Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 CONTENTS Page Reference and Administrative Inforniation Report of the Trustees Report of the Independent Auditor Statement of Financial Activilies Balance Sheet Statement of Cash Flows Notes lo the Financial Siatements 10- 12 13 14 15 16-31 Company Registration No. 8901784 Charity Registration No. 1156150
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST REFERENCE AND ADMINISTRATIVE INFORMATION COMPANY NUMBER: 8901784 REGISTERED CHARITY No. 156150 BANKERS.. Barclays Bank PIC Hertfordshire Corporate Offi¢¢ I l Bank Court Hemel Hempstead HPI IBX SOLICITOR.. Withers 20 Old Bailey London EC4M 7AN AUDITOR: RSM UK Audit LLP The Pinnacle 170 Midsummer Boulevard Milton Keynes Buckinghamshire MK9 IBP ACCOUNTANTS: Azets LLP Suites B&D, Burnham Yard Beaconsfield Buckinghamshire HP9 2JH INVESTMENT ADVISER: Sarasin & Parthers LLP Juxon House 100 St Paul's Churchyard Loiidon EC4M 8BU PRINCIPAL OFFICE: Roihamsted Campus Harpenden Hertfordshire AL5 2JQ
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST REPORT OF THE TRUSTEES FOR THE YF.AR ENDED 31 MARCH 2023 Thc Truslces prcsenl their Report and Financial Statements of the Lawes Agricultural I'rust {"Ihe Tru51" The Chgrity" or 'LAT') for the year ended 31 Mar¢li 2023. The Financial Statements have becn prepared in occordance wilh fRS 102 (The Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102)} under the historic cost convention as modificd by the revaluation of inveslmenls. 'The financial slalemenls meet th¢ r¢quiremcnis of tlie Companie5 Aci 2006, the Sialement of Recommended Practice- Accounting and Reporting by Charities (Charities SORP {FRS 102)) and applicable accouniing siandards so far as Ihes¢ rcquiremLnts are appropriate. The charity is a public benefil enlity as defined by fRS 102. Structure, Governanee And Man*gement The Trust is an incorporated charity and company limited by guarantee regislcred on 19 February 2014. li traces ils origin lo a Trust that was cstablished in 1889 by the Dcclaralion of Tnisl of Sir John Bennel Lawes FRS. who founded Roihamslcd Experimental Sialion in 1843. The original trusl was a regislercd chariry, under the Numb¢r 208228. From April 2014 Lawes Agricultural Trust (Charity Number 1156150. Company Number 8901784) assumed all of Ihe aclivilies previously undertaken by the original and corporate Iruslee. Th¢ Trustees of the Lawes Agricultural Trust during 2022123 and up lo the date of this report We.. Dr Tina Barsby Professor Sir David Baulcombe FRS o Dr Graham Bircl) {Chairman) Professor Sir Cliarle5 Godfray FRS Sir Pcler Kendall Mr William Gemmill Mr Richard Percy Company Secretary: Peter Oxley The Truslees are also Directors of the incorporated entity for ihe purposes of Company Law and do not receive remuneration for these roles. The Tru51ees meet regularly to consider policy, research, administrative matters and risks, The Trusi's Conflict of Interest policy reinforces Article I l of the Trust's Articles of Association, and stales that the Trust's assets may only be used for the piirposc of promoting the Trust's charitable object and Truslces may not receive any financial or non-financial benefit (directly or indire¢ily) from the Triisl. A register of Trustee-Dire¢tors' interests is maintained and reviewed regiilarly. The Trustees keep the Board's composition and balance of ski1Ss under constant review. Key areas considered of importancc include experience at the highest level in terms of scientific acliievetnent, large estate I property management. farming and food business. international science (including developing countries), investment and political awareness. New Trustees receive a comprehensive induction on site, conducted by the Chairman and Company Secretary. in particular highlighting scientific involvemenL estate responsibilities, historical matters and urgent issues that are facing the Trustees. Training relevant lo charity law and other matters as appropriate lo the individu&l is offered. The Investment Committee is a sub-committee of the Board, whose role is to critically examine and liaise with the Trust's investment advisors, and ils meTnbers are Dr Graham Birch and Mr Richard Percy. A Remuneration Committee ha5 also been established lo review and recommend remuneration for the Executive Director. The Remuneration Committee comprises Dr Graham Birch and Dr Tina Barsby.
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023 The Trusl, along with other activities, principally supports Rothamsted Research Limited ("Rolhamsled Rescarch"). an incorporated charity that occupies and operales its agricultural research aclivilics from land and buildings belonging lo the Trust. These research activities are directed by the Instilule Director of Roihamsted Research.. this position is eurrenily held by Dr Angela Karp. The Trust is a Corporate Member of Rothamsled Research, along with the Biotechnology and Biological Science5 Research Council ("BBSRC" now a part of UKRI) and ihe Chair of the Board of Trustee-Directors for Roihamsted Researcl). The role of Ihese Members is defined through a Members, Agreement thal describes how this tripartite arrangement recognises the critical Contribution in land and buildings (from LAD and funding (from UKRI-BBSRC) to the well-being of Rothamsted Research and, achieving this through an arms-length stance, does not seek to unduly influence ihe strategic direction of Rothamsled Research. The Chaiman of the LAT Board attends Rothamsted Research Board meetings as an Observer. The Trust provides an annual voluntary contribution. by way of a grant, to Rothamsted Researeh - referred to as the "Director's Vote" This contribution is provided to the Institute Dire¢tor of Rothamsted Research to assist in overseeing and running those research interests which would otherwise not be available for external grant funding. The Trust's Key Management Personnel are considered to be the Tn]stees (who receive no remuneration) and the Execulive Director / Company Secretary. The latter's remuneration is agreed by the Trustees and Chaimian of LA T based on the recommendation of the Remuneration Committee. Assets In Harpenden, Herifordshire, the Trust owns.. the Roihatnsled Estate (330 ha) incorporating a laboratory complex comprising research 2nd administrative buildings and facilities (7 ha) and an extensive experimental fami on most of the rest of the area- a Grad¢ I listed building dating from the 13 century (Rothamsled Manor)- 51 houses and cottages on the estsle and in the town of Harpenden; 5 larger residential properties comprising multiple units.. Anova Court, De Ramsey Court. Southwood Cour¢ Lawes Court and l Ninnings. The Trust also owns an experimental farm {77 ha) at Broom's Barn in Suffolk, which includes related laboratory buildings and 6 residential properties. The majority of properties are utilis¢d by Rothamsted Research for its research activities, or as residential accotntnodation for its staff and PhD students. Properties that are surplus to Rothamsted Research's requirements a let on fully commercial lem)s to third parties and defined as "investment properties" The majority of the experimentsl lands, buildings and facilities owned by the Trust are oecupied under a bare icence by Rothamsted Research and the buildings and facilities are included in that organisation's Balance Sheet at historic cost to Roihamsted Research. The Trustees consider the open market value on an altemativ¢ use basis of these assets to be materially in excess of book value. Over many years it has been the custOTll for buildings not required by Rothamsted Research to be handed over to LAT for the latter to maximise its income.
