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2021-03-31-accounts

On The EDGE Conservation Group Reports and Financial Statements

For the year ended 31 March 2021

Charity registration number: 1163124 Company registration number: 09646831

1

On The EDGE Conservation

Contents

For the year ended 31 March 2021

Contents
Page
Charity Reference and Administrative Details 2
Trustees’ Annual Report 3
Independent Auditor’s Report 7
Consolidated statement of financial activities 10
Charity only Statement of Financial Activities (Including Income and Expenditure Account) 11
Balance Sheets 12
Consolidated Cash Flow Statement 13
Notes to the Financial Statements 14

On The EDGE Conservation

Details

For the year ended 31 March 2021

Charity registration number 1163124
Company registration number 09646831
Trustees Beth Blood
David Blood
Alexander Marshall
Jonathan Baillie (resigned 23 December 2020)
Lara Legassick
Tamara Arnold
Registered office 152A Walton Street
Chelsea, London
SW3 2JJ
Independent Auditor Saffery Champness LLP
71 Queen Victoria Street
London
EC4V 4BE
Solicitor Harbottle and Lewis LLP
7 Savoy Court
London
WC2R 0EX
Bates Wells and Braithwaite London LLP
10 Queen Street Place
London
EC4R 1BE
Bankers Handlesbanken
2ndFloor
125 Kensington High Street
London
W8 5SF

2

On The EDGE Conservation

Trustees’ Annual Report

For the year ended 31 March 2021

The Trustees, who are also Directors of the company for the purposes of the Companies Act 2006, present their report and the audited financial statements of the charity for the year ended 31 March 2021.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s governing document, the Charities Act 2011, the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland.

Trustees of the charity

The directors of the charitable company are its Trustees for the purposes of charity law. The Board of Trustees, that meets four times a year, administers the Charity in accordance with the Articles of Association and the Charity Governance Code as applicable to the size of the charity.

Trustees serve for a term of three years and may be appointed for two further terms (9 years); or longer if agreed by the Board. Open positions are advertised on the charity’s website, inviting applications, with appointments being made after interview with the Chair (or delegated Trustee) and CEO. Newly appointed Trustees receive a letter of appointment and an induction pack.

The Board has a wide skills base and cross-sector experience. Each Board member is required to declare any interests, directorships or positions which may conflict with any actual or proposed arrangements with the charity. Such interests are reviewed and authorised annually. Training needs are assessed and met as required.

Objects

The Charity’s objects are:

Goals

On the Edge Conservation (OTEC) aims to be the leading media and marketing company for nature. We aim to create a voice for nature in the digital age. Our powerful new narratives will raise the profile of diverse species and increase empathy for them, their fragile habitats and the people that protect them. Our ultimate aim is to help society place an intrinsic value on the natural world and commit to its protection and restoration.

As a science-based organisation we will apply analytical rigor to our storytelling, just as we do with our conservation projects in the field. Our goal is to become the leader in the science and art of communicating nature, blending the scientific method with the creative process. We want to experiment with ways to communicate and quantify what’s working, what’s not, and why. The narratives having the greatest impact are those that measurably increase positive sentiment toward other species as well as the natural world. By taking this approach, we hope to create a playbook that can be applied to any area of nature that requires better advocacy.

We aim to reach people of all backgrounds and ages. But our primary focus is youth in the social media generation who will have such a disproportionate impact on the future of a biodiverse world. We want to reach them through the channels they already visit, and in a voice they can relate to.

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On The EDGE Conservation

Trustees’ Annual Report

For the year ended 31 March 2021

Philosophy and brand values

We stand for exploration, discovery, humour, hope and innovation. We are not afraid to deal with challenging issues but avoid being self-righteous or too earnest. We mix the worry and the wonder with much more focus on the wonder. Our storytelling voice, by extension, is playful and positive. But ultimately, we are a science-led organization that is always willing to adapt any approach based on the best available data.

