COMPANY REGISTRATION NUMBER: 08016728 CHARITY REGISTRATION NUMBER: 1148784
LPW LIMITED
COMPANY LIMITED BY GUARANTEE
FINANCIAL STATEMENTS
31 DECEMBER 2023
COHEN ARNOLD
Chartered Accountants & Statutory Auditor New Burlington House 1075 Finchley Road London NW11 0PU
LPW LIMITED
COMPANY LIMITED BY GUARANTEE
FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
| PAGE | |
|---|---|
| Trustees' annual report (incorporating the director's report) | 1 |
| Independent auditor's report to the members | 5 |
| Statement of financial activities (including income and expenditure | |
| account) | 10 |
| Statement of financial position | 11 |
| Statement of cash flows | 12 |
| Notes to the financial statements | 13 |
LPW LIMITED COMPANY LIMITED BY GUARANTEE
TRUSTEES' ANNUAL REPORT (INCORPORATING THE DIRECTOR'S REPORT)
YEAR ENDED 31 DECEMBER 2023
The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 December 2023.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered charity name LPW Limited Charity registration number 1148784 Company registration number 08016728 Principal office and registered New Burlington House office 1075 Finchley Road London NW11 0PU THE TRUSTEES Mr R Rosenthal Mrs M Rosenthal Mr N Rosenthal Mrs T Cohen Ms D Rosenthal AUDITOR Cohen Arnold Chartered Accountants & Statutory Auditor New Burlington House 1075 Finchley Road London NW11 0PU BANKERS Barclays Bank PLC 1 Churchill Place London United Kingdom E14 5HP
STRUCTURE, GOVERNANCE AND MANAGEMENT
The charity is constituted as a company limited by guarantee, and is therefore governed by its memorandum and articles of association.
The day-to-day affairs of the charity are administered by the council of trustees. None of the trustees who are also the directors has any beneficial interest in the company.
It is not currently the intention of the trustees of the charity to appoint new trustees. Should the situation change in the future, the trustees will apply suitable recruitment training and procedures.
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LPW LIMITED
COMPANY LIMITED BY GUARANTEE
TRUSTEES' ANNUAL REPORT (INCORPORATING THE DIRECTOR'S REPORT) (continued)
YEAR ENDED 31 DECEMBER 2023
OBJECTIVES AND ACTIVITIES
Charitable Objects
The objects of the charity are:
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the advancement of religion in accordance with orthodox Jewish faith;
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the advancement of Jewish religious education
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the relief of poverty;
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for other purposes as are recognised by English law as charitable.
The charity receives income from its voluntary donations and property investments which it utilises in the provision and distribution of grants and donations.
The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities and setting the grant making policy for the year.
ACHIEVEMENTS AND PERFORMANCE
During the year the charity continued to support established Jewish orthodox institutions providing education, religion and relief for the poor and aggregate donations of £636,600 (2022: £526,060) was distributed in furtherance of the charity's objectives.
The financial results of the charity for the year ended 31 December 2023 are fully reflected in the attached financial statements together with the notes thereon.
FINANCIAL REVIEW
The charity generates its income from its investments and donations from companies and charities connected with the trustees.
The charity's statement of financial activities shows net income of £590,826 (2022: £6,957,894).
Reserves policy
It is the policy of the charity to maintain unrestricted funds, at a level which the trustees think appropriate after considering the future commitments of the charity and the likely costs of the charity for the next year.
As at 31 December 2023 the charity had £26,497,529 in unrestricted funds.
Grant making policy
Grants are made to charitable institutions and organisations which conform to the objects of the charity after the trustees have satisfied themselves as to the bona fides of the recipients. Grants are considered for both capital projects and revenue funding.
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LPW LIMITED
COMPANY LIMITED BY GUARANTEE
TRUSTEES' ANNUAL REPORT (INCORPORATING THE DIRECTOR'S REPORT) (continued)
YEAR ENDED 31 DECEMBER 2023
FINANCIAL REVIEW (continued)
Investment Powers and Policy
Under the memorandum and articles of association, the charity has the power to make any investment which the trustees see fit provided that funds utilised are not immediately required for use in connection with any of its objects. The trustees regularly review the charity's position and needs in respect of the investment policy.
The charity holds investments of primarily residential and commercial property. The investment income is distributed in accordance with the charity's objects.
