## **THE MESSAGE ENTERPRISE CENTRE** 

## **ANNUAL REPORT & FINANCIAL STATEMENTS** 

## **YEAR ENDING 31 AUGUST 2024** 

## **Company Limited by Guarantee** 

**Company Registration Number 07892774** 

**Registered Charity Number 1147287** 



## **THE MESSAGE ENTERPRISE CENTRE FINANCIAL STATEMENTS YEAR ENDING 31 AUGUST 2024** 

|**CONTENTS**|**PAGES**|
|---|---|
|Reference and administrative details|2|
|Report of the Trustees|3 - 9|
|Independent Auditor’s report to the members|10 - 13|
|Statement of financial activities|14|
|Balance sheet|15|
|Statement of cash flows|16|
|Notes to the financial statements|17 - 29|



Page 1 



## **THE MESSAGE ENTERPRISE CENTRE REFERENCE AND ADMINISTRATIVE DETAILS** 

## **The Board of Trustees** 

G. J. Haynes (Chairman) A. C. Leakey R. D. White A. L. Orr-Ewing Dr L. Neilson – _Appointed 14 December 2023_ 

**Company Secretary** 

I. Rowbottom 

**Chief Executive** 

S. Ward 

**Business Centre Manager** 

S. Hawthorne 

## **Registered Office** 

6 Harper Road Sharston Manchester Lancashire M22 4RG 

## **External Auditors** 

Beever and Struthers One Express 1 George Leigh Street Ancoats Manchester M4 5DL 

## **Bankers** 

National Westminster Bank PLC 699 Wilmslow Road Didsbury Manchester M20 6NW 

Page 2 



## **THE MESSAGE ENTERPRISE CENTRE REPORT OF THE TRUSTEES YEAR ENDING 31 AUGUST 2024** 

The Trustees have pleasure in presenting their report (including the directors’ report as required by company law) and the financial statements of the charity for the year ending 31 August 2024. 

The Message Enterprise Centre is a company limited by guarantee and a registered charity governed by its memorandum and articles of association.  Charity number 1147287.  Company number 07892774.  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. 

## **BACKGROUND AND OBJECTIVES** 

The Message Enterprise Centre was incorporated on 28 December 2011, as a company limited by guarantee, and became a registered charity on 17 May 2012. 

The Message Enterprise Centre changed its objects by special resolution on 5 February 2019.  Our objective is now: 

- To advance the Christian faith and relieve unemployment for the benefit of the public with a specific focus on young people and vulnerable adults who are at risk of re-offending or who have poor employment potential, through education, enterprise, befriending, mentoring, faithbased activities and outreach. 

_These objects are being worked out in three main areas_ : 

- Building on relationships established by The Message Trust’s Prisons team, providing longterm, one-to-one mentoring and support to ex-offenders upon their release from prison. 

- Following a period of probation, offering training and employment to prison leavers in one of our businesses (currently on-site café and catering services, property and events management, and building services) as ‘apprentices’. In addition, we seek to offer the same training and development opportunities in our businesses to those who have poor employment potential, including those previously homeless or suffering from addictions. 

- In partnership with local churches, providing resettlement help and supportive community in local areas across Greater Manchester, especially in areas where the Eden Network has a presence. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

The directors of the charitable company (“the charity”) are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees. 

The Trustees’ recruitment is by personal contact of existing Trustees and the Executive Team. Potential Trustees typically attend board meetings prior to their appointment in order to meet other members of the Board and Executive team to ensure they are a sound match and share the vision and values of the charity. They are then elected by the Board of Trustees in consultation with the Chief Executive, on the basis of their expertise, professional experience and qualifications, wisdom and advice that they can bring to the Management and Administration of the Trust. Training and induction are provided to new Trustees as appropriate. 

Page 3 



## **THE MESSAGE ENTERPRISE CENTRE** 

## **REPORT OF THE TRUSTEES YEAR ENDING 31 AUGUST 2024** 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)** 

The Board of Trustees has a variety of experience including both Christian ministry and commercial business skills.  They meet quarterly to oversee the vision and strategies of the charity.  Executive Directors and the Business Centre Manager have been appointed by the Trustees to oversee the day-to-day operations of the charity.  The Board is accountable to the Charity Commission for the careful use of charitable and other public funds provided in a variety of forms, and for the achievement of appropriate performance standards in service delivery.  The Board also undertakes at least one additional annual away-day for the purposes of further developing The Message Enterprise Centre Mission and Vision, and to concentrate on continuous improvement in performance. 

With the growth of activities of the Trust an increasing level of expertise is required on a day-to-day basis and an established senior management team is in place that is capable of running the affairs of the Trust.  The Trust's senior management team is the Executive Board, headed by the Chief Executive, Mr A Hawthorne.  The Executive Board meets monthly, and its members are both jointly and individually accountable via the Chief Executive to the Board of Trustees. 

Day-to-day management matters are further scrutinised by a cross-functional team of internal departmental managers who meet regularly, and monthly management accounts are utilised by the Senior Management team to ensure financial budgets and fundraising targets are being met. This group’s work is referred back to the Trustee’s whenever a more significant matter of policy or other key decision-making arises. 

The Message recognises the importance of our staff and aims to help them to develop their potential, improve their skills and gain greater job satisfaction. 

## **Summary of priorities:** 

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. 

Our mission is to advance the Christian faith, relieve unemployment and help break the pattern of re-offending through one-to-one mentoring, training and employment, and supportive community. 

The Message Enterprise Centre’s Executive leadership team seek to achieve this by motivating staff and volunteers with a compelling vision and supporting them within a robust management framework. 

Volunteers are crucial to the smooth running of the Centre. Our team of regular volunteers provides support to our businesses, particularly The Mess Café when catering for large functions. We ensure they have comprehensive support in their roles through appropriate policies and procedures, clarifying the extent of their remit and providing checks and balances in relation to the key areas of the Management & HR Strategy. 

Page 4 



# **THE MESSAGE ENTERPRISE CENTRE REPORT OF THE TRUSTEES YEAR ENDING 31 AUGUST 2024** 

## **ACHIEVEMENTS AND PERFORMANCE** 

## **The Message Enterprise Centre: 2023-24 in review** 

## **MEC - OUR YEAR** 

This year, the operations and related assets (excluding investment properties) of the Message Enterprise Centre transferred to sit within in the parent charity, The Message Trust. 

As the financial stability of the activities associated with the Message Enterprise Centre have increased over the past few years, and the related risks reduced to an acceptable level, discussions began about transferring the activity to sit within The Message Trust in order to bring about efficiencies and reduce the administrative burden of operating two closely linked charities. 

