CITY CATERING Annual Report and Consolidated Financial Statements for the year ending 31 March 2024 City Catering Southampton (A charitable company limited by guarantee) Charity number: 1160776 Company number: 09331784 Page l of 32
Cilii Caterip.g Southaiipton CITY CATERING Comparii No.. OOJ33 1734 Contents Contents Reference and administration detslls............................................................................................... Impact........................................................................................... Chalrfs Report .... Message from our Chief Executive..................,.................... ............ .... ...... Our Purpose.. Vision........ Our charltsble objects.............................................................. .. .. Our Strate8lc Plan................................................ Our core revenue-earning services...........,-. ...... Trustees, responslbllltles In relatlon to the financlal statements ................................................. ststement as to dlsclosure to our audltors ... Appolntment of Trustees......,............................. . Trustee Inductlon and tralnlng...... Related parties and confllcts of Interest......,........................................... ,. .... Publlc Beneflt Disclosu... 10 10 10 Pricing Policy......... Investment powers and pollcy . Pay pollcy for senlor staff......,............................................. . Volunteers Pollcy.. Risk Management. Reserves Pollcy.................................... .. .............. ...... ..... ........ . . . .............. ............ ... ....... 13 Achlevementsand performance in 2023-24..................................................................,........... 13 Plans for future period........................................................................................... . 15 Fundraisin8 activities . Consolidated Ststement of Financial Activities.................... 12 12 15 19 Consolidated and Charity Balance Sheets...................................................................................... 20 Statement of Cash Flows and Consolidated Statement of Cash Flows.,. .21 Notes to the Financial Ststements . .22 Local Government Pension Scheme............................................................. .. .31 Page 2 of 32
CITY CATERING Reference and administration details Charity number: Company number.. Trading Subsidiary Company number: Registered Office: 2nd Floor, Latimer House. 5-7 Cumberland Place, Southampton SOIS 2BH 1160776 09331784 09414709 Our advlsors Auditors: Ward Goodman Audit Services Ltd 4 Cedar Park, Cobham Road, Ferndown Ind. Est. Wimborne. Dorset, BH217SF Bankers: Lloyds Bank PIC 63 London Road, Southampton S015 2US Solicitors: Pari5 Smith LLP l London Road, Southampton. S015 2AE Directors and Trustees The directors of the charitable company (the charity) are its Trustees for the purposes of charity and company law. The Trustees and officers serving durln8 the flnancial year and up to the date of approving the financial statements are as follows,. Clty Caterlng Southampton Board of Trustees Tom Watmough th Luis Martin De Sousa (resigned 24 May 2023) Peter Howard Ex-chair: Primary School nominee: Special School nominee., Secondary School nominee., Co-opted Trustees,. Vacant Vacant Kim Romero Iresigned 9th Oct 20231 Debbie Burns th Caroline Durant (appointed 14 Aug 2023, resigned 215l Oct 2024} Heather Bennett (appointed 9th Oct 20231 Alison Dunwoody (appointed 16th Sept 2024> th Nicola Tregear (appointed 16 Sept 2024) Ex off icio Trustee: Gary Mcmahon Kelly Young PA to the Board: Pa8e 3 of 32
CITY CATERING Senior Management of City Catering Southampton: Chief Executive Officer: Gary Mcmahon Chief Operating Officer: Martin Orman Financial Controller.. Samantha Taite (FCCAI Head of Menu Development: Sarah Doling Head of People & Culture: Alex McTaggart The directors of City Catering Southampton (Trading) Ltd. are the directors for the purposes of company law. The directors and off icers sep4ing since the company's incorporation are as follows: City Catering Southampton (Trading) Ltd. Board of Dlrectors Directors., Gary Mcmahon Martin Orman PA to the 8oard.. Kelly Young Senlor Management of City Catering Southampton (Trading) Ltd. Chief Executive Officer Gary Mcmahon Chief Operating Officer: Martin Orman Page 4 of 32
CITY CATERING , IAoo 41 .(th• 1.45 •nus f4X 19AOO 270 Mllllon hot, nutrltlous, healthy lunches served * I chlldr•n Ivlth th• 14 Mo•t at Hom• 891. r 7,800 Of our own staff reportlng belng happy at work 951. Qa 411.°8 Of staff would r•comllnd us as an employer to frlend and famlly. Of our stalf have worked for the clwlty for more than S year Page 5 of 32
CITY CATERING PQ•AT4 Chair's Report The core work of the charity - to make a tsngible nutritional difference in people's lives - continued to be delivered at a steady pace over the last year and our overall performance. both operationally and financially has been reassuringly stable from many perspectives in most re5pect5. We have mana8ed our costs and expenses well and I'm happy to report that we ended the year with an overall surplus against our budget. Given the on80in8 underfunding of school meals by Government. our results are something to be very proud of and I acknowledge the careful stewardship of our charity by my fellow Trustees and our executive team. Delivering a surplus in these circumstances has reassured the Board of Trustees that ef fective controls are in place to manage most popularly anticipated risks. I'd like to take a moment to thank our network of schools for their continued support for our services. Our rnost often used phrase is that we are "all about the wellbeing of children and that we focus on them and on healthy food rather than profit" At a time when School budgets and our own budget are so tight we have worked very hard to maintain our pricing, to avoid increases where possible and to prevent the quality of our food stsndards from dropping in any way. Since our inception as a charity in 2015. City Catering has delivered the Meals on Wheels Service on behalf of Southampton City Council along with Several other caterin8 services to Lunch Clubs and care homes. At the end of January 2024, the Council made the decision to not renew the Eat Well Contract, which 8overned those services, The contract included caterin8 provision for Southampton's Lunch Clubs and the management of the kitchens at Erskine's and Potters Court independent livin8 facilities. Our view remains unchanged that this was an essential service that allowed many people with complex needs to continue to live independently and despite our best efforts to negotiate with the Council we were dlsappointed with their ultimate decision to withdraw funding. As a consequence of that decision twenty-one roles were rnade redundant and we reluctsntly said farewell to a long-5ervin8 team of collea8ues. The trend across the UK in recent years by Local Authoritie5 ha5 been to abandon traditional Meals on Wheels service provision and we remain concerned that in Southampton that decision will add to the burgeonin8 food insecurity tally. During the year we have a150 managed to improve our reserves position. Our view is that 202412025 will be a tOU8her year for us financially and we are determined to maintain a c105e watch on our costs and expenditure. Over the last year we have invested in our Operations team and our relatively new team of Area Manager5 have all been promoted from within our own workforce. coming from our own kitchens. We maintain our belief that our focus on training, staff developrnent, promotion f rom within and raisin8 operational standards will continue to serve us well. We have held fast to our "every role count's" attitude over the course of the last year and encouraged efficiency in every way possible across every function of the charity. We had hoped to see some positive movement in funding for free school meals in the run up to the election, but that has not been the case and despite funding improvement5 in Wales, Scotland and parts of London and amongst some Local Authorities in England there 15 no talk of improvin8 School meal support in broader England. However, the new governments, plans in respect of breakfast clubs show that they at least recognise the overarching problem of childhood food insecurity, and we will watch with interest how these unfold. Our otherinitiatives have continued. We have maintained support for the Holiday Activities and Food {HAn programme funded by Southampton City Council, by supplying catered lunches to many of the HAF providers, who deliver a programme of activities and education to children in need. during the holiday breaks. And we have also continued to work in partnership with our suppliers to deliver Cooking at Home Boxes to the most vulnerable of our families via our school network. The scheme has Steadily grown and just before the end of the summer term we delivered 1.375 boxes of in8redients to families across Southampton. My thanks to our key suppliers Bidfood, Harvest Fine Foods, Caterfood Buying Group and Comax Limited for their enthusiastic support for this initiative. Page 6 of 32
