Ghpo Launchpad Social Enterprise LAUNCHPAD SOCIAL ENTERPRISE (A Company Limited by Guarantee) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 December 2021 Company Number: 9166520 Charity Number: 1162372
Contents ANNUAL REPORT.................................................................................................................................... INDEPENDENT EXAMINER'S REPORT..................................................................................................... STATEMENT OF FINANCIAL ACTIVITIES................................................................................................. BALANCE SHEET...................................................................................................................................... NOTESTO THE FINANCIALSTATEMENTS..... .........................................................................................
LAUNCHPAD SOCIAL ENTERPRISE (formerly WINCHESTER SOCIAL ENTERPRISE) Annual Report and Financial Statements for the year ended 31 December 2021 ANNUAL REPORT The Trustees present their annual report, together with the financial statements, for the year ended 31 December 2021. This combined report salisfies the legal requirements for.. a Directors Report of a charitable companv, a Strategic Report under the Companies Act 2006 and a Trustees Annual Report under the Charities Act 2011 Legal Oblè¢ts The principal objects of the charitable company are.. To relieve povertyi to advance education, and to relieve need in individuals arising from their vouth, age, infiimlty or disability, flnanclal hardship or social circumstances, by any charitable means and in such places in the world as the Trustees from time to time decide.. The promotion of research into the moral and social welfare needs of the community and the publication of the useful results of all such research. The promotion for the benefit of the public of urban or rural regeneration In areas of soclal and economlc deprivation by any tharitable mean5 as the Trustees from time to time decide Such other excluslvely charitable means as the Trustees may from time to time determine. The company was incorporated on 7 August 2014 and reglstered as a charlty on 24, June 2015. The company commenced tradinglactivity in December 2017 as the Winchester Social Enterprise. This name was legally changed to Launchpad Social Enterprise on 25, Nov 2021. Given that one of LSE'S charitable objects is to advance educatlon, the dlrectors are confident (having had regard to Charity Commission guidance) that the Charity delivers public benefit through carrying out its airns and business strategies. Strategi¢ Aims In general terrns, the charity aims to support social transformation for the common good by runninE some activitles of its own as well as helping local churches to run their own activities, by providing training, and running a range of socially enterprising activities that will sustain the orEanisation in the long term. The LSE board has agreed a long-term strategy in whlch the primary focus Is currently on developing the Charity's own long-term sustainability and doing this by setting up and running its own pre-school and nursery settings. Activities and Achievements in the year The first three Launchpad pre-schools were opened in 2019, with the expectation that it would take them three academic years to reach full scale. This is due to children in pre-schools largely being age5 2-5 and parents not usually chènging settings once they have found somewhere. This development
LAUNCHPAD SOCIAL ENTERPRISE Iformerly WINCHESTER SOCIAL ENTERPRISE) Annual Report and Financial Statements for the year ended 31 Detèmber 2021 path wa5 interrupted to a significant degree in 2020 and then in 2021 by Covid which has meant that It will take longer to reach full scale than originally envisaged but the settlngs are developing well. Whlle Covid has presented huge challenges for staff and settings coping with the vlrus in staff, parents and children, the impact on children's development and their mental health has continued to emerge. Staff have worked hard to mitigate the effects and help children who have missed out on learning and socialisation to catch up and continue their progress into their school year5. In 2021, therefore, there were two area5 which needed focus, firstly recoveiy from covid and consolidation, and secondly the need to scale up the early years business with at least one good si2ed nvrsery to become completely self-sustaining. The LSE board met 7 times during the year, all on 2oom/TearNs except for one meeting la5 required by governing document). The board wa5 made aware confidentially of an opportunity to take over a set of settlngs In Southampton in August and agreed to explore thi5 further. The last half of the year was dominated by significant due diligence work assisted by professional advisers. While the substantive preparation work was done in 2021, this did not result in an agreement to transfer until I" Feb 2022 after the year end. As this was a profitable private business with 9 settings, and 