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•comll*nd 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 p￿pare 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 ¢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•t*l ¢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 rneasu￿d 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