## **LONDON RECLAIMED** **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MAY 2023** **CHARITY REGISTRATION No: 1148279** **COMPANY REGISTRATION No: 07768745** Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham PO18 8NF ## **LONDON RECLAIMED** ## **(A COMPANY LIMITED BY GUARANTEE)** ## **CONTENTS** Page 2 Legal and Administrative Information Pages 3 to 6 Report of the Directors Page 7 Statement of Financial Activities Page 8 Balance Sheet Pages 9 to 16 Notes to the Financial Statements Page 17 Statement of Cashflows Page 18 Appendix 1 Page 19 Independent Examiners Report to the Trustees/Directors 1 ## **LONDON RECLAIMED (A COMPANY LIMITED BY GUARANTEE)** ## **REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 MAY 2022** ## **LEGAL AND ADMINISTRATIVE INFORMATION** **CHARITY NAME** London Reclaimed **OTHER WORKING NAMES** Goldfinch Furniture **CHARITY NUMBER** 1148279 **COMPANY REGISTRATION NUMBER** 07768745 **START OF FINANCIAL YEAR** 1st June 2022 **END OF FINANCIAL YEAR** 31st May 2023 **DIRECTORS THAT SERVED DURING** Ben Dale **THE YEAR TO 31 MAY 2023** Tim Powell Louise Sadler (appointed 22 September 2022) Robert Biddulph (resigned 9th February 2023) **COMPANY SECRETARY** Tim Powell (appointed 17 March 2023) **REGISTERED ADDRESS** Lumberjack Café 70 Camberwell Church Street London SE5 8QZ **DATE OF INCORPORATION** 1st March 2010 **GOVERNING DOCUMENT** Memorandum and Articles Incorporated 9th September 2011 as amended by certificate of Incorporation on change of name dated 13th March 2012 as amended by special resolution registered at Companies House on 19th March 2012 as amended by special resolution registered at Companies House on 23rd July 2012. ## **OBJECTS** Carried out in accordance with Christian principles of love, acceptance and second chances without distinction of race, sex, political, religious or other opinion as the trustees may from time to time think fit, and are restricted to the following: To act as a resource for young people living in South London and such other parts of London, the United Kingdom or the world by providing advice and assistance and organising programmes of training and other activities as a means of: (i) Advancing in life and helping young people by developing their skills, capacities and capabilities to enable them to participate in society as independent, mature and responsible individuals; (ii) Relieving unemployment; (iii) Providing recreational and leisure time activity in the interests of social welfare for people living in the area of benefit who have need by reason of their youth, age, infirmity or disability, poverty or social and economic circumstances with a view to improving the conditions of life of such persons. ## **BANKERS** National Westminster Bank Plc 250 Bishopgate London EC2M 4AA ## **INDEPENDENT EXAMINERS** Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane, Bosham PO18 8NF 2 ## **LONDON RECLAIMED** ## **(A COMPANY LIMITED BY GUARANTEE)** ## **Introduction** The Trustees who are also the Directors have pleasure in submitting the Report and Accounts for the year to 31 May 2023. ## **Structure, governance and management** ## **Legal Status** London Reclaimed is a registered charity, number 1148279, and a company limited by guarantee, company registration number 7768745. The company is governed by its memorandum and articles of association. ## **Decision-making** The Board delegates day-to-day running of the charity to the Chief Executive, Mike Biddulph. Mike meets with members of the trustee board on a quarterly basis, with communication between the trustees, in person and electronically, in between meetings as least monthly. ## **Relationships** London Reclaimed started a new community interest company We Are Lumberjack C.I.C. on 8th October 2015. The business is a wholly owned subsidiary of London Reclaimed. ## **Major Risks** ## Sales. We are reliant on sales for a significant portion of our income at both Goldfinch Furniture and Lumberjack Cafe. Any significantly negative deviation from our normal sales pattern could have adverse effects on our ability to carry out our work. To minimise this risk at Goldfinch Furniture, we have started attending trade shows (which were put on hold through Covid restrictions) and are confident that we are developing a pipeline of works that will adequately support us through the next year. At Lumberjack Cafe, we have had some of the best financial years since its inception. ## Funding. As ever, the risk that we do not attract sufficient funding to allow us to holistically wrap around each young person that we engage with is a real, and we actively seek funding to top up what we make through sales as Goldfinch Furniture, the trading name of London Reclaimed, and Lumberjack Cafe. ## Premises. Since the fire which destroyed the back unit of our premises (9th April 2023), we have been looking forward to expanding into the back unit (which we previously sublet to a motorcycle repair company) once our landlord's insurance has made good the structure. The extra space gained will not only enable us to increase our workload, and hopefully profitability, but also set up a dedicated Youth Training Hub to be able to engage with more young people. We will have to use this space to create more profit, as we will be taking on this portion of the rent, but look to develop evening classes for the community to maximise its usage. The refurbishment of the building post fire is about