150 staff, it was a significant declslon for the charity and reqLJired careful consideration and approval. Once completed, thi5 should remove entirely the need for continued 5UPPOrt frorn the Winchester Diocesan Board of Finance. The change of name to Launchpad Social Enterprise was done in order to rationalise the company'5 branding and to facilitate the takeover process of another brand. Finan¢ial Review Launchpad Social Enterprise was supported in 2021 by the grant of £95,oI2020- £90,0001 received from Winchester DBF'S Social Responsibility fund. Each Launchpad setting has introduced a new income stream to LSE partly from direct local authority payments for the free 30 hours for 3-4 year olds and some 2 year olds. and partly from parental fees forthose not qualifying or buying extra hour5. For 2021 the total income was achieved for each of the three settings ¢ombined, £110,715 12020.. £146,758). Appleshaw and Soldre were operational for a full year duiing 2021, being established in late 2019. The results for the yearshow a surplus of £12,37812020.. deficit £2,312). Trading income has increased by 19% over the prevlous year, but the company is still dependent upon the support from Winchester Diocese Board of Finance to fully coverthe day to day operational costs from theirsocial Responsibilitv Fund. As the settings continue to grow, they will cover more of these costs and the clear intention is that it should cover all the costs as soon as possible. Reserves policy Unrestricted funds As no restrictions were placed upon the grant received form the Winchester DBF all activities relate to a single general unrestricted fund. Structure. Governance and Management Launchpad Social Enterprise is z company limited by guarantee, incorporated the 7th August 2014 and operating under a Memorandum and Articles of Association altered pur5uaNt to Special Resolution on the 5, September 2019. (Company no. 09166520: Charity no. 11623721. The board agreed to change the name of the company from Winchester Social Enterprise to Launchpad Social Enterprise in October 2021. The trustees, who served during the year are Set out on page 4. With the exceptlon of
LAUNCHPAD SOCIAL ENTERPRISE Iformerly WINCHESTER SOCIAL ENTERPRISE) Annual Report and Financial Statements for the year ended 31 Decembèr 2021 two ex officio trustees, and the Winchester Diocesan Board of Finance as a corporate trustee, the remainlng, majorlty of trustees, ale appointed by the current trustee bodv. LSE staff Canon Nick Ralph's role as Executive Director on a half time basis Ishared with Portsmouth CSRI continues. Liz Mccarthy continued in her role as Operations Manager. There are also staff across the three settings, including a manager, deputy manager, and practitionerlsl at each one. LSE is grateful to many others who have given their time, support, and expertise to help move this work forward. Covid Statement Covid-19 continued to have a major impèct in 2021. Settlngs occasionally had to close for a day or two when infections were particularly affecting staff or children, but there were no closures enforced by government for long periods as happened In 2020. The government helpfully ensured that all early years, settings received in grants, the income they would have expected to receive had Covid not taken place and that continued until July 2021. Future plan5 The LSE hoard identified the need to establish a further setting, preferably a nursery, to establish enduring 5U5tainability and growth. In February 2022 the company entered into an agreement to purchase IOO°A of the share capital of a local nursery group to expand its work in early years provision. This purthase was partly funded by a loan from Winchester Diocese Board of Finance. The loan is interest free and is repayable over 10 years. Trustees, Responsibilities The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. Company law require5 the Trustees las Directors) to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial 5tatement5 in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable lawl. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the LSE and of the surplus or deficit of the LSE for that period. In preparing these financial statements the Trustees are required to.. Select suitable accountlng pollcles and apply them conslstently Observe methods and principles in the Charities SORP Make judgements and estimates that are reasonable and prLJdent State whether applicable accounting standards have been followed, subject to any material departure5 disclosed and explained in the financial statements Prepare the financial statements on the going concern basis unless it Is Inapproprlate to assume that the company will continue in operation The Trustees are also responsible for keeping proper accounting records that disc105e with reasonable accuracy at any time the flnèncial position of the LSE and enable them to ensure that the financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the LSE and hence for taking reasonable steps for the prevention and detertion of fraud and other irregularities.