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023 During 2022123 Ihc Trust has conlinucd to be very closely involved with the strategy and direction of Rolhamsled Enterprises Lim i(cd (REL). REL is a joinl venture between the Trusl (40 % ), Rothamsled ResctLrch (40 /0) and UKRI / BBSRC (200/0) and is aimed al attracting scienlifically-based companies and organisttlions involvcd in the ag?riculiural arena- large and small, new and eslablished - lo esl&blish a cluster of like-tninded organi5alions at tlic Roihamsl¢d campus. Tlie Trust is currently promoting for release for potential residcnlial development a number of fields.. namely Black l-lorse, Bylands. Meadow, Osier and Vcr, tolalling approximately 40 hectares and collectively rcf¢rr¢d to 'Land North-East of R¢dbourn" To this end the Trust cntcrcd into, on 29 Oclober 2021, a proinotion agreement with Lands Improvem¢nl Holdings (LIH) in relation lo the Land North-Egsl of Rcdbourn. The Trusi is working closely with LIH to promote (he land for inclusion in St Albans City & District Council's ("SACDC") emerging Local Plan, wl)ich is currently in progress and timetabled for adoption in the autumn of 2025. The inlention would bc to dispose of ihis land lo third parties for primarily resid¢nlial dcvelopmenl purposes, to&Jether with allocations for educational, social and employment purposes. The proceeds from this disposal would be applied directly to th¢ Trusl's ¢harilable objects, including enabling investment in the Roihamsled campus and providing funding for (he ongoing rcsearch activities of Rothamsled Rcsearch. On 19 April 2023, the Trust disposed ofihe land North-Easl of Redbourn lo ils wholly-owned subsidiary, LA T Redboum Limil¢d ror lolal proceeds of £510.204. All agreements rel&l¢d lo this land were also novaled lo this subsidiary ai that dale. On 23 October 2020, the Trust exchanged contracts for the disposal of a 0.6ha site on th¢ boundary of the estate al Halcliing Green to a third party. following an exlensiv¢ marketing Campaign. Completion on Ihis disposal was achieved on 5 July 2022 for total proceeds of £2.1 m. In addition, a couple of small surplus r¢sidenlial properties in Barrow, Suffolk, were disposed on the open market on I l July 2022 for total proceeds of £805k. On 19 April 2023. Ihe Trust granted a 99 year lease (on a peppercorn reni b&sis. with a lease premium of £500k) in relation lo the Manor House on the Roihamsted estale to its wholly-owned subsidiary, LAT Redbourn Limited. The Trust also holds liquid funds in Ihe form of slock markei investments and ¢h deposits. Intellectual property rig]ils created during Ihe course of operation of the Rothamsled Experim¢nial Station {until 1991), including registered trademarks and copyrights, also continue lo belong to the Trust. These were established in Il)¢ Memorandum of Underslanding dated 12 June 2000 between the (then) corporale trustee and Rotham51ed Experimental Sialion {soon after to become Roihamsted Research in the same year). Other archives, including soil and plant archive samples until 1991 also belong to the Trust and are under the guardianship of Roihamsled Research. Rlsk Mallagement The Board of Direclors of the Trust- the Tru5tees- regularly reviews the major risks and principal un¢ertainties to which the Trust is exposed and Ihe sleps which have been taken lo miligale against these. Key risks at 31 Marcl) 2023, with the main steps undertaken to mitigate those risks. are: Rothamsled Research is the primary method through which the Trust achieves ils ¢haritable purposes. Roihamsted Research is reliant for its funding from government sources, primarily BBSRC I UKRI. Given the current political and economic lands¢ape, there are a number of uncertainties in relation to the ongoing levels and sources of this funding. Additional 5UPPOrt and new approaches from the Trust may be needed in this regard.
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023 The Trusi slrong, aclive link¥ and compnunieaiion wilh Rorhamsted Research and BBSRC/ UKIU, wilh Ihe Execulive Direclor meeiing key managemep71 personnel of both organi5aiioKs on a regvlar basis, and Éhe Trusi Chairman allending Roihamsled Research Board meelirtgs as an observer. 2. The promotion of ihe Trust's land &5 a part ofilie SACDC emerging Local Plan (both the land North-East of Redbourn and also land al Townsend Lane, Harpenden, optioned lo Hill Residential) is potentially a significant drain on the Trust's resources. both finan¢ially and in lernis of management focus. The Trusi has now enleredinlo apromoiion agreemenl wirh Lands Improvemenl Holdings (LIH), which lo a large extenl niiligales ihese riskf. The Tru51 remains closely involved in ihe slraiegic oversighi of Ikepromolion process, bul the day-lo-day peCI5 (and relatedfvndino are now managed by LIH. The Tru5V5 significant commitment lo a range of campus development projecls places an excessiv¢ strain on finile resources. The posilion ip7 relL71ion ¢0 commitmenls and ca5hflow is reviewed on a regular basis by ike Execulive Director and reporied io ihe Tn¥siees a¢ eaek Board meeling. Th¢ Trust continues to attract high calibre Trustees with the most outstanding skills and experience relevant to the Trust's evolving activities and role. It is critical that this is maintained. The Trnsiees have underioken lo ensure that the recrni¢n7ent ofsuilable new Truslees is a keypriority. wilh iheposilion in relalion to CZ4rreni Boord eomposiiion subjeci to regular review. Maintaining the future use. management and financial viability of Rothamsted Manor given ils Grade I listing and rudimentary facilities. The Trust, REL and Roihamsled Research work closely logether to ensure fyture Mse5 are L7vailable which are in keeping wilh Rotkamstedmanor s lisied stafz45. A complete review of the risk register is undertaken at each Trust meeting with a forn)al regisier being kept up to date at these tneetings. The executive team also regularly reviews and updates the risk register in between Trust meetings. To date, no risks have been identified that are judged lo threaten the existence or solveney of the Trust. Objectives and Activities The charitable purposes of the Trust as defined in the Articles of Association are- 'to advance the science of agriculture for the public benefil through original investigation and research, which may embrace all or any subjecl{s) connected to or bearing upon agriculture, including animal or vegetable physiology, meteorology, botany and chemisty" These purposes are a re-slalement of those in the original Deed of 1889. Like its predeces50r, the Trust focuses on the estate and lands at Rothamsled, Herrfordshire and this remains the main base for activity, but the Trust is free to consider other land, entilies or locations from time lo time. The Trust ensures compliance with its charitable purposes by building its income and applying most of the assets and proceeds of the Trust to the sponsorship and promolion, either directly or indirectly, of the charitabl¢ agricultural research activities of Rothamsted Research, whose agricultural research objects are similar to, and derived from, those of the original Trust . There is an extensive programme of public benefit research, public engagement and knowledge transfer undertaken at Trust premises. The Trustees are especially keen to ensure that the research is converted into practietl application. This work is reviewed by the Trust through reports of supported projects, provision of an observer from th¢ Trust at Rothamsted Research Board meetings and a bi- annual report from its Jnslitute Director at Tn]st meetings. Further inforniation on Rothamsled Research and its Reports oJe available on the web site at http'.l/www.rothamsted.ae.uk, or inforn)ation can be sought on application, from the Company Se¢retary of th¢ Trust at the principal address as per page l. Thus, the Trust utilises its assets to pursue ils purposes through five principal routes.. l Rothamsted Research's current charitable purposes are.. for the benefIt of the public to advance the science of agri¢ulture by th¢ initiatioii, prosecution, development and continuance of investigations and experiments related thereto.