This transfer of the business activities started at the end of the prior year, and concluded at the start of this financial year, in September 2023. There are no current plans to close the Message Enterprise Centre charity, and the charity retains the 16 investment properties on its balance sheet, which are all leased on a rolling basis to The Message Trust. 

The charitable purposes of the Message Enterprise Centre are still being outworked in The Message Trust going forwards, including the operating of The Mess Café and Neal Street Espresso coffee shops, offering an enterprise programme of work-based training and discipleship to those at risk of reoffending or with poor employment potential. 

As partnerships across the UK grow, our vision to expand our enterprise work into other areas of the UK, offering training and discipleship opportunities to team members remains and continued to grow under The Message Trust. 

## **MEC - SUPPORTER EVENTS AND FUNDRAISING** 

Following the transfer of the charity’s activities, and therefore major operating costs, to the parent charity at the start of the year, there were no direct fundraising activities this year to raise money for the MEC. The MEC continues to have the full support of its parent charity 

## **CHARITABLE GIVING** 

Our charitable giving this year totalled £nil (2023: £39) which was mainly gifts to staff of The Message Enterprise Centre. 

## **PLANS FOR FUTURE PERIODS** 

Since the operations of the MEC transferred to the parent charity, The Message Trust, in September 2023, there are no operating goals for The Message Enterprise Charity this year, but goals being outworked by The Message Trust and reported on in their 2023-24 Annual report and Financial Statements. 

Page 5 



## **THE MESSAGE ENTERPRISE CENTRE REPORT OF THE TRUSTEES YEAR ENDING 31 AUGUST 2024** 

## **FINANCIAL REVIEW** 

The 2024 accounts have been prepared in accordance with the Charities SORP (Statement of Recommended Practice) (second edition – October 2019) Accounting and Reporting by Charities: applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), as published January 2022. 

The Trustees have taken the opportunity to review all The Message Enterprise Centre’s key accounting policies to ensure that they are in accordance with the requirements of the Charities SORP (FRS 102) and best accounting practice. 

## **Review of the year** 

Total income for the year was £219k (2023: £1,431k), with total expenditure of £221k (2023: £1,168k), resulting in a net loss before gains on investments of (£2k). Net surplus after gains on investments was £106k, leaving Unrestricted total funds carried forward of £3,758k (2023: £3,651k) available for future periods, of which £3,709k (2023: £3,601k) is designated for future projects, and £49k (2023: £50k) is general funds freely available to spend on any of the charity’s purposes. 

## **Income and Expenditure** 

Following the transfer of The Message Enterprise Centre's main charitable activities to The Message Trust, the MEC relies on the support of its parent charity as its principal source of funding. The significant income in the year is the £76,820 of intercompany rent received from TMT for the Community Grocery warehouse, and housing for the Message School of Evangelism Students. Total donations, including Gift Aid amounted to £117k (2023: £122k), whilst The Message Trust gave a separate material item of income to The Message Enterprise Centre totalling £25k (2023: £458k). 

Other gifts from individuals and Trusts were £nil in the year, due to the transfer of activities, all fundraising for the group was focussed on the Message Trust charity. 

Direct costs of the Charitable Activities were £221k down £1.1m from prior year (2023: £1.1m), due to the transfer activity to the Parent charity. Support costs were £35k (2023: £92k), and the cost of Raising Funds were £nil in 2024 (2023: £310). 

## **Governance** 

The £7.2k governance (2023: £8.7k) includes the expenses associated with Trustee Board meetings, Trustee elections, maintaining our constitution, audit fees and core executive management. 

Page 6 



## **THE MESSAGE ENTERPRISE CENTRE REPORT OF THE TRUSTEES YEAR ENDING 31 AUGUST 2024** 

## **FINANCIAL REVIEW** (continued) 

## **Balance Sheet** 

Included in the Balance Sheet as at 31st August 2024 is Cash at bank of £62k (2023: £95k), Net current liabilities are £5.5k (2023: Current Assets £50k), and Total net assets are £3.76m (2023: £3.65m). The small net current liability position is largely due to a £43k balance on deferred income, relating to a donation from The Message Trust, which was deferred until the transfer of the Neal Street property to The Message concluded. The Message completed on the purchase of the head lease of the property post year-end in November 2024, after MEC surrendered its sub-lease, so once this deferred income is released post year end, the charity will return to a net current asset position. 

## **Investment Powers and Policies** 

The Trustees have the power to invest surplus funds of the charity in investments, securities and property as they think fit.  The current policy of the Trustees is to invest funds not immediately required by the charity into a range of Deposit accounts which bear competitive rates of interest. This policy is reviewed periodically by the Trustees. 

## **Reserves policy** 

The Trustees have adopted a reserves policy which they consider appropriate, to ensure the continuing ability of The Message Enterprise Centre to meet its objectives and obligations. 

The total funds held by MEC at 31 August 2024 are £3,758k (2023: £3,651k), are all unrestricted and available for the general purposes of the charity. 

In order to be prudent, The Message Enterprise Centre aims to accumulate, in general reserves, an amount at least equal to one month’s operating costs, approx. £22k (2023: £22k).  This has been achieved in the current year.  The amount of General Funds, excluding restricted and designated funds, freely available to spend on any of the charity’s purposes as at 31 August 2024 was £49k (2023: £50k).  Over the coming year the Trustees’ have set financial budgets, which aim to increase the amounts held in general reserves, in order to maintain this policy as the charity grows. 

In addition, the Trustees have designated funds to Future Projects arising over the next 5 years £3,709k at 31 August 2024 (2023: £3,601k).  These designated funds are held in the form of buildings and other fixed assets, which are an ongoing resource for future mission projects across the charity. The designated fund for Future Mission Projects can only be realised by disposing of £3,709,496 (2023: £3,600,877) the amount of tangible fixed assets and investment properties held by The Message Enterprise Centre. 

Page 7 



## **THE MESSAGE ENTERPRISE CENTRE REPORT OF THE TRUSTEES YEAR ENDING 31 AUGUST 2024** 

## **FINANCIAL POLICIES** 

## **Remuneration Policy** 

The remuneration policy seeks to balance our Christian values and the need to attract and retain staff with appropriate qualifications and skills. 

The UK Leadership Team review the organisations pay scales by benchmarking against similar jobs in the North-west and a London weighting is applied where appropriate.  We review the retail price and consumer price indices for inflation on an annual basis, before deciding upon any annual increments for inflation.  Individual staff salaries are reviewed annually, with mid-term reviews every 6 months. The Executive pay is set within the same pay grade structure. 

The Trustees set and approve the salary for the Chief Executive on an annual basis, by benchmarking against similar sized Charities with reference to the Association of Chief Executives of Voluntary Organisations (ACEVO) annual Pay and Equalities Survey. 