CITY CATERING At the time of writing thi5 report we are in the process of developing a new set of strategic objectives for the charity which we propose to publish in the coming months. My fellow Tru5tee5 and I recently attended the charity's Staff Excellence Awards an annu31 celebratlon of stsff achievement and we were struck by the passion and dedication of the workforce for their work. Overall. on behalf of my fellow Trustees, I w¢)uld like to report that the charity 15 in good shape. De5Plte the many external challenges. we continue to operate robustly and most importantly, as a going concern. The board has confidence in the executive team and the workforce to continue to deliver and improve upon our overall performance. both financially and by other key metrics. l also acknowledge the work of the senior management team over the last year and thank all support office staff for their Sl8nificant contributions. Finally, I would like to thank my fellow Trusteès. all of whom are volunteers givin8 their time 50 freely in pursuit of supporting the excellent work of City Catering. Tom Watmough, Chair Message from our Chief Executive There are so many thin8S to be 8rateful for over the last year, not least of which are the dedication, tenaclty and passion of our staff. Our record of never missin8 a lunch service remains unbroken, even in the most difficult of circumstances some of which have occurred during the year. It very much felt Ilke a year of less drama and more development, and it'5 important to acknowledge all the many ways that our management team made improvement5 to our service across every function of the charity. We must also acknowledge and thank our kitchen staff in every school for their dedication, skill and care for our children We spent some considerable time during the latter part of 2023 ne8Otiatin8 Wlth Southampton City Councll to maintsin the Eat Well Contract, which controlled our Meals on Wheels service alongside lunch club and extra care home catering facilities. But despite our best efforts at the end of January that contract sadly came to an end. and we said goodbye to twenty.one of our collea8ues whose roles were made redundant because of that contract ending. It was the end of an era for that team. and we vacated the Solent Suite at the Guildhall, the home of that team for many years. By contrast, our school catering services remained strong, and we actually added to our roster of schools when Valentine Primary School re-joined us just af ter year end in April 2024. We have continued to push the boundary towards service excellent by Improved staff training and development. maintaining our policy of pro-actively promoting from within wherever possible and providing our workforce with comprehensive support and encouragement. Although our workforce reduced over the year by more than IO% lar8ely because of the Eat Well contract our staff hurn rate remains low We delivered a healthy surplus for the year driven by improved meal uptake, prudent cost control and close rnonitorin8 of 311 metrics. As usual we are investing much of that stsrplus back into our community initiatives like Cookin8 at Home and further details are elsewhere in this report. It has been an exciting year with much to be gratefvl for. My thanks go to our Trustees for their diligence and dedication to providing strong governance, and to all my colleagues across the charity for their passion. skills and enthusiastic support for our work. Gary Mcmahon, CEO Page 7 of 32
CITY CATERING CVPO•ATE Trustees Report for the period ending 31 March 2024 The Trustee5 present their annual directorfs report together with the consolidated f inancial statements of the charity and its Subsidiary for the period ending 3 1 March 2024. which is also prepared to meet the requirements of a director's report and accounts for Companies Act purp05e5, The financial statements comply with the Charities Act 2011, The Companies Act 2006, the Memorandum and Articles of Association, the Accounting and Reportin8 by Charities,. Statement of Recommended Practice applicable to charities preparing accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective l January 20151. Our Purpose We believe everyone deserves great quality food, served with kindness and care; therefore, we exlst to rnake a tan8ible nutritional difference in people's lives. Vision By April 2024, we will deliver 6 million nutritious hot mea15 for children and vulnerable adult5. Our charitable objects The objectives city Catering Southampton, taken from our Article5 of Association are.. Promote the advancement of health. Prornote the advancement of education,, and Provide services for the relief of those in need by reason of their age. disability, ill-health, financial hardship or other disadvantage. Our Strategic Plan Our Strategic Plan provides an ambitious motlvatlonal framework to achieve our aims and has six stratÈgic prlorltles.. Rebulld our reserves Safeguard our charity's impact 'Stand for, good nutrition Develop our people Digitise our systems Extend our influence and communilv Our core revenue-earning services Our school meals business remains our prime revenue-generating activity and in the year 2023-2024 we have continued to see a slow but steady return of trading condition5 and meal uptake numbers to pre-pandemic levels. We delivered more than 1.47 million meals to 40 School unit5 comprisin8 of nurseries, infant, junior, primary, special, and secondary schools. We employ 200 staff to service our school-meal customers. All of our service locations are currently within Southampton City boundarie5. We Continue to procure our supplies in partnership with Hampshire County Council, benefitting from economies of scale and low unit prices. We procure as many of our supplies as possible from local. sustainable food manufacturers and producers. We work in partnership with two main suppliers. one very local to us and the other within a reasonable distance. Our meat and meat products are Red Tractor Farm Assured, and our fish product5 are sustainably caught and accredited by the Marine Stewardship Council. Page 8of 32
CITY CATERING Our menus comply with the Government'5 Statutory standards for school food, and with the exacting standards of 'Food for Life Here, accreditation, which is assessed and renewed yearly. We are very proud to maintain our standards to the extent that we are able to maintsin this award for the benefit of all of our schools. We offer compliant allergy" adjusted menus. for individual children with medically proven requirements and are in the process of introducing a new system for rnanaging and maintaining special diets with high leve15 of security to minimise the potential for allergen incident occurring. We continued to provide a Meals on Wheels services to Southampton City Council care-package recipients, for the lar8e part of the trading year. but the service was closed at the end of January 2024 when the remainin8 funding from Southampton City Council was removed and the contract the charity operated with not renewed. Trustees, responsibilities In relation to the financial statements The charitable company's Trustees (who are also directors of City Catering Southampton for the purposes of company lawl are responsible for preparing a Trustees annual report and f inancial statements in accordance with applicable law and United Kingdom Accountin8 Standards (United Kingdom Generally Accepted Accountin8 Practice). Company Law requires the Trustees to ppare financial statements for each year that give a true and fair view of the State of affairs of the charitable company and the group and of the incoming resources and applicable resources, includin8 the income and expenditure of the charitable group for the period. In preparing the f inancial Statements the Trustees are required to., Select suitable accounting policies and then apply them consistently. Observe the methods and principles in the Charities SORP. Make judgements and estimates that are reasonable and prudent. State whether applicable UK accounting standards have been followed, subject to any material departures di5c105ed and explained in the financial statements. Prepare the f inancial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The Trustees are responsible for keepin8 proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the f inancial statements comply with the Companies Act 2006. They are re5pon5ible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of f raud and other irregularities. The Trustees are responsible for the maintenance and inte8rity of the corporate and financial information included in the charitable company'5 website. Le8islation in the United Kingdom governin8 the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions. Statement as to disclosure to our auditors In 50 far a5 the Trustees are aware at the time of approving our Trustees report.. There 15 no relevant information. being information needed by the auditor in connection with preparing their report, of which the group's auditor is unaware, and The Trustees. having made enquiries of fellow directors and the group's auditor that they ought to have individually taken, have each taken all steps that he15he is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of the information. Page 9 of 32