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST RF.PORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023 The provision of land and buildings suitable for agricultural and r¢latcd sciences conducted by Rothamsted Researcl), on beneficial lemjs. This operai¢s as a closeporinership wilh Ro¢hamsiedResearch andihai organisalion s maip7srant- giving ondfullding body, BBSRC. 2. The provision of accommodation on a preferential, bul defined, limited term basis lo PhD students, key workers and other Rothamsled Research staff. which allows them lo live in thi5 very expensive location whilst on modest scientifi¢ salaries. The significanl majority of Ihe residenliolprovision owned by the Trust is avoilable prefereniially for sludenis, siaffand visilors. These ore kept lo a goodstandardand well locaied with easy acce55 on fool io ihe sciepllific faciliÉies. RoÉhams¢ed Research identifies ihe mosi deserving and appropriale lenanls. The challenge wilh ihesefacililies is seeking lo ensure Éhey are adequaiely maintained in order io proleci ihe assels andprovide good quality oceommodalion bul, Ot the same lipne, keep ihe charges ai affordable levels ond ihal occupancy 15 both marimised andfairly assigned. 3. Granting financial support for scientific costs to Rothamsted Research, mainly through a "Direelor's Vole" fixed annually by the Tnle¢S following proposals made to them. For the current year, the Director's Vole was sel at £500,000 (2022.. £500,000). 4. Capital fijnding provision of diverse facilities deemed to help meet the TNst's purposes, wilh partners where possible, including technology transfer, sample archive and the like. 5. In addition, th¢ Trust plays a vigorous and lead role in developing the Rothamst¢d campus to enable interaclion with small companies to actively enhance the uptake of agricultural and environmental research output into pr8¢tice across different communities, in conjunction with REL (as detailed above) and othenvi5e. Jiems 3, 4 and 5 reqz4ire ihe generalion ofcash sums. These can originatefrom.. Rep71al income on those Trust s properties made available on ike open markel at commercial rents. Thepolicy is Éo maip7tain ihese al, Ihe highe5tPOS5ible standard to altraci high rents and to maximise iheproperlies in ikis category. b. Incomefrom equity and similar inveslmEnls. Occasional sale ofland and asset$ to generaie capilal sums. Public Benefit As a charitsble Trust, LA T's primary purpose is the advancement of the science of agriculture for the public benefit. This is primarily achieved through providing support for Roihamsted Research which in turn disseminates knowledge and research with particular emphasis on publication in widely available scientific joumals, in the popular agriculture and broader press and through conferences or seminars, many of which a aimed at the wider public. The lem) "advancement" is taken to include such scienc¢ becoming widely used tn xgrieultural practice. Thus. it falls within the charitable purpose of'lhe advancement of the arts, culture, heritage or science" Inevitable ancillary benefits as a result of meeting the primary object ihat would fall into the categories of advancemenl of edu¢ation, the advancement of environtnental protection or improvement and, perhaps to a more limited extent, the advancement of health. The Charity Commission specifically mentions scientific research projects under the heading of the advancement of science. The Trustees have cotnplied wilh Section 17 of the Charities Act 201 I to have due regard to public benefit guidance published by the Charity Commission. As stated in this report LA T provides a range of facilities to Roihamsted Research (whose charitable purposes significantly overlap with those of ihe Trust) on a highly preferential, ex¢lusiv¢ basis, as well as modest grants. This charitable activity takes place at the two tnain site5 owned by the Trust - Rothamsted in Hertfordshire (which is the main site for Rothamsted Research) and Broom's Barn in Suffolk- but the output has global reach. Trustees closely tnonitorthe activities of Rothamsted Research to ensure that they Continue lo serve ils charitable purpose and meet the requirements of public benefit. The Trustees note that this is achieved by making scientific
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDF.D 31 MARCH 2023 advanccs freely available throughout public scientific lileralure. engaging in knowledge exchange with fam)er5 on an unhind¢rcd basis as well as initiating and promoting the wider discussion of scientific tnatters aff¢cling agriculture, climalc cliange food quality aFtd food security. Achievements The Director's Vole was dispensed according to plan. The Trust provides long lerni 5UPPOrt for activities thai oth¢rwise would not conlinue. This allowed the Trust to support, for instance: Postgraduate Studentship5 in partnership wilh a number of universities. Long-lerni experiments al Rothainsted- the classical field experiments and the insect survey. Although now significantly supportcd through the National Capability Grants from BBSRC, LAT conlinues lo provide additional and vitsl funding. Student training in a variety of areas at Roihamsled, Ihereby enhancing th¢ existing development programmes and helping to engage and develop the next generation of scientists. Key PerformaDee Indicators The main beneficiaries of the Trust are Rothamsted Research and its stskeholder5 who benefit frotn thc rescarch that is undetLqken. Th¢ Trust a150 ensures the provision of resources to maintain, refurbish and enhance the built eslale. Agricultural science projects at Roihamsled Research are fLIRded through ihe Direclor's Vote which this year lotalled £500,000 (2022.. £500,000). The Trust continues to provide affordable housing for key workers and visiting workers, whilst mlmiS1ng the rental income on externally let properties (those properties thal are limited to exlernal lets are defined as 'investmenl properties") according to market conditions. In turn, this provides funding for future years, refurbishment plans of all properties, thus maximising long-term rental income for the Trust and providing affordable aecommodalion for Roihamsted Research slaff. Some criteria used by the Tn]st to assess perfomance against its objectives can be summarised below: l ) Investmenl income is monilored by the Board with a more delail¢d review and assessment carried out by the Investtnent Committee who liaise directly with Ihe Trust's investment advisors Sarasin & Partners LLP. Six-monthly reports provide p¢rfonnance indicators for the investinents against the industry average. The gross dividends and interest income for the year on tlie investments was £201 k (2022.. £127k) which remains broadly in line with typical market performance. 2) The maintenance of sound rental income against a planned refurbishment programme for Trust properties has been operating over several years and continues. In the year. the total estale income (both charitable and investment properties) was £2,255k (2022.. £2,OJOk). See also Notes 5 and 6. 3) Director's Vote funding is approved by the Board and allocated by the Director of Rothamsted Research to sponsor continuing long-tenn s¢ientific projects. The result5 of these projects are reported to the Board who monitor and review the results against the Trust's objectives. Financial Review The Ststement of Financial Activities shows that lotal fi]nds have increased lo £31,651 k (2022.. £27,905k). Ov¢rall eslale rental income (including investment properties) increased to £2,253k (2022.. £2, 016k). There was further expenditure on properties in the sum of £1,780k 12022.. £J56k). As stated above, overall income trajectory is set lo rise in line with our ongoing estate programme and the overall quality of property