LAUNCHPAD SOCIAL ENTERPRISE Iformerly WINCHESTER SOCIAL ENTERPRISEI Annual Report and Financial Statements for the year ended 31 December 2021 The Trustees are responsible for the maintenance and integrity of the corporate and financlal Information included in the LSE'S website. Legislation in England and Wales governing the preparation and di55emillation of financial statements and other Information included in Annual Reports may dlffer from legislation in other jurisdictions. Administrative Details None of the below listed Trustees, had any beneficial interest In the charity. The followlng are the Trustees who served during the year and as at the date of this report: The Right Reverend Timothy john Dakin (until 14 Oct 20211 The Right Reverend Deborah Sellin (from IS Oct 20211 Mrs Victoria Louise James Canon Andrew Robinson (until 31 Oct 20211 Colin Harbidge (from 15 Nov 20211 Ms Gambol Beverley Parker Mrs Jane Annabelle Boyes Mrs Jane Elizabeth Dyke The Reverend Andrew Mark Micklefield Wlnche5ter Diocesan Board of Finance IWDBFI (corporate trustee) Company Secretary.. The Reverend Canon Nicholas Ralph Inon-trusteel Registered Office.. Dlocesan Office, Old Alresford Place, Old Alresford, Hampshire S024 9DH WDBF Trustees as at the date of this report are set out below: MrAI L Barron Mrs E Clift Mrs A Coulter The Rieht Reverend Dr T Dakin Iretired 27 Sep 20211 The Reverend Canon R Harlow (retired 31 Dec 20211 The Reverend A Micklefield Mrl Newman The Reverend Canon C Stewart Iretired 31 Jan 20211 Mr M Ward (retired 31 Dec 20211 For the year ended 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The memhers have not required the company to obtain an audit of its financial staten)ents for the year in question in accordance with section 476. The directors acknowledge their responsibilities for complying with the requirements of the Corllpanie5 Act 2006 with respect to accounting records and the preparation of financial statements. Thls report has been prepared in accordance with the small companies, regime. tE)eknr The Rl Revd Deborah Sellln Chairman Dated.. 11.7.11
LAUNCHPAD SOCIAL ENTEFIPRISE Iformerly WINCHESTER SOCIAL ENTERPRISE) Independent Examiner's Report for the year ended 31 Decembèr 2021 INDEPENDENT EXAMINER'S REPORT I report on the accounts of the company for the year ended 31 December 2021 which are Set out on pages 6 to 11. Respective responsibilities of trustees and examiner The trustees (who are also the directors of the company for the purposes of company lawl are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144121 of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to: exarlline the accounts under section 145 of the 2011 Act; follow the procedures laid down in the general Directions given by the Charity Commission under section 14515llbl of the 2011 Act.. and state whether particular matters have come to my attention. Basls of independent examiner's report My exarllination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting record5 kept by the tharity and a comparison of the accoLJnts presented with those records. It also includes consideration of any unusual iterns or disc105ure5 in the accoLJnts and seeking explanations from you as trustees concerning any Such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a "true and fair view" and the report is limited to th05e matters set out in the statement below. Independent examiner's statement In connection with my examination, no matter has come to my attention: which gives me reasonable cause to believe that, In any material respect, the requirements- to keep accounting records in accordance with section 386 of the Companies Act 2006,. and to prepare accounts which accord with the accounting records, comply with the accounting requirements of the Companies Act 2006 and which are consistent with the methods and principles of the Statement of Recommended Practice.. Accounting and Reporting by Charities have not been met,. or to which, in my opinion, attention should be drawn to enable a proper understanding of the accounts to be reached. Tom Brain FCA Haysmacintyre LLP 10 Queen Street Place, London EC4R IAG Dated.. 2910712022