CITY CATERING <oApeA41E Structure, Governance and Management City Caterin8 Southampton (the charity) is a company limited by guarantee. governed by its Memorandum and Articles of Association dated 11 December 2014. It is re8lStered as a company with Companies House and as a charity with the Charity Commission. City Caterin8 Southampton (Trading) Ltd. is the tradin8 subsidiary of the charity. It is a registered company with Companie5 House and is governed by its Memorandum and Articles of Association dated 13 January 2015. It has one share which is wholly owned by the charity. The Board of Directors of the trading subsidiary are elected to office by the Board of Trustees of the Charity. The Charity Board of Trustees, which currently has S rnembers includin8 the CEO as Ex.Officio Trustee, administers the charitable company. The Board normally meets bi.monthly. There are also four sub committee5 which report back to the main Board.. I, Finance Committee 2. Charitable Impact Committee 3, Pay & Remuneration Committee 4. Audit & Risk Committee The CEO is appointed by the Trustees to manage the day-to.day operations of the company and its trading subsidiary, To facilitate eff ective business operations, the Chief Executive Officer has delegated authority, within the terms of delegation approved by the Trustees for operational matters, includSn8 flnance. employment, and all bu5iness-related activities. Appolntment of Trustees As set out in the Articles of Association, the Chair of the Board of Trustees Is elected by the trustees themselves. Up to three trustees are nominated by the primary-, 5pecial- and secondary-school sectors. These Trustees are elected for a three-year term and their term of office commences at the AGM following their election: none may serve more than three consecutive terms of office. The Tru5tee5 have the power to co-opt up to six individua15 as Co-opted Trustees. A Co-opted Trustee shall be appointed by the Trustees for an initial term of three years (to expire on the third anniversary of the AGM following their appointment) and are eligible for reappointment for a further two three-year terms. All members are sent invitations to nominate Trustees prior to future AGM5, advi5in8 them of retirin8 Trustees and requestin8 norninations for the AGM. When co-optin8 Trustees to the Board, the Board considers the specialist Skills it needs. The ex off icio Trustee is also on the Board of Directors of the trading subsidiary. Trustee induction and training Trustees are provided with: training opportunities, information, and guidance on their legal obligation5 under company and charity law. Charity Commission guidance on public benefit. information on the content and obligations of the Memorandum and Articles of Association. information on the decision-making processes, the strategic business plan and f inancial performance of the company. Page 10 of 32
CITY CATERING Related parties and conflicts of interest None of our Trustees receive remuneration or other benefits from their work with the company, with the exception of the Ex-officio Trustee in their role as CEO. All Trustees are required to declare conflict5 of interest a5 becomes nece55ary. No Trustee or associate of any Trustee may benefit financially or materlally from their association, in relation to the company's business. Public Benefit Disclosure The charity undertakes its main activities to further the charivs purposes for the public benefit In the following areas. School Meals. The charity provides nutritious and af fordable School mea15 that comply with school food re8ulations to promote the health and education of school pupils, in order that they may be supported to achieve their academic and wellbeing Potential. Meals on Wheels. The charity provided subsidised meals on wheels services to those people who are in receipt of a local-authority care package. and in doing 50 offer5 SUPPQrt to those in the community who may be vulnerable andlor elderly. This service was terminated as of 3111 January 2024. Care Home Kitchen Management. The charity manages a number of kitchen teams in care home settings on behalf of Southampton City Council. This seiCe was terminated as 013151 January 2024 The Trustees can confirm that they have given due consideration to the Charity Commission's published guidance on the Public Benefit requirement under the Charities Act 2011. Pricing Policy Servlce charges to client schools are governed by the needs of the charity with a focu5 on cost effectiveness over the lon8 term. Increases in the cost of services must be justified and are only sanctioned after consultation with the Board. These cost5 are commercially sensitive and are not disclosed in this report. The prices charged to school-meal customers are subject to annual review by the Board. At the time of writing, the price of a primary paid school meal was £2.95. The price charged for Meals on Wheels up to the termination of the contract on 31st January 2024 wa5 subject to subsidy and stands at £5.90 for dinner and puddin8 or £4.82 dinner only. The price charged to commercial Meals on Wheels clients was £7.30 for dinner and pudding or £ 5.93 for dinner only. Investment powers and policy The Trustees, having regard to the liquidity requirements of operatin8 the company. and havin8 considered the depressed rates achievable through deposit accounts in relation to the retail price index. have kept all reserves in the c(Thpany's current account over the past year. This policy will continue to be reviewed depending on cash flow and interest rate5. on a quarterly basis. As part of our financial planning relating to the impact of coronavirus, the company secured a Coronaviru5 Business Interruption Loan from Lloyds Bank. of £385,000 in July 2020. The loan was interest free for 12 months, with repayments due from July 2021. The loan capitsl was initially kept in a Lloyds Bank 32-day account since the funds were received. generating interest at 0.03%. The funds are being repaid as per the a8reed monthly schedule, The fund5 have been required over the last year, but as tradin8 overall continue to steadily improve. we anticipate that by the t1ft of full repayment we will be trading at a level that accommodates our year cashflow profile fully and independent of any external funding requirement. Page 11 of 32
CITY CATERING Pay policy for senior staff. The pay of senior staff is reviewed annually: if increased. pay rises are applied in accordance with average earnings. The remuneration package for senior staff is usually benchmarked against the mid-point of the range paid for similar roles. after taking into account factors such as performance, productivity and other relevant factors. If recruitment to a senior role has proven difficult to achieve. a market addition may be paid with the maximum pay no greater than the highest benchmarked salary for a comparable role. The company does not operate a bonus scheme. Volunteers Policy During this last year the charity has not used the services of volunteers in any significant way. In recruiting and working Wlth volunteers as part of our service, we have and will continue to employ the same recruitment. induction, employment processes and service stsndard5 as are applicable to all other employees of the charity. Risk Management The Audit and Risk Committee proposed a new risk assessment framework to the Board which was adopted durin8 the year. The committee which now comprises of two of our Trustees and all of the Senior Mana8ement Team have incorporated the framework into the SMT rneeting schedule with the intention of using the framework to assess risk on an on80in8 basis The Trustees have developed a risk management strategy which comprises., An Audit & Risk Committee A Risk Register, with an annual review of the principal risks and uncertainties that the charity and its subsidiary trading company face Pollcies. systems and procedures to miti8ate those risks identified in the Risk Register and its annual review. The implementation of procedures designed to minimise or manage the potential impact on the charity and/or its tradin8 subsidiary. should those risks materialise. The Risk Register addresses the following potential areas of risk.. Financial position I cash flow Operational - food supply chain disruption Operational - Operating Costs If ood only) Food safety Technology - IT disruption Financial - wa8e costs Financial - Change5 to our funding rnodel Financial - Clients f inancial position Health & Safety Operational -single point of failure People - Employment related issues People - safeguarding Operational- Sustained business interruption People - Attracting & retaining staff. Operational -1055 of key clients People- GDPR Strategic - Failure to deliver. Financial Service charges. Page 12 of 32
