

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

39

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2022

1. Accounting policies (continued) j) Investment property

Investment property is property (land or a building, or both) held (by the owner or by the lessee under a finance lease) to earn rentals or for capital appreciation or both.

Investment property is initially measured at valuation when gifted. Investment property is subsequently measured at fair value at the reporting date. This method of valuation applies to all the charitable company’s investment properties.

Gains or losses arising from changes in the fair value of investment property are included in net profit or loss on the face of the Statement of Financial Activities for the period in which they arise.

k) 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.

l) 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.

m) Current asset investments

Current asset investments are investments which a charity holds for resale or pending their sale and cash or cash equivalents with a maturity date in excess of 30 days and less than one year.

n) 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.

o) 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.

p) 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.

q) 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.

40

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2022

1. Accounting policies (continued)

r) 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.

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.

Investment properties

The valuation of investment property is deemed to be the market value of the land, as determined by a RICS registered surveyor.

41

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2022

2. Prior period comparatives: statement of financial activities

Income from:
Donations and legacies
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net income
Transfers between funds
Net movement in funds
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
£
£
105,489
1,391,014
-
9,462
105,489
1,400,476
-
258,100
15,894
446,172
15,894
704,272
89,595
696,204
(122,906)
122,906
(33,311)
819,110
Restricted
£
£
374,670
452,513
-
561,467
374,670
1,013,980
Restricted
£
£
49,938
448,466
55,551
942,548
105,489
1,391,014
Unrestricted
Unrestricted
Unrestricted		 2021
Total
£
1,496,503
9,462
1,505,965
258,100
462,066
720,166
785,799
-
785,799
2022
Total
£
827,183
561,467
1,388,650
2021
Total
£
498,404
998,099
1,496,503

4. Government grants

The charity received one government grant, defined as funding from the UK Government COVID Medical Research Charity Support Fund to fund charitable activities. The total value of such grants in the period ending 31 March 2022 was £165,759 (2021: £Nil). There are no unfulfilled conditions or contingencies attaching to these grants in 2021/22.

42

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2022

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
Rent and rates
Sundry expenses
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
£
-
-
106,481
39,600
2,957
-
6,940
-
742
-
1,055
-
2,821
85
30,062
-
-
190,743
100,225
290,968		 Charitable
activities
£
124,348
5,232
253,188
-
59
-
304
-
1,057
-
1,281
-
-
30,940
57,859
-
45,508
519,776
238,314
758,090		 Support and
governance
costs
£
-
-
174,451
-
30,544
4,512
5,908
549
7,065
3,234
9,577
1,970
917
29,698
147
20,407
49,560
338,539
(338,539)
-		 2022 Total
£
124,348
5,232
534,120
39,600
33,560
4,512
13,152
549
8,864
3,234
11,913
1,970
3,738
60,723
88,068
20,407
95,068
1,049,058
-
1,049,058

Total governance costs were £39,436 (2021: £35,121).

43

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2022

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
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

44

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2022

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:

2022
No.
Research grants:
University of Exeter (COVID-19)
1
University of Aberdeen
3
University of Birmingham
1
Univeristy of Cambridge
1
Coventry University
1
The Daphne Jackson Trust Fellowship
-
University of Exeter
2
University of Glasgow
2
Imperial College London
2
University of Keele
1
University of Nottingham
1
Public Health England
1
Queen Mary University of London
3
University of Sheffield
2
University of Swansea
1
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		 2022
£
3,942
27,956
2,000
2,000
500
-
3,797
84,000
2,440
2,000
2,000
1,956
53,440
7,000
2,000
195,031
(70,683)
124,348		 2021
No.
1
-
-
-
-
1
-
-
-
-
-
-
-
-
-
2022
£
1,006,778
195,031
(532,291)
(70,683)
598,835		 2021
£
52,351
-
-
-
11,249
-
-
-
-
-
-
-
-
-
63,600
(8,345)
55,255
2021
£
1,513,684
63,600
(562,161)
(8,345)
1,006,778

45

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2022

8. Net movement in funds

This is stated after charging:

Depreciation
Loss on disposal of tangible fixed assets
Trustees' remuneration
Trustees' reimbursed expenses
Auditors' remuneration:
Statutory audit (including VAT)		 2022
£
4,512
1,338
Nil
381
9,450		 2021
£
4,770
-
Nil
53
9,000

Trustees reimbursed expenses relate to travel and stationery costs for 4 trustees (2021: 2 trustees for postage costs).