to commence, and will cause disruption for 16 weeks. We hope to minimise this with well managed relationships between us and the contractors employed by our landlords, but there will still be times when work that needs to be done by them will impact on us and our timelines. It is a concern, but one that we hope to work through. ## **Objectives and activities of the charity** ## **Formal Objects as set out in Memorandum 8 Articles of Association** Carried out in accordance with Christian principles of love, acceptance and second chances without distinction of race, sex, political, religious or other opinion as the trustees may from time to time think fit, and are restricted to the following: - To act as a resource for young people living in South London and such other parts of London, the United Kingdom or the world providing advice and assistance and organising programmes of training and other activities as a means of: (i) advancing in life and helping young people by developing their skills, capacities to enable them to participate in society as independent, mature and responsible individuals; ## (ii) relieving unemployment; (iii) providing recreational and leisure time activity in the interests of social welfare for people living in the area of benefit who have need by reason of their youth, age, infirmity or disability, poverty or social and economic circumstances with a view to improving the conditions of life of such persons. 3 ## **LONDON RECLAIMED** ## **(A COMPANY LIMITED BY GUARANTEE)** ## **Achievements and performance** The charity was unfortunate to experience a workshop fire in April 2023 which destroyed the back unit of the premises. An independent fire investigation found the incident to be a no fault claim, and our landlords insurance are making good the structure. In spite of our most challenging period we have faced since our inception, between March 2022 and September 2023, we have continued to employ, mentor and train local young people, and actually push forward in the programmes we offer, and the employment structures that we provide local 16-25 year olds. We ‘slimmed down’ the number of young people we employed in this financial period (June 2022 - May 2023) to 11, but in the 12 months that followed, we employed 27 - once we began to find our feet again. Our ability to fulfil our core mission was temporarily restricted by a culmination of drivers; firstly we had decided that we wanted to offer fitted furniture and kitchens, alongside our mainstay of freestanding furniture. We made this decision due to the increased opportunities for our young people within this field, and the increased job opportunities for them on leaving us. There was also an opportunity to increase our turnover through sales by engaging with this work, which obviously feeds into our core mission; to employ, mentor and train local young people who may otherwise struggle to step up into work. This was a much steeper learning curve than we realised! We undertook several large contracts simultaneously that cost us more to fulfil than we were expecting, due to our inexperience in this field. Through this learning process we have developed and grown our Goldfinch team, with new members who have the relevant designing and making experience, as well as developing our quoting and project management processes, in order to more accurately schedule and quote these jobs. Since this steep learning curve, we have established ourselves as a trusted, high-end kitchen and fitted furniture specialist, successfully completing many projects with the required margins, and have also displayed at two of the UK’s premier home shows with great success. This has opened up a variety of new opportunities for our young people that were previously unavailable, both whilst with us, and on leaving their year with us. Secondly, we have expanded our reach by opening a satellite workshop in Bristol, which took a considerable amount of effort and money to launch, and thirdly our Easter day fire (9 April 2023) which completely decimated half our London premises, disrupted our furniture output for 3 months and caused us to incur costs outside the scope of our insurance. During this year, our most recent addition to the trustee board, Louise, has helped the team develop a ‘Risk Matrix’ in order to improve the governance and oversight of the charity. The matrix is a live document that details our charitable aims, and then, through a series of discussions with the team, outlines the risks to us achieving each of those aims. As a team of trustees and senior staff we have then been able to work out the mitigation, process and policies related to each of the risks. Going forward this document is reviewed and updated every six months, and provides both staff and board members with a focal point for determining where risks to fulfilling our charitable aims may be developing, and where more focussed attention and resource may be needed. We have also been working hard to boost our panel of charity and enterprise advisors. We have engaged with five individuals who have extensive experience in the fields of business and social entrepreneurship. They have offered much-needed operational and governance advice, and provided beneficial thoughts and knowledge on financial modelling and controls. acted as a sounding board, helping us navigate this year’s choppy waters and supporting us as we stabilise, grow and scale. We are proud to say that