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023 stock being both maintained and 51¢adily improved across the whole portfolio. This include5 investment inlo the innovation facilities as part of the Enterprise objeclives for the Campu5. A key item of capital expenditure during thc year was the renovation of the old Stores building into the new Innovation Labs facility, a development of 9 laboratories for start-up tenants which was partly fijnded through grants from the HertslQ Enterprise Zone and BBSRC (£1.25m grant funding in total)- The value of the investment porifolio increased by 5.59/0 in the pasl year to a Fair Value of £4.864k (2022.. £4,6JOk). All equity investments are managed by Sarasin & Partners LLP. Direct Costs of investment management were £Ok 12022.. £0. Ik) The investment in the unlisted, spin-out statistic softwar¢ company VSN International Limited is valued at £348k {2022.. £348k)- Wc are pleased to note that the payment of a dividend of£28k has been received for 2022123 (2022.. £28k). The Trustees note the level of cash being held in banks (mainly as Barclays Treasury Deposits) has increased to £2.276k (2022.. £1,094k) as a result of the realisations on properties. Payments associated with the Director's Vote. which make an important contribution lo the agricultural re5¢arch at Rothamsted, continued as staled above. Going Concern The Trustees have reviewed the current position and projected results of the Trust for the period lo 31 March 2025 and, based on this. have continued lo prepare the financial staletnents on a going concern basis. Further detail can be found in the going eoneern accounting policy note on page 18. Investment Policy The Trustees, investment mandate is staled in its Artiele5 where the Board has powers.. "to deposit or invest its fund5 in any manner as may be thought fit (including, but not limited io, Ihe establishment of trading or other subsidiaries of any kind), but only after obtaining such advice from a Financial Expert as the Truste¢s ¢onsider necessary and having regxrd to the suitability of investments and the need for diversification" Dr Graham Birch has extensive investment experience in the City of London and chairs the Investment Sub Commirtee, which liaises with the appointed investment manager, Sarasin & Partners LLP. The aim of the portfolio is to maximise total return and ihere are no restrictions placed on the investment portfolio. Sarasin present to all Trustees from time to time. Note that as stAted earlier the Trust holds certain properties as investments as they are not used at all for eharitable purposes (i.e. providing xceommodation for Rothamsled slafD but rather only lo generate an income. This is a small number of the totAI housing stock as the Trust wishes to keep the flexibility that enables the majority lo be available for Rothamsted staff if and when necessary. Fund Raising The Trust does not actively fund raise, and no professional fund-raisers are engaged. No appeals to members of the public have been made, and no fund raising is carried out on behalf of the Trust. No complaints were received from the public in relation to fund raising. Reserves Policy The Trust's policy on the maintenance of reserves seeks to ensure that sufficient reserves are available to enable the Trustee5 to fulfil the short and longer-lerni liabilities and obligations of the TrusL as well as fully participating in the development of the Estate at Rothatnsted and Brooms Barn in a timely manner. In the
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCFI 2023 conl¢xl ofilic laller, Il)¢ Truslees ar¢ ofilie opinion that Iliis falls clcarly wiihin and dirccily serves th¢ cliarilable ObjLcl ofih¢ Tru.sl. l-.re¢ rcserves availablc for iise by the Trust are decmed to be those Il)al ar¢ readily realisable. les5 funds wliosc uscs are rcslriclcd or dcsignaled for particular purposes. The calculation thus cxcludes fix¢d asscls. rcstricled and dcsignaled funds. The level of free reserves as at 31 March 2023 was £5.069k (2022.. £2, 732k). As a broad principle and with du¢ considcralion to short term demands, the Trust's ov¢rall aim is lo invcsl in faciliti¢s rather than be holding casl). It is noted by the Trustees that overall Tolal Unreslricled Funds stttnd al £31,651 k (2022.. £27,905k) Statement of Trustees, Responsibilities 'I'li¢ Truslecs (who are also (he dircclors of Lawcs Agyrieuliural Trust for the purposcs of company law) re rcsponsiblL for prcparing Ihc Report of the Triislees and the financial statements in accordance willi applicable IAW and Uiiitcd Kinu?dom Accounting Siandards {Unitcd Kingdom Generally A¢c¢ptcd Accounting Practice). Company law requires the Trustees lo prepare financial statements for each financial year which give a truc and rair view ofilie ofilic charilAble company and of the incoming resources and application of r¢sources, including tl)e ii)¢oinc and CXPLnditur¢. of Ilic cliarilable Company for Ihal period. In preparing these financial stalemcnls Il)¢ Trustces are required to.. select suitable accounting policies and Ih¢n apply Ihcm consistently. observe Ilie Inethods and principles in the Cl)arilies SORP; makc judgemenls and cstimales tliat are reasonable and prudent: slate whether applicable UK Accounting Standards have been followed, subject to any material dcpartures disclosed and explgined in Ilie financial slaiemcnts; and prcparL. Il)e finai)cial stalemenls 011 the going conccrn basis unl¢ss it is inappropriate lo presume that tl)c cliarity will continue in business. Thc Trustees ar¢ rcsponsiblc for keeping proper accounting records that disclose wilh rcasonable accuracy, at any limc, Ihe financial position ofilie charilable company ai)d enablc Iliem lo ensure that the financial sl£ltements comply wilh the Companies Act 2006. Thcy are also responsible for sftfeguarding the asset5 of Ihe charitable company and hence for taking rellsonable stcps for the prevention and dctcclion of fraud and other irr¢gularilies. Statement as to Di5¢1osur¢ of Information to Auditor The Truslecs who were in offi¢e al the date of approval of these financial slalemenls have confirmed, as far as tl)ey are aware, Ilial Iherc is no relevant audit information of wl)icli the auditor is unaware. Ti)e Trustees have confirmed Ilial Illey have laken all the slcps that they ought to hav¢ taken as Trustees in order to make itself aware of any relevant audil inforniation and to e51ablish that it has been communicated to the audiior. The financial slalements have been Prepared in accordance wilh the provision5 applicable lo companies subject lo the small companies regime. On behalf of the Board Peter Oxley Trust Secretary Date: 22 November 2023
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LAWE.S AGRICULTURAL TRUST Opinion We have audited the financial statements of Lawes Agricultural Trust {the 'chlIable company,) for the year ended 31 March 2023 which comprise the Ststement of Financial Activities, Ihe Balance Sheet, the Stalemenl of Cash Flows and notes to Ihe financial 51atemenls, including significant aecounling policies. The financial reporting framework Ihat has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 'The Financial Reporting Standaid applicable in the UK and Rcpublic of Ir¢land" (United Kingdom Generdlly Accepted Accounting Practice). In our opinion the financial stalcmenls.. give a true and fair view of tl)e slate of the charitsble company's affairs as at 31 March 2023 2nd of ils incoming resources and application of resources, including its income and expenditure, for the year then ended; have been properly prtpared in accordance with United Kingdom Generally Accepted Accounting Prdctice; and have been prepared in accordanc¢ with the requirements of th¢ Companies Act 2006. Basis for opinion We condu¢t¢d our audit in accordance with International Standards on Audiling (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for Ihe audit of the financial statements section of our report. We are independent of the chariiable company in accordance with the eihi¢al requiremenls that are relevant to our audit of ihe financial statem¢nts 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 Éhat the trustees. u5¢ of the going concern b1$ of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uneertainties relaling to events or conditions that, individually or collectively, may cast significant doubt on the charitable ¢ompany's ability to continue as a going concem for a period of at le&st twelve monihs from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The oiher inforynation 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 infom)ation contained within the Annual Report. Our opinion on the financial statements does not cover ihe other inforniation and, except lo the extent otherwise explicitly staled in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other infonnation is materially illconsistent with the finan¢ial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required lo delem]ine whether this gives rise to a material misstatement in the finaneial statements themselves. If, based on the work we have performed, we ¢onclud¢ ih&t there is a material misstatement of this other inforniation. we are required to report that fact. We have nothing to report in this regard. 10
