Kentown Wizard FOUNDATION Annual Report and Financial Statements For che year ended 31 March 2021 Charity Registration No. 1163956 The Kentown Wizard Foundation Contents Reference and AdmiFTri5tr2tion Details Report of the Tru5tee5 Report of the Independen£ Auditors Statement of Financi21 Activities Balance Sheet Cash Flow Statetnenc Notes to the Financial St2tÈments Page 2 The Kentown Wizard Foundation Reference and Administration Details For the year ended 31 March 2021 Charity registration number 1163956 Founder Mr K Townsley Trustees Mr K Town51ey Mr D Bamber M5 K Gr2ham Mr R G Ingle Chief Executive Officer Ms M Ingr2m Registered office Merro House ￿"MIted Unit 14.17 Metropolit2n Business Park Preston New Road Blackpt>ol FY3 9LT Auditor MHA Moore and Smalley Richard House 9 WincWey Square Prescon PRI 3HP Solicitor Fieldevk Marsh￿1 Glover Strtttt l Middle Street Lancaster LAI IJZ Ir]vestment managers Barclay5 Bank plc 4 Floor Bridgewatsr House CountÈrslip FinzÈls Reach Bristol BSI 6BX Casdefield Investment Parcners LLP I I l ￿c(adi1 Manche5*r MI 2HY Page 3 The Kentown Wizard Foundation Report of the Trustees For the yeay ended 31 March 2021 The Trustees present their report and the audited financial statements of the charity for the yetr ended 31 March 2021. The Trustees have adopted the provisions of the Statement of Recommended Prnctite {SORPI "Accounting and Reponing by Charities" {FRS 102) in prewaring the annual report and fin2nCl￿ sr2tements of the charicy. The financial scacements have been prepared in accordance wtth the accouncing policies set out in notes to the accoun(s nd comply with the chariW5 governing documenL the Ch2riues Aa 2011 and Accouncing and Reporting by Charities-. Staiemenr of Recommended Pracuce applicable to chariries preparing Iheir accotEnts in accordance with the Financi31 Reporting Standard applicable in the UK 2nd Republit of Ireland published in October 2019. Objectives. activittes and achievements The Kentown Wizard Found2tton wa5 e5tabli5hed for general charitable purposes and focuses on benefitting children and young 2du5cs vrich seriou5. life-limiring condirions and di5abilrties. Our mission 15 to have a positive impact on the lives of such children and we athieve this mission by makt'ng grants co UK reg"stered chariues whose aims and values are closely aligned ours. Our overriding objecttve is to give grants where they are Most needed and where they wll have the greatest impacL Our Founder is Ken Townsley. a hi8hty successful businessman 2nd phil￿thrOp1SL Ken's story is remarkable.. it is the story of a man from humble beg￿nning5 whose lrfe-long love of travel took him. over a forty-year period. from an pprentice a¢ Blackpool Airport to the owner of Gold Med3] Trnvel Group plc. Ken's inspir2ti0Tr81 story can be reLd in more detail on our website 2t Achievements in the year This year we have continued to build on existing relationships with our chirity partners to deliver projects in line with our objectives. In the year co 31 March 2021 we m2de I I granrs to I l organi$3tions aEvounung to £1.95rn. The year under re￿eW has been 2 year like no other. COVID 19 changed the world. possibly forever. and imp2tted on all our livÈg but nowhere was the impacE fek more severely than among the children we seek to help. Our foundauon exists solety to help t9 iTTkprove the lives of children and young adults wich serious, life-limiting conditions 2nd disabilitie5. Even before the pandemic. these children often feel i501ated and wlnerable because of their conditions but during 2020 it is hard to IMa￿ne the level of isoLition and vulnerability experienced by these children 2nd their families. Our response ¢0 the pandemic was to offer 5UPPOrt to our charity p3rtners to help them to continue their work despiLe the inevitable fall in income experienced across the whole 5e(cor as fundraising events were cancelled. We have been impressed by the way our chariry partners rose to the thallenge, adapted co the new normal and found innovatiye ways of continuing to offer mvch J)eeded 5UPPOrt and joy. One such chariry is Over The w￿1, one of our long terni p2rtner& who prior to the p2ndemit offered residential camp5 to Ihildren li￿ng wth the challenges of serious illnÈss or di52biliry. As the pandernic struck all camps were cancelled and inscead the chariry developed an online presence EO reach oui to families. We were so impressed by their work rhat we awarded a grdnt of £800.000 to enable the charity w further develop a virtual outreach progrnmme which will exist alongside physical camps and which will provide