9. Staff costs and numbers

Staff costs were as follows:
Salaries and wages
Social security costs
Pension costs		 2022
£
478,096
48,340
7,684
534,120		 2021
£
355,824
32,379
6,292
394,495

Included in salaries and wages are redundancy and termination costs totalling £2,500. Redundancy and termination costs have been funded from unrestricted general funds (note 18).

One employee earned between £60,000 and £70,000, and one employee earned between £70,000 and £80,000 during the year (2021: Two employees earned between £60,000 and £70,000 during the year).

The key management personnel of the charitable company comprise the Trustees, Chief Executive Officer, Director of Finance and Operations, Director of Development, Director of Science and Director of Public Affairs. The total employee benefits of the key management personnel were £249,917 (2021: £182,677).

Average head count:

Charitable activities
Generating funds
Support and governance
Average head count		 2022
No.
6
2
4
12		 2021
No.
4
2
3
9

46

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2022

10. Taxation

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

11. Tangible fixed assets

Tangible fixed assets
Cost
At 1 April 2021
Additions in year
Disposals
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
Disposals
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
Investments
Market value
At 1 April 2021
Additions in year
At 31 March 2022		 £
17,209
7,416
(3,249)
Computer
equipment
21,376
10,054
4,512
(1,911)
12,655
8,721
7,155
£
-
56,000
Investment
property
56,000

12. Investments

The investment property comprises an ultimate 12.5% interest in a plot of agricultural land at Denmead (see note 20). The property was last valued in September 2022 by Simon Proctor MRICS of Proctor Chartered Surveyors, Milton Keynes, RICS registered valuer. The fair value is deemed to be the estimated market value of the land.

47

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2022

13. Debtors
Trade debtors
Accrued legacy income and other debtors
Other accrued income
Prepayments
14. Current asset investments
Market value at 1 April 2021
Additions
Unrealised losses
Movement in cash balances
Market value at 31 March 2022
Represented by:
Short term investments
Cash and cash equivalents
Total
15. Creditors : amounts due within 1 year
Other taxation and social security
Grants payable (note 7)
Trade creditors
Other creditors
Accruals
16. Creditors : amounts due after 1 year
Grants payable (note 7)		 2022
£
11,661
606,776
6,593
15,330
640,360
2022
£
591,712
65,250
(1,750)
(77,106)
578,106
63,500
514,606
578,106
2022
£
17,048
326,493
43,798
2,278
16,812
406,429
2022
£
272,342		 2021
£
-
923,160
7,675
14,760
945,595
2021
£
586,980
-
-
4,732
591,712
-
591,712
591,712
2021
£
10,779
660,935
26,613
12
22,568
720,907
2021
£
345,843

48

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2022

17. Analysis of net assets between funds

Tangible fixed assets
Investments
Current assets
Current liabilities
Non current liabilities
Net assets at 31 March 2022
Prior period comparative
Tangible fixed assets
Current assets
Current liabilities
Non current liabilities
Net assets at 31 March 2021		 £
-
-
74,848
-
-
74,848
£
-
48,017
-
-
48,017
Restricted
funds
Restricted
funds		 Designated
funds
£
-
-
763,344
-
-
763,344
Designated
funds
£
-
768,000
-
-
768,000		 £
8,721
56,000
1,916,464
(406,429)
(272,342)
1,302,414
£
7,155
2,026,229
(720,907)
(345,843)
966,634
General
funds
General
funds		 Total
funds
£
8,721
56,000
2,754,656
(406,429)
(272,342)
2,140,606
Total
funds
£
7,155
2,842,246
(720,907)
(345,843)
1,782,651