The key management personnel for the Message Enterprise Centre are common to the parent charity The Message Trust.  They include the Trustees, Chief Executive Officer and other members of the Executive.  The Trustees do not receive any remuneration for their services, whilst the Executive Officers are reimbursed by The Message Trust and their time recharged to The Message Enterprise Centre at cost, as appropriate. 

## **Social Investment Policy** 

In order to provide appropriate affordable housing for The Message School of Evangelism Students during their one-year course, as well as providing refurbishment and building maintenance opportunities for our Message Enterprise Building Team Members the charity has adopted a policy of investing in local Wythenshawe properties, rather than renting properties from local landlords. This policy started in 2016 and has continued since then. 

## **Principal Risks and Uncertainties** 

The Trustees have identified four principal risk areas for both The Message Trust and its subsidiary The Message Enterprise Centre.  These cover potential risks to the reputation of both charities, financial sustainability, safeguarding of young people & vulnerable adults, and cyber security, arising from both internal and external factors.  The principal financial sustainability risks present at the year-end are related to the sustained price rises and high levels of inflation across the UK which are increasing operational costs for the charity. The Trustees have adopted a number of measures to counter each of these risks, to reduce the likelihood that they will adversely affect the charity.  These strategies are reviewed periodically to ensure they remain effective and are considered sufficient measures to protect the charitable group, its staff, and beneficiaries from significant harm. 

The Trustees assessment of these financial risks is discussed in more detail in the ‘Going concern’ note on page 17. 

Page 8 



## **THE MESSAGE ENTERPRISE CENTRE REPORT OF THE TRUSTEES YEAR ENDING 31 AUGUST 2024** 

## **DIRECTORS AND TRUSTEES** 

The directors of the charity (“the charity”) are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees. 

The Trustees serving during the year and since the year-end were as follows: 

G.J. Haynes A.C. Leakey A. L. Orr-Ewing Dr L. Neilson (appointed 14 December 2023) R.D. White 

## **RELATED PARTIES** 

A summary of transactions with related parties is set out in note 18 of the financial statements. 

## **TRUSTEES’ RESPONSIBILITIES** 

The Trustees (who are also directors of The Message Enterprise Centre for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity at the end of the period and of the income and expenditure for the year then ended. 

In preparing those financial statements, the Trustees are required to select suitable accounting policies, as described on pages 17 to 21, and then apply them on a consistent basis, making judgements and estimates that are prudent and reasonable.  The Trustees must also prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operations. 

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with 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: 

- there is no relevant audit information of which the charitable company’s auditor is unaware; and 

- the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 

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. 

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. 

The annual report was approved by the Trustees of the charity on 23 May 2025 and signed on its behalf by: 


Gordon Haynes, Chairman of Trustees       Date: 23 May 2025 

Page 9 



## **THE MESSAGE ENTERPRISE CENTRE** 

## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE MESSAGE ENTERPRISE CENTRE** 

## **Opinion** 

We have audited the financial statements of The Message Enterprise Centre ‘the charitable company’ for the year ended 31 August 2024 which comprise Statement of Financial Activities including the Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and the related notes 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 FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice). 

## **In our opinion, the financial statements:** 

- give a true and fair view of the state of the charitable company’s affairs as at 31 August 2024 and of its incoming resources and application of resources loss for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- 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 charitable company 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 the provisions available for small entities, in the circumstances set out in the Trustees’ Responsibilities on page 9, 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 Trustee’s 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 charitable company’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. 

Page 10 



## **THE MESSAGE ENTERPRISE CENTRE** 

## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF** 

## **THE MESSAGE ENTERPRISE CENTRE** (Continued) 

## **Other information** 

The other information comprises the information included in the annual report, including the Trustees’ report, other than the financial statements and our auditor’s report thereon.  The Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the other information.  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

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

We have nothing to report in this regard. 

## **Opinions on other matters prescribed by the Companies Act 2006** 

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

- the information given in the Trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the directors’ report within the Report of the Trustees has been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the Trustees’ report. 

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

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of Trustees’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit. 

Page 11 



## **THE MESSAGE ENTERPRISE CENTRE** 

## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF** 

**THE MESSAGE ENTERPRISE CENTRE** (Continued) 

## **Responsibilities of Trustees** 

As explained more fully in the Trustees’ Responsibilities Statement set out on page 9, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 

## **Auditor’s responsibilities for the audit of the financial statements** 

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

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. 

In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: 

- We obtained an understanding of laws, regulations and guidance that affect the charitable company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws, regulations and guidance that we identified included the Companies Act 2006, tax legislation, health and safety legislation, Charities Act England & Wales and employment legislation. 

- We enquired of the Trustees and reviewed correspondence and Trustee meeting minutes for evidence of non-compliance with relevant laws and regulations.  We also reviewed controls the Trustees have in place, where necessary, to ensure compliance. 

- We gained an understanding of the controls that the Trustees have in place to prevent and detect fraud.  We enquired of the Trustees about any incidences of fraud that had taken place during the accounting period. 

- The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned and performed to address these risks. 

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## **THE MESSAGE ENTERPRISE CENTRE** 

## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF** 

## **THE MESSAGE ENTERPRISE CENTRE** (Continued) 

- We reviewed financial statements disclosures and supporting documentation to assess compliance with relevant laws and regulations discussed above. 

- We enquired of the Trustees about actual and potential litigation and claims. 

- We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud. 

- In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias. 

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards.  For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s web-site 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 charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.  Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose.  To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body for our audit work, for this report, or for the opinions we have formed. 


Sue Hutchinson FCCA (Senior Statutory Auditor) For and on behalf of BEEVER AND STRUTHERS Statutory Auditor One Express 1 George Leigh Street Manchester M4 5DL 

Date:   28 May 2025 

Page 13 



## **THE MESSAGE ENTERPRISE CENTRE** 

## **STATEMENT OF FINANCIAL ACTIVITIES** 

## **(INCLUDING AN INCOME AND EXPENDITURE ACCOUNT) YEAR ENDING 31 August 2024** 

|Unrestricted<br>Funds<br>Note<br>£<br>**INCOME**<br>Donations and Legacies<br>3a<br>116,907<br>Income from Charitable activities<br>3b<br>76,820<br>Income from Other trading activities<br>3c<br>-<br>Investment Income<br>3d<br>125<br>Separate material item of income<br>3e<br>25,065<br>**TOTAL INCOME**<br>218,917<br>**EXPENDITURE**<br>Raising Funds<br>4a<br>-<br>Charitable Activities<br>4b<br>221,273<br>**TOTAL EXPENDITURE**<br>221,273<br>Net (Expenditure) / Income before<br>Investment gains<br>(2,356)<br>Net gains on investments<br>108,619<br>**NET INCOME / (EXPENDITURE)**<br>106,263<br>**NET MOVEMENT IN FUNDS**<br>106,263<br>Total Funds Brought Forward<br>3,651,277<br>**TOTAL FUNDS CARRIED FORWARD**<br>3,757,540|Restricted<br>Funds<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|**Total**<br>Total<br>**2024**<br>2023<br>**£**<br>£<br>**116,907**<br>121,514<br>**76,820**<br>845,974<br>**-**<br>4,987<br>**125**<br>768<br>**25,065**<br>457,612<br>**218,917**<br>1,430,855<br>**-**<br>310<br>**221,273**<br>1,167,741<br>**221,273**<br>1,168,051<br>**(2,356)**<br>262,804<br>**108,619**<br>-<br>**106,263**<br>262,804<br>**106,263**<br>262,804<br>**3,651,277**<br>3,388,473<br>**3,757,540**<br>3,651,277|
|---|---|---|



The charity has no recognised gains or losses other than the results for the year as set out above. 