we pushed forward with putting our young people first, and as such were delighted to see the development of our youth work with the employment of a Head of Youth Work, China, in August 2022. She has solidified what we have been doing for over a decade, both in terms of how our two enterprises work with our young people, but also she has developed a framework of soft skills and personal development that is tailored to each young person. Currently 93% of our young people leave us and successfully move into other employment or education. Here are two examples of the transformation in our young people's lives (names changed): ## **Steve’s progression through our course, and on to a Young People support role** In 2022 we met Steve. He got in touch with us through our Youth Project Manager after successfully finishing college, but finding it impossible to get his first paid job as a furniture maker. He is profoundly deaf, and after applying for countless jobs in countless workshops found that nobody was willing to give him a chance. He was a very different prospect to our usual young people, in that he had training that needed polishing. Most of our young people have never held a saw before, and therefore start at a much lower level. Steve is pretty much non-verbal and usually communicates with sign language. He can also lip read. The team of existing makers have been more than happy to learn the very basics, but for most of our communication we are using speech to text apps, which work amazingly well. 4 ## **LONDON RECLAIMED** ## **(A COMPANY LIMITED BY GUARANTEE)** Our usual youth offering lasts for a year, during which we help our young people find the right career and help to get them started in it. However, we are able to tailor our programme to the individual, and with Steve we have decided to keep him on as a junior furniture maker. In this role, he will be able to do all the preparation work we need done for our young people to have projects to work on. This work is difficult to schedule our skilled furniture makers onto without it impacting our potential profits. With Steve doing this work, our furniture makers are freed up to work on profitable jobs and Steve will be getting the machining practice he needs to progress. ## **John’s journey to educational attainment** John’s home life was complicated, and his school attendance patchy, but his magnetic lovable character shone through in spite of the large challenges he faced. Although he has a very sharp mind and love of learning new things, he found formal education a real challenge. He felt misunderstood and overlooked, and this coupled with the main emotion he could exhibit being anger, meant that school and college became very difficult to complete. He joined our youth employment programme when he was 20 years old, after a particularly difficult time at home culminating in police intervention. To find the right space for John, we spread his time between Goldfinch Furniture and Lumberjack Cafe. With our help, he is now enrolled in one of the best joinery schools in London, having received a near full bursary through the efforts of our Youth Employment Manager. While he still struggles with the learning environment, we are maintaining a dialogue with his course tutors, and have been offering space and extra time to him to keep him on track. We are confident that with the hard work he’s been putting in, he will achieve the required grades. ## **Financial Review** Sales income has again increased from the previous year, but due to the difficult and unprecedented year we faced, our income, through sales, donations and grants did not cover our yearly expenditure. One of the major factors to our increased expenditure this financial year was our staff costs. This increased for two reasons. The first was the need for some short term furniture makers, so that we could meet our contractual obligations. The second was additional long term staff, to aid us in better project and financial planning to ensure we are now working with realistic forecasting and have a solid base from which to increase our sales, using all of the experience we have gained. We are currently seeing this increase actualise due to this new approach. This coincided with the official launch of Goldfinch Kitchens in spring 2024 which was highlighted in our newly revamped website. In this year, we had to lean on our intercompany loan between London Reclaimed and our trading arm We Are Lumberjack CIC, as well as a substantial loan from the MBL Trust (£120,000 at 0% for 5 years paid back monthly), and two personal loans. The deficit for the year was £237,160, compared to a deficit of £22,234 in 2022. Of this deficit £6,050 can be attributed to depreciation of fixed assets (2022: £5,872). Although we have survived this year, and are now on a much more positive footing, there are long reaching implications of the difficult season we have now passed through. The steep learning curve into setting up Goldfinch Kitchens, the setting up of our second workshop sight and the devastating effects of the workshop fire have all come at a cost. We are confident that with our new systems and more experienced team that are now in place, we will continue to reduce this deficit. Reserves as represented by net current assets at 31st May 2023 were: (91,380) ## **Reserves Policy** The reserves policy is to hold three month's average expenditure in cash. We are currently building this back up after this incredibly tricky season. ## **Plans for future periods** ## **1. Provide our first ever dedicated space for training and support.