LAUNCHPAD SOCIAL ENTERPRISE (formerly WINCHESTER SOCIAL ENTERPRISE) Statement of Financial Activitles for the year ended 31 December 2021 STATEMENT OF FINANCIAL ACTIVITIES Note 2021 2020 Income Voluntary Donations Grant from Winchester DBF Other Grant Furlough 95,(XK) 95,082 755 90,(KKI 10,183 6,350 Charitable activities 110,715 146,758 Total Income 301,552 253,291 Expenditure Support costs Depreciation 68,299 11,979 57,598 Charitable activities 208,896 198,005 Total Expenditure 289,174 255,603 Net movement in funds Balance blf 0110112021 Balance c/f 3111212021 12,378 23,367 35,745 -2,312 25,679 23,367
LAUNCHPAD SOCIAL ENTERPRISE (formerly WINCHESTER SOCIAL ENTERPRISE) Balance Sheet as at 310ecember 2021 BALANCE SHEET Company No.. 9166520 Note 2021 2020 Fixed Assets Property, plant and equipment 134,197 138,245 Current Assets Debtors and Prepayments Cash at Bank 30,671 7,250 19,328 37,921 20,328 Credltors-amounts falling due withln one year Loans payable Accrued Expenses other Creditors 12,000 10,651 35,722 16,583 28,623 58,373 51,206 Net Current Assets 113,745 107,367 Creditors.. falllng due after more than one year 78,0(X) 84,0(X) Net Assets 35,74S 23.367 ReseNes Unrestricted Fund 35,745 23,367 For the year endinE 31" December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476. The directors acknowledge their responsibilities for complying with the requirements of the Act wlth respect to accounting records and the preparation of accounts. These accounts have been prepared In accordance with the provlslons applicable to comparbie5 subject to the small companies, regime. The Rt Revd Deborah Sellin Chairman Dated: 11 . l. 11
LAUNCHPAD SOCIAL ENTERPRISE (formerly WINCHESTER SOCIAL ENTERPRISE) Notes to the Financial Statements for the year ended 31 December 2021 NOTES TO THE FINANCIAL STATEMENTS I. ACCOUNTING POLICIE5 Legal status of the charlty Launchpad Social Enterprise is a company limited by guarantee, regSstered in England and Wales. Launchpad Social Enterprise Is a public beneflt entity as defined by FRS102 Basis of prèparing the financlal statements The financial statements have been prepared under the historical cost conventions. The flnancial statements have been prepared in accordance with the Statement of Recommended Practice for Charities SORP IFRS 1021 {Second edition, effective 1 January 20191, the Companies Act 2006 and FR5102 Section IA. Assets and liabilities are inltSally recognised at historical cost or transaction value unless otherwlse stated in the relevant accounting policy notels). The financSal statements are prepared in sterling which 15 the functional currency of the charity. Going concern The Trustees have a reasonable expectation that the charity has adequate resources to meet its liabilities as they fall due for the foreseeable future. The Trustees consider that there are no material uncertainties that may cast doubt on the charity's ability to continve a5 a going concern and they therefore continue to prepare the financial statements on the going concern basis. The charity is supported by the Corporate Social Responsibility funding from the Winchester Diocesan Board of Finance. The WD6F restricted fund ha5 sufficient reserves to support the continued operations of the charity and has been designated for that purpose. Income All income is recognised when the charity has entStlement to the funds, any performance conditions attached to the itemlsl of income have been met and it is probably that the income will be received and the amount can be reliat)ly measured. Income from nurseryfees are included in the Statement of Flnancial Activitie5 ISOFAI when the charity becomes entitled to the fees ènd any condition5 for receipt are met. Income from government and other grants, whether'capital, grants or 'revenue' grants, Is recognised when the charity has entitlement to the fund5, any performance conditions attached to the grants have been met, It is probably that the income will be received and the amount can be measured reliably. Grants are accounted for on a receivable basis. Furlough grant income is recognised in the same period as the staff costs to which it relates.