All of the activities of the charity, as shown above, are classed as continuing operations. 

The notes on pages 17 to 29 form an integral part of these financial statements **.** 

Page 14 



## **THE MESSAGE ENTERPRISE CENTRE** 

## **BALANCE SHEET** 

## **AS AT 31 AUGUST 2024** 

|Note<br>**FIXED ASSETS**<br>Tangible fixed assets<br>9<br>Investments<br>10<br>**Total Fixed assets**<br>**CURRENT ASSETS**<br>Stocks<br>11<br>Debtors<br>12<br>Cash at bank and in hand<br>13<br>**Total current assets**<br>**CREDITORS: Amounts falling due**<br>**within one year**<br>14<br>**NET CURRENT (LIABILITIES) / ASSETS**<br>**TOTAL ASSETS LESS CURRENT LIABILITIES**<br>**TOTAL NET ASSETS**<br>**FUNDS OF THE CHARITY**<br>Restricted Income Funds<br>15a<br>Unrestricted Funds<br>15b<br>**TOTAL FUNDS**|**The**<br>**Message**<br>**Enterprise**<br>**Centre**<br>**2024**<br>**£**<br>**14,063**<br>**3,749,000**<br>**3,763,063**<br>**-**<br>**13,538**<br>**62,309**<br>**75,847**<br>**(81,370)**<br>**(5,523)**<br>**3,757,540**<br>**3,757,540**<br>**-**<br>**3,757,540**<br>**3,757,540**|The<br>Message<br>Enterprise<br>Centre<br>2023<br>£<br>54,496<br>3,546,381|
|---|---|---|
|||3,600,877|
|||11,113<br>72,599<br>94,581|
|||178,293|
|||(127,893)|
|||50,400|
|||3,651,277|
|||3,651,277|
|||-<br>3,651,277|
|||3,651,277|



These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.  The notes on pages 17 to 29 form an integral part of these financial statements, which were approved and authorised for issue by the Trustees on 29 May 2024 and signed on their behalf by: 

## R D White 

Robert White, Trustee 


Gordon Haynes, Trustee 

## **Company Registration Number 07892774** 

Page 15 



## **THE MESSAGE ENTERPRISE CENTRE** 

## **STATEMENT of CASH FLOWS YEAR ENDING 31 August 2024** 

|**EMENT of CASH FLOWS**<br>**R ENDING 31 August 2024**||||
|---|---|---|---|
||Note|**2024**|2023|
|**Cash flows from operating activities**||**£**|£|
|Net movement in funds||**106,263**|262,804|
|**Adjustments to cash flows from non-cash items**||||
|Depreciation||**28,125**|39,146|
|(Profit) / Loss on disposal of tangible fixed assets||**1,000**|**-**|
|Investment income|3d|**(125)**|(768)|
|Disposal of Tangible Fixed Assets|9|**11,309**|**-**|
|Revaluation of investments|10|**(108,619)**|**-**|
|||**37,953**|301,182|
|**Working capital adjustments**||||
|Decrease / (Increase) in stocks|11|**11,113**|(4,357)|
|Decrease / (Increase) in debtors|12|**59,062**|(7,549)|
|Decrease / (Increase) in creditors||**(87,854)**|(75,921)|
|Decrease / (Increase) in deferred income|14|**41,329**|2,850|
|Net cash flows from operating activities||**61,603**|216,205|
|**Cash flows from investing activities**||||
|Interest receivable and similar income|3d|**125**|768|
|Purchase of investments|10|**(94,000)**|(151,381)|
|Net cash flows from investing activities||**(93,875)**|(150,613)|
|**Cash flows from financing activities**||||
|Net cash flows from financing activities||**-**|-|
|Net (Decrease) / increase in cash and cash equivalents||**(32,272)**|65,592|
|Cash and cash equivalents at 1 September||**94,581**|28,989|
|Cash and cash equivalents at 31 August|13|**62,309**|94,581|



The notes on pages 17 to 29 form an integral part of these financial statements. 

Page 16 



**THE MESSAGE ENTERPRISE CENTRE** 

## **NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 August 2024** 

## **1. ACCOUNTING POLICIES** 

## **Basis of preparation** 

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.  The financial statements of the charity are made up to 31 August 2024. 

The accounts (financial statements) have been prepared in accordance with the Charities SORP (Statement of Recommended Practice) (second edition – October 2019) Accounting and Reporting by Charities: applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) as published January 2022, with the Charities Act 2022, the Companies Act 2006 and with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102). 

The charity meets the definition of a public benefit entity under FRS102.  The Charity exists for the benefit of the public through the promotion of Christian values and spiritual development, providing education, mentoring and enterprise services, in particular to those who have poor employment potential. 

## **Financial statements** 

The financial statements are presented in GBP and rounded to the nearest £.  The accounts include all transactions, assets and liabilities for which the charity is responsible in law. 

## **Going concern** 

The Trustees consider that there are no material uncertainties related to events or conditions that cast significant doubt on the charity’s ability to continue to operate as a going concern, particularly as it continues to have the full support of its parent charity – The Message Trust, having all its Trustees in common with the parent charity. 

The Trustees have considered this, as well as the current levels of reserves and cash including general funds available to the Charity, in their assessment and believe the charity is well-placed to manage its risks and continue to operate as a going concern. 

## **Key Judgements and sources of estimation uncertainty** 

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 relevant factors, including reasonable expectations of future events. However, because balances cannot be determined with certainty, actual results may differ from these estimates and assumptions. The main areas which involve such estimates and judgements include the useful lives of fixed assets and the valuation of the Group’s investment properties. 

The carrying value and annual depreciation charges for tangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets, which are reviewed annually for their current condition and economic utilisation and amended when necessary to reflect current estimates. Impairment on tangible fixed assets is evaluated when an asset is held for sale. See note 9 for the carrying amount of the tangible fixed assets. 