** To keep our project in Bermondsey, we have, for many years, sublet the back unit of our workshop space. On Easter Sunday 2023, a fire destroyed the inside of that unit. Though the structure of the building will be restored, the business that has been renting it will need to move on as the restoration may take several months. We intend to seize this opportunity to develop this space into a youth training hub, providing our first dedicated training space rather than ‘in placement on the job training’ only. 5 LONDON RECLAIMED (A COMPANY LIMXYÉD BY GUARANTEE) 2. Increase volue •nd mch of I￿r ttalnlng offerlng to better equlp our young people. We acknowledge our p051tion in our communi¥es, and the value we bring to those we work with. To make SU￿ we continue to be relevafit and improve our offering, we regularty seek feedback frorn our young people. staff and community. We commissioned an independent charity audit in 2019120 which recommended bo15tering our youth provision teatn. As è result. we have ￿centlY employed China, our Youth Employment MaTh3ger. and senior Youth Worker who oversees the holisbc suP￿rt of the young p&)ple and developin9 the training we provide and we are looklng to Increase thls support fvrther. To Increose our eath, v4e will Liunth an'Access to Ernployrnent, course that V4e will manage and deliver locally. 3. The laynchlng of n*w enterprlsts and sustalnable growth ol our eharlty. We love launching new ventures and have a proven track record with things we launch becomlng self-sufficlent. The wlder the breadth of our enterprlses, both geographically afid btjsiness type. the more young people we can employ. We do not have a scattergun approach, but also know that one size doe5 not fit all. 4. Inve*t In our structurns to en•ble growth tow•rds rnultlplk•tion. We've recognised there is a ceiling to what we can achleve wlth our current setupi and the limitaknons in the sklllset and time of our core leadership team. We have been 4ncredlbly resourceful, entrep￿netsrial and aSpIra￿Onal, and want to contlnue to be, so the learnlng over the last 10 years can enable us to shrft into a rnodel that 15 replicate(J rolled wt more widely. Now Is a moment of step change and so we hope to employ a fvll tlrne BusSness and Charlty Development Manager to help take us to the next level. Dlrectors. Res nslbllltles Cornpany law requires the direttors to prepare finanoal st3tements for each finantial year. Under that law the dirertors have eletted Prepa￿ the financial ststements in accordance with Unlted Kingdom Generally Acttpted Accountlng Practice (United Klngdom Accounting Standards ènd appllcable lav41. Under company law the directors must not approve the financial statements unless ihey are 56t15fied that they give a true and fair view of the state of affairs of the charitable company aThJ the income and expenditure of the charitable company for that period. In preparing these finanual staternefits, the directors ore required to.. Select 5Uitable ocrounting w)licies and apply them consistentty- Observe the rnethods and principle5 in the Charibes SORP ake judgernents and esbmate5 that are Te6sonable and prudent state whether the applicable accounting standards have been followed, subject to any moterial deparbjres disclosed and explalned In the accounts. Prepare the financial statements on a going concem basls unless Sl Is Inapproprfate to presume that the charlty wlll continue In ope￿￿On. The directors are responsible for keeping adequate accountiTrJ records that are sufficETht to show and explain charitable company's transacdofis and dlsclose wlth reasonable accuracy at any tirne the flnanual w>5ibon of the ch6ritable tompany and enable them to ensure that the financial statements comply with the Cornpanies Art 2006. They are also responsible for safeguarding the assets of the chartsble company and hence for taklng reasonable steps for the prevention and deteL150n of fraud and ather irregularities. As far as the directors ore aware= There is no relevant xcounting inforrnat*Jn of which the choritoble company's Independent Examiner is Unawa￿,. The directors have taken all steps that they ought to have taken to make themselve5 aware of any relevart ￿￿Ount￿n9 InformatSon and to estsbllsh that the Jndependent Examiner is aware of that information. The dlrELtors a￿ a150 responsible for the contents ijf the direttors, repDrt, and the respons¢bility of the indepefident exarni￿r In relation to the directo￿, ￿pOrt is limrted to exornining the report ond ensuring that. on Face of the reporL there are no inconsi5tencEs with the ftyures disc105ed ifi ihe financial 5tatetnent5. These occounts have been prepared In accordants with the provislons applicable to compaThles subject to the small companfjes. re9lme. roval This report sap oveil by the direLtor5 on... 2024 and signed on their behalf by.. Print Name.. TA.￿.....F.o.￿}.£.LL ## **LONDON RECLAIMED** ## **(A COMPANY LIMITED BY GUARANTEE)** ## **STATEMENT OF FINANCIAL ACTIVITIES** ## **FOR THE YEAR ENDED 31 MAY 2023** |Notes
**Income**
Donations and legacies
2a
Investment Income
2b
Income from charitable activities
2c
Income from trading activities
2d
Other Income
2d
**Total income**
**Expenditure**
Expenditure on charitable activities
3a
Expenditure on raising funds
3b