49

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2022

18. Movements in funds

Movements in funds
Restricted funds
ARC 2.0
AFAAR grants:
Tissue on a chip
Sex differences
Barratt legacy
Brain tumour
COVID-19
Diabetes
Mini Hearts
Public affairs
Skin cancer
Summer studentships
Other restricted funds
Total restricted funds
Unrestricted funds
Designated funds
Grant making fund
General funds
Total funds
Total unrestricted
funds
Medical Research
Council grants		 At 1 April
2021
£
-
-
-
27,340
20,652
-
-
-
-
-
-
-
25
48,017
768,000
966,634
1,734,634
1,782,651		 Income
£
1,974
37,476
37,476
-
278
1,292
63,370
165,759
47,229
10,000
3,043
5,964
809
374,670
-
1,034,093
1,034,093
1,408,763		 £
-
-
-
-
-
-
-
-
-
-
-
(5,964)
-
(5,964)
-
(1,043,094)
(1,043,094)
(1,049,058)
Expenditure		 £
(1,974)
(37,476)
-
-
(20,930)
(1,292)
(63,370)
(165,759)
(47,229)
-
(3,043)
-
(802)
(341,875)
(4,656)
346,531
341,875
-
Transfers
between
funds		 Gains /
losses
£
£
-
-
-
-
-
37,476
-
27,340
-
-
-
-
-
-
-
-
-
-
-
10,000
-
-
-
-
-
32
-
74,848
-
763,344
(1,750)
1,302,414
(1,750)
2,065,758
(1,750)
2,140,606
At 31 March
2022
74,848
763,344
1,302,414
2,065,758
2,140,606

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.

AFAAR grants

Funding awarded by the American Fund for Alternatives to Animal Research (AFAAR) for research relating to sex bias in biomedical research and tissue on a chip technology.

50

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2022

18. Movements in funds (continued) Purposes of restricted funds (continued) Barratt legacy Refers to a legacy gift that was donated for the purpose of supporting research into coronary thrombosis and stroke.

Brain tumour Refers to funds donated specifically to support the study of brain tumours at University of Portsmouth.

COVID-19 Refers to funds donated specifically to support the study of Covid-19 at University of Exeter.

Diabetes Refers to funds donated specifically to support the study of diabetes at University of Exeter.

Medical Research Funding awarded by the Medical Research Council (MRC) to support early Council grants career researchers.

Mini Hearts Refers to funds donated specifically to support the study of heart disease at University of Nottingham. Public Affairs Refers to funds donated specifically to support public affairs work. Skin cancer Refers to funds donated specifically to support the study of skin cancer. Summer studentships Refers to funds donated specifically to our annual summer student programme. Other restricted funds Contains smaller restricted donations of less than £500.

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 2022 is intended to cover new grant awards during the 2022-23 year, and continuation funding for certain 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.

51

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2022

18. Movements in funds (continued) Prior period comparative

Movements in funds (continued)
Prior period comparative
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
(15,894)
28,042
-
315
-
1,444
-
-
-
1,323
-
105,489
(15,894)
-
-
1,400,476
(704,272)
1,400,476
(704,272)
1,505,965
(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

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

Net movement in funds
Adjustments for:
Losses on investments
Gifts of shares and property received
Dividends, interest and rents from investments
Depreciation charges
Disposal of fixed assets
Decrease / (increase) in debtors
Decrease in creditors
Net cash provided by / (used in) operating activities		 2022
£
357,955
1,750
(200,250)
(4,878)
4,512
1,338
305,235
(387,979)
77,683		 2021
£
785,799
-
-
(9,462)
4,770
-
(600,469)
(471,335)
(290,697)

52

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2022

20. 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.

21. Interest in The Hinge Trust

During the year, the charity was transferred a 6.25% beneficial interest in a family trust, known as The Hinge Trust. As at the date of signing the accounts, the trustees have been unable to ascertain the full contents of the trust, but are aware that the trust holds a large parcel of arable land, located at Brompton Farm Road, Rochester, ME2 3QZ. As the charity does not have control or significant influence over the trust, no amounts have been recognised in the accounts in this period.

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 £1,515 by the charity for legal advice (2021: £900). No amounts were owing at year end (2021: £Nil).

During the year, 6 trustees made unconditional donations to the charity amounting to £1,919 (2021: £1,095 from 4 trustees).

There were no other related party transactions in the year.

53