Future Plans

OTEC balances its activities between nature-promoting media and games, grants and fellowships, and high impact campaigns that tie together our media and conservation work. No other nature-focused organization blends its activities in this way. Broadly we are focusing on three workstreams:

Digital storytelling

To help make the case for nature to the social media generation, OTEC is experimenting with digital platforms and storytelling techniques. Efforts are currently focused on:

With a spirit of experimentation, we also aim to explore AR/VR experiences, citizen science combined with gaming, digital photography, long-form documentaries, and mini-documentaries.

Science and conservation

We will work with multi-stakeholder initiatives to influence policy toward EDGE species and nature conservation at large. Our staff are currently supporting the International Union for Conservation of Nature (IUCN) Phylogenetic Task Force and helping to identify high concentrations of EDGE species where conservation interventions are likely to be most successful. In addition, OTEC is working with partners to ensure that evolutionary history is considered when setting conservation priorities at the regional and global level.

Impact measurement

OTEC will develop metrics to monitor project level impact as well as trends that indicate whether we are reaching our goals. Trends that we are especially interested in measuring are empathy toward other species, and willingness of people to take conservation action.

We are working with partners to develop an AI-based sentiment tracker capable of monitoring sentiment toward species, ecosystems, and the people that secure them. This information is critical if we are to understand attitudes toward nature, the impact of our work and how to improve nature communication through time.

Grants

We are a strategic single-issue pro-active funder, meaning that we seek out potential grantees with activities that align with one or more of our thematic aims. This is done through in-house expertise, staff and institutional connections with the philanthropic and conservation sectors, and keeping up to date with developments, organisations, and leading individuals in these fields. We do not accept unsolicited requests for funding.

Prospective grantees must align with OTEC’s values and aspirations, in particular our interest in locally-led activities and capacity building. This means we are unlikely to support a major international NGO, and more likely to support smaller national or local organisations. Our current grantees include:

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On The EDGE Conservation

Trustees’ Annual Report

For the year ended 31 March 2021

Public benefit statement

The Trustees confirm that they have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties.

Structure, governance and management

On The EDGE Conservation was incorporated as a charitable company limited by guarantee on 18 June 2015 (Reg. No. 9646831) and registered as a charity on 13 August 2015 (Reg. No. 1163124). On the Edge Productions Limited (Reg. No. 9660075) is a wholly owned subsidiary of On the EDGE Conservation. This entity holds 100% of the rights to the animated TV series and any future ancillary initiatives related to the brand. OTEP Limited (Reg. No. 9714151) is a wholly owned subsidiary of On the Edge Productions Limited and is the production vehicle for the first season of the animated TV show. OTEP 2 Limited (Reg. No. 12736225) is also a wholly owned subsidiary of On the Edge Productions Limited and is the production vehicle for the motion capture YouTube channel.

Day to day management of the activities is carried out by Trustee Beth Blood with the support of a team of ten employees. Jonathan Baillie was appointed as CEO in February 2021 and will take over day to day management of the charity and subsidiaries.

Risk Review

The major strategic, business and operational risks which the Charitable Company faces are under review by the Directors who are taking steps to ensure that they are managed appropriately. With the appointment of the Chief Executive Officer in February 2021, a full strategic review of the group has been conducted and resulting risks and mitigations are being identified.

Financial review – Results for the year and reserves

The charity had donation income of £1,456,288 (2020: £1,085,088) from Trustee David Blood (including Gift Aid) and expenditure of £441,613 (2020: £112,824) in conservation grants and £1,580,217 (2020: £782,027) in marketing, storytelling, operational, legal and financial expenses. The charity’s reserves were in surplus by £944,751 as at 31 March 2021 (2020: £1,381,696).

As outlined above, the charity owns 100% of On the Edge Productions Ltd, OTEP Ltd and OTEP 2 Ltd. These subsidiary companies are in start-up mode whilst they develop digital content for a young audience using EDGE species as our ambassadors. In the future, alongside the social impact of these activities, it is intended that the subsidiaries will generate an ongoing revenue stream that can be passed to the charity to fund conservation activity.