LAUNCHPAD SOCIAL ENTERPRISE Iformerly WINCHESTER SOCIAL ENTERPRISE) Notes to the Financial Statements for the year ended 31 December 2021 Expènditure Expenditure is recognlsed 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 measured reliably. All expenditure is accounted for on the accruals basis and the trading costs have been classified under headings that relate to the categories of trading income. Charitable expenditure relates to the costs incurred in 5UPPOrt of the day to day operations of each nursery Setting. Support costs are overhead costs necessarily incurred in the running of the tharity. Tangible fixed asset5 Fixed assets are capitalised at cost, where acquired or managements approximation valuation of cost where donated. Depreciation 15 provided to write off the cost, less an estimated residual value, OY all flxed assets evenlv over their expected economic useful lives on a reducing balance ba55$ as follows.. Property- Yurt- 15 year5 Straight line Fixture5 and fittings- 20% reducing balance The need for any impairment of a fixed asset write-down is considered If there Is concern over the carrying value of an asset and is assessed by comparing that carrying value against the value in use or realisable value of the asset when appropriate. Unrestrlcted funds As no restrictions were placed upon the grant received from Winchester DBF, all activities relate to single general fund. 2. STAFF COSTS All staff are employed by Launchpad Social Enterprise, except for Nick Ralph, whose stipend charEe is recharged via Portsmouth Diocese Board of Finance. 2021 2020 W3ges ands81aries National i nsurance contributions Pension costs 169.441 6.446 12.825 188 711 178.650 4,207 195 925 At the end of 2021 there were an average of 12 employees12020'. 101, working a mixture of part time and full-time term hours. The trustees were not paid or relmbursed for expenses during the year12020.' £nill. No employee earned more than £60,000 per annum12020'. £nill
LAUNCHPAD SOCIAL ENTERPRISE Iformerly WINCHESTER SOCIAL ENTERPRISE) Notes to the Financial Statements for the year ended 31 December 2021 Remuneratlon of Key Management Personnel Key management personnel are deemed to be those having authority and responsibility delegated to them by the trustees, for planning, dlrecting and Controlling the activities of the organisation. During 2021 this was.. Executive Director- The Revd Canon Nick Ralph150%1 Remuneration, penslons, and expense5 amounted to £30,28312020- £33,365) SUPPORT COST ANALYSIS 2021 2020 Office support costs Salaries, HR & recruitment loverheadl Subscriptions & publications Independent examination 10,361 54,297 1,272 2,369 15,027 39.594 985 1,992 68,299 57,598 TANG18LE FIXED ASSETS Property In Freehold Land coutse of & Buildings construction Fixture & Fittings 2021 Total Valuation a5 at.. l January 2021 Additions 31 December 2021 121,152 7,931 129,083 17,093 138,245 7,931 146,176 17,093 Depreciation At ljanuary 2021 Disposals Charge for the year At 31 December2021 8,561 8,561 3,419 3,419 11,979 11,979 Net Book Value At 31December2021 120,522 121,152 13,674 17,093 134,197 138,245 At 31 December2020 io
LAUNCHPAD SOCIAL ENTERPRISE Iformerly WINCHESTER SOCIAL ENTERPRISE Notes to the Financial Statements for the year ended 31 December 2021 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2021 2020 Loans Payable 78,000 84,(KlO Winchester Diocese Board of Flnance gave the Charity a loan of £90,000 for the yurt asset addition constructed during 2020. It has been loaned at OYO interest with a repayment term of 15 years or earlier. posr BALANCE SHEET EVENTS In February 2022 the company entered into an agreement to purchase 100% of the share capital of a local nursery group to expand its work in early years provision. This purchase was partly funded by loan of £625,000 from Winchester Diocese Board of Finance. The loan is interest free and is repayable over 10 years. RELATED PARTY TRANSACTIONS During 2021 a grant of £95.00012020'. £90,000) was received from Wlnchester DBF. The company received a loan from Winchester DBF during 2020. At the year end, the balance owlng on this loan was £90,00012020.. £90,000). None of the trustees received any remuneration from the charity. None of the trustees received any reimbursement of expenses from the charitv li