PRINCIPAL RISKS AND UNCERTAINTIES
Risk management
The trustees have identified and reviewed the major risks to which the charity is exposed, in particular those related to the operations and finance of the charity, and are satisfied that systems are in place to mitigate those risks.
Financial risk management and policies
The charity holds or issues financial instruments in order to achieve three main objectives being:
a) to finance its operations
b) to manage its exposure to interest and currency risks arising from operations and from its sources of finance; and
c) to generate funds.
In addition various financial instruments (e.g. debtors, creditors, prepayments and accruals) arise directly from the charity's operations.
Credit Risk
The charity monitors credit risk closely and considers that its current policies of credit risk checks meets its objectives of managing exposure to credit risk. The charity has no significant concentrations of credit risk. Amounts shown in the balance sheet represent the maximum anticipated credit risk exposure. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.
PLANS FOR FUTURE PERIODS
The trustees plan to continue to make distributions in accordance with their grant making policy and to ensure that an appropriate level of reserves are maintained.
TRUSTEES' RESPONSIBILITIES STATEMENT
The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.
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LPW LtMII'ED COMPANY LIMITED BY GUARANTEE TRUSTEES, ANNUAL REPORT (INCORPORATJNG THE DIRECTOR'S REPORT) YEAR ENDED 31 DECEMBER 2023 In pr¢paTia8 these financial statvment¥. the tmstecs are required to: select suitable accouniing polici¢s and tlien apply them con$ist¢ntly' observe the methods and principles in the applicobl¢ Charities SORP. make judginents and a¢untIng estimale$ that arc reasonable and prudent; preparL. th¢ finan¢ial statCM1% 1)n the going Loncvni bai+iS unlcss il is inappropriite to PT¢sume that the charity will ci¥ntinu¢ in business. The tru<ts are responsible for kcrpit]g ud¢qu&te accoLllltin8 records thai are suffiLient to sliow ai)d explain the charity's transactions dnd di5¢1ose wilh Y¢asoiiablc a¢cui'aby at any (ime the financial posiiion of Ihe chdrity and ¢nabl¢ th¢m io ensiii'c Ihal tl)e finoneial 4ts1¢ments coinply with the Coinpanics Act 2006. Tli¢y Are also r¢5ponsible for sulegiiiard1n Il)c asscts of ilic ¢liariiy and h¢n¢e fur taking rosonable st£p$ for the prgvcntion ond d¢lcction of finiid <111d otl)er irrLgulttriiic¥. AUDITOR Eacli of the per¥()ns who 1$ 8 ITUStee al thc date of approval of this r¢p(?rt confimis iliat: far as they ure Awore, tliere 1$ no relevant uudil iftfomiation of which the charitgs auditor is unllw&re' and they have thken all $teps that ili¢y ouglJt to hove tnken ob a trustee to make themselves awDre of any rclevunt audit infornl10n und t() cstabli¥h ih8t th¢ cl)ariiy'4 audilc)r is awarc uf lIt infornialion. The auditor 1$ deemed to have been tt-appoinied in acLvrdan¢¢ with section 487 of ille C'ompanies A 2006. SMALL COMPANY PROVISIONS Tliis report lills bcen preparcd in Accordance witli th¢ provi&iorts applicAblc io companies eljtitled to Ihe small conipanies excmption. Th¢ trnsteey, annual rq)ort W4s approv¢d fjn 29 July 2024 and signed on behalf of th¢ board of tTUStees by.. MR R ROSfr.NTFIAL ee
LPW LIMITED
COMPANY LIMITED BY GUARANTEE
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LPW LIMITED
YEAR ENDED 31 DECEMBER 2023
OPINION
We have audited the financial statements of LPW Limited (the 'charity') for the year ended 31 December 2023 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows 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:
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give a true and fair view of the state of the charity's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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have been prepared in accordance with the requirements of the Companies Act 2006.
BASIS FOR OPINION
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
CONCLUSIONS RELATING TO GOING CONCERN
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
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LPW LIMITED
COMPANY LIMITED BY GUARANTEE
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LPW LIMITED (continued)
YEAR ENDED 31 DECEMBER 2023
OTHER INFORMATION
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the trustees' report 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 charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.