For the year ended 31 March 2021, the group had a surplus of £55,843 (2020: surplus £549,721).

Fundraising

The Trustees take their responsibility under the Charities (Protection and Social Investment) Act 2016 seriously and have considered the implications on the charity’s activities. The charity currently does not actively fundraise and therefore the trustees do not consider it necessary at this point to have a formal fundraising policy in place. There have been no complaints with regard to fundraising in the year.

Reserves policy

The trustees aim to maintain free reserves at a level which equates to approximately one year of fixed charitable costs (e.g salaries, compliance and occupancy costs etc.). The trustees consider that this reserves level will provide sufficient funds to respond to applications for grants and ensure that support and governance costs are covered.

5

On The EDGE Conservation

Trustees’ Annual Report

For the year ended 31 March 2021

The trustees consider that this is sufficient given the philanthropic commitment of David and Beth Blood to provide annual funding to On the EDGE Conservation. The Trustees are satisfied that this commitment will allow the charity and subsidiaries to develop as intended over the next year.

At the year end the charity held free reserves of £752,180 (2020 £1,243,643).

Statement of trustees’ responsibilities

The trustees (who are also directors of On The EDGE Conservation for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware:

Preparation of the report

This report has been prepared taking advantage of the small companies’ exemption of section 415A of the Companies Act 2006.

This report was approved and authorised for issue by the Trustees on 17 December 2021 and signed on their behalf by:

……………… Beth Blood Chair of Trustees

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On The EDGE Conservation

Independent auditor’s report to the members

For the ended 31 March 2021

Opinion

We have audited the financial statements of On The EDGE Conservation (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2021 which comprise the consolidated statement of financial activities, charity statement of financial activities, balances sheets, consolidated cash flow statement and notes to the financial statements, including significant accounting policies. The financial 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 Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of 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 a material misstatement of this other information; we are required to report that fact.

We have nothing to report in this regard.

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On The EDGE Conservation

Independent auditor’s report to the members

For the ended 31 March 2021

Other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 6, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group 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 of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

Our objectives are to obtain reasonable assurance about whether the group and parent financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

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On The EDGE Conservation

Independent auditor’s report to the members

For the ended 31 March 2021

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent charitable company by discussions with trustees and updating our understanding of the sectors in which the group and parent charitable company operate.

Laws and regulations of direct significance in the context of the group and parent charitable company include The Companies Act 2006 and guidance issued by the Charity Commission for England and Wales.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the parent charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent charitable company and the parent charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Jamie Cassell (Senior Statutory Auditor) for and on behalf of Saffery Champness LLP

71 Queen Victoria Street London, Chartered Accountants EC4V 4BE

Statutory Auditors

Date: 17 December 2021

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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On The EDGE Conservation

Consolidated Statement of Financial Activities

For the ended 31 March 2021

Note
Income from charitable activities:
Donations
Other Income
Total income
Charitable expenditure:
2
Conservation and Science
Marketing and Storytelling
Impact Measurement
Operations
Total expenditure
Net income/(expenditure) before tax
Tax credit
7
Net income/(expenditure)
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 2021
2021
2020
Unrestricted
funds
Total
Total
1,456,288
1,456,288
1,085,088
-
-
2,500
1,456,288
1,456,288
1,087,588
601,475
601,475
214,662
908,484
908,484
594,614
86,969
86,969
4,427
424,901
424,901
236,170
2,021,829
2,021,829
1,049,873
2,021,829
2,021,829
1,049,873
(565,541)
(565,541)
37,715
71,663
71,663
-
(493,878)
(493,878)
37,715
(493,878)
(493,878)
37,715
549,721
549,721
512,007
55,843
55,843
549,721

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On The EDGE Conservation

Statement of Financial Activities (Including Income and Expenditure Account)