**Total Expenditure**
**Net income/expenditure before**
**investment gains/(losses)**
Net gains/(losses) on investments
**Net income/(expenditure)**
Transfers between funds
9
**Net movement in funds**
**Reconciliation of funds:**
Total Funds Brought Forward
**Total Funds Carried Forward**|Unrestricted
Designated
Restricted
TOTAL
TOTAL
Funds
Funds
Funds
2022/23
2021/22
£
£
£
£
£
110,895
-
-
110,895
84,555
-
-
-
-
4
350,115
-
-
350,115
327,275
-
-
-
-
-
38,500
-
-
38,500
38,503
499,510
-
-
499,510
450,337
467,242
-
-
467,242
308,823
269,428
-
-
269,428
163,748
736,670
-
-
736,670
472,571
(237,160)
-
-
(237,160)
(22,234)
-
-
-
-
-
(237,160)
-
-
(237,160)
(22,234)
-
-
-
-
-
(237,160)
-
-
(237,160)
(22,234)
26,068
-
-
26,068
48,302
(211,092)
-
-
(211,092)
26,068| |---|---| Movements on all reserves and all recognised gains and losses are shown above. All of the organisation's operations are classed as continuing. The notes on pages 9 to 16 form part of these financial statements. 7 L014DON RECLAIMED (A COMPANY LIMtrED BY GUARANTEE) Reg.company no.07768745 BALANCE SHEET AS AT 31 MAY 2023 Unrestricted Oe5ignated ReStrirt￿ 31-May-23 31-May-22 Funds Funds Funds Total Total Note xed Assets.. Tang*ble assets 48,477 4B.477 51,359 CurreTht Assets.. DebtOT5 Cash at bank and Sn hènd Total Current Assets 40,975 40,975 28.585 Credltors.. amounts falliThg due withSn one year 1135,6161 {135,6161 156,608) NET CURRENT AssEfsiiLIABLLrrIESI 191,3801 191,3801 16.617 TOTAL ASSEfs les5 CU￿ent liabilitie5 142,903} 142,9031 67,976 c￿￿￿t0{s". amounts falliThJ in MO￿ than one year 1168,1891 116B.1891 141.908) ASSEfsiiuABILmES1 Funds of the Charsty General Funds Desigri&ted Funds Restricted Funds 211,092 211.092 26,068 12LI.092) {211,0921 26,068 io Totsl Funds 211,092 211.092 26,068 FDr the year ended 31st May 2023 the company was entitled to exemption from audlt uTrJer Section 477 of the Companies Act 2006 r￿a￿Thg to small companles. The members have not required the company to obtsin audit of it5 ￿CoUnts for the year in ques0￿ In a￿rdance Yiith sethon 476 of the Companies Act 2006. The dirertors ad(nowledge thelr responslblllty for complylng wlth the requlrements of the Act wlth respert to accounting records and the p￿paratIOn of account5. These accounts have been prepored in accordan￿ with the provl4ons appli¢abFe to companles subject to the small companles, reglme. Approved by the Direttots on the...................................... Signed OTh thebr behalf by .... Print Name.. ## **LONDON RECLAIMED** ## **(A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023** ## **1. Accounting policies** ## **a) Basis of preparation** The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows: The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with FRS 102 (effective 1 January 2019) - (Charities SORP (FRS 102)) and the Charities Act 2011. Advantage has been taken of Section 396(5) of The Companies Act 2006 to allow the format of the financial statements to be adapted to reflect the special nature of the charity's operation and in order to comply with the requirements of the SORP. London Reclaimed meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy notes. The charity has opted to prepare its accounts using natural categories. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). ## **Changes to accounting estimates** No changes to accounting estimates have occurred in the reporting period. ## **Material prior period errors and changes to previous accounts** No material prior period errors have been identified in this accounting period The allocation between short term loan creditor and long term loan creditor for the NatWest loan has been restated this year, to provide meaningful comparatives. Last year the loan was shown wholly within long term loan creditor. There is no effect on the overall balance sheet. There have been no other changes to previous accounts. ## **Preparation of accounts on a going concern basis** Preparation of the accounts is on a going concern basis. The Trustees are of the view that the level of reserves will support the charity going forward. The balance sheet shows a deficit position, mainly due to an extraordinary event that occurred during the year, however the Trustees have made key strategic decisions to address the deficit. The Trustees Annual Report gives further detail. ## **Trading subsidiary** The charity has a trading subsidiary, We are Lumberjack CIC. The income of the group does not exceed the threshold of £1million and therefore there is no requirement to prepare group accounts. We are Lumberjack CIC files separate accounts wth Companies House, and a summary is provided in the Appendix on page 18. ## **b) Income** Income is included in the Statement of Financial Activities (SOFA) when: - the charity becomes entitled to the income; - it is more likely than not that the trustees will receive the resources; and - the monetary value can be measured with sufficient reliability. The charity has relied upon volunteers in carrying out its charitable activities during the year. In accordance with paragraph 6.18 of the SORP, the role of volunteers has not been recognised in the accounts. ## **c) Interest receivable** Interest on funds held on deposit is included when receipt is probable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank. ## **d) Grants and Donations** Grants and donations are only included in the SoFA when the general income recognition criteria are met (5.10 to 5.12 FRS 102 9 ## **LONDON RECLAIMED (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MAY 2023** ## **e) 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. ## **f) Government Grants** The charity has not received any government grants in this reporting period. ## **g) Fund accounting** Unrestricted funds are available to spend on activities that further any 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. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. ## **h) Expenditure** Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. ## **i) Offsetting** There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the FRS 102 SORP or FRS 102. ## **j) Tangible fixed assets** Tangible fixed assets are stated at cost less depreciation. Assets costing less than £500 are written off in the year of purchase. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life as follows: Office Equipment 10% Fixtures and Fittings 10% General Equipment 10% ## **k) Operating leases** Rental charges payable under operating leases are charged on a straight line basis over the terms of the lease. ## **l) Taxation** The charity is exempt from tax on its charitable activities. ## **m) Legal status of the charity** The charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. ## **n) Redundancy payments** The charity made no redundancy payments during the period. ## **o) Pensions** The charity operates a defined contribution pension scheme for certain employees. Pension contributions are charged to the Statement of Financial Activities as they fall due for payment. ## **p) 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. ## **q) Creditors** The charity has creditors which are measured at settlement amounts less any trade discounts. 10 ## **LONDON RECLAIMED** ## **(A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MAY 2023** |2. INCOME
a) Donations and legacies
Gifts, tithes & donations
Grant income
b) Investment income
Bank Interest
c) Income from charitable activities
Grant income - HMRC job retention scheme
Intercompany Recharge from trading subsidiary
Primary Purpose Generated Sales
d) Income from trading activities
e) Other Income
Rental Income|Unrestricted
Designated
Restricted
TOTAL
TOTAL
Funds
Funds
Funds
2022/23
2021/22
£
£
£
£
£
10,967
-
-
10,967
14,555
99,928
-
-
99,928
70,000
110,895
-
-
110,895
84,555
-
-
-
-
4
-
-
-
-
4
-
-
-
-
2,026
-
-
-
-
6,107
350,115
-
-
350,115
319,142
350,115
-
-
350,115
327,275
-
-
-
-
-
38,500
-
-
38,500
38,503
38,500
-
-
38,500
38,503| |---|---| 11 ## **LONDON RECLAIMED (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MAY 2023** ## 3. EXPENDITURE |Notes
a) Expenditure on charitable activities
_Direct charitable costs_
Advertising & Marketing
Bank, Card & Interest Charges
Cleaning Costs
Consulting Fees
Depreciation Expense
Entertainment
Gifts & Donations
IT Costs
Licences and Subscriptions
Loan Interest
Office Costs
Printing, Postage and Stationery
Recruitment
Rent and Rates
Repairs & Maintenance
Staff Wages and Salaries
11
Sub-Contractors
Sundry Expenses
Telephone Costs
Training Costs
Travel & Subsistence
_Governance and Support costs_
Independent Examiners Fees
a) i)
Insurance Costs
a) i)
Legal & Professional Fees
a) i)
b) Expenditure on raising funds
Cost of Direct Materials
Cost of Direct Labour
a) i) Analysis of governance and support costs
Independent Examiner's Fees
Accountancy and Bookkeeping
Insurance Costs|Unrestricted
Designated
Restricted
Funds
Funds
Funds
£
£
£
1,379
-
-
1,267
-
-
2,235
-
-
5,010
-
-
6,050
-
-
2,278
-
-
250
-
-
4,087
-
-
1,027
-
-
983
-
-
651
-
-
5,459
-
-
625
-
-
68,819
-
-
4,841
-
-
306,850
-
-
19,578
-
-
1,345
-
-
1,317
-
-
1,405
-
-
21,820
-
-
1,620
-
-
5,556
-
-
2,790
-
-
467,242
-
-
170,570
-
-
98,858
-
-
269,428
-
-|TOTAL
TOTAL
2022/23
2021/22
£
£
1,379
16,579
1,267
1,783
2,235
1,571
5,010
1,489
6,050
5,872
2,278
1,593
250
-
4,087
6,545
1,027
795
983
782
651
74
5,459
2,061
625
-
68,819
79,444
4,841
1,630
306,850
154,764
19,578
9,336
1,345
2,379
1,317
1,609
1,405
1,638
21,820
9,357
1,620
2,040
5,556
4,692
2,790
2,790
467,242
308,823
170,570
113,791
98,858
49,957
269,428
163,748
2022/23
2021/22
£
£
1,620
2,040
2,790
2,790
5,556
4,692
9,966
9,522| |---|---|---| 12 ## **LONDON RECLAIMED (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MAY 2023** ## 4. TANGIBLE FIXED ASSETS |Cost
01-Jun-22
Additions
Disposals
Cost at
31-May-23
Depreciation
01-Jun-22
Charge
Disposals
Depreciation at
31-May-23
Net Book Value
31-May-23
Net Book Value
31-May-22|Office
Fixtures &
General
Total
Equipment
Fittings
Equipment
£
£
£
£
2,088
70,533
6,609
79,230
789
-
3,073
3,862
-
(694)
-
(694)
2,877
69,839
9,682
82,398
166
26,520
1,185
27,871
585
4,845
759
6,189
-
(139)
-
(139)
751
31,226
1,944
33,921
2,126
38,613
7,738
48,477
1,922
44,013
5,424
51,359| |---|---| Operating leases and capital commitments: There are no capital commitments ending over 12 months after the balance sheet date. ## 5. DEBTORS AND PREPAYMENTS |Accounts Receivable
Wages Overpaid
6. CASH AT BANK AND IN HAND
NatWest Savings Account Account
NatWest Current Account
Petty Cash|Unrestricted
Restricted
Total
Total
Fund
Fund
31-May-23
31-May-22
£
£
£
£
39,975
-
39,975
27,385
1,000
-
1,000
1,200
40,975
-
40,975
28,585
Unrestricted
Restricted
Total
Total
Fund
Fund
31-May-23
31-May-22
£
£
£
£
-
-
-
3
2,898
-
2,898
44,437
363
-
363
200
3,261
-
3,261
44,640| |---|---| |7. CREDITORS AND ACCRUALS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Sundry Creditors
VAT Payable *