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LPW LIMITED
COMPANY LIMITED BY GUARANTEE
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LPW LIMITED (continued)
YEAR ENDED 31 DECEMBER 2023
RESPONSIBILITIES OF TRUSTEES
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors 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 charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, and determined that the most relevant to the presentation of the financial statements are those that relate to the reporting legislation (UK GAAP and the Companies Act 2006), the relevant tax regulations in the United Kingdom, the Landlord and Tenant Act, the UK General Data Protection Regulation (GDPR), Health & Safety Regulations and the Bribery Act. We understood how the company is complying with those frameworks through discussion with the trustees and senior management, and by identifying the company's policies and procedures regarding compliance with laws and regulations. We also identified those members of management who have the primary responsibility for ensuring compliance with laws and regulations, and for reporting any known instances of non-compliance to the trustees. We communicated these identified frameworks amongst our audit team and remained alert to any indications of non-compliance throughout the audit. We ensured that the engagement team had sufficient competence and capability to identify or recognise non-compliance with laws and regulations.
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We discussed with the trustees and senior management the policies and procedures regarding compliance with these legal and regulatory frameworks.
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We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by reviewing the company's identified risks and enquiry with the trustees and senior management during the planning and finalisation phases of our audit. The susceptibility to such material misstatement was determined to be low.
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LPW LIMITED COMPANY LIMITED BY GUARANTEE
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LPW LIMITED (continued)
YEAR ENDED 31 DECEMBER 2023
- Based on this understanding we designed our audit procedures to identify non-compliance with the identified legal and regulatory frameworks, which were part of our procedures on the related financial statement items. Our procedures included reviewing the company's internal controls policies and procedures, reviewing the minutes of board meetings and correspondence with regulatory bodies including HMRC, testing transactions outside the normal course of the business and journal entries, and discussions with the trustees and senior management.
Owing 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, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, 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 non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
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Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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LPW LIMITED COMPANY LIMtTED BY GUARANfEE ILYDEPENDENf AUDITORIS REPORT TO THE MEMBERS OF LPW LIMITED YEAR ENDED 31 DECEMBER 2023 We communicate with those charged with governance regarding, among other matters, the planned scope and tiining of the audit and signifi¢anl aiidil finding5. including any significant deficiencies in inlernal control that we identify during our audit. USE OF OUR REPORT This report is made solely lo the charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work ha5 been undertaken so that we might state lo the charity's members ih05e matters we are required lo stale to them in V4n auditoVs report and for no other purpose. To the fullest extent perniitted by law, we do not accept or assume responsibility to anyone other than the charity and ihe charity's members as a body, for our audit work, lor this reporl. or for the opinion5 we have forni¢d. DA DBERG FCA (SENIOR STATUTORY AUDITOR) r and on behalf or Cohen Arnold Chartered Accounlanls & Statutory Auditor New Burlington House 1075 Finchley Road London NWII OPU 29 July 2024
LPW LIMITED
COMPANY LIMITED BY GUARANTEE
STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)
YEAR ENDED 31 DECEMBER 2023
| 2023 | 2023 | 2022 | ||
|---|---|---|---|---|
| Unrestricted | ||||
| funds | Total funds | Total funds | ||
| Note | £ | £ | £ | |
| INCOME AND ENDOWMENTS | ||||
| Donations and legacies | 5 | 206,401 | 206,401 | 4,404,000 |
| Investment income | 1,659,993 | 1,659,993 | 1,274,639 | |
| ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ||
| TOTAL INCOME | 1,866,394 | 1,866,394 | 5,678,639 | |
| =============================================== | =============================================== | =============================================== | ||
| EXPENDITURE | ||||
| Expenditure on raising funds: | ||||
| Investment management costs | (623,017) | (623,017) | (440,908) | |
| Expenditure on charitable activities | 6,7 | (652,551) | (652,551) | (545,206) |
| ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ||
| TOTAL EXPENDITURE | (1,275,568) | (1,275,568) | (986,114) | |
| =============================================== | =============================================== | =============================================== | ||
| Net gains on investments | 9 | – | – | 2,265,369 |
| ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ||
| NET INCOME AND NET MOVEMENT IN FUNDS | 590,826 | 590,826 | 6,957,894 | |
| =============================================== | =============================================== | =============================================== | ||
| RECONCILIATION OF FUNDS | ||||
| Total funds brought forward | 26,040,911 | 26,040,911 | 19,083,017 | |
| ---------------------------------------------------- | ---------------------------------------------------- | ---------------------------------------------------- | ||
| TOTAL FUNDS CARRIED FORWARD | 26,631,737 | 26,631,737 | 26,040,911 | |
| ==================================================== | ==================================================== | ==================================================== |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 13 to 21 form part of these financial statements.