ongoing support to children and rheir families. Immediately prior tts March 2020 we had a8reed to fijnd 100% of the Disneyland Paris wishes granted by Make A WÉsh UK to seriously ill children li￿ng in the UK_ This 3mb¢uous four-yalr plan vtas derailed by COVID but in order to support the Iharicy and to ensure thac wishe5 could sull be granted. we ￿lOWed Make A Wish Eo repurp05e our first-year grirlt of 1800,0(KJ. This repurposed gr2nt enxblÈd the to fu￿11 360 non-Disney wishes to bring happiness to children desptte the pandemic. Page 4 The Kentown Wizard Foundation Report of the Trustees For the year ended 31 March 2021 Towards rhe end of the year. Make A Wish came to us with 2 proposal to fvnd a unique project. With no prospect of being able to Send children to Disneyland Paris in the near fuujre. the proposal was to transform a hotel in Hampshire into an Enchanied Manor to provide a magical Disney experience for 150 families whose Disneyland Pari5 wishe5 were on hold. This event took place in Sepcember 2021 and was a huge success. We were proud to provide a grant of £446,000 to make it wssible. Dreams COMÈ True have impressed us during 2020. Therr Hidden Communities project {funded by our foundation) was brought to a h21[ by the paridemic but through decermination and innovation they nevertheless succeeded in u51ng our fund5 to grant 72 dreams. The Hidden Communiues projecc aims co deliver dreams to children and young peoplÈ with serious lrfe-limiting conditions liwng in some of the m05t deprived and hard-to-reach communities in tho UK_ Vve were so impressed by their perforniance that we made an addittonal grant of 1200.(MXJ co accelerate their progress out of the pandemic. Our foundation does not accept unsolicited applicacions for gr2nts and WÈ spend a great deal of time seeking out new potential partners. Before making grants to new charities we want to be confident thai Iheir values are alignÈd with ours and thai they will use our funds wisely. This year we made our first grant of £250.000 to Whizz Kidz, a tharity which provides specialist mobility equipment to disabled children. Our grant will providÈ sueh equipment co an estimated 40 children limng north of Birmingham. Other grants we made during the year 311 cenrred on support during the pandemic: I 100,000 to Rainbow Trust to a551St with the provision of frondine serwces 116,000 to Candlelighters to fund the ￿￿rIeS irf frondinÈ stsff 115.000 to Stick n Step to assist with rÈsuming services in September 2020 £6.Ix)O to Blackpool Tiggers towards increased costs during the pandemic 15.IX)O to Play Inclusion Project towards increased costs £5,000 to Unique Kidz and Co tovRrds the increased costs of frontline seNce delivery £4,091 to Brian House to sp)tksor a virtual evenr In addition to the new grants avrdrded in the year we contynued to work closely with all the ch2riries with whom we haye multi year funding arrangements. Our ambitious plans in Malawi. underraken Tn partnership with OperatÈon Smile and Feet First Worldwide. were temporarily halred by the pandemic but borh these Ih2ritiÈs have continued to use our funds wisely to keep children healthy and well-nourished while they vn¥t for surgical procedures to resume and also to build for the future through education and rraining programmes. Prior to thÈ onset of COVID-19, our three-year granc to Children's Advents&re Farm was enabling the charity to incre3se capactry and provide essenti2J respite tts more children with 5eriou5 Illne55e5 and di5abilitie5. This progress was hindered by COVID.19. however the charity tontinued to rnake progre55 Wth delivering services and we were impressed with how charity openiions were adapted in light of COVID-19 re5trictioris. We are fortunate to have significant reserves. At the yearond our invesunenc portfolio stood a£ £83m. The Trustees itigate financi21 risk by engaging professional fund managers to manage our invesrmehrs on a distreuonary basis and at che dale of this reporr we remain in a 5crong position. The Trustees confirn) that they hzve complied wth the requirement in section 17 of the Charities Art 2011 to havo due regard to public benefit in decermining the activities underraken by the charity. Plans for future pÈrtod5 The Trustees intend to continue to activety seek oui chariue5 with whom they wish w collaborate and where possible ro fomi long term relauonships with Ihose chirities. Page 5 The Kentown Wizard Foundation Report of the Trustees For the year ended 31 March 2021 Financiaf reviÈw During Ihe period under review the chartw recerved income totalling £904.165 12020.. £1,142,766). This income comprised dividends and incerest in respect of the invesunent portfolio. Expenditure on charitable activttyes amounted to £1021.614 (2020-. £1.301.8031 in addition to expenditure on rdising funds of £337,65412020.. 