CITY CATERING For each area of risk, the Risk & Audit Committee in detailed consultation with the Senior Management Team - scores organisational risk u5in8 a Severity llikelihood / risk matrix. The resulting scores are reviewed by the Audit & Risk Committee. with relevant actions being assigned to SMT members for implementation within documented deadline5. Reserves Policy To mitigate financial risk, the Trustees agreed the folbwing reserves policy in 2023.. It is City Catering Southampton's intention to obtain and maintain cash reserves at or above the 'Net Expenditure, experienced durin8 the three calendar months of July to September. This has been calculated as the three months when Net expenditure is at Its highest lest. £500,000 Oct 23). This level of reserves would enable the charity to continue to financially functlon, including paying wages and contractual obligations, should we suffer a limited period of no income due to weatherlpandemiclmajor incident. This reserves policy will be monitored and reviewed with regards to Increasing costs. on an annual basis by the Finance Committee -or when triggered by an average unrestricted expenditure increase of more than £20.0(Kl/month14% of re5ervesl, calculated on rolling quarterly basis. At 31 March 2024 our consolidated cash balance was £701,729 and the level of reserves was £1,596,977, of which £54,687 was tangible fixed assets. Free reserves for the year ended 31 March 2024 consolidated entity is £792.10212023: £486.S231 whilst the charity holds free reserves of £792.10012023., É486,5211. Free reserves are calculated by deducting the fixed asset carrying value from the unrestricted gener31 reserves. Achievements and performance in 2023-24 Our current six strategic priorities were established by the Board of Trustee in April 202 1 to deliver the charity's three- year vision and with a goal on regaining our momentum after the disruption of the pandemic. Performance against those objective5 is Outlined below: Rebulld our reserves We have made good progress with replenishin8 our reserves over this last year even thou8h some of the factors impacting our tradin8 conditions are still in play like cost-of-living pressure on food prices. Additionally, at the start of the year we had to accommodate the national living wage Increase from £10.42 per hour to £11.44 per hour. This alone added more than £115,000 to our wa8e bill. The chronic underfunding of school meals continues with no hint from Government of movement to improve in sight. Safeguard our charity's Impact During the year we continued to deliver some core programmes Cooking at Home. our programme to deliver boxes of healthy vegetable5 and other ingredients. along with recipes and online videos to inspire f3milies to cook for themselves and gain conf idence in the kitchen continued under a new model. Southampton Ctty Council were unable to continue funding the initiative and the programme was paused until Christmas 2023 when it was re-started using a different model. We went into partnership with our key suppliers. Bidfood and Harvest Fine Foods and funded the project ourselves by splitting cost5 three equ31 ways. We have continued thi5 approach on into the current year. City Catering funds our portion of the costs from our surplus. We delivered 1,260 boxes at Easter and 1375 at Christmas. equating to 44,795 meals suppled at no cost to the City's most vulnerable farnilies. Lunch Crowd our catering service to Holiday. Activity, and food IHAF) providers in Southatnpton delivered more than 18.(K)O meals in the 12 months to March. Lunch Crowd generated £25,603 in additional external funding over the year. Pa8e 13 of 32
CITY CATERING IPQUTE Cooking and Nutrition Network Southampton - we continued to support this initiative alongside our co- Chair Abri Housing Association. but making solid measurable progress has been slow. However working with the SCC Health Promotion team, we have committed to a project to create some educational re50urce5 for HAF providers to help them to better deliver the food education component of their programme. É8.000 of funding wa5 received from our partners to add to our own contribution to the project. 'Stand for, good nutrltlon We have maintained our Soil Association Bronze Food for Life Here accreditatton and in fact have been reassessed again in June 2024 and had our accreditation approved once again. We continue to maintsin a very high level of freshly prepared daily food production f rom all kitchens Our menu development tearn work to ensure that we maintain menus that are following current food trends. and we also walk the fine line between offering children dishes that they will eat and enjoy, whi15t also bein8 cost effective to produce and nutritionally dense. We continue to promote healthy eating in all that we do. Develop our people Our tran51tion to face-to-face traininB has been a success over the last year. We have delivered trainin8 that is relevant, easy to absorb, tar8eted specif ically to our roles and highly practical. The re-introduction of the Learning and Development Mana8er role has also been successful and very well received by staff We have several new courses currently in development and beyond that a list of aspirational course5 that we would like to develop and deliver. The entire focus of our training effort IS to improve skillset and performance and thereby increase the value of our service and encoura8e f urther meal uptake in schools. We supplement more formal trainin8 With kitchen briefin8s which we run twice per year. These are smaller 8roups of less than ten to whom we deliver a mix of briefings1 training and a focus on a particular subject. These have proven very popular. and we can see the benefit these communication opportunities. We have also maintained our Annual Head of Kitchen conference and Staff Excellence Awards event during this last year. The results of our most recent staff engagement survey showed that 89,5% of our workforce were happy I very happy at work and that 95%of Staff would be likelyl very likely to recommend City Catering as an employer. Dlgitise our systems More could have been done during the course of the last year to look at opportunities to further digitise our Systems. There is certainly potential within Operations and Food Development to take advance of improvements. Within operations the view is that we have the 50ftware but are not making full use of it and post year end we have made a concrete start at reviewing our usage and making improvements to our recording and reporting. We will continue to focus on improving reportin8 Outputs and data access to enable accurate, smart. 2nd quick decision makin8 that help us to preserve our reserves and operational integrity. Extend our influence and communlty The re-structure of our core management team last year tl8htened up our resource considerably and our more speculatively marketin8 activity and community engagement has sufferÈd consequently. Page 14 of 32