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LAWES AGRICULTURAL TRUST Opinions on other mAtters prescribeil by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audil.. th¢ infomiation given in the Report of the Trustees. which includes the Diiectors, Report prepared for Ihe purposes of company law, for the financial year for which the fmancial statements are prepared 15 consislenl with the financial statements. and the Directors, Report included within the Report of the Trustees, h&8 been prepared in accordance with applicable legal requirements. Mgtters on which we are required to report by exeeption In the lighi of the knowledge and understandirtg of the ¢haritable company and its environmenl obtained in the course of the audit. we have not identified material misstatements in the Dir¢¢tors' Report included within the Report of the Trustees. We have nothing to report in respect of the following matters where th¢ Companies Act 2006 requires us lo report lo you if, in our opinion: adequale accounting records have noi been kepL or returns adequate forour audit have not b¢en received from branches not visited by us; or the financial slatements are not in agreement with the accounting records and returns. or certain disclosures of truslees, remuneration specified by law are not made. or we have not received all the inforn]ation and explanations we require for our audit- or the Trustees were not entitled to take advantage of Ihe small companies exemption from the requirement lo prepare a Strategic Report or in preparing the Report of the Trust¢es'. Responsibilities of erustees As explained more fully in the Statement of Trustees, responsibilities sei out on page 9. the trustees (who are also the directors of the charilable company for the purposes of company law) ar¢ responsible for thc 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 deterniine is n¢cessary lo enable the preparation of financial statements that are free from material misstatement, whether due lo fraud or error. In preparing the financial statements, the ISteeS are responsible for assessing the charitable company'5 ability to continue as a going concern, disclosing, as applicable, matters related to going ¢oncern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable eotnpany or to Cease operations, or have no realistic alternative bul to do so. Auditor's respollsibilities for the audit of Ihe financial statements Our objectives are to obtain reasonable assuranc¢ about wheiher the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report Ihat includes our opinion. Reasonable assurance is a high level of assuran¢¢, bul is not a guarantee that atk audit conducted in accordance with ISAS (UK) will always detect a material misslat¢m¢nt 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 otk the b&sis of these financial statements. The extent to Ivhicb tbe audit was considered eApable of detecting irregulArities, including frnud Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit gre to obtain suiTicient appropriate audit evidence regarding compliance with laws 2nd regulations that have a direct effect on the delem)inalion of tnalerial amounts and disclosures in the financial statements, to perfomi audit procedures to help identify instances of non-compliance with other l&ws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit. In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstalement of the financial statements due to fraud, to obtain sufficient appropriale audit evidence regarding the assessed risks of
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE INDEPENDENT AUDITOR'S REPORT TO THE MEMBER.S OF LAWES AGRICULTURAL TRUST malerial misstatement due to fraud through designing and implementing appropriate responses and lo respond approprialely to fraud or suspected fraud identified during the audit. However, il is the primary responsibility of managemenL wilh the oversight of those charged with governance. to ensure that the entity's operalions are conducted in accordanc¢ witli the provisions of laws and regulations and for the prevention and detection of fraud. In identifying and assessing risks of malerial misstatement in respect of irregularities, including fraud, the audit engagemenl lep4m: obtained an und¢rslanding of the nalure of the se¢tor. including the legal and regulalory frameworks tlial Ihe charilable company operaics in and how the charitable company is complying will? the legal and regulatory frameworks; inquired of management, and those charged with governance. about their own identification assessment of Ihe risks of irrcgularities, including any known actual. suspected or alleged in518nces of discussed matters about non-compliance with laws and regulation5 and how fraud might occur including aSS¢ssment of how and where tlie financial slateinents may be susceptible to fraud As a result of thcse pro¢¢dures we consider th¢ most significant laws and regulations that have a direct impacl on the financial slalements ore FRS 102, Charities SORP (FRS 102), Comparties Act 2006, Charities Act 2011, the charitablc company's governing document and tax legislation. Wc perfomied audil procedures lo detc¢t non- compliances which may liave 8 material impact on Il)e financial slatcmcnts which included revieiving Ihe rinancial slalemenls including the Report ofthe Trustees, remaining al¢rt io new or unusual transactions which may not be in accordance with the governirtg documents. Thc mosl significant laws and regulations Ihat have an indirect impact on the financial sralcments are those in relalion lo Health and Safety, the Landlord and Tenant Act 1985 and the Housing Act 1988. We performcd audit procedures lo inquire of management whether the charitable company is in ¢ompliance with these law and regulations and inspected ¢orresponden¢e with regulatory auihorilies. The audit engagement team identified the risk of management override of controls &5 the area where the financial slal¢ment5 were most susceptible lo material misslalemenl due io fraud. Audit procedures p¢rformed included but were not limited lo testing manual journal entries and other adjustments, evaluating the business rationale in relation lo significgrtl, unusual transaclions and transactions entered into oulside the normal course of business and challenging judgments and estimates. A further description of our responsibilities for the audit of the financial slalements is lo¢al¢d on th¢ Financial Reporting Council's websiie al hi '.l/www.frc.or .ukl udilor res onsibililies. This description forms part of our auditor's report. Use of our report This report is made solely lo the charitable company's members, as a body, in accordance with Chapter 3 of Part16 of th¢ Companies Act 2006. Our audit work has been undertaken so that we mighi slate lo Ihe charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent pem)itted by law. we do not accept or assume responsibility to anyone other tha th¢ ¢harilable company and the cl)aritable company's members as a body, for our audit work, for this report, or for the opinions we have formed. DcGu8bn•d by. DB95033FFfj4C4EB SARAH MASON (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants The Pinnacle, 170 Midsummer Boulevard. Milton Keynes. Buckingham5hire MK9 1 BP Dale.. 22 November 2023 12
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES ACRICULTURAL TRUST STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDF.D 31 MARCH 202J Unreslrlcled Fund5 General DesiRnated Rcslricted Fund Fund Fund Tot81 Funds 2023 Total Funds 2022 Notes Income from: Donalion5 Grants 28,279 28.279 1.250.000 1.278,279 1250.000 1.250.000 28.279 Investments 599 273 627,552 599.273 1,877,552 523,799 523,799 1.250,000 Cliorliable Acilvliles.. Estate Managem¢ni 1,854.855 1,854.855 1,869,034 Tol41 Income 2 482 407 1250 000 3 732 407 2 392.833 Expcnditure on: Rrtl.sliig l.uiid.f.' Fund Raising Costs (56,028) {56,028} {47,124) Cliarlirtble Acilvliles.. Es¢ai¢ ManagLinent Research Tot81 Charitable Expendilure 7b 7b 12,130.540) 500.000 {2.630,540) 12,130,540) 500.000 12,630.540) (1.815,567) 500,000 (2,315,567) Tolgl Expendllure {2,686,508) 12,686.568) (2,362,691) Profit on Sale of Tangible Fixed Assets 2,640,264 2,640.264 Net Gains on Investments 59.094 59.094 372,883 Net In¢ome 2,436,103 59.094 1,250,000 3.745,197 403,025 Transfer to General Fund 1,250,000 (1,250.000) Net Movement in Fund$ In Yepr 3,686.103 59,094 3,745,197 403,025 Re¢oiiclll&lioN of Funds Funds Balances Brought FOrwd at l April 9,147.050 18,758,308 27,905,358 27,502,333 Funds Balances Carried Forward at 31 March 12,833.153 18,817,402 31.650,555 27.905.358 13