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LPW LIMITED COMPANY LIMITED BY GUARANTEE STAI'EMENT OF FINANCIAL POSll"ION 31 DEC.EMBER 2023 21123 2022 Note FIXED ASSETS Investments 13 29.857,344 29242,487 CURRENT ASSETS Debtors Cash at bank and in hand 14 220.363 1,574,842 1.795.205 180,904 1,702.546 .883,450 C.'IiKDII'ORS: Amounti falling dut wilhln one ve4r 15 (20.812) (85,026) NF.T C.URRENT ASSETS 'I'OTAI, ASSklB L .55 CURRLNI. LIABILII'ILS 1.774,393 ,798,424 31.631.737 31.040.911 CREDITORS: Amounts fallln8 du¢ After more than one yeAr NET ASSETS 16 (5.000,0001 26.631,737 (5,000.000) 26,(140,911 ,'UNDS OF TIIL CIIARITY Uni'estriclod funds TOTAL C.HARII'Y FUNDS 26,631,737 26.631,737 26.040.911 17 26,040,911 These financial 51Jtcmei)ts hav¢ been prepared in a¢¢oi'dance with the PTovi¥&ions applicable to oinpniei subject to the small ¢ompanies' regime. Th¢xc financi&l %tDteincnL5 wcre approvcd by ihe boJrd of truslcc$ au¢horiKd for i5su¢ on 29 July 2024. ond are sign¢d on beh&lf of the board by,. MR RROSENTHAL TrLIS1 The note8 pagtt 13 th li form uf the$e 1lnxllllI itsttments.
LPW LIMITED
COMPANY LIMITED BY GUARANTEE
STATEMENT OF CASH FLOWS
YEAR ENDED 31 DECEMBER 2023
| YEAR ENDED 31 DECEMBER 2023 | ||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net income | 590,826 | 6,957,894 |
| Adjustments for: | ||
| Depreciation of tangible fixed assets | – | 4,088 |
| Net gains on investments | – | (2,265,369) |
| Dividends, interest and rents from investments | (1,029,039) | (1,272,811) |
| Other interest receivable and similar income | (7,937) | (1,828) |
| Interest payable and similar charges | – | 751 |
| Accrued expenses/(income) | 3,585 | (19,346) |
| ----------------------------------------------- | ----------------------------------------------- | |
| Cash generated from operations | (442,565) | 3,403,379 |
| Interest paid | – | (751) |
| Interest received | 7,937 | 1,828 |
| ------------------------------------- | ----------------------------------------------- | |
| Net cash (used in)/from operating activities | (434,628) | 3,404,456 |
| ===================================== | =============================================== | |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Dividends, interest and rents from investments | 1,029,039 | 1,272,811 |
| Purchases of other investments | (614,857) | (5,261,737) |
| Proceeds from sale of other investments | – | 68,015 |
| Changes in trade and other debtors | (39,459) | (25,280) |
| Changes in trade and other creditors | (67,799) | (29,816) |
| ----------------------------------------------- | ----------------------------------------------- | |
| Net cash from/(used in) investing activities | 306,924 | (3,976,007) |
| =============================================== | =============================================== | |
| NET DECREASE IN CASH AND CASH EQUIVALENTS | (127,704) | (571,551) |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 1,702,546 | 2,274,097 |
| ----------------------------------------------- | ----------------------------------------------- | |
| CASH AND CASH EQUIVALENTS AT END OF YEAR | 1,574,842 | 1,702,546 |
| =============================================== | =============================================== |
The notes on pages 13 to 21 form part of these financial statements.
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LPW LIMITED
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
1. GENERAL INFORMATION
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is New Burlington House, 1075 Finchley Road, London, NW11 0PU.
2. STATEMENT OF COMPLIANCE
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) Bulletin 1 and the Charities Act 2011.
3. ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The financial statements have been prepared in accordance with the accounting principles appropriate to a going concern, as the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due, based on the net current asset position of the charity and available sources of finance.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Judgements made by the directors in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are as follows:
(i) Property valuation
The valuation of the company's investment property is inherently subjective, depending on many factors including the nature of the property, its location and expected future net rental values, market yields and comparable market transactions. Therefore, the valuation is subject to a degree of uncertainty and is made on the basis of assumptions which may not prove to be accurate, particularly in periods of difficult market or economic conditions.
(ii) Trade and other debtors
Management uses details of the age of trade and other debtors and the status of any disputes together with external evidence of the credit status of the counterparty in making judgements concerning any need to impair the carrying value.
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LPW LIMITED
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 DECEMBER 2023
3. ACCOUNTING POLICIES (continued)
Taxation
The charity is not liable to direct taxation on its income or gains, whether realised or not, as it falls within the various exemptions liable to registered charities. Accordingly, the charity does not recognise any deferred tax liability on property revaluations as no tax would be due in the event of a disposal as the charity would benefit from the relevant exemptions, as it will apply all funds for qualifying charitable purposes.
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for a particular future project or commitment. There are no designated funds as at the Balance Sheet date.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds. There are no Restricted Funds as at the Balance Sheet date.
Incoming resources
All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured.
Income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
Expenditure on raising funds includes the costs of all fundraising activities, events, investment management costs, non-charitable trading activities, and the sale of donated goods.
Expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
Grants payable
Grants payable are charged to the statement of financial activities once the charity has made a commitment to pay the grant and this has been communicated to the beneficiary or the grant has been paid, whichever is earlier.
Governance costs
Governance costs include the cost of the preparation and audit of the financial statements and the cost of any legal advice to the trustees on governance or constitutional matters.
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LPW LIMITED
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 DECEMBER 2023
3. ACCOUNTING POLICIES (continued)
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures and fittings
- 25% reducing balance
Investment property
Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment properties are recognised initially at cost.
Subsequent to initial recognition:
-
Investment properties whose fair value can be measured reliably without undue cost or effort are held at fair value. Any gains or losses arising from changes in the fair value are recognised in the profit and loss account in the period that they arise; and
-
No depreciation is provided in respect of investment properties applying the fair value model.
Investment property fair value is determined by the directors based on their understanding of property market conditions and the specific property concerned, using a sales valuation approach, derived from recent comparable transactions on the market, adjusted by applying discounts to reflect status of occupation and condition.
Acquisitions and disposals of properties
Acquisitions and disposals are considered to have taken place at the date of legal completion and are included in the financial statements accordingly.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
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LPW LIMITED COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 DECEMBER 2023
3. ACCOUNTING POLICIES (continued)
Financial instruments (continued)
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.
Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
4. LIMITED BY GUARANTEE
LPW Limited is a company limited by guarantee. The liability of each member in the event of winding up is limited to £1.
5. DONATIONS AND LEGACIES
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2023 | Funds | 2022 | |
| £ | £ | £ | £ | |
| DONATIONS | ||||
| Donations received | 206,401 | 206,401 | 4,404,000 | 4,404,000 |
| ===================================== | ===================================== | =============================================== | =============================================== |
6. EXPENDITURE ON CHARITABLE ACTIVITIES BY FUND TYPE
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2023 | Funds | 2022 | |
| £ | £ | £ | £ | |
| Donations paid | 636,600 | 636,600 | 526,060 | 526,060 |
| Support costs | 15,951 | 15,951 | 19,146 | 19,146 |