PAYE & NI *
Pension Payable
Nat West Bank Plc Loan
Loan with Lumberjack Café
Independent Examiners Fee
Salaries and Wages Payable|Restated
Unrestricted
Restricted
Total
Total
Fund
Fund
31-May-23
31-May-22
£
£
£
£
12,540
-
12,540
11,718
20,894
-
20,894
24,566
77,538
-
77,538
18,278
1,581
-
1,581
666
2,701
-
2,701
7,018
14,400
-
14,400
-
3,000
-
3,000
1,380
2,962
-
2,962
-
135,616
-
135,616
63,626| |---|---| * The charity has agreed a repayment plan with HMRC, and currently pays £2,500 per month. 13 ## **LONDON RECLAIMED (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MAY 2023** ## 8. CREDITORS AND ACCRUALS: AMOUNTS FALLING DUE AFTER ONE YEAR |Nat West Bank Plc Loan
Private Loans from Individuals
Private Loan from Charitable Trust|Restated
Unrestricted
Restricted
Total
Total
Fund
Fund
31-May-23
31-May-22
£
£
£
£
32,189
-
32,189
34,890
20,000
-
20,000
-
116,000
-
116,000
-
168,189
-
168,189
34,890| |---|---| The above Nat West Bank Plc loan represents a bounce back loan given during the coronavirus outbreak initially with a 5 year repayment period. This has been extended to a maximum of a 10 year repayment period. It is currently being repaid at a monthly amount of £446.12. The above private loans from individuals were given by related parties, interest free with no repayment terms to assist with cash flow. More detail is given in Note 12. The above private loan from the Michael and Betty Little Trust is given interest free for a period of 5 years, with monthly repayments of £2,200. The first repayment was paid in April 2023. ## 9. DESIGNATED FUNDS The charity did not hold any designated funds during this or the previous financial year. ## 10. RESTRICTED FUNDS The restricted funds are only spent on specific purposes. The charity did not hold any restricted funds during this or the previous financial year. 14 ## **LONDON RECLAIMED (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **FOR THE YEAR ENDED 31 MAY 2023** 11. ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL |Gross Wages and Salaries
Employer's National Insurance Costs (net of annual allowance)
Employer's Pension Costs|2022/23
2021/22
£
£
282,102
144,439
19,021
7,678
5,727
2,647
306,850
154,764| |---|---| The monthly average of employed staff was 11.33 (2021/22: 8.25). Staff are employed to carry out the charitable activities. No employees received emoluments in excess of £60,000 (2021/22: nil). The above staff are paid through the PAYE system. Up to 12 self employed personnel rendered services to the charity during 2022/23. The total amount paid for direct labour was £98,858 (2021/22: £49,957). The key management personnel of the charity comprise the Trustees and CEO. No Trustees received remuneration. Therefore the total employee benefits (including employer national insurance and employer pension contributions and self employed personnel) of the key management personnel of the charity were £46,877 (2021/22: £43,443). The charity offers a workplace pension scheme and enrolled all eligible employees. Employer contributions have been budgeted for and £4,863 of contributions were paid on behalf of (up to) 9 employees during 2022/23 in accordance with legislation. Employer pension contributions totalling £864 were also paid into a personal pension on behalf of one employee that opted out of the workplace scheme. ## 12. TRUSTEES AND OTHER RELATED PARTIES |12. TRUSTEES AND OTHER RELATED PARTIES|||||| |---|---|---|---|---|---| ||||2022/23|2021/22|| |Payments to Trustees|||||| |None paid||£|-
|£|-
| |Payments to Related Parties|||||| |T. Biddulph (related party of Trustee R. Biddulph)|Direct Labour payments|£|-
|£|200
| |M. Biddulph (related party to Trustee R. Biddulph)|Gross salary payments|£|46,013
|£|38,436
| |M. Biddulph (related party to Trustee R. Biddulph)|Employer national insurance paid on behalf of|£|5,284
|£|4,143
| |M. Biddulph (related party to Trustee R. Biddulph)|Employer pension contributions paid on behalf of|£|864
|£|864
| The connected trustee has no role in determining appointment, salaries or benefits. Note T Biddulph resigned as a Trustee on 9th February 2023. No other payments were made to trustees or any persons connected with them during this financial period other than the reimbursement of sundry direct expenses incurred and reimbursement of expenditure incurred on behalf of the charity. No material transaction took place between the organisation and a trustee or any person connected with them. Aggregate donations in the year without conditions from trustees and key management personnel totalled £0. |Loans from Related Parties|||2022/23|2021/22|2021/22| |---|---|---|---|---|---| |M Biddulph (Related Party/Close Family of Trustee R. Biddulph)|Loan given to assist cashflow|£|10,000
|£|-
| |E Biddulph (Related Party/Close Family of Trustee R. Biddulph)|Loan given to assist cashflow|£|10,000
|£|-