CiLiI Ca-:eriii g Souihampton Charity No: 1160776 Conpany No.. 09331184 CITY CATERING We hope to remedy thls during the current year with a refreshed marketing focus, new Social media campaigns and dedicated design resource to improve our presence, but in our current schools and beyond. Plans for future period Strategic direction - work on our new strategy is well underway and we hope to be able to publish a new strategy in the coming months for the next period of three to five years. Recrufcment- we are currently recruiting several core roles including Financlal Controller, Fundraising Manger and Marketing assistant. Driving further operatlonal excellence - we have more to do to drive further improvements, support our schools properly and push up meal uptake number5 across our network. Growth - as well as maintaining our current network of schools we would like to expend our unlque offering to wider group of schools, extending our influence and approach. We have participated in a number of significant tenders over the last year and have benefitted from the learning opportunity. Whilst we haven't yet secured new schools via this route, we have seen schools come back to us directly. Our plan is to continue to participate in tender opportunities as they arise across Hampshire. Environmental - we have been unable to make decent measurable progress with the need to maxirni5e our working environments to be as efficient as possible and that will be a key focus for the comin8 year. Adding Value to our servlce offer - we believe that there is an opportunity to offer some targeted education to our schools, both as a way of encoura8ing behavlour change, contributlng to tackling obeslty and also encouraglng more children to choose our healthy catered option. Food insecurity projects We are working hard to maintain and even develop our Cooklng at Home inltiatlve and deve5op a regular funding stream that will make it easier for u5 to forward plan. We continue to support HAF prov'iders with catering and during the comin8 months we wlll be developing new ideas 35 part of our new strategy. Collaboration - the Cookin8 and Nutrition Network Southampton is coming to the end of Its life and has been subsumed Into the Southampton Food Partnership which will be run by Southampton University. We are certain that this is a better model going forward and will play our part by participation, building stronger links, creating more partnerships, and working in partnership tc alleviate the suffering of vulnerable communitles. Re-brand- we are actively considering a re-positioning and refresh of our brand to better reflect our charitable intent which is a part of both our strategy review and our review of current marketing resources, Fundraising activities The bulk of the charity's income now comes from our trading activity with schools. Other charitable activity like Cooking at Home and our provision of catering to Hollday, Activities and Food comes from local authority funding. Aside from those sources of funding, other fundraising actlvity has remained very Ilmited In the perlod. At the time of wrSting, we are currently recruitin8 a Fundraising Manager to help us develop new revenue streams on the back of a newly developed fundraising strategy. Report of the trustees, approved on behalf of the board of trustees, as the company director, and signed on the boards behalf by: 2Qi4- Page 15 of 32
CITY CATERING Report of the Independent Auditors to the Members of City Catering Southampton Opinion We have audited the financial statements of City C3terinE Southampton Ithe'parent charitable company'l and its subsidiary Ithe'group'l for the year ended 31 March 2024, which comprise the Consolidated Staternent of Comprehensive Income, the Consolidated Balance Sheet, the Consolidated statement of cash flows and the related note5, including a Summary of 51gnificant accounting policies. The f inancial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accountin8 Practice). In our opinion the financial statements,. give a true and fair view of the state of the 8roup's and of the parent charitable company's aff airs as at 31 March 2024 and of its incomin8 resources and application ol resources. includin8 it5 income and expenditure, for the year then endeil., have been properly prepared in accordance with United Klngdom Generally Accepted AccountinE Practice., and have been prepared in accordance with the requirements of the Companie5 Act 2006, Basis for opinion We conducted our audlt in accordance with International Standards on Auditin8 IUKI IISAS (UKII and applicable law, Our respons4Jilities under those standards are turther described in the Auditors. responsibilities for the audit of the financial statements section of our report. We are independent of the group and the parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the U K, inclu(ling the FRC s Ethical Standard, and we have f ulfilled our other ethical responsibilities in 3ccordance with these requirements. We believe that the audit evidence we have obtained is Suf ficient 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 80in8 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, individu311y or collectively. may cast $18nificant doubt on the group's or the parent charitable company's ability to continue as 3 going concern for a period of at least twelve months from when the f inancial 5tstements are authorised for issue. Our responsibi fities and the responsibilities of the trustees with respect to goinE concern are described in the relevant sections of this report. Page 16 of 32
CITY CATERING Other information The trustees are responsible for the other information. The other information comprises the information included in the Annual ReporL other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and. except to the extent otherwise explicitly stated in our report. we do not expre55 any form of assurance conclusK*n 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 15 materially inconsistent with the finav)cial 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 this gives rise to a material misstatement in the financial statements themselves. If. based on the work we have performed, we conclude that there is 2 material misstatement of this other information. we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if. in our opinion.. the information given in the Report of the Trustees is inconsistent in any materlal respect wlth the financial 5Litements: or the group and parent charitable company has not kept adequate accounting records,, or the financial Statements are not in agreement with the accountin8 records and returns., or we have not received all the information and explanations we require for our audit. Responsibilities of trustees Responsibilities of dlrectors As explained more f ully in the Directors, Re5por15ibilitie5 Statement, the trustees (who are also directors of the charitable company for the purposes of company lawl 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 preparatlon of financlal statements that are free f rom material misstatement. whether due to fraud or error. In preparin8 the f inancial statements, the trustees are responsible for assessing the group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable. matters related to going concern and using the going concern basis Qf accounting unle55 the trustees either intend to liquidate the 8roup or the parent charitable company or to cease operations, or have no realistic alternative but to do 50. Our responsibilities for the audit of the financial statements We have been appointed a5 auditors under Section 144 of the Charitie5 Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole 3re free from material misstatement, whether due to fraud or error, and to Issue 3 Report of the Independent Auditors that includes our opinion. Re350n3ble assurance 15 a high level of a55urance, but 15 not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exist5, Mi$5tatements can arise from fraud or error and are considered material if, individually or in the a88re8ate. they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Page 17 of 32