For the year ended 31 March 2021

Note
Income from charitable activities:
Donations
Other Income
Total income
Charitable expenditure:
2
Conservation and Science
Marketing and Storytelling
Impact Measurement
Operations
Total expenditure
Net income/(expenditure)
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 2021
2021
2020
Unrestricted
funds
Total
Total
1,456,288
1,456,288
1,085,088
-
-
2,500
1,456,288
1,456,288
1,087,588
538,173
538,173
213,795
1,007,666
1,007,666
493,619
63,365
63,365
4,390
284,029
284,029
183,047
1,893,233
1,893,233
894,851
1,893,233
1,893,233
894,851
(436,945)
(436,945)
192,737
(436,945)
(436,945)
192,737
1,381,696
1,381,696
1,188,959
944,751
944,751
1,381,696

All income and expenditure derive from continuing activities.

11

On The EDGE Conservation

Balance Sheets

As at 31 March 2021

Note
Fixed assets
Fixed Assets
5
Intangible Assets
6
Investments
7
Current assets
Trade and other receivables
8
Cash at bank and in hand
Current Liabilities
Trade and other payables
9
Net current assets
Net assets
Charity Funds
Unrestricted funds
Total funds surplus		 2021
2020
Group
Charity
Group
Charity
£
£
£
£
32,598
32,570
18,412
18,051
205,670
-
30,000
-
-
160,001
-
120,001
238,268
192,571
48,412
138,052
196,351
248,815
48,066
47,463
565,736
555,841
1,525,562
1,417,381
762,087
804,656
1,573,628
1,464,843
(944,511)
(52,476)
(1,072,320)
(221,200)
(182,425)
752,180
501,309
1,243,643
55,843
944,751
549,721
1,381,695
55,843
944,751
549,721
1,381,696
55,843
944,751
549,721
1,381,696

The financial statements have been prepared in accordance with the special provisions applicable to small companies within Part 15 of the Companies Act 2006.

The financial statements were approved and authorised for issue by the Trustees on 17 December 2021.

Signed on behalf of the board of trustees

…………. Beth Blood Trustee

The notes on pages 14 to 21 form part of these financial statements.

Company registration number: 09646831

12

On The EDGE Conservation

Consolidated Cash Flow Statement

As at 31 March 2021

2021 2020
Cash flows from operating activities:
Net income/(expenditure) for the reporting period (493,878) 37,715
Depreciation and amortisation 20,713 1,893
Increase in debtors (145,591) (35,991)
Increase/(decrease) in creditors (130,502) 340,340
Net cash provided by/(used in) operating activities (749,258) 343,957
Cash flow from investing activities:
Purchase of office equipment/computers (22,469) (18,808)
Purchase of intangible (188,100) (30,000)
(210,569)
 (48,808)
Change in cash and cash equivalents in the reporting period
 (959,827) 295,149
Cash at bank and in hand at the beginning of the reporting period
 1,525,563 1,230,414
Cash at bank and in hand at the end of the reporting period
 565,736 1,525,563
Analysis of changes in net debt:
At Start of
year		 Cash flows Foreign
exchange
movements		 At end of year
Cash 1,525,563 (922,085) (37,742) 565,736
Total 1,525,563 (922,085) (37,742) 565,736

13

On The EDGE Conservation

Notes to the Financial Statements

For the year ended 31 March 2021

1 Summary of significant accounting policies

(a) General information and basis of preparation

On The EDGE Conservation is a charitable company registered in England and Wales. 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. Total of such guarantees at 31 March 2021 was £3 (2020: £3). The address of the registered office is given in the charity information on page 2 of these financial statements. The nature of the charity’s operations and principal activities are as set out on page 3.

The charity constitutes a public benefit entity as defined by FRS 102. The Trustees confirm that they have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity.

At the time of approving the financial statements, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. David and Beth Blood have made a philanthropic commitment to providing funding for On the EDGE Conservation. This commitment has not changed in light of Covid-19. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

The consolidated financial statements include the financial statements of all subsidiaries. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control over the operating and financial decisions is obtained and cease to be consolidated from the date on which control is transferred out of the Group. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain economic benefits from its activities. All intercompany balances and transactions have been eliminated in full.