The Trustees have based the charity’s investment property valuations on observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset, combined with comparison to movements in Housing Price Indices since their last independent professional valuation – see note 10 for details. 

Page 17 



## **THE MESSAGE ENTERPRISE CENTRE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 August 2024** 

## **INCOME** 

## **Recognition of income** 

These are included in the Statement of Financial Activities (SoFA) when: 

- the charity becomes entitled to the resources; 

- it is more likely than not that the Trustees will receive the resources; and 

- the monetary value can be measured with sufficient reliability. 

## **Donations and Grants** 

Donations and grants are only included in the SoFA when the general income recognition criteria are met (5.10 to 5.12 Charities SORP (FRS102)). 

In the case of performance related grants, income is only recognised to the extent that the charity has provided the specified goods or services as entitlement to the grant only occurs when the performance related conditions are met (5.16 Charities SORP (FRS 102)). 

Income is deferred only when there are conditions to fulfil before becoming entitled to it and where the donor has specified that the income is to be expended in a future period. 

## **Offsetting** 

There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the Charities SORP (FRS 102) or FRS 102. 

## **Legacies** 

Legacies are included in the SOFA when receipt is probable, that is, when there has been grant of probate, the executors have established that there are sufficient assets in the estate and any conditions attached to the legacy are either within the control of the charity or have been met. 

## **Tax reclaims on donations and gifts** 

Gift Aid receivable is included in income when there is a valid declaration from the donor.  Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise. 

## **Contractual income** 

This is only included in the SoFA once the charity has provided the related goods or services. 

## **Donated services and facilities** 

Donated services and facilities are included in the SOFA when received at the value of the gift to the charity provided the value of the gift can be measured reliably. 

Donated services and facilities that are consumed immediately are recognised as income with an equivalent amount recognised as an expense under the appropriate heading in the SOFA. 

## **Donated goods** 

Donated goods are measured at fair value (the amount for which the asset could be exchanged) unless impractical to do so. 

The cost of any stock of goods donated for distribution to beneficiaries is deemed to be the fair value of those gifts at the time of their receipt and they are recognised on receipt.  In the reporting period in which the stocks are distributed, they are recognised as an expense at the carrying amount of the stocks at distribution. 

Donated goods for resale are measured at fair value on initial recognition, which is the expected proceeds from sale less the expected costs of sale and recognised in 'Income from other trading 

Page 18 



## **THE MESSAGE ENTERPRISE CENTRE** 

## **NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 August 2024** 

activities' with the corresponding stock recognised in the balance sheet.  On its sale the value of stock is charged against 'Income from other trading activities' and the proceeds from sale are also recognised as 'Income from other trading activities' 

Goods donated for on-going use by the charity are recognised as tangible fixed assets and included in the SoFA as incoming resources when receivable. 

Gifts in kind for use by the charity are included in the SoFA as income from donations when receivable. 

## **Volunteer help** 

The value of any voluntary help received is not included in the accounts but is described in the Trustees’ annual report. 

Many volunteers give freely of their time in the service of our Lord for the Trust, the value of which is unquantifiable. 

## **Income from interest and royalties** 

This is included in the accounts when receipt is probable, and the amount receivable can be measured reliably. 

## **EXPENDITURE and LIABILITIES** 

## **Liability recognition** 

Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty. 

## **Governance and support costs** 

Support costs have been allocated between governance costs and other support.  Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice. 

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, e.g. allocating staff costs by the time spent and other costs by their usage. 

## **Grants with performance conditions** 

Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the SoFA once the recipient of the grant has provided the specified service or output. 

## **Grants payable without performance conditions** 

Where there are no conditions attaching to the grant that enables the donor charity to realistically avoid the commitment, a liability for the full funding obligation is recognised. 

## **Creditors** 

The charity has creditors which are measured at settlement amounts less any trade discounts. 

## **Basic financial instruments** 

Page 19 



## **THE MESSAGE ENTERPRISE CENTRE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 August 2024** 

The charity accounts for basic financial instruments on initial recognition at cost, as per paragraph 11.7 SORP (FRS102).  Subsequent measurement is at fair value (their market value), as per paragraphs 11.17 to 11.19, SORP (FRS102). 

## **ASSETS** 

## **Tangible fixed assets for use by charity** 

These are capitalised if they can be used for more than one year and cost at least £1,000 (Prior to 1 September 2021, if they cost at least £500).  They are valued at cost. 

Depreciation is provided in equal annual instalments over the estimated useful lives of the assets and is calculated on the cost or valuation of the assets. 

The following annual rates are used: 

|llowing annual rates are used:||
|---|---|
|Leasehold Property|20%|
|Oaks Fixtures and Fittings|25%|
|Business Equipment|25%|
|Motor Vehicles|25%|



Depreciation is first charged in the quarter following acquisition and up to the month of disposal. No provision is made for the increased cost of tangible fixed assets. 

## **Investments** 

Fixed asset investments are valued initially at cost and subsequently at fair value (their market value) at the year-end unless fair value cannot be measured reliably in which case it is measured at cost less impairment. 

Investments held for resale (or pending their sale) and cash and cash equivalents with a maturity date of less than 1 year are treated as current asset investments. 

## **Investment properties** 

Investment properties are carried at fair value, derived from the current market prices for comparable real estate determined by external valuers, with properties being valued on a rolling basis every five years.  The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset.  Changes in fair values are recognised in profit or loss. 

## **Stocks and work in progress** 

Stocks held for sale as part of non-charitable trade are measured at the lower of cost or net realisable value.  Cost is determined using the First-in, First-out (FIFO) methodology. 

Goods or services provided as part of a charitable activity are measured at net realisable value based on the service potential provided by items of stock. 

Work in progress is valued at cost less any foreseeable loss that is likely to occur on the contract. 

Page 20 



## **THE MESSAGE ENTERPRISE CENTRE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 August 2024** 

## **Debtors** 

Debtors (including trade debtors and loans receivable) are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the charity.  Subsequently, they are measured at the cash or other consideration expected to be received. 

## **Current asset investments** 

The charity has investments which it holds for resale (or pending their sale) and cash and cash equivalents with a maturity date less than one year.  These include cash on deposit and cash equivalents with a maturity date of less than one year held for investment purposes rather than to meet short term cash commitments as they fall due. 

They are valued at fair value except where they qualify as basic financial instruments. 

## **Funds** 

Funds held by the charity are either: 

## _Unrestricted general funds_ 

These are funds that can be used in accordance with the charitable objects at the discretion of the Trustees. 

## _Designated funds_ 

These are unrestricted funds that have been earmarked for a particular project.  This designation is for administrative purposes only and does not restrict the Trustees’ discretion to apply the fund within the objects of the charity. 