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST BALANCE SHEET AS AT 31 MARCH 2023 Company Registration No: 8901784 Notes Totsl 2023 Total 2022 Fixed Assets Tangible Assets Inv¢stments 10 14,864.104 14,763 202 29,627,300 13.514,736 14 153.888 27,668.624 Current A55ets Debtors Cash at bank and in hand 12 521,958 2 276.435 2.798,393 452.459 1.094,448 1.546,907 Current Liabilitles Creditors Falling Due Within One Year 13 (775.1441 {1.310.173) Net Current A$scts 2.023,249 236.734 Nct Assets 14 31,650,555 27,905.358 Funds Unreslrictcd Funds Gencral Fund Designaied Fund Capital Rcserve Fund 12,833.153 9,147,050 18,817.402 18,758.308 TotHI Unrestrlcted Funds 31.650.555 27.905,358 Total Funds 31.650.535 27.905,358 Approved by the Trustees and authoris¢d for issu¢ on 22 November 2023 Signed on behalf of the Trusiees. GRAHAM BIRCH 14
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023 Total 2023 Total 2022 Notes Net cash gcnerated frorn operating activitie5 Cash generated from l (used in) operating activities 16 12,385 (45,8691 Jnve5ting activities Dividends, interest and Tent from investments 599.273 523,799 Purchase of tangible fixed assets (1,779,710) {155.915) Purchase of fixed asset investments (550220) Proceed5 from sale of tangible fixed &5sets 2,900,259 Net eash generated from investing activities 1,169,602 367.884 Financing activities Loan repayments (200,000) Net cash used in financing activities {200,000) Net incre&se in cash and cash equivalents 1,181.987 122,015 Cash and cash equivalents ai beginning of year 1,094,448 972,433 Cash and ¢ash equivalents at the end of year 2.276,435 1,094.448 15
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES ACRICULTURAL TRUST NOTF.S TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Accounting Poli¢ies General Informlltion Lawes Agricultural Trus1 {"th¢ Charity" or '%h¢ Trust") is a charitable Company limited by guarantee domiciled and incorporated in England. The address of the Company's registered offic¢ and principal place of business is Rouiamsled, Harpenden, Hertfordshire, AL5 2JQ. The Charity's principal activities are as detailed in the Report of the Truslees. The charity is a public benefit entity as defined by FRS 102. Monetary amounts in these financial stalem¢nts are rounded to the nearest £ except for note I l (e) which is rounded to £OOOs. Sierling is the functional and presentational currency. Basis ofA¢countillg Tlie finan¢iaS sla(cmenls have been prepared in accordance with FRS 102 {The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)). The Trust's wholly owned subsidiary, LAT Redbourn Limited, was dormant throughout the year and so has not been consolidated in these financial statements. Th¢ financial statements hav¢ been prepared under the historic cost convention as modified by the revaluation of investtnents. The financial statements meet the requirements of the Companies Act 2006. the Statement of Recommended Practice- Accounting and Reporting by Charities (Cliarities SORP (FRS 102)) and applicable accounting stsndards so far as these requirements are appropriate. b) Tangible Fixed Assets Individual fixed assets costing £3,000 or more are capitalised. Freehold Land and Buildings are staled al cost and no depreciation on buildings is provided on part of the portfolio, where an assessment of the residual values of the properties at the balan¢e sheet dale indicates that no provision for depreciation is necessary. For those buildings where a provision for depreciation is considered material, these are being depreciated over a 50 year estimated useful economic life. Fixtures, fjttings And equipment are staled at cost and depreciated on a straight line basis over their estimated useful life of l O years, with computer equipment depreciated on a straight line basis over their estimated useful life of 5 years. Collections of BooiLS, Prints and PgiDtiDgs are stat¢d at deemed cost on transition to FRS 102. Rare Furniture, Statuary and Effects were stated at deemed cost on transilion to FRS 102. No depreciation is provided on the Rare Furniture, Statuary and Effects, Books, Prints and Paintings as described above. These assets have long useful lives and are not anticipated to be used or consumed or to deteriorate 5ignifieanily through effluxion of time. Accordingly, Ihe Trustees Consider that the residual value of the assets is such that no depreeiation is required to be charged. An assessment is made al each reporting date of whether there are indicators that a fixed asset may be impaired. IDtellec¢ual Property is not valued as in the opinion of the Trustees no realistic valuation can be placed on this asset in the absence of an arms, length offer for the purchase thereof. 16
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWF.S AGRICULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued) Investments Listed inv¢slm¢nts are ststed at the fair value at th¢ Balance Sheei date. Unquoted investments are slat¢d at the Trustees, estimate of fair value. Investment properties are slaled at fair value. Gains and losses arising on revaluation are recognised in the Statement of Financial Activities as these arise. Undertakings in which the Trust has a long-term interest and which are under joint control are defined as joint ventures. Joint ventures are accounted for at cost. d) Taxation As a charity, th¢ Trust is not usually liable io corporate tallOn on ils other income and capiial gains. Recovery of IatiOn is madc in respect of donations under gift aid. The Trust is registered ror Value Added Tax (VAD but where VAT is irrecoverable. it is included in the relevant category of expenditure. Income Income, including grants, gift aid receipts and other donations is recognised where there is entitlement, probability of receipt and the amount can be m¢asur¢d with sufficient reliability. Where material, donated services and facilities are included in the Statement of Fiftancial Activities based on the Trustees, estimate of the fair value of the services received. Investment income 15 recognised on a receivable basis. Income from charilable activities represenls income received from the Trust's eslale management aetivity and includes rental and other income on estate properties logether wilh surpluses on disposal of any properties. This is recognised on a receivable basis. Expenditure Expenditure is recognised when a liability is incurred.. Costs of raising funds are those costs incurred in relation to Tnanagem¢nt of the investments. Charitable activiti¢s include expenditure associated with the Trust's estate managemenL research activities and grant making, in ac¢ordance with the objecls of the Trust. Support costs include central functions and have been allocated to activity cost categories on a basis consislenl with the use of resources. Support costs also include cosls incurred in the governance ofthe Charity and its assets and are primarily associated with constitutional and statutory requirements. g) Funds Structure All fijnds are unrestricted fijnds. The Trustees have set up a designated fund and the purpose of this is delailed in Note 14 to the financial statements. 17
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 {contjDued) Financial Instruments The Trust has elected to apply the provisions of Section I I 'Basic Financial Instruments, 2nd Seetion 12 '0iher Financial Instruments Issues, of FRS 102, in full, to all of its financial instruments. Financial assets and financial liabilities are recognised when the Charity becomes a party to the contractual provisions of the instrument, and are offset only when the Charity currently has a legally enforceable right to set off the recognised amounts and intends either to Settle on a net basis, or to realise the asset and settle the liability simultaneously. Fiiiortcial assels Trode and oiher debiors Trade and other debtors which are re¢eivable within one year and which do not constitute a rinancing transaction are initially measured at the transaction pri¢e. Such debtors are subsequently measured at amortised eost, being the transaction price less any amounts settl¢d and any impairmenl losses. A provision for impaim¢nt of trade and other debtors is established when there is objective evidence that ihe amounts due will not be collected according to the original ternis of the contract. Impairment losses are recognised in income or expenditure for the ex¢¢ss of the eanying value of the debtor over the present value of the future c&sh flows discounted using the original effective interest rate. Subsequent reversals of an impairnient loss that objectively relate to an event occurring after the impairnient loss was recognised, are recognised immediately in income or expenditure. Concessionary loans are initially measured at the amount paid, including interest accrued and after impaim)eDt, where applicable. Finonciul Ilubililies Trade other credilors Such creditors payable within one year that do not constitute a financing transaction are initially measured al the transaction price and subsequently measured al amortised cost. being the transaction price less any amounts settled. Government and Capital Grants Government and capital grants are recognised at the fair valu¢ of the asset received or rcceivable when there is reasonable assurance thttt the grant conditions will be met and the grants will be received. Grants are recognised &% income when any associated performance Conditions are met. i) Going Con¢ern The Trustees have adopted the going ¢oncern basis in the preparation of these finimcial statetnents. Forecasts have been prepared which support this lo 31 March 2025. There are no material uncertainties in this assessment. Cash and liquid inv¢stm¢nts remain strong and ihe Trustees are s&tisfied that the Trust remains a going ¢oncem. 18