The significant accounting policies applied in the preparation of these financial statements are set out below.

(b) Funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Currently the charity only has unrestricted funds.

(c) Income recognition

All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

14

On The EDGE Conservation

Notes to the Financial Statements

For the year ended 31 March 2021

(d) Expenditure recognition

All expenditure is accounted for on an accrual’s basis. All costs can be directly attributed to an expense category. Irrecoverable VAT is charged as to the relevant expense as incurred.

(e) Critical Estimates and Judgements

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where these are affected.

The Trustees consider the most significant judgement in the accounts to be the estimated useful life of the fixed assets.

(f) Employee benefits

Short term benefits, including private medical insurance are recognised as an expense in the period in which the service is received.

(ii) Pension schemes

The contributions to defined contribution plans are recognised as an expense when they are due.

(iii) Termination benefits

Termination benefits are payable when employment is terminated by charity, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when it is demonstrably committed to either (i) terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or (ii) providing termination benefits as a result of an offer of voluntary redundancy.

(g) Financial Instruments

The charity 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

(h) Property, plant and equipment

Property, plant and equipment is stated at cost less accumulated depreciation and impairment losses. Depreciation is provided to write off the cost or valuation less the estimated residual value of tangible fixed assets by equal instalments over their estimated useful economic lives, over the following periods.

Plant and machinery 5 years Fixtures, fittings and equipment 5 years Computer equipment 3 years

The assets’ residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

15

On The EDGE Conservation

Notes to the Financial Statements

For the year ended 31 March 2021

(i) Intangibles

Intangible assets are stated at cost less accumulated amortisation. Amortisation is calculated using the straightline method to allocate the depreciable amount of the assets to their residual values over their estimated useful lives. Intangible assets comprise software and are amortised between three and five years.

The carrying values of intangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

(j) Investments

The investment in the subsidiary undertaking is shown at cost on the charity balance sheet.

The charity also invests in a mixed motive investment via the subsidiary undertaking meaning assets that both further the charity's objects and generate a financial return.

(k) Tax

The tax credit represents the sum of the tax currently receivable.

The tax currently recoverable is based on relievable losses arising in the year as a result of film tax relief legislation. Relievable losses differ from net losses as reported in the profit and loss account because they include an additional deduction relating to qualifying film development expenditure and exclude items of income or expense that are taxable or deductible in other years, as well as items that are never taxable or deductible. The company's tax position is calculated using tax rates that have been enacted or substantively enacted at the reporting date.

As a registered charity income derived from wholly charitable activities is exempt from corporation tax.

2. Expenditure on Charitable activities

Group:
Conservation and
Science
Marketing and
Storytelling
Impact Measurement
Operations		 Total
2021
Activities
undertaken
Directly
Grant
funding
of
activities
Governance
Support
costs
Total 2020
601,475
-
441,613
-
159,862
214,662
908,484
763,681
-
-
144,803
594,614
86,969
27,360
-
-
59,609
4,427
424,901
-
-
190,828
236,106
236,170
2,021,829
791,041
441,613
190,828
598,347
1,049,873

16

On The EDGE Conservation

Notes to the Financial Statements

For the year ended 31 March 2021

2. Expenditure on Charitable activities (continued)

Charity:
Conservation and
Science
Marketing and
Storytelling
Impact Measurement
Operations		 Total
2021
Activities
undertaken
Directly
Grant
funding
of
activities
Governance
Support
costs
Total 2020
538,173
-
441,613
-
96,560
213,795
1,007,666
920,201
-
-
87,465
493,619
63,365
27,360
-
-
36,005
4,390
284,029
-
-
91,740
192,288
183,047
1,893,233
947,561
441,613
91,740
412,318
894,851

All grants are made to institutions. Significant grants in the year included £275,000 to the Zoological Society of London (ZSL) (2020: £100,000 to ZSL).