## _Restricted funds_ 

These are funds that can only be used for particular restricted purposes within the objects of the charity.  Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. 

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. 

## **Operating leases** 

Rentals payable under operating leases are charged to the Statement of Financial Activities in equal annual instalments over the term of the lease. 

## **Pension costs and other benefits** 

The pension costs charged in the financial statements represent the contributions payable by the company during the period in accordance with FRS 102.  The charity provides a defined contribution scheme for staff. 

## **2. LEGAL STATUS OF THE CHARITY** 

The charity is a private company limited by guarantee, incorporated in England and Wales, and has no share capital.  The registered office is 6 Harper Road, Manchester, M22 4RG.  The liability of each member in the event of winding-up is limited to £1. 

Page 21 



## **THE MESSAGE ENTERPRISE CENTRE** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **YEAR ENDING 31 August 2024** 

## **3. INCOME** 

|Unrestricted<br>Funds<br>Total<br>£<br>**3a Donations and Legacies**<br>Gifts Individuals<br>-<br>Gifts via Stewardship / CAF<br>-<br>Gifts Churches, Ministries & Business<br>-<br>Gifts Trusts & Foundations<br>-<br>Gift Aid<br>-<br>Gifts in Kind<br>116,657<br>Grants<br>-<br>Sponsored Events<br>-<br>Legacies<br>250<br>116,907<br>**3b Income from Charitable Activities**<br>Business Enterprises<br>-<br>Rental Income<br>-<br>Event Income<br>-<br>Sundry Income<br>76,820<br>76,820<br>**3c Income from Other trading activities**<br>Fundraising Events<br>-<br>Sundry Income<br>-<br>-<br>**3d Investment Income**<br>Bank Interest Received<br>125<br>125<br>**3e Separate Material Item of Income**<br>Donation from The Message Trust<br>25,065<br>25,065<br>**TOTAL INCOME**<br>218,917|Restricted<br>Funds<br>Total<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>0<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|**Total**<br>**2024**<br>£<br>**-**<br> <br>**-**<br> <br>**-**<br> <br>**-**<br> <br>**-**<br> <br>**116,657**<br>**-**<br> <br>**-**<br> <br>**250**<br> <br>**116,907**<br>**-**<br>**-**<br>**-**<br>**76,820**<br>**76,820**<br>**-**<br>**-**<br>**-**<br>**125**<br>**125**<br>**25,065**<br>**25,065**<br>**218,917**|Unrestricted<br>Funds<br>Total<br>£<br>54,084<br>5,239<br>11,040<br>3,750<br>12,398<br>-<br>-<br>-<br>-<br>86,511<br>491,650<br>87,844<br>9,379<br>257,101<br>845,974<br>80<br>2,772<br>2,852<br>768<br>768<br>457,612<br>457,612<br>1,393,717|Restricted<br>Funds<br>Total<br>£<br>1,491<br>962<br>7,691<br>23,500<br>353<br>-<br>1,000<br>6<br>-<br>35,003<br>-<br>-<br>-<br>-<br>-<br>2,135<br>-<br> <br>2,135<br>-<br>-<br>-<br>-<br>37,138|Total<br>2023<br>£<br>55,575<br>6,201<br>18,731<br>27,250<br>12,751<br>-<br>1,000<br>6<br>-|
|---|---|---|---|---|---|
||||||121,514|
||||||491,650<br>87,844<br>9,379<br>257,101|
||||||845,974|
||||||2,215<br>2,772|
||||||4,987|
||||||768|
||||||768|
||||||457,612|
||||||457,612|
|||||||
||||||1,430,855|



Many volunteers give freely of their time in the service of our Lord for the Charity, the value of which is unquantifiable. 

Page 22 



## **THE MESSAGE ENTERPRISE CENTRE** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **YEAR ENDING 31 August 2024** 

## **4. EXPENDITURE** 

|**Unrestricted Funds**<br>**4a Raising Funds**<br>Fundraising - Events<br>**4b Charitable Activities**<br>Business Enterprises<br>Governance<br>**Total Expenditure Unrestricted**<br>**Restricted Funds**<br>**4b Charitable Activities**<br>Business Enterprises<br>Neal Street Espresso<br>Apprentice Funding<br>**Total Expenditure Restricted**<br>**TOTAL EXPENDITURE**|Staff<br>Deprecia<br>tion<br>Project<br>Costs<br>**Direct**<br>**Costs**<br>Staff<br>Deprecia<br>tion<br>Other<br>Support<br>Costs<br>**Total**<br>**Support**<br>**Costs**<br>£<br>£<br>£<br>**£**<br>£<br>£<br>£<br>**£**<br>-<br>-<br>-<br>**-**<br>-<br>-<br>-<br>**-**<br>-<br>-<br>-<br>**-**<br>-<br>-<br>-<br>**-**<br>-<br>-<br>185,963<br>**185,963**<br>-<br>28,127<br>-<br>**28,127**<br>-<br>-<br>-<br>**-**<br>-<br>-<br>7,183<br>**7,183**<br>-<br>-<br>185,963<br>**185,963**<br>-<br>28,127<br>7,183<br>**35,310**<br>-<br>-<br>185,963<br>**185,963**<br>-<br>28,127<br>7,183<br>**35,310**<br>-<br>-<br>-<br>**-**<br>-<br>-<br>-<br>**-**<br>-<br>-<br>-<br>**-**<br>-<br>-<br>-<br>**-**<br>-<br>-<br>-<br>**-**<br>-<br>-<br>-<br>**-**<br>-<br>-<br>-<br>**-**<br>-<br>-<br>-<br>**-**<br>-<br>-<br>-<br>**-**<br>**-**<br>**-**<br>-<br>**-**<br>**-**<br>**-**<br>**185,963**<br>**185,963**<br>**-**<br>**28,127**<br>**7,183**<br>**35,310**|**Total**<br>**2024**<br>**£**<br>**-**<br> <br>**-**<br> <br>**214,090**<br>**7,183**|Total<br>2023<br>£<br>310|
|---|---|---|---|
||||310|
||||1,069,186<br>8,716|
|||**221,273**|1,077,902|
|||||
|||**221,273**|1,078,212|
|||**-**<br>**-**<br>**-**|3,414<br>5,841<br>80,584|
|||**-**|89,839|
|||||
|||**-**|89,839|
|||||
|||**221,273**|1,168,051|



## **5. NET INCOME** 

This is stated after charging / (crediting): 

|Auditors’ remuneration<br>Depreciation of owned assets<br>Annual charges from operating leases:<br>Building Lease<br>Rental of Property<br>Hire of equipment|**2024**<br>2023<br>**£**<br>£<br>**6,276**<br>8,452<br>**28,125**<br>39,146<br>**1,822**<br>28,488<br>**75,000**<br>75,000<br>**607**<br>1,266|
|---|---|