CITY CATERING The extent to which our procedures are capable ot detecting irregularities. including fraud is detailed below: We obtained an understanding of the legal and regulatory framework5 applicable to the company and the 8roup and the sector in which they operate. WÈ obtained an understandin8 of how the company and the group are complying with those legal and regulatory frameworks by making inquires to the management and we corroborated our inquiries through our review or board reports. We asse55ed the susceptibility of the company and the group's financial statements to material misstatement, includin8 how fraud might occur. Audit procedures performed by the engagement team included: o Identifyin8 and assessin8 the design effectiveness of contro15 management has in place to prevent and detect fraud; o Understandin8 how those charged with governance considered and addressed the potential for override of controls or other inappropriate inf luence over the financial reporting process: o Challenging assumptions and judgments made by management in its significant accounting estimates: o Identifyin8 and testing journal entries, in particular any journal entries posted with unusual account combinations; and o Assessing the extent of compliance with the relevant law and regulatlons. A further description of our responsibilities for the audit of the financial statements 15 located on the Financial Reporting Council's website at www.f rc.or8.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. Use of our report This report is made solely to the charitable company's trustees, as a body. in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 21J)8. Our audit work has been undertaken $0 that we mi8ht state to the 8roup and parent charitable company's trustees those matters we are required to state to them in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsiblllty to anyone other than the charitable group and company and the charitable company'5 trustees as a body, for our audit work, for this report. or for the opinions we have formed. Mr l M Rodd Bsc FCA FCCA (Senior Statutory Auditor) For and on Behalf of Ward Goodman Audit Services Limited Registered Auditor 4 Cedar Park Ferndown Industrial Estate Wimborne Dorset BH217SF Date:... Pa8e 18 of 32
CITY CATERING Consolidated Statement of Financial Activities Ilncluding consolidated income and expenditure account) For period ending 31 March 2024 Unrestricted Unrestricted 2024 2023 as restated Note Income: Income from Charitable activities,, Schools and Meals on Wheels Charitable grants and other income Income from other trading activities: Commercial trading operations Total Income Expenditure Expenditure on charitable activities: Schools and Meals on Wheels Costs of raising funds: Commercial trading operations Total expendlture 5,310,854 5,045,237 94,274 282,412 97,363 117,400 5,502,491 S,445,049 5,256,495 5,605,946 35,224 62,318 5,291,719 5,668,264 Net income 210,772 223,215 Other recognlsed galns and losses Actuarial gains and losses on defined benefit pension schemes 244,000 1,768,000 Net movement In Funds 454,772 1,544,785 Reconciliatlon of Funds Total funds brought forward Net movement In Funds Total funds carrled forward 1,142,205 402,580 454,772 1,544,785 1596 977 1142 205 The notes at pages 22-32 form part of these accounts. Page 19 of 32
Citr., fatJring SoL'tn3mptOi1 Ci-.arity fv jo: j b, C.J7Y- Ccn'.F"o', l i,Io' UJ3J 1734 CITY CATERING Consolidated and Charity Balance Sheets Consolidated Balance Sheet as at 31 March 2024 Consolidated 2024 Charity Consolidaled Charity 2024 2023 2023 as restated as restated Not Flxed assets Tangible assets Intangible assets Investment Total Flxed Assets 12 13 54,687 188 54,687 188 45,743 939 45,743 939 54,875 54,876 46,682 46,683 Current assets Stock Debtors Cash at bank and in hand Total Current Assets Lia bllitles Credltors Tota l Liabllltles Net current assets 14 Is 121,420 121,420 1,054,011 1,078,478 701,729 669, 214 1,877,160 1,869,112 100,646 100,646 1,482,153 1,517,353 755,282 698,936 2,338,081 2,316,935 16 (1,117,391) 11,109,345) 11,812,891) 11,791,747) (1,117,391) (1,109,345) 11,812,891) (1,791,747) 759,769 759,767 525,190 525,188 Total assets less cu rrent liabilities 814,644 814,643 571,872 571,871 Debtors: amounts falllng due after more than one year 15 Creditors,. amounts falling due after more than one year 17 Net Assets 885,000 885,000 750,000 750,000 1102,667) {102,667) 1179,667) 1179,667 1,596,977 1,596,976 1,142,205 1,142,204 The funds of the charity: Unrestricted general income funds Pension Reserve Total charlty funds 846,977 846,976 750,000 750,000 1,596,977 1,596,976 533,205 533,204 609,000 609,000 1,142,205 1,142,204 20 The trustees have prepared consolidated accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company. The notes at pages 22-32 form part of these accounts. Signed Tom Watmough. Chair of trustees on behalf of the trustees Approved by the trustees on- ..... Page 20 of32
CITY CATERING Statement of Cash Flows and Consolidated Statement of Cash Flows For perlod endlng 31 March 2024 Consolldated 2024 Charity Consolidatd 2024 2023 Charity 2023 as cestated as restated C•sh us•d In op•r•tlnc •¢tlvlll•i Inierest paid Contiibulions to defined benelit pension scheme N•t C•ih flow Iram op•r•tlnc >¢tlvlti•s ci 79,388 103,219 114.9961 114.9961 112,0001 112,0001 52,392 76,223 234,197 111,6481 175,0001 147,949 208,009 111,6481 175.0001 121,361 Cash Llsed in invesiln ctlvitles Purchase of tan8ible assets P4•t C•Jh Il•w Ifom Inv•stln¢ •¢tlvltlos 128.9451 128.9451 128,9451 128,9451 117,086 117,086) 117,086 117,0861 Cash Used in fin Loan repayments N•t Cash Ilow Irom Iln•n¢lni •¢tlvltles 17 177.0001 177.c¥)O (77,1)001 177,oooI I77,0) (77,0001 177.0001 177,0001 IncreaselDecreJ$o in cash ind cash equivalents In the year Cash and cash equivalents 31 the beiinning of the year {53,5511 (29,7221 755.282 698,936 51,463 701.819 27,275 671,661 T•tl ¢ash and cash •gulval•nts at th• •nd ol th• y••r 701,729 669,214 755,282 698,536 Note Cl: Reconclllatlon of net movement in funds to net cash flow from operatln8 actlvltles Group 2024 Ch•rlty 2024 roup 2023 as resiated Ch•rlty 2023 as reslaled Nei movement in funds Add back depreciation charge Add back Amonisation charge Add back interest paid Add back servTce Cost on defined benefit pension Interest on defined benefit pension Increase in stock Increase in Debtors Oe(aSe in Creditors Net ¢aih us•d in •p•i•tlne a¢tlvltl•s 210.772 20.001 751 210,772 20,1)01 751 Id,996 140.000 125,0001 120.7741 438,875 1676.4021 103,219 {223,2151 14,735 751 11,648 297,01)o 24,000 13,662 141,3321 136,948 234 197 1223,2 161 14,73S 751 11,648 297.OCH) 24,OCKI 13.662 157.3801 126.809 14,996 140.000 125.0001 120,7741 428.142 1689,SOO Page 21 of 32
CITY CATERING Notes to the Financial Statements l. Accounting Policies The principal accounting policies adopted, judgements, and key sources of estimating uncertainty in the preparation of the financial statements are as follows: a) Basis of preparation The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practise applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective l January 20151 (Charities SORP IFRS 10211, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. City Catering Southampton meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notelsl. b) Accountlng perlod The Financial Statements cover the period from 1st April 2023 until 31st March 2024. cl Preparatlon of the accounts on a 8oln8 concern basls The Charity reported a cash outflow of £ 29,722 for the period, and £53.553 on a group basis, The group also reported total fund5 carried forward of £701.729 and a5 there are no principal risks and uncertainties facin8 the charity. the trustees are of the view that the Charity is a 80in8 concern. dl Group flnanclal statements The f inancial statements consolidate the SUItS of the Charity and its wholly owned subsldiary. Clty Catering Southampton (Trading) Ltd on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the Charity has not been presented because the Charity has taken advanta8e of the exemption afforded by section 408 of the Companies Act 2006. e) Income Income is recognised when the charity has entitlement to the funds, any conditions attached to the item151 of income have been met, it 15 probable that the income will be received, and the amount can be measured reliably. Grants (including those received f rom Eovernment bodies) are recognised where there is entitlement, certainty of receipt and the amount can be measured with suff icient reliability. Grant income is deferred when the donor specifies use of the grant to be in the future, or where there are condition5 for full entitlement and those conditions have not yet been satisfied. fl Fund accountlng Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted fund5 Of the charity which the trustee5 have decided at their discretion to set aside to use for a 5perific purpose. Gty Caterin8 Southampton does not have restricted funds. 8) Expendlture and Irrecoverable VAT Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party. it is probable that settlement will be required, and the amount of the obligation can be rneasud reliably. Expenditure is classified under the following activity headings- Costs of raising funds comprise the costs of commercial tradin8 including Hospitality Catering and private Meals on Wheels customers and their associated support costs. Expenditure on charitable activities includes the costs of providing services to Schools and Meals on Whee15 clients to further the purposes of the charity and their associated support cost5. Page 22 of 32