3 Auditors remuneration

Audit of financial statements
Other assurance services
Tax advisory services
Other non-audit services
Total		 2021
2020
Group
Charity
Group
Charity
£
£
£
£
12,500
12,500
11,988
11,988
-
-
-
-
14,838
-
5,490
1,000
1,020
232
363
363
28,358
12,732
17,841
13,351

4 Employees

Wages and salaries
Social security costs
Pension contributions
Medical Insurance
Other HR costs
Staff costs		 2021
2020
Group
Charity
Group
Charity
£
£
£
£
353,466
170,664
109,970
109,970
34,078
34,078
9,614
9,614
50,453
50,453
16,936
16,936
5,398
5,399
2,292
2,292
19550
19,036
2,103
903
462,946
279,630
140,915
139,715

The average number of persons employed by the group during the year is 7.5 (2020: 5). One employee, earned between £70,000 and £80,000 in the year (2020: 1).

17

On The EDGE Conservation

Notes to the Financial Statements

For the year ended 31 March 2021

The key management personnel are the Trustees together with the newly appointed CEO Jonathan Baillie. The CEO was appointed on 1 February 2021 but did not receive any remuneration for his services from the Group during the financial year whilst Charity Commission consent was obtained given Mr Baillie was a former trustee.

The Trustees were not paid nor received any other benefits from the charity or its subsidiary companies in the year (2020: £nil). They were not reimbursed for any expenses during the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

5 Property, Plant & Equipment

Cost
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charges for the year
At 31 March 2021
Net book value
At 31 March 2020
At 31 March 2021		 Group
Charity
Fixtures, fittings and
equipment
Fixtures, fittings and
equipment
20,710
19,711
22,469
22,469
43,179
42,180
2,298
1,660
8,283
7,950
10,581
9,610
18,412
18,051
32,598
32,570

6 Intangibles

At 1 April 2020
Additions
Less Amortisation
At 31 March 2021		 Group
Charity
Intangible asset
Intangible asset
30,000
-
188,100
-
(12,430)
205,670
-

The intangible asset relates to two mobile gaming apps Kakapo Run and Save Purple Frog (asset under construction). Kakapo Run launched on 30 October 2020. Save Purple Frog launched in November 2021.

Financial Commitments

Under the second game development contract for Save the Purple Frog, On the Edge Productions is committed to a further £59,200 at the year-end for the development of the gaming app. This will be fully satisfied by 31 March 2022.

On the 26 March 2021, On the Edge Conservation signed a services agreement with Conservation Science Partners to develop an AI-based sentiment tracker capable of monitoring sentiment toward species, ecosystems, and the people that secure them. This is a two-year contract with a value of USD 247,250.

18

On The EDGE Conservation

Notes to the Financial Statements

For the year ended 31 March 2021

7 Taxation

The tax credit during the year relates to a creative industries film tax credit due to OTEP 2 Ltd.

8 Investments

Investments at fair value compromise:

Investments
Investments at fair value compromise:
Cost or valuation
At 31 March 2020
Additions
At 31 March 2021		 Shares
Mixed Motive
Investment
Total Investments in
subsidiary
companies
£
1
120,000
120,001
-
40,000
40,000
1
160,000
160,001

Subsidiary undertakings

The following were subsidiary undertakings of the charity:

Name Company Class of Shares
Holding
Registration No.
On The Edge Productions Ltd 09660075 Ordinary
100%
OTEP Ltd 09714151 Wholly owned subsidiary of On The Edge Productions Ltd
OTEP 2 Ltd 12736225 Wholly owned subsidiary of On The Edge Productions Ltd

All entities in the group are located at registered office 152A Walton Street, London SW3 2JJ.