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued) Critical Accounting estimates and areas of judgement Estimates and judgements are continually evaluated and are based on historical experience and other f2clors, including expectations of future events that are believed to be reasonable under the circumstances. Critical aecounting esiimales The Charity makes estimates and assumptions ¢oncerning the future. The resulting accounling estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are considered to be the useful economie lives and residual values of tangible fixed as5Cts (included in Note l O), which 15 the key estimate in assessing the level of depreciation required, and th¢ fair value of the investment properties (included in Note I l). Valualion of unlisled inveslmenls The valuation of the investments in VSN Intemational Limited and Sug&Rox Limited are based on the Trustees, current view of fair value, which is in based on the latest published net asset position and other relevant information (see Note I Id). 19
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued) Comparative 51atem¢nt or rinancial 8etivili¢$ For the yeor cndod Jl March 2022 Unre.flrlcied fuiids Gcneral Designated Fund Fund Total Funds 2022 Notes Income from: Donations Grdnts- LEP Invesiments 523,799 523,799 523,799 523,799 Cliarliuble Acilvliles.. Estate Managcmcni 1,869,034 1,869.034 Tol41 Incorne 2,392,833 2,392,833 Expenditure on: RlllsliiATr ffiiiids.. Investm¢nt Managemcnt costs (47,124) {47.124) Cliarllrtble Acllviile5.' Esiaie Management Rcsearch 7b 11,815,567) 7b (500,0001 (1,815.5671 (500,OOOJ Total Chnritable Expenditure (2,315,567) (2.315,567) Total E%pendlture (2,362,691) {2.362.691) Net gains on investments 372,883 372,883 Net income 30,142 372,883 403,025 Net Movement in Funds in Year 30,142 372,883 403.025 Recomclllalion of Futtds Funds Balances Brought Forward as at l April 9.116.908 8,385,425 27.502,333 Funds Balances Caled Forward as at 31 March 9,147,050 18,758.308 27,905,358 -20-
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR Ef4DED 31 MARCH 2023 (continued) Restricted income from Grants Total 2023 Total 2022 LEP and BBSRC Funding (relating to Innovation Labs refurbishrnent) 1.250,000 1.250,000 Grant income from the HerOrdshire LEP and BBSRC was provided specifically to fund the Innovation Labs refurbishment. As such it has b¢en treat¢d in the accounts &s a Restricted Fund, released to the General Fund upon completion of the works. Investments Total 2023 Total 2022 Dividends Bank interest Lettings income 149.424 51.600 398.249 126,706 92 397.001 599,273 523,799 Income from ch8ritable activitie5 Total 2023 Total 2022 Rental inrom¢ from estate properties Promotion fe¢$ receivable Sundry incorne 1,854,855 1,618.514 250.000 520 1.854,855 1,869,034 21
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued) 7{a) Support costs The Trust allocates its support Costs as shown in ihe table below and then further apportions these between the ch&ritable activities undertaken (see Notes 7b and 8). Support costs are allocated on a basis consistent with the use of the resources. Raising Funds Estate Management Governance Costs Total 2023 Total 2022 Staff Costs (see Note 9) Audit fe¢s.' RSM UK Audii LLP 56,028 177,466 56,028 25,970 289,522 25,970 270,732 23,225 56.028 177,466 81.998 315,492 293,957 2022 47,005 176,602 70,290 293,957 7(b) Analysis of Charitable Expenditure 2023 2022 Estate Management- Dire Estste Management- Support 1.871.076 259.464 1.568.675 246,892 Estate Management 2.130.540 1,815,567 Res&iTch 500,000 500,000 Total 2.630.540 2,315.567 Expenditure on Raising Fund5 2023 2022 Inv¢stment manageinent costs 59 Direct costs 59 Support costs (Note 7a) 56,028 47.065 56,028 47,124 22
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST NOTES TO THE FINANCIAL STATEMF.NTS FOR THF. YEAR F.NDED 3] MARCH 2023 (continued) Trustees And Related PArty Transactions The Trust employs 7 (2022: 7) staff members, al a cost of £289.522 (2022.. £270,731). 2023 2022 Wages and salaries Social security ¢osts Defined contribution pension cost 238.787 17,447 222.202 19,512 There was no payment of remuneration to trustees in the year (2022.. £Nil). Trusle¢s Claimed no reimbursemcnt oftravel expenses during the year (2022.. £Nil). Ti)c key management personnel are considered lo be Ihe Trustees and the Chief Exeeutivelcompany Secretary. The Trustees did not receive any emoliimcnls for their services {2022.' £Nill. The costs incurred in relatioi) lo )¢ serviees of the Chief Execulivelcompany Secretary totallcd £92,868 (2022: £87,006). No other employees of The Charity &re paid remuneration in excess of £60k. In Oclobcr 2011, following a change in governance of Rothamsled ReseArch, the Trust becaine one of three members of Rothamsled Research. and hence related party transactions are required lo be disclosed. As one of threc equal memb¢rs, Ihe Trustees consider that the Trust does not have significant influence over Rothamsted Rescarch and does not seek to unduly influence the strategic direction of Roihamsted Rcsearcli. Full dctails of this can b¢ found in the Report of the Truslces. T]i¢ nel balance due lo Rolhamsled Research al 31 March 2023 was £136,054 (2022.. £241,275). Grants paid lo Roihamsted Research in respect of research expenditure ar¢ delail¢d in Note 7b above. Rothamsted Research also uses certain of Ihe Trust's langible fixed asset properties and land held for ¢haritable use as described in Note 10. The Trust h&s provided land for the Lawes Open Innovation Hub, Il)e Conference Centre extension and improved car parking al Rothamsl¢d, wl)ich l?a5 been constructed by Roihamsled Enterprises Limited {RF.I,), 8 joint vcnlure of the TrLlSt as dclailed in Note I l. As set oul in Nolc 12, the Trust has retained an unsecured working capital loan lo REL of £50k (2022.. £50k), which remains outstanding at the year end. Originally due for repaytn¢nl on 31 March 2020, the Trustees have agreed (al the 22 March 2023 board mceling) lo dcfer this repayment date to 31 Maich 2030 if not settled earlier. No Inte51 is chargcd on tliis concessionary loan. The Trust made purchases of £123.690 (2022.. £171,405) in respccl of conference centre facilities, meeling rooms, catering service5 and commercial tenant managemcnl fees. The nel balance due to REL (excluding the loan referred to above) was £40,311 (2022.. £22,773). 23
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST NOTES TO THE FINANCIAL STATEMF.NTS FOR THE YEAR ENDED 31 IILIRCH 2023 (continued) 10 Tangible Assets Fixtures, Fitting5 find Equrpmtnt Frechold land nd buildings Book5. PAintings and Furniture Toigl CostlDeemed c051 as at l April 2022 13,652,112 440.206 729.999 14,822,317 Addilions 1.687,262 92,448 1,779,710 Disposals (259,995) (259,995) CostlDeemed cost as at 31 March 2023 15,079,379 532,654 729,999 16.342,032 Deprecialion at l April 2022 1,158,604 148.977 1,307,581 Depreciation charge for the year 122,152 48,195 170.347 Depreciation as at 31 March 2023 1.280,756 197.172 1.477,928 Net book value as at 31 March 2023 13,798,623 335,482 729,999 14,864.104 Net book value as at 31 March 2022 12,493,508 291,229 729,999 13.514,736 Historical cost as at 31 March 2023 15,079,379 485,631 409,655 15,974,665 Historical cost as at 31 March 2022 13,652,112 393,183 409,655 14,454,950 The freehold land and buildings are included at cost. Some of the land and building5 noted above are oceupied by Rothamsled Research based on & bare licence. There is currently no charge for this occupancy. 24-