CITY CATERING Irrecoverable VAT is charged as a c05t against the activity for which the expenditure was incurred. h) Tangible fixed assets Individual f ixed assets costing £l.000 or more are capitalised at cost and are depreciated over their estimated Useful economic lives on a straight-line basis i.e. five years for IT hardware or catering equipment on an equal monthly basis 11 Intanglble assets Intangible assets are shown at cost and amortised over their useful economic live5 Qn a 5trai8ht-line basis of 5 year5. They are reviewed to e5tabli5h accuracy of costs and likelihood of cash inflows related to the asset Il Stock Stock is included at the lower of cost or net realisable value. k) Debtor5 Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. l) Cash In bank and In hand Cash in bank and in hand includes cash only. ml Creditors and provlslons Creditors and provisions are recogni5ed where the charity has a present obligatlon resultln8 from a past event that will probably result in the transfer of funds to a thlrd party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recogni5ed at their Settlement amount after allowin8 for any trade discounts due. n) Financial instruments The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments, Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value, o) Pen$lon$ Existing employees of the charity who TUPE transferred to the charity on 315t March 2015 were entitled to remain in Hampshire County Council's Pension Scheme ILGPSI which is funded by contributions from employee and employer. Members of the Pension Scheme may also contribute added years to that scheme or Like t an Added Voluntary Contribution scheme. each of which is funded by the employee alone. Since l April 2015 new employees to the Charity Cannot join Hampshire County Council's Pension Scheme. Hampshire County Council's Pension Scheme is a multi-employer def ined benefit scheme administered for the benefit of Local Authorities and other bodies and is managed in accordance with the Local Government Pension Scheme Regulations 1997 la5 amended). Past and present employees are covered by the provisions of the Pension Scheme. The Pension Scheme provides that in the event that a single employer has individuals contributing to the scheme then any remaining liability for benefit5 payable under the scheme falls on that employer. Since the main participating employer5 are statutory bodies, the trustees consider it highly improbable that such a liability will ever fall to the Charity. The employerfs contributions made to the LGPS Pension Scheme for Financial Year 23124 were £8,021 with an employer's contribution rate of 1.7% of pensionable pay and an employee's contribution of between 5.5% and 9.9% of pensionable pay dependant on individual salaries. City Catering Southampton was informed by Hampshire Pension Fund that the contribution rate for 2023124 would be 1.7%1reduced from 12,4% in 22/231, with no additional contribution required to meet existing deficits from April 2020 to March 2024. There has been no chan8e in rate advised for 2024125. A new pension provision, throu8h the Government's NEST scheme. wa5 introduced from 1st January 2017 for all existing employees not in the LGPS. Employer's contributions to the NEST Scheme for 2023124 were £86,487 with an employer's contribution rate of 6% of pensionable pay and an employee's contribution of 2,4% of pensionable pay. Page 23 of 32
CITY CATERING p) Prior year adjustment There was a prior year adjustment to recogni5e the defined benefit pension scheme asset in the year, The prior ar has been adjusted to recognise the associated c05t5 of the Scheme for comparative purposes. including service cost and interest on plan assets and liabilities, as well as reco8nise an actuarial revaluation on the scheme. The pension scheme was a liability of £913.0(Kl at 31 March 2022 and an adjustment to reserves of this amount was posted to adjust the brought forward balance from that date. A5 at the year ended 31 March 2023. the total fund5 brought forward into the current year were adjusted to include a pension scheme asset of £609,000. 2. Legal ststus of the Charity The charity is a private company limited by guarantee and has no Share capital, The company is incorporated in the United Kingdom (company number 093317841. A description of the charity's operations and activities can be found on pa8e 8. The charity's registered office address is detailed on page 3. In the event of the charity being wound up. the liability in respect of the guarantee is limited to £1 per member of the charity, 3. Financial Performance of the charity The consolidated statement of f inancial activities includes the results of the charity'5 wholly owned subsidiary. City Catering Southampton {Tradingl Ltd. Total share capital of City Caterin8 Southampton (Trading) Ltd is £1. The summary financial performance of the charity alone is: 2024 2023 a5 restated 5,408,497 5,132,680 94,274 282,411 13,576 27,617 5,516,347 5.442.708 15,305,575) (5,665,924) 244,000 1,768,000 1,142,204 402,580 1,596,976 1,142,204 School Mea I I ncome Charita ble Activities a nd other sources Donation from Trading Sub Net income Expenditure on Cha rita ble activities: Actuarlal gains and losses on definted beneflt pension scheme Total funds brought forward Total funds carrled forward Represented by., Unrestricted Income Pension Reserve Unrestricted income funds 846,976 750,000 1,596,976 533.204 609,000 1,142,204 Page 24 of 32
CITY CATERING 4. Consolidated income from charltable and fundraising activities Unrestricted funds 2024 Unrestricted funds 2023 As restated Income from School Meals Income from Meals on Wheels Income from charitable activities Income from other sources 5,212,030 98,824 25,603 68,671 5,405,128 4.915.940 129.297 151.197 131,215 5,327,649 Total income from charltable actfvltles Fundraislng Income Income from Tradin8 subsidiary Total income from Charitable and fundraising 97,363 5,502.491 117.400 5,445,049 5. Income earned from other actlvltles The wholly owned trading subsidiary City Caterlng Southampton ITradingl Ltd is Incorporated in the United Kingdom (company number 094147091 and pay5 all of its surplus to the charity under the gift aid Scheme. City Catering Southampton ITradtn81 Ltd provides corporate catering, mea15 on wheels to private customers and all commercial tradin8 operations on behalf of the charity. The summary financial performance of the subsldiary alone is.. 2024 2023 Income Cost of sales and administration costs Net profit Amount gift aided to charity Retained by subsidiary Assets and Lia bil ities Current assets Current liabilities Total net assets 316,512 351,978 302,936 324,361 13,576 27,617 13,576 27,617 73,260 146,283 73,259) 1146,2821 P38e 25 of 32
CITY CATERING 6. Analysis of expenditure on charltable activities Tradlng SubsidSary School Mea15 MOW Total Direct expenditure Governance Cost5 Support Costs Total 4,022,072 18,665 1,113,461 5,154,198 81.987 368 19,942 102 297 4,104.059 34.444 1,153.216 5.291.719 15.411 19.813 35,224 7. Analysls of governance and support costs The Broup initially identifies the costs of its support f unctions. It then Identifies those costs which relate to the 80vernance function. Having identified its governance co5tS. the remaining support costs together with the governance costs are apportioned between the two key charitable activities undertaken Isee note 6) in the period. Refer to the table below for the basis of apportionment and the analysis of support and govemance costs. General support Governance function Basis of Total apportionment Salaries, wages & related costs Audit fees Accountancy Fees Legal fees Total 1.150,466 15,074 11.500 5.120 2,750 34.444 1,165,540 Allocated on time 11,5(Kl Governance 5,120 Governance 5.500 50150 split 1,187.660 2,750 1,153,216 8. Analysis of staff costs and the c05t of key management personnel 2024 2023 As restated Salaries and wages Social security costs Pension c05t5 2.490,923 126,912 95,372 2,468.178 124,127 139,015 2 713 207 2 731320 There were two employees who Eceived totsl employee benefits of between £60.OCrf) and £70,fy)O and one employee received total employee benefits of between £70.000 and £80.OCw) Pension costs are 311oc3ted to activities in proportion to the related staff costs incurred ar)d are wholly charged to unrestricted funds. An employee is also an ex-officio trustee. The key management personnel of the charity, comprises the trustees, the Chief Executive Off icer, Deputy CEO, Financial Controller. HR Manager, Operations Mana8er. Charitable Impact Manager and F{d Development & Training Manager. The totsl employee benefits of the key management personnel of the charity were £316,923122123 £306.4921. Pa8e 26 of 32