The aggregate of the share capital and reserves as at 31 March 2021 and of the profit or loss for the period then ended on that date for the subsidiary undertakings were as follows:

On The Edge
Productions Ltd OTEP 2 Ltd OTEP Ltd
2021 2021 2021
Total Total Total
£ £ £
Income 508,849 566,372 -
Cost of sales (409,747) (481,995) -
Administrative expenses (102,060) (156,040) (8,500)
Tax credit 71,663
Net profit/(loss) (2,959) - (8,500)
Total assets as at 31 March 365,464 71,663 178,064
Total liabilities as at 31 March (531,140) (71,662) (855,816)
Net assets held as at 31 March (165,676) 1 (677,753)

19

On The EDGE Conservation

Notes to the Financial Statements

For the year ended 31 March 2021

9 Trade and other receivables

Other debtors
Amounts owed by associated undertakings
Deposits
Prepayments		 2021
2020
Group
Charity
Group
Charity
£
£
£
£
156,114
40,209
9,945
-
2,694
174,328
2,245
11,844
20,257
20,000
20,257
20,000
17,286
14,278
15,619
15,619
196,351
248,815
48,066
47,463

10 Trade and other payables

Accruals
Accounts payable
Directors loan account		 2021
2020
Group
Charity
Group
Charity
£
£
£
£
21,420
32,322
61,730
53,330
68,674
20,154
176,590
167,870
854,417
-
834,000
-
944,511
52,476
1,072,320
221,200

11 Operating lease commitments

Operating lease commitments
Land and Buildings
2021 2020
Group Charity Group Charity
Operating leases which expire: £ £ £ £
Within one year 40,000 40,000 40,000 40,000
Within two to five years 16,667 16,667 70,685 70,685
56,667 56,667 110,685 110,685
e expenditure is included in support costs in note 2.
Analysis of net assets between funds
2021 2021 2020
Group: Unrestricted funds Total Total
£ £ £
Fixed assets 32,598 32,598 18,412
Intangible asset 205,670 205,670 30,000
Debtors 196,351 196,351 48,066
Cash 565,736 565,736
 1,525,562
Other current liabilities (944,511) (944,511) (1,072,320)
Total 55,843 55,843
 549,721

Lease expenditure is included in support costs in note 2.

12 Analysis of net assets between funds

20

On The EDGE Conservation

Notes to the Financial Statements

For the year ended 31 March 2021

Charity:
Fixed assets
Investment
Debtors
Cash
Other current liabilities
Total		 2021
2021
2020
Unrestricted funds
Total
Total
£
£
£
32,570
32,570
18,051
160,001
160,001
120,001
248,815
248,815
47,463
555,841
555,841
1,417,381
(52,476)
(52,476)
(221,200)
944,751
944,751
1,381,696

13 Related party transactions

Trustee David Blood made donations to On the Edge Conservation totalling £1,166,288 (2020: £879,370). As noted above (note 4) none of the Trustees in On the EDGE Conservation had expenses reimbursed in the period.

At year-end, the charity does not have any amount owing to subsidiary companies (2020: £nil). The charity had intracompany transactions during the year with On the Edge Productions Ltd. At year end, On the Edge Productions Ltd owed the charity £171,634 (2020 £9,605).

During the course of the year Beth and David Blood, who are also trustees of the charity, loaned £20,417 (2020: £133,937) to OTEP Ltd. OTEP Ltd owed £854,417 (2020: £834,000) to the directors at year end as reflected in note 9.

OTEP Ltd paid nil (2020 £21,500) to Jacabo Ltd in respect of consultancy services. The director of Jacabo Ltd is also a director of On The Edge Productions Ltd, the parent company of OTEP Ltd. There are no loans owing to Jacabo Ltd at year end (2020: £ nil).

On 28 March 2017, Friends of On the Edge Foundation was established as a not-for-profit entity incorporated in Delaware USA. The Charity is connected to On the Edge Conservation by virtue of having representation on its Board of Directors. During the year, the following served as members of the Board of Friends of On the Edge Foundation: David Blood, Barry Zubrow and Richard Sabo.

There was minimal activity in Friends of On the Edge Foundation during the financial year. At year end, Friends of On the Edge Foundation owed £2,694 (2020 £2,245) to On the Edge Conservation as reflected in note 8. This amount was fully repaid to On the Edge Conservation before signing.

21