## **6. ANALYSIS OF SUPPORT COSTS** 

All Support costs have been allocated directly to each project on a basis consistent with the use of resources. 

|**Charitable Activities**<br>Business Enterprises|**Admin, HR &**<br>**Other Support**<br>**Staff**<br>**£**<br>28,126<br>28,126|**2024**<br>2023<br>**Total**<br>Total<br>**£**<br>£<br>**28,126**<br>83,261<br>**28,126**<br>83,261|
|---|---|---|



Page 23 



## **THE MESSAGE ENTERPRISE CENTRE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 August 2024** 

## **7. INFORMATION REGARDING TRUSTEES AND EMPLOYEES** 

||**2024**|2023|
|---|---|---|
|**Employee costs during the year:**|**£**|£|
|Wages and salaries|**-**|334,990|
|Social security costs|**-**|17,155|
|Pension costs|**-**<br>|8,876|
||**-**<br>|361,021|



There was no staff employed by the charity during the year (2023: 13).  This includes both full-time and part-time staff.  When expressed as full-time equivalents this was as follows: 

|Charitable Activities<br>Cost of Generating Funds<br>Governance / Management<br>Others - Support<br>**Average number of full-time equivalent staff**<br>**employed:**|**2024**<br>2023<br>**No.**<br>No.<br>**-**<br>12<br>**-**<br>0<br>**-**<br>0<br>**-**<br>1<br>**-**<br>13|
|---|---|



No employee received emoluments of more than £60,000 in the year. 

Amounts paid or reimbursed to Trustees £nil (2023: £nil) 

The key management personnel are defined as the Trustees, CEO and other Executive Directors of the group in office during the year.  They do not receive any remuneration from The Message Enterprise Centre, and there was no Executive Officers for The Message Enterprise Centre cost recharged by the parent charity, The Message Trust.  Their total remuneration for the year from the parent charity was £375k (2023: £380k) and there was no recharges to MEC in the year for the services of the Executive officers (2023: £85k). 

## **8. TAX ON SURPLUS ON ORDINARY ACTIVITES** 

|Corporation tax based on the trading results<br>for the year at Nil% (2023: Nil%)|**2024**<br>2023<br>**£**<br>£<br>**-**<br>-<br>**-**<br>-|
|---|---|



The company is a registered charity and is therefore exempt from taxation on its charitable activities. 

Page 24 



## **THE MESSAGE ENTERPRISE CENTRE** 

## **NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 August 2024** 

## **9. TANGIBLE FIXED ASSETS** 

|Leasehold<br>Property<br>**£**<br>**Cost**<br>At 1 September 2023<br>140,628<br>Additions<br>-<br>Disposals<br>-<br>At 31 August 2024<br>140,628<br>**Depreciation**<br>At 1 September 2023<br>98,440<br>Charge for year<br>28,125<br>Disposals<br>-<br>At 31 August 2024<br>126,565<br>**Net Book Value**<br>**At 31 August 2024**<br>14,063<br>At 31 August 2023<br>42,188|£<br>27,935<br>-<br> <br>-<br> <br>27,935<br>27,935<br>-<br>-<br>27,935<br>-<br>-<br>Property<br>Fixtures &<br>Fittings|Business<br>Equipment<br>£<br>89,999<br>-<br>(37,736)<br>52,263<br>78,691<br>-<br>(26,428)<br>52,263<br>-<br>11,308|Motor<br>Vehicles<br>£<br>7,708<br>-<br>(6,500)<br>1,208<br>6,708<br>-<br>(5,500)<br>1,208<br>-<br>1,000|**Total**<br>**£**<br>**266,270**<br>**-**<br>**(44,236)**<br>**222,034**|
|---|---|---|---|---|
|||||**211,774**<br>**28,125**<br>**(31,928)**|
|||||**207,971**|
|||||**14,063**|
|||||**54,496**|



## **10. INVESTMENTS** 

|**Investment Properties**<br>The Oaks<br>Other Wythenshawe Properties|**2024**<br>£<br>**650,000**<br>**3,099,000**<br>**3,749,000**|2023<br>£<br>650,000<br>2,896,381|
|---|---|---|
|||3,546,381|



The Oaks opened in 2016, as a fully refurbished home in Wythenshawe, offering a residential support programme for up to 8 residents, today it houses students on the Message School of Evangelism programme. As at 31 August 2024 the MEC owns 16 Investment Properties in total, including The Oaks (2023: 15 properties).  Thirteen of these Investment Properties were revalued by Longden & Cook, members of the Royal Institute of Chartered Surveyors (RICS) as at 6th January 2023 and 1 other by Spendlove Surveyors, also members of the RICS, as at 25th January 2023, following inspections on those dates.  One property completed refurbishment during 2023/24 and was revalued as at 31 August 2024 by Longden & Cook. The final property, purchased in June 2024, is held at its cost price of £94k. 

The charity performed analysis of the average property sale prices in the region around the investment properties, as well as the movement in 3 different house price indices, which indicated that the carrying value of the properties in the financial statements may differ by as 

Page 25 



## **THE MESSAGE ENTERPRISE CENTRE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 August 2024** 

## **10. INVESTMENTS (continued)** 

little 2.5% overall from the independent valuations carried out in the prior years, which is immaterial and on that basis the movement in valuation has not been reflected in the above. 

Therefore, the Trustees consider the investment properties are carried in the Balance Sheet at their fair value as at 31 August 2024, given the independent valuations were carried out within 2 years of the year end and the lack of evidence to suggest a materially different valuation. 

The Trustees have a policy of using professional independent valuers to revalue investment properties on a rolling basis at least every 5 years or sooner if conditions indicate a material shift in the fair value. 