1289,9341- The investment portfolio performed well during the year. Net gains on investhents 2motsntÈd to £18,576.765. This represents a gain of 28% on the value of investments held at the beginning of the year. We reCO￿lse that this last year has been 3 good one for ￿0bal stock market recurn5. Reserves Policy Our investment policy aims to rnaintain. over the long term. the real Ydlue of the 155_8m endowed by our Founder in 2015. As a minimum. the Trv5tee5 aim to make grants which equal our income for e&th year. However, the overriding aim of our foundation is to give grants where they are m05t neeijed and if we identify 2n 2re3 of great need where we can make a real difference. we will ercde our reserves in order to provide supporL At the year end the tharity was holding free reserves of £81 m. The Trustees acknowledge that year-end reserves were high compared co our policy. However. this is in large part due to the investment portfolio gains of I18.57&765 in this 12St year and the Trustees consider that such gains may prove to be temporary. Also, we have some ambitious projects which wll erode reserves. Investment Policy The Trustees have appointed Barclays Bank plc and Castlefield InvestmÈnt P3fLners LLP to manage EhÈ inve5tmen¢ p0￿f0110 on a discretionary basis. The inve5(menc objective is to nuintain the real Yalue of the investments over the long term. Fundrais5ng standards information The foundauon does not engage in fundrdising aCti￿tieS. Trustees of the charity The Trustees who have served during the year and since the y￿r end are as lisied on page 3. StructureD governance and management The Kentowll Wizard Foundauon was e5tabli5hed as a Charitsble InCorpora￿d Organisation on 23 September 2015 2nd is governed by its Constitution_ If the CIO is wourTrd up. the members of the CIO have no liabilicy to contribute to i as5e¢5 arld no personat respon5ibili(y for settling its debts and liabilives. The charity's Constitution provÈde5 for a minimum of 3 Tnfrstees. There is no upper limit Trustee5 are 3ppointed by resolution and are not required to retire by rotttion. In selecting individua15, the Trusiees give due regard to the Skills, ld cash 4ulv•lents at l April 2020 3.475.238 2.511.104 Cash and cash equivalents at 3 1 M•rote 6) SuW)n costs (note 5) Goveinonce costs (note 5) 852.150 108.717 7.740 852.150 441,913 7,740 133.196 968.607 333.196 1.301,803 Alloeation of governance and support costs Basis of Support Governance costs costs Total costs allocation 2021 Rent Support Support Support Support Support Suppor( Support Support Support Governance 6,022 351 184 6,022 351 Telephone Printing. ststionery & postage Legal and professitsnal Wtge5 and ￿larieS InsurnncÈ 184 78 78 48,264 1,398 55 48.264 1.398 55 Travel expenses Computer expenses PR 2nd social tlledia 695 695 14.118 3,468 (4.254) 144 Audit 3,468 LossÈ5 on Sale of investment property Sundry expenses Support Supp¢Jrt 14,2541 144 67.055 3.468 70,523 Page 19 The Kentown Wizard Foundation Notes to the Financial Statements For the year ended 31 March 1021 Allocatton of govÈrnznce and support tosts (continued) Busis of ollo¢otion Governance rott71 costs Support corts ¢osts 2020 Rent StJPPOrt Support SuP￿rt Support sUp￿}n Support Support Support SuPKxJJt Grtvemonce 6.108 544 6.108 544 Tele￿One Printoig. stut￿nery & Posiage Legol ond ProfessKJnol Woges ond subries Insuronce 679 679 26,395 54.118 1.368 5.047 848 26.395 54.118 1.368 5.047 848 T￿￿e1 expenses Computer expe￿e$ PR and social medMI 13.571 13.571 7.740 333.196 39 Audit 7.740 Jsses on SO￿ of investhiert ProPty DePrecKrtK)n SuWMJrt su￿ort 333.196 39 441.9 13 7.740 449.653 Analysis of grants 2021 2020 BaFance payable brought foNnrd 3.529.686 4,788,569 New grants awarded in the ye2r 1.951.091 852.150 Net grdnt cost in the year 1.951,091 852,150 5,480.777 5.640.719 Grants paid in the year (2,111.0331 Balance payable carried forward 4,349,585 3.529,086 During the year grants were made to 11 (2020: 31 charitable org2nisations as de￿Ied on pa8e 21. Page 20 The Kentown Wizard Foundation Notes to the Financial Ststements For the year ended 31 March 2021 Analysis of grdnts (continued) 2021 Blackpool Tiggers Brian House Children's Hospice CandlÈlightÈrs Dreams Come True 6,000 4,091 16,000 200.000 550,000 800,000 5,000 100,000 15,000 250,000 5,000 Make-A.Wish Foundaoon UK Over