| ------------------------------------- | ------------------------------------- | ------------------------------------- | ------------------------------------- | |
| 652,551 | 652,551 | 545,206 | 545,206 | |
| ===================================== | ===================================== | ===================================== | ===================================== |
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LPW LIMITED
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 DECEMBER 2023
7. EXPENDITURE ON CHARITABLE ACTIVITIES BY ACTIVITY TYPE
| Grant | ||||
|---|---|---|---|---|
| funding of | Total funds | Total fund | ||
| activities Support costs | 2023 | 2022 | ||
| £ | £ | £ | £ | |
| Donations paid | 636,600 | – | 636,600 | 530,370 |
| Governance costs | – | 15,951 | 15,951 | 14,836 |
| ------------------------------------- | ------------------------------- | ------------------------------------- | ------------------------------------- | |
| 636,600 | 15,951 | 652,551 | 545,206 | |
| ===================================== | =============================== | ===================================== | ===================================== | |
| Included in donations paid are grants made to the following institutions: | ||||
| £ | ||||
| British Friends of Chatzer Hakodesh Viznitz | 97,000 | |||
| Friends of Wiznitz Limited | 86,000 | |||
| Rise And Shine | 79,500 | |||
| Keren Habinyan Limited | 75,000 | |||
| Kupath Gemach Chaim Bechesed Viznitz | Trust | 72,000 | ||
| Yesamach Levav | 40,000 | |||
| Vishnitz Girls School Limited | 28,500 | |||
| Chana Charity Ltd | 25,000 | |||
| Menorah Foundation | 20,000 | |||
| Hasmonean High School Charitable Trust | 20,000 | |||
| Achisomoch Aid Company Limited | 20,000 | |||
| Less than £20,000 | 73,600 | |||
| ------------------------------------- | ||||
| Total | 636,600 | |||
| ===================================== | ||||
| Analysis of Grants to Institutions: | ||||
| Advancement of the Jewish religion | 172,400 | |||
| Advancement of education | 161,600 | |||
| Relief of poverty | 244,500 | |||
| Other general charitable purposes | 58,100 | |||
| ------------------------------------- | ||||
| Total | 636,600 | |||
| ===================================== |
| 8. | ANALYSIS OF SUPPORT COSTS | |||
|---|---|---|---|---|
| Support costs | Total 2023 | Total 2022 | ||
| £ | £ | £ | ||
| General office | – | – | 4,310 | |
| Governance costs | 15,950 | 15,950 | 14,836 | |
| ------------------------------- | ------------------------------- | ------------------------------- | ||
| 15,950 =============================== |
15,950 =============================== |
19,146 =============================== |
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LPW LIMITED
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 DECEMBER 2023
9. NET GAINS ON INVESTMENTS
| NET GAINS ON INVESTMENTS | ||||
|---|---|---|---|---|
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2023 | Funds | 2022 | |
| £ | £ | £ | £ | |
| Gains/(losses) on revaluation of | ||||
| investment property | – | – | 2,265,369 | 2,265,369 |
| ================ | ================ | =============================================== | =============================================== | |
| NET INCOME | ||||
| Net income is stated after charging/(crediting): | ||||
| 2023 | 2022 | |||
| £ | £ | |||
| Depreciation of tangible fixed assets | – | 4,088 | ||
| Fees payable for the audit of the financial statements | 9,901 ========================== |
9,900 ========================== |
10. NET INCOME
11. TRUSTEE REMUNERATION AND EXPENSES
The charity has no staff other than the trustees all of whom give freely of their time and expertise without any form of remuneration or other benefit in cash or kind.
The charity did not meet any expenses incurred by the trustees for services provided to the charity.
12. TANGIBLE FIXED ASSETS
| TANGIBLE FIXED ASSETS | |
|---|---|
| Fixtures and | |
| fittings | |
| £ | |
| Cost | |
| At 1 January 2023 and 31 December 2023 | 28,986 |
| =============================== | |
| Depreciation | |
| At 1 January 2023 and 31 December 2023 | 28,986 |
| =============================== | |
| Carrying amount | |
| At 31 December 2023 | – |
| =============================== | |
| At 31 December 2022 | – |
| =============================== |
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LPW LIMITED COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 DECEMBER 2023
13. INVESTMENTS
| INVESTMENTS | |
|---|---|
| Investment | |
| properties | |
| £ | |
| Fair value | |
| At 1 January 2023 | 29,242,487 |
| Additions | 614,857 |
| ---------------------------------------------------- | |
| At 31 December 2023 | 29,857,344 |
| ==================================================== | |
| Carrying amount | |
| At 31 December 2023 | 29,857,344 |
| ==================================================== | |
| At 31 December 2022 | 29,242,487 |
| ==================================================== |
All investments shown above are held at valuation.
Investment properties
The charity's investment properties were valued by the trustees as at 31 December 2023 based on professional valuations carried out in May 2023 by CBRE, which were carried out in accordance with the RICS Appraisal and Valuation Standards, and the trustees' understanding of property market conditions and the specific properties concerned.