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES ACIRICULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR EI NDED 31 MARCH 2023 (continued) Fixed Asset Investments Note 2023 2022 Investment propertics Quol¢d investments Unlisted inve51mcnl 9,500.129 4,863.963 399,110 9,195,129 4.609.869 348,890 I Ib I Id 14,763.202 14,153.888 2023 2022 11(0) Investment Proporties at valuation Fair value at l April 9.195.129 8,937.129 Surplus on revaluation 305,000 258,000 Fair value at 31 March 9.500.129 9,195,129 Historic cost at 31 March 819,497 819,497 A small number ofspecific properties are reserved for letting at full markel rrflles lo non-Roihamsled tenants and Ih¢se are designated as inveslinenl propcrlics. It is important tliat all otl)ers 11re available on a fully flexible basis for charitable purposes. The investmenl properties are included al the Trustees, estimate of fair value which is based on independent professional advice. 2023 2022 11(b) Movements on Quoted Investments Fair value as at l April Addition5 Disposals Investment (losses) I gains 4,609,869 500,000 4,494.986 1,092,917 (1,092.917) 114,883 (245,906) Fair value 4,863,963 4.609,869 Historic cost 3,683,514 3,160,269 25
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CODtinued) li Fixed Asset Investments (continued) 11(c) Summary of Quoted and UDlisted Investments Unlisled investments (Note I I d) 399,110 Quoted Equili¢s: Europe 113,343 Hedge Fund5 Property 4,742,043 712 Cash 7,865 Fair value as at 31 March 2023 4,863,963 Historic cost as at 31 March 2023 3,683,514 Significant investments within the lolal investment holdings at 31 March 2023 are as follows: Sarasin Endowments Fund - Class A INC 4.742.043 97 26-
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (conlinued) li Fixed Asset Investments (continued) I l(d) Unlisted Investments 2023 2022 Fair value as al l April Additions Fair value As at 31 March 348,890 50.220 399,110 348.890 348,890 The Trusi holds 2,833 oui of18,195115.570/0) £0.0 l ordinary shares in VSN International Limited wliich were originally held at a deemcd cost of £87,353; but this value was uplifted (o £153,463 agreed by the Trustces during Ihe year ended 31 March 2015, based on thc net assets of VSN Inlemalional Limited at that date, and again uplified during ycar cnded 31 March 2021 to renect Trusl¢es' view of fair value based on the latest publi.shed net asset position of VSN International Limited. Following a review of currenl reported position and activity. no revaluation of the carrying value of this asset has been undertaken for the current year. In March 2023 the Trust invested £50.220 10 acquirc 186 (1.139/0) £0.01 ordinary shares in Sugarox Limited. This business is a spin-oul frorn Roihamsted Rescarch's SHAKE Climate Change accelerator programmc, and focuscs on developing new technologies to increase yields on agricultural produ¢e. Thi5 is an early-stage slort-up with minimal irading history and asscts al this slagc, and so the Trusl¢es currcntly Consider il appropriale lo carry this investment al cost value ai this lime. In addition. (he Trust has a wholly owned subsidiary, LAT Redbourn Limited, which was incorporaled on 7 August 2000 llnd was dormant until April 2023, when il received the land at Redbourn and entcred inio a 99 ycar legs¢ for Roihamsled Manor, as sel oul in Ihe dir¢clors report al pagc 4 and at Note 18. 27-
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued) Fixed Asset Investments (continued) I l{e) Joint Venture Investment Roihamsted Enterprises Limited is a joint venture between the Lawes Agricultural Trust (40 % ). Rothamsted Research Ltd (40Q/o), and the BBSRC (200/0). 40% of the resulis and the &8sets and liabilities of the joint venture for the year ended 31 March 2023 are sel out bclow.. 2023 £'ooo 2022 £'ooo Turnover Cost of sales 1,015 (530) {466} Gr055 profit Administrative expenses 485 245 {334} Loss before interest and tsx (26) (89) Taxation Interest payable {3) (i) Retained loss for ihe year (29) (90} Net (liabilities) / assets at l April {70) 20 Nel liabilities at 31 March (99) (70) Being: Tangible fixed assets Current assets Current liabilities: Creditors.. due within one year Creditors.. due after more than one year Accruals and deferrcd income {including deferred capital grant) 3,652 367 {248) {267) (3,603) 3,832 302 (174) (214) (3,816) Net liabilities at 31 March (99) (70) 28-
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST NOTES TO THE FINANCIAL ST ATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 {continuedl 12. Debtors 2023 2022 Due withln l ye4r Trad¢ dcbiors VAT 139,836 172,990 159,132 184,468 66,636 151,355 Prepayments And accrued income 471,958 402.459 Due in more than l year Rotliamsted Enterprises Limiled - loan (se¢ note 9) 50,000 50,000 521.958 452,459 13. Creditors: amounts fAlllni duc wiihin one year 2023 2022 Trade ¢reditor5 316,642 471,517 Amounts due to Rolhamsted Enterprises Limited Deferred Income 40,550 66,147 27,691 73,714 SociAI security and oiher lax¢s Accru815 Deposits Oiher creditors 6,361 153,923 186,762 4,759 8,502 521,056 203,612 4,081 775,144 1,310.173 Deferred income above relates wholly lo renlal incom¢ in advance and will all be released in the following year to which it relates. 29-
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR TIIE YEAR ENDED 31 MARCH 2023 (continued) 14. Net Assets: analysis between funds Unrestricted Funds Total 31 March 2023 De5ign8ted CApitil Re%erve Fund Ceneral Fund Allocation ofNet Assets.. Tangiblc fixed assets Investments Inveslmcnt properties Nel Current ass¢ts Long lemi debtor 7,764,101 2,226.306 819,497 1,973,249 50.000 12,833,153 7,100,003 14,864,104 3,036,767 5.263,073 8,680,632 9,500,129 1,973,249 50.000 18.817.402 31,650.555 Unrestricted Funds TotAI 31 March 2022 De5ignHt¢d CAPjtAI Reserve Fund Ceneral Fund Allocation of Ncl Asscls: Tangibl¢ fixed assets Invcslmenls Invcslmcnt propcrties Net current asscts Long temi debtor 6,414.733 1,676,086 819.497 186,734 7,100,003 13,514,736 3,282,673 4,958,759 8,375,632 9,195,129 186,734 50.000 9,147,050 18,758,308 27,905,358 Purposes of funds The General Fund rcpresenls Ihe cumulative results of the Trust other than results reflected in the Capilal Reserve Fund. The Capilal Reservc Fund is a Dcsignalcd Fund contingency reserve created by the Truslees. The purpose of Ihc Fund is lo assure Ilie long-term fiilure of the Trusl's agricultural research activitie5. Movements on Ihe Fund represent the realised and unrealis¢d gains l (losses) for the year. 30-
Docusign En¥ÈlopÈ ID." 91842DD1-8B424C11-9034-B771ACCD1 DAE LAWES AGRICULTURAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (continued) 15. Property matters The Trustees reeognise ihal there is a duty relating lo their custodianship of Rothamsted Manor as an hislorically important Grade I listed building. As set out al Noie 18 below, on 19 April 2023 the Trust entered inlo a 99 year lease (on a peppercorn rent basis, with a lease premium of £500k) in relation to Ihis property with its wholly-owned subsidiary, LAT Redbourn Limitcd. Th¢ intention is Ihal the tenant will enler into a management agreement with Rothamsted Enterprises Limited lo enable ihe asset to be run as an evenls and heritage venue. 16. Reeoncili#tion of net income for the year to nel cash from operating activities 2023 2022 Net income generated from operations Dividends, interest and rent from investments Depreciation Profil on disposal of tangible fixed assets Gains on inveslments 3,745.197 (599.273) 170.347 (2.640.264) {59,094) 403.025 (523,799) 167,703 (372.883) Operating cash flows before movements in working capilal 616,913 {325,954} Increase in debtors (Decrease) / increase in creditors (69,499) (535,029) (43,406) 323,491 Cash generated from / (used in) operating aetivities 12,385 (45,869) 17. Financial Instruments 2023 2022 Financial assets (investments) at fair value through income and expenditure 5,263,073 4,958.759 18. Post BalaDce Sheet Evellts On 19 April 2023, the Trust disposed of the land North-East of Redboum lo ils wholly-owned subsidiary, LA T Redboum Limited for total proceeds of £510,204. All agreements related to this land were also novated lo this subsidiary at that date. On 19 April 2023, the Trust entered into a 99 year lease (on a peppercorn rent basis, with a lease premium of £500k} in relation to the Manor Hous¢ on the Rothamsled estate with its wholly-owned subsidiary, LAT Redbourn Limited. 31