the Wall Play lftclusion Pr¢iett Rainbow Trust Childr￿'S Chariry Stick n STrp Whizz-Kidz Unique Kidz and Co 1.951,091 2020 Make A Wtsh 800,000 29,517 22,633 Br￿n House KKIS Cancer Charty 852, 150 Net income for the period Net income lor the period is stated after chargingl(cred'ion 2021 2L120 Depreciation of tsngible fixed assers (Profit) I loss on s21e of t2ngible fixed assets (Profit) I Ios5 on fair value rnovemenc of investments Net gains on foreign exchange 39 (4,254) (18,576.765) {45) 333.196 101.902 (2,997) Page21 The Kentown Wizard Foundation Notes to the Financi21 StatèmÈnts For the year ended 31 March 2021 Auditorfs remunerntion The 2uditor's remuneration constitwed 2n audit fÈe of 14.200 12020.. £4.5601 for the year to 31 March 2021 (inclusive of VAT). 2 fee in respeu of the stacutory 3ccounrs prep of £nil12020= £1,920) for the year to 31 M2rch 2021 linclusive of VAT) 3rkd fees in respecc of raxauon seNces provrded of 128812020.. £niQ for the year to 31 March 2021 linclusivÈ of VAT)- Trustees and key management personnel remuneratson and expen5e5 The Trustees neither received nor waived any remunerafion during the period. The total amount of employee bÈnefits received by key mawb2gement personnel is £52.41012020.. £45.4851. The charity considers its key management personnel comprisÈ the Chiel Executive Officer. The TrustÈÈs did not haye any expenses reimbursed during the period. Staff costs and employee benefits The iverage monthty number of employees during thÈ pÈriod wa5 as follows: 2021 2020 Number Number Avernge monthly number of employee5 The total staff costs and employee benefits were as follows: 2021 2020 Wages and salines Social securi 54.637 (7,859) 1,486 48.343 4.324 1,451 Pension contributions 48.264 54.118 No employees received total etnployee benefits {excluding employer pension costs) of more than £60,000. Page 21 The Kentovrfn Wizard Foundation Notes to the Financial Statements For the year ended 31 March 2021 Tangible fixÈd assÈts Fixtures & fittings Total Cost Brought forwort pordolio 57.416.591 3,618.454 562.900 84.682 61.035.045 19.985.453 2.005.261 44.771.912 19.240.912 1,006.858 19.422.553 1.920.579 78.759.723 4.266.036 83,025,759 65,019,682 All investments are carried at their market valuo Invesunenc in equrties and fixed interest sÈ¢uritie5 are all craded in quoted public markets. pritn2rily the London Stock Exchange. Holdings in cotnmon investmeni funds, unit trusts and open ended inve5trnent companies are at the bid price. Assei sales and purchases are Fecognised 2t the d2te of trade at cost (that is their EransaCt[on￿ value). Page 24 The Kentown Wizard Foundation Notes to the Financial Statements For the year ended 31 March 2021 Debtors 2021 2020 Prepayments and accrued income 91,465 77,527 91.465 77,527 Creditors: amounts falling due within one year 2021 2020 Accruals for grants pay2ble Accruals 2nd deferred tnci)mÈ 1,969,406 82,149 1.473.571 102.580 2,051.655 1.576.151 Creditors: amounts falling due after more than one year 2021 2020 Accruals for grant5 payable 2.380.179 2.056. 115 2.380. 179 2,056. 115 Page 15 The Kentown Wizard Foundation Notes to the Financial Statements For the year ended 31 March 2021 Fund Teconciltation Year ended 3 I March 2021 Funds Funds carried brought forward ot I April 2020 Gains I forw2rd at {losses) and transfers 31 March Income Expenditure 2021 Unrestricted income funds General unre5rrric 174.159 904.165 (2,025.8681 947,544 Total unrestricted intome 174.159 904.165 {2.02S,868) 947,544 funds Unrestricted capital funds Investrnents 63. 759.164 {333,4001 17.629.266 81.055.030 Total unrestricted c2Pitai funds 63. 759. 164 {333.400) 17.629.266 81,055,030 Total funds 63.933.323 904.165 (1359.268) 18.576,810 81,055,030 Unrestrieted income funds Unresiricted funds comprise income generated by the inve5tsnents held, the On￿ stipulation being that it is spent in line with the objects of the charity. The inco¥ne generaced by invescments is primarily spenc on grants awarded. However li also covers the general administration and running costs of the charity. Unrestricted caprtal funds Assets were ￿fLed to the charity in the accoununE period to 31 March 2017 by its Founder. These were an investment property with a v21ue of £2.000,000, 2n investment porrfolio with a v21ue of 141,804.61 l and cash 2t bank of I11.035,191_ Thè Trusrees are pem)icced to use the orig￿nal capital to fund grants awarded. During the previous year the investment property was sold. Page 26 The Kentown Wizard Foundation Notes to the Financial Ststements For the year ended 31 March 2021 Fund recon