In accordance with the charity's stated accounting policy (see note 3) no depreciation has been provided in respect of the freehold properties which are held for investment purposes.
The historical cost of the properties is £15,618,430 (2022: £15,003,573).
14. DEBTORS
| 14. | DEBTORS | ||
|---|---|---|---|
| 2023 | 2022 | ||
| £ | £ | ||
| Trade debtors | 80,606 | 117,661 | |
| Prepayments and accrued income | 139,757 | 63,243 | |
| ------------------------------------- | ------------------------------------- | ||
| 220,363 | 180,904 | ||
| ===================================== | ===================================== | ||
| 15. | CREDITORS: amounts falling due within one year | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Trade creditors | 695 | 48,711 | |
| Accruals and deferred income | 16,569 | 12,984 | |
| Social security and other taxes | 3,548 | – | |
| Other creditors | – | 23,331 | |
| ------------------------------- | ------------------------------- | ||
| 20,812 | 85,026 | ||
| =============================== | =============================== |
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LPW LIMITED
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 DECEMBER 2023
16. CREDITORS: amounts falling due after more than one year
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Bank loans and overdrafts | 5,000,000 | 5,000,000 |
| =============================================== | =============================================== |
The bank loan bears interest at a fixed rate of 3.157% with interest only payments. The loan is repayable in September 2026.
The bank loan is secured over certain of the charity's investment properties.
17. ANALYSIS OF CHARITABLE FUNDS
Unrestricted funds
| At | At | ||||
|---|---|---|---|---|---|
| 1 January | Gains and | 31 December | |||
| 2023 | Income | Expenditure | losses | 2023 | |
| £ | £ | £ | £ | £ | |
| General funds | 26,040,911 | 1,866,394 | (1,275,568) | – | 26,631,737 |
| ==================================================== | =============================================== | =============================================== | ================ | ==================================================== | |
| At | At | ||||
| 1 January | Gains and | 31 December |
|||
| 2022 | Income | Expenditure | losses | 2022 |
|
| £ | £ | £ | £ | £ | |
| General funds | 19,083,017 ==================================================== |
5,678,639 =============================================== |
(986,114) ===================================== |
2,265,369 =============================================== |
26,040,911 ==================================================== |
18. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Unrestricted | Total Funds | |
|---|---|---|
| Funds | 2023 | |
| £ | £ | |
| Investments | 29,857,344 | 29,857,344 |
| Current assets | 1,795,205 | 1,795,205 |
| Creditors less than 1 year | (20,812) | (20,812) |
| Creditors greater than 1 year | (5,000,000) | (5,000,000) |
| ---------------------------------------------------- | ---------------------------------------------------- | |
| Net assets | 26,631,737 | 26,631,737 |
| ==================================================== | ==================================================== | |
| Unrestricted | Total Funds | |
| Funds | 2022 | |
| £ | £ | |
| Tangible fixed assets | – | – |
| Investments | 29,242,487 | 29,242,487 |
| Current assets | 1,883,450 | 1,883,450 |
| Creditors less than 1 year | (85,026) | (85,026) |
| Creditors greater than 1 year | (5,000,000) | (5,000,000) |
| ---------------------------------------------------- | ---------------------------------------------------- | |
| Net assets | 26,040,911 | 26,040,911 |
| ==================================================== | ==================================================== |
- 20 -
LPW LIMITED
COMPANY LIMITED BY GUARANTEE
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 DECEMBER 2023
19. ANALYSIS OF CHANGES IN NET DEBT
| At | At | ||
|---|---|---|---|
| 1 Jan 2023 | Cash flows | 31 Dec 2023 | |
| £ | £ | £ | |
| Cash at bank and in hand | 1,702,546 | (127,704) | 1,574,842 |
| Debt due after one year | (5,000,000) | – | (5,000,000) |
| ----------------------------------------------- | ------------------------------------- | ----------------------------------------------- | |
| (3,297,454) | (127,704) | (3,425,158) |
|
| =============================================== | ===================================== | =============================================== |
20. RELATED PARTIES
During the year donations in aggregate of £206,401 (2022: 314,000) were received from a charity which has trustees in common with the trustees of the charity.
No other transactions with related parties were undertaken such as are required to be disclosed under FRS102.
- 21 -