On an annual basis, the Trustees review these valuations for any significant changes in the local property market and any impairment in the properties and will make adjustments as necessary. 

|**Valuation**<br>At 1 September 2023<br>Revaluation<br>Additions<br>At 31 August 2024|**2024**<br>£<br>3,546,381<br>108,619<br>94,000<br>**3,749,000**|2023<br>£<br>3,395,000<br>-|
|---|---|---|
|||151,381|
|||**3,546,381**|
||||



## **11. STOCKS** 

|Stocks of finished goods and goods for resale<br>**RS**<br>Trade debtors<br>Amounts due from Group undertakings<br>Other debtors<br>Prepayments and accrued income|**2024**<br>**£**<br>**-**<br>**-**<br>**2024**<br>**£**<br>**6,922**<br>**-**<br>**1,456**<br>**8,488**<br>**16,866**|2023<br>£<br>11,113|
|---|---|---|
|||11,113|
|||2023<br>£<br>40,132<br>2,184|
|||-|
|||30,283|
|||72,599|



## **12. DEBTORS** 

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## **THE MESSAGE ENTERPRISE CENTRE** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **YEAR ENDING 31 August 2024** 

## **13. CASH AT BANK & IN HAND** 

|**2024**<br>**£**<br>Reserve Accounts<br>**-**<br>Current Accounts<br>**62,309**<br>Cash in Hand<br>**-**<br> <br>**62,309**|2023<br>£<br>45,797<br>48,123<br>661|
|---|---|
||94,580|



## **14. CREDITORS: Amounts falling due within one year** 

|Trade Creditors<br>Amounts owed to Group undertakings<br>Accruals & Deferred Income<br>Taxation and Social Security<br>Other Creditors|**2024**<br>**£**<br>**12,985**<br>**374**<br>**68,012**<br>**-**<br>**-**<br>**81,371**|2023<br>£<br>27,707<br>-<br>73,213<br>25,951<br>1,022|
|---|---|---|
|||127,893|



## Included in accruals and deferred income of £68,012 (2023: £73,213) is deferred income of: 

|Deferred income brought forward<br>Income released in the year<br>Amounts added in the year<br>Deferred income carried forward|**2024**<br>2023<br>**£**<br>£<br>**7,110**<br>4,260<br>**(56,093)**<br>(80,334)<br>**97,422**<br>83,184<br>**48,439**<br>7,110|
|---|---|



## **15. RECONCILIATION OF MOVEMENTS IN FUNDS** 

|**15a. Restricted Funds**<br>**15b. Unrestricted Funds**<br>General Fund<br>Designated Funds<br>- Revalution Reserve<br>- Future Projects|Balance at<br>01/09/2023<br>£<br>-<br>50,400<br>1,123,019<br>2,477,858<br>3,651,277<br>3,651,277|Incoming<br>£<br>-<br>218,917<br>-<br>-<br>218,917<br>218,917<br>**Movement**|Outgoing<br>£<br>-<br>(221,273)<br>-<br>-<br>(221,273)<br>(221,273)<br>**in Resources**|Transfers<br>Between<br>Funds<br>£<br>-<br>-<br>-<br>-<br>-<br>-|Gains on<br>Revaluation<br>**Balance at**<br>Fixed Assets<br>**31/08/2024**<br>£<br>**£**<br>-<br>**-**<br>-<br>**48,044**<br>108,619<br>**1,231,638**<br>-<br>**2,477,858**<br>108,619<br>**3,757,540**<br>108,619<br>**3,757,540**|
|---|---|---|---|---|---|



This year the Trustees have set aside a further £108,619 (2023: £257,235).  The aim is to ensure Future Projects are the equivalent of the Net Book Value of Tangible Fixed assets and Investment Properties, to be used for future projects, arising over the next five years. 

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## **THE MESSAGE ENTERPRISE CENTRE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 August 2024** 

## **15. RECONCILIATION OF MOVEMENTS IN FUNDS (continued)** 

During the year we did not receive personal support (2023: £19,243) for employees who work in Unrestricted areas of ministry. 

## **16. ANALYSIS OF NET ASSETS BY FUND** 

|**Restricted Funds**<br>Business Enterprises<br>**Unrestricted Funds**|**Tangible**<br>**Intangible**<br>**Fixed**<br>**Assets /**<br>**Assets**<br>**Investments**<br>**£**<br>**£**<br>-<br>-<br> <br>-<br>-<br>14,063<br>3,749,000<br>14,063<br>3,749,000|**Net**<br>**Current**<br>**Assets**<br>**£**<br>-<br>-<br>(5,523)<br>(5,523)|**2024**<br>2023<br>**Total**<br>Total<br>**£**<br>£<br>**-**<br>-<br>**-**<br>-<br>**3,757,540**<br>3,651,277<br>**3,757,540**<br>3,651,277|
|---|---|---|---|



## **17. CONTINGENCIES** 

The Trustees have confirmed that there were no contingent liabilities which should be disclosed at 31 August 2024 (2023: £nil). 

## **18. RELATED PARTIES** 

The Message Trust (Parent Charity – registered charity number 1081467 and company limited by guarantee, registered in the UK with company number 03961183) did not sell goods and services (2023: £13,308) to The Message Enterprise Centre during the year.  The Message Enterprise Centre did not sell goods and services (2023: £207,545) to The Message Trust (Parent Charity) during the year. There were no expenses in 2024 (2023: £85,847) (wages, premises costs, etc) recharged from The Message Trust (Parent Charity) to The Message Enterprise Centre. 

The Message Enterprise Centre did not pay anything in rent (2023: £30,000) to The Message Trust, whilst The Message Trust paid £76,820 (2023: £87,924) in rent to The Message Enterprise Centre for the School of Evangelism students’ accommodation and the Community Grocery Distribution Hub property which is owned by The Message Enterprise Centre for rental purposes. 

The Message Trust donated £25,065 (2023: £312,612) and £116,657 as Gift in kind (2023: £nil) to The Message Enterprise Centre for general funds and future Message Enterprise projects, to enable the charity to continue to meet the needs of its existing apprentices and new trainees.  As at 31 August 2024, The Message Enterprise Centre owed The Message Trust £374 (2023: £2,184 The Message Trust Owed The Message Enterprise Centre). 

The Message Trust and The Message Enterprise Centre share the same Trustees and Executive directors.  Consolidated accounts for the group are available from the Charity Commission or Companies House website. 

Collectively the Trustees and their related party companies including gift aid gave £nil to The Message Enterprise (2023: £2,168). 

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## **THE MESSAGE ENTERPRISE CENTRE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDING 31 August 2024** 

## **19. OPERATING LEASE COMMITMENTS** 

At the year end the total of future minimum lease payments under non-cancellable operating leases are as follows: 

|Not later than one year<br>Later than one year and not later than five years|**2024**<br>2023<br>**2024**<br>2023<br>**£**<br>£<br>**£**<br>£<br>**75,000**<br>31,318<br>**1,822**<br>-<br> <br>**100,000**<br>75,000<br>**607**<br> <br>1,822<br>**Other**<br>**Land and Buildings**|
|---|---|



## **20. CAPITAL COMMITMENTS** 

The Trustees have confirmed that there were no capital commitments at 31 August 2024 £nil. 

## **21. ANALYSIS OF CHANGES IN NET DEBT** 


**----- Start of picture text -----**<br>
At  At<br>Cashflows<br>01/09/2023 31/08/2024<br>£ £ £<br>Cash  94,580 (32,271) 62,309<br>94,580 (32,271) 62,309<br>**----- End of picture text -----**<br>


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