| The above loans were given interest free and without repayment terms. 15 ## **LONDON RECLAIMED (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MAY 2023** ## 12. TRUSTEES AND OTHER RELATED PARTIES On 8th October 2015 We are Lumberjack CIC was incorporated as a Community Interest Company, limited by guarantee. London Reclaimed is specified as a potential recipient of the Company's assets under articles 3.2 and 3.4 of the We Are Lumberjack CIC Articles of Association. Trustee T Powell is also a Director of We are Lumberjack CIC and together with the CEO of London Reclaimed they have overall control and oversight of We Are Lumberjack CIC. We Are Lumberjack CIC files separate accounts, and a summary is provided in the Appendix on page 18. The trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining the free reserves stated, combined with the annual review of the controls over key financial systems carried out on an annual basis will provide sufficient resources in the event of adverse conditions. The trustees have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks. ## 14. RESERVES POLICY The trustees have considered the level of reserves they wish to retain, appropriate to the charity's needs. This is based on the charity's size and the level of financial commitments held. The trustees aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The trustees will endeavour not to set aside funds unnecessarily. The general reserves policy is found on page 6 of these financial statements. ## 15. PUBLIC BENEFIT The charity acknowledges its requirement to demonstrate clearly that it must have charitable purposes or ‘aims’ that are for the public benefit. Details of how the charity has achieved this are provided in the Trustees report. The trustees confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake. ## 16. RELATIONSHIPS London Reclaimed started a new community interest company We Are Lumberjack C.I.C. (Company Number 09816432) on 8th October 2015. The business is a wholly owned subsidiary of London Reclaimed. 16 ## **LONDON RECLAIMED (A COMPANY LIMITED BY GUARANTEE)** ## **STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 MAY 2023** |31-May-23
£
**Cash used in operating activities**
(a)
**(185,229)**
**Cash used from investing activities**
Interest income
-
Purchase of tangible fixed assets
(3,168)
**Cash provided by (used in)**
**investing activities**
(3,168)
**Cash flows from financing activities**
Introduction/(Repayment) of long term borrowing
147,018
**Cash used in financing activities**
147,018
Increase/(decrease) in cash and
cash equivalents in the year
(41,379)
Cash and cash equivalents at the
start of the year
44,640
**TOTAL cash and cash equivalents**
**at the end of the year**
(b)
**3,261**
**(a) Reconciliation of net movement in funds to net cash flow from operating activities**
31-May-23
£
Net movement in funds
(237,160)
Add back depreciation charge
6,050
Deduct interest income shown
in investing activities
-
Decrease/(increase) in debtors
(12,390)
Increase/(decrease) in creditors
58,271
**Net cash used in operating activities**
**(185,229)**
**(b) Analysis of cash and cash equivalents**
31-May-23
£
Cash at bank and in hand
3,261
**Total cash and cash equivalents**
**3,261**|31-May-22
£
**(20,663)**
(4)
(2,808)
(2,812)
8,092
8,092
(15,383)
60,023
**44,640**
31-May-22
£
(22,234)
5,872
(4)
(4,892)
595
**(20,663)**
31-May-22
£
44,640
**44,640**| |---|---| 17 ## **LONDON RECLAIMED (A COMPANY LIMITED BY GUARANTEE)** ## **APPENDIX 1 ACCOUNTS OF WE ARE LUMBERJACK CIC** ## **This appendix does not form part of the independent examination.** As explained in note 12, We Are Lumberjack CIC is a separate company, limited by guarantee, and files separate accounts with Companies House. However, as a Trustee and the CEO of London Reclaimed are also Directors of We Are Lumberjack CIC and therefore have overall control and oversight, a summary of the We Are Lumberjack balance sheet is shown in this appendix. |Balance sheet at 31st March 2023
Fixed Assets
Current Assets
Creditors due within 1 year
Accruals and Deferred Income
Net assets|31-Mar-23
31-Mar-22
£
£
28,622 38,889
35,749 43,856
(22,125) (19,073)
(5,281) -
36,965 63,672| |---|---| 18 ## **INDEPENDENT EXAMINER’S REPORT ON THE ACCOUNTS** I report to the trustees on my examination of the accounts of London Reclaimed for the year ended 31st May 2023. ## **Responsibilties and basis of report** As the charity’s trustees (who are also the directors of the company for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (“the 2006 Act”). Having satisfied myself that the accounts of the charity are not required to be audited for this year under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (“the 2011 Act”). In carrying out my examination, I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner's statement** Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I a member of The Association of Charity Independent Examiners, which is one of the listed bodies. I have completed my examination. I confirm that no material matters have come to my attention which gives me cause to believe that: - accounting records were not kept in accordance with section 386 of the Companies Act 2006; or - the accounts do not accord with such records; or - the accounts do not comply with relevant accounting requirements under section 396 of the Companies Act 2006 - other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination; or - the accounts have not been prepared in accordance with the methods and principles of the Statement of - Recommended Practice for 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)]. The Examiner would like to draw attention the following matters: The negative balance sheet position. The Trustees have made key strategic decisions during the year to address this. The Trustees Annual Report gives further detail. I have no other concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Signed: FCIE Date: 31st May 2024 Independent Examiners Ltd Unit 2 Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF 17