CITY CATERING 8. Analysis of staff costs and the cost of key management personnel {continued) Redundancy costs in the year were £37,007122123 £nil). The key management personnel of the company comprise those of the charity and the key manaBement personnel of it5 wholly owned subsidiary City Caterin8 Southampton (Trading) Ltd. The associated staff benefits have been included within the total employee benefits of the key management personnel of the charity. The average monthly head count was 217122123 2311 staff and the average monthly number of full-time equivalent employees during the period was 101122123 1091. 9. Trustees, remuneration and expenses No charity trustees were paid or received any other benefit5 from employment with the charity or its Subsidiary in the period. One trustee was reimbursed for parkin8 expenses durin8 the 3191 March 2024 year end to the sum of £27 12022123 - £91 no other trustee received payment for profe55ional or other services supplied to the charity. The Chief Executive Officer (Gary Mcmahon) is a trustee of the charity and is paid for his role as CEO. not for trustee duties. His remuneration is included within key management personnel in note 8. 10. Corporation Taxatlon The crynpany bein8 a registered charltyls exempt from any taxation apart from VAT. 11. Fixed Asset Investment Shares in group undertakings as at year end 31 March 2024 totalled £112023: £1), There were no investment assets outside the Ulc 12. Tangible fixed assets Group Charity Cost., As at l April 2023 Additions As at 31 March 2024 reciation: As at l April 2023 Charge for the year As at 31 March 2024 99,174 28,945 128,119 99,174 28,945 128,119 53.431 20,001 73.432 53.431 20,001 73,432 NBV as at 31 March 2024 NBV as at 31 March 2023 Page 27 of 32
CITY CATERING 13. Intangible assets Group Charity Cost Asat IApril 2023 Additions As at 31 March 2024 Amortisation As at l April 2023 Charge for the year As at 31 March 2024 NBV as at 31 March 2024 NBV as at 31 March 2023 3.755 3,755 3,755 3,755 2,816 751 2,816 751 3,567 188 939 939 14. Stock - Group and Charlty 2024 2023 As restated Food Disposables Cleaning Materials 66,612 41,149 13,659 121,420 74,102 14,931 11,613 100,646 15. Debtors Debtors falling due in lessthan one year Group 2024 Group 2023 as restated Charity 2024 Charity 2023 as reststed Trade debtors Amounts owed by group undertakings Prepayments and accrued income 994,663 1,400,584 954,154 1,310,646 65,212 125,138 59,112 81,569 1,078,478 1,517,353 59,348 1,054,011 81,569 1,482,153 Debtors falllng due after one year Defined Benefit Pension scheme 885,000 885,000 750,000 750,000 885,000 885,000 750,000 750,000 Page 28 of 32
CITY CATERING 16. Creditors (amounts falling due within one year) Group 2024 Group 2023 as restated Charity 2024 Charity 2023 as restated Trade creditors Loa n repayments Other creditors and accruals Deferred income Taxation Defined Benefit Pension Scheme 406,802 77,000 200,393 25,668 272,528 135,tK)O 1,117,391 439,146 77,000 200,674 549,572 405,499 141,000 1,812,891 406,802 77,000 198,893 25,668 265,982 135,000 1,109,345 437,646 77,000 199,254 549,572 387,275 141,000 1,791,747 17. Credltors (amounts falllng due wlthin more than one yearl - Group and Charity 2024 2023 As restated Bank loans and accruals 102,667 102,667 179,667 179.667 The CBILS loan include aggregate amounts of £180k which is split by £77k due within one year and £103k due over one year. The bank loan is repayable by instalments at a current rate of interest of 1.78% annum over base rate. The loan is held with a Security charge against any properties owned or fixed and floating charges. 18. Deferred Income Deferred income comprises charitable income that is remaining from grants and donations for future use. Service Charge invoices were invoiced in April 24 and not in March 24, as in previous years, reducing the deferred income. Taxation and Trade Debtors balance at the year end. 19. Related party transactlons A mana8ement charge of £301,71512022123 - £321.7811 wa5 charged by the charity to the trading 5ub5idiary, Surplus of £15,07412022123 - £27,617) in the tradin8 subsidiary was 8ifted to the Charity and is shown in the supportin8 notes along with unpaid share capital of £1. Page 29 of 32
CITY CATERING 20. Funds Ai 1.4.22 liicome Expeiidituce Galnsllosses Translefs Al 31.3.23 Unreslficled general fund Pension Resepie Total unroslncléd funds 510 420 1913 0001 1402 5801 S 445 049 S 445 049 15 347 264} 13210001 (5 668 2) 175 0001 75 000 533 205 609 000 1142 205 1768 000 1768 000 At 1.4.23 Iiicome Expeiiditufo Gainsllosses Transler$ Al 31,3.24 Unrtslncied 9enefal fund Pension Resepie Total unfeslricted lunds 533 205 609 000 1 142 205 5 477 491 25 000 5 502 491 (5 151 7191 (140 0001 15 291 7191 12 0001 12 000 846 977 750 000 1 $96 977 244 000 2J4 000 Charl At 1.4.22 Ineome Expendliiiie Gainsllosses Tianslers Ai 31.3.23 Unreslricled general fund Pension ReseNe Tolal unreslficled lunds 510 420 1913 0001 1402 5801 5 442 708 5 442 708 15 344 9241 13210001 {5 665 9241 175 0001 75 000 533 204 609 000 1 142 204 1768 000 1768 000 At 1.4.23 In¢omè Expfrnditure Gainsllo$ses Transfe At 31.3.24 Unfeslricled general fund Pension RéseNe Tolal unreslncled funds 533 204 609 000 1 142 204 5 491347 25 000 S 516 347 (5 165 5751 (140 0001 (5 305 5751 112 0001 12 000 846 976 750 000 1596 976 244 000 244 000 Transfers relate to amount5 paid into the defined benef it pension scheme by the charity, 21. Leases The 8roup is committed to paying the followin8 remainin8 lease payments on non-cancellable operating leases.. Group Group 2024 2023 As restated Within I year Between l and 5 years Total 36,526 33,458 69,984 30,138 30,138 Page 30 of 32
CITY CATERING 22. Pension Commitments The charitV5 employee5 belong to one principal pension scheme-. The Local Government Pension Scheme ILGPSI for non-te3chin8 Staff, which is mana8ed by Hampshire County Council. The pension report for the 23124 year has been obtained and disclosed below in line with FRS 102. The latest actuarial valuation of the LGPS was completed on 31 March 2024 and valued the Fund as at 31st March 2024. At this date the entire fund showed a surplus of £750k. The March 24 contribution outst3ndinB at the end of the financial year was £2.614. there were no prepaid contributions. There were no outstanding or prepaid contributions at the beginning of the financial year. Local Government Penslon Scheme The LGPS is a funded defined benefit pension scheme. with the assets held in separate trustee administered funds. The a8reed contribution rates for future years are 1.7 per cent for employers and 5.5-12.5 per cent for employees. Prlnclpal actuarlal assumptlons 2024 2023 Rate of increase in salaries Rate of increase for pensions in paymentlinflation Discount rate for scheme liabilities Inflation assumption ICPII 3.75 2.75 4.85 2.75 3.70 2.70 4.70 2.70 The current mortality assumptions include suf ficient allowance for f uture improvements in mortality rates. The assumed life expectations on retirement age 65 are: 2024 Years 2023 Year$ Retirin8 todoy Males 22.1 24.7 23.3 25.7 Females Retiring in 20 years Males 22.6 23.8 Females 2S.7 26.7 2024 2023 Equities Other bonds 3.755,950 2,526,730 478,030 68,290 3,679,1)XJ 1,054.OCM) 434.0(KJ 70,000 1,150,OC Property Cash and other liquid assets Other Total market value of assets 6.829.(X)o 6,387,(K)O Page31 of 32
CITY CATERING The amounts required to be recognised in the Statement of Financial Activities are as follows: 2024 2023 Current service cost 1140,(KJOI I297,0> Past service cost Net interest on defined liabilitylasset Administrative expenses 25,000 124.0001 12,0001 Total amount requlred to be recognlsed In the Statement of Flnanclal Activities 1115,0001 1323.000) Chan8es in the present value of the defined benefit obliBations were as follows: 2024 2023 Openln8 Deflned Beneflt obll8atlon 5,778,000 7,838,000 Current Service Cost Interest cost Employee contributions Benefits paid Actuarial losses At 31 March 2024 140,000 272,000 30.000 (172,OCM)I 31.IXIO 6,079.000 297,OCM) 209,OIXI 32,¢))J I242,0) 12,356,000) 5,778,000 Changes in the fair value of the charity's share of scheme assets were as follows.. 2024 2023 Openin8 falr value of scheme assets Interest income Actuarial gains Employer contributions Employee contributions Assets distributed on settlements 6,387,000 297.000 275,000 12,000 30,000 1172,000) 6,829,000 6,925,OC 185,OCrf) 1588,0001 75,C 32,¢)X) 1242,OCK)I 6,387,000 At 31 March 2024 The amounts required to reco8ni5ed in the Balance Sheet are a5 follows., 2024 2023 Fair value ol scheme assets Def Ined Benefit obligation Pension asset recognised In accovnrs 6.829.000 16 079 0001 750.000 6.387.000 15 778 0001 609.000 Creditor due witliiii l year (note 16 Pension assèr per balance sheet 1135 0001 885.000 750.000 11410001 750.000 609.000 IReport endsl Page 32 of 32