**REGISTERED CHARITY NUMBER: 1167035**
**REPORT OF THE TRUSTEES AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 FOR WHITE ROSE**
**WHITE ROSE CONTENTS PAGE**
||Page|
|---|---|
|Reference and Administrative Details|1|
|Report of the Trustees|2 - 3|
|Report of the Independent Auditors|4 - 5|
|Consolidated Statement of Financial Activities|6|
|Consolidated and Charitable Company Balance Sheet|7|
|Consolidated Cash Flow Statement|8|
|Notes to the Financial Statements|9 - 18|
**WHITE ROSE**
**REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2023**
**Charity name** White Rose **Constitution** A Charitable Incorporated Organisation **Registered Charity number** 1167035 **Registered office** 34-36 Goose Gate Nottingham Nottinghamshire NG1 1FF
**Trustees** Dr J M Smith S A Newell S J Robinson M J Saunders (resigned 3 January 2025) M Chia (resigned 17 August 2023) **Auditors** Azets Audit Services 2[nd] Floor, Regis House 45 King William Street London EC4R 9AN
1
**WHITE ROSE**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023**
The trustees present their report along with the financial statements of the charity for the year ended 31 December 2023. The financial statements have been prepared based on the accounting policies set out on pages 10 to 12 to the financial statements and comply with the charity's constitution, the Charities Act 2011 and the 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 issued in October 2019.
## **Structure, Governance and Management**
White Rose is a Charitable Incorporated Organisation registered with the Charity Commission on 11 May 2016. The charity's registered number is 1167035.The charity is governed by a constitution, which was adopted on 11 May 2016.
The constitution states that there must be at least three trustees but that there is no maximum number.
The induction process for new trustees comprises being given a copy of the current version of the charity's constitution together with a copy of the most recent annual report and financial statements.
The trustees are responsible for the management of all risks faced by the charity. These risks are identified and established systems and procedures are put in place to manage these risks. A risk register is kept and discussed at every meeting.
## **Objectives and Activities**
The charity’s objectives are defined in its constitution as:- to work towards the prediction, prevention and ultimately the elimination of genocide for the benefit of humanity primarily through funding of research, education and the dissemination of information and advice. The charity meets its objectives through social enterprises and fundraising. We use investment funds to develop activities that align with our mission and generate a net return.
This includes through trading subsidiaries including White Rose preloved fashion shops, operated by White Rose Trading CIC (“WRT”), and Champion Humanity Enterprise Ltd (“CHE”), providing visitor services at the Kigali Genocide Memorial, Rwanda. The memorial is operated by Aegis Trust, a charity that has close connections with White Rose. Around 100,000 visitors come to the memorial each year, around 80% are international.
The social enterprises are being extended into supporting peacebuilding efforts in fragile communities at risk of organised violence, with a pilot being planned in Central African Republic. The main trading focus however remains in the U.K.
## **Achievements and Performance**
During the year, WRT collected circa 330 tonnes of recycled clothing, similar to the prior year, helping to reduce landfill waste and CO2 emissions. White Rose made an important contribution to generating employment and vocational opportunities. Volunteering opportunities increased, with just over 200 volunteers registered at the end of the year.
Profitability however has been challenged. The full impact of the cost-of-living crisis in the UK started to emerge from late 2022, gathering pace throughout the year. There were significant increases to interest rates to bring down inflation. This resulted in substantial disruption to and decline in retail markets in the UK, especially amongst students, a core demographic for White Rose. The rising cost of food meant there was less money available for other purchases, such as clothing. This led to a significant reduction in customer activity. Also, White Rose costs increased substantially, with increases in the National Living Wage and major increases in energy costs.
Despite these adverse market conditions, White Rose was able to generate a positive and increased EBITDA in 2023 through excellent cost control and opening of new shops in attractive locations, with four new shops opened in the year, and two opened in late 2022, making a total of 18 shops by 2024. In contrast, White Rose had five shops in 2018 and seven just prior to Covid, underlining the investment made to establish a significant and competitive social enterprise.
The combined effect of the market changes substantially reduced cash generation, squeezed profit margins and depleted reserves during 2024. Following the effects from the 2024 Autumn Budget, prior and after, which has affected market demand it became clear that without either a change of trajectory in the wider economy or an internal change, White Rose Recycled Fashion will face a crisis. The Government has indicated a commitment to growth, but considerable uncertainty remains over the timing and scale of improvement in the economy which will continue to impact the margins and cash generation of WRT.
A substantial reduction in overheads was implemented as well as the downsizing of the distribution centre. An excessive dilapidations claim from the distribution centre landlord caused considerable business disruption that further impacted November and December sales, though the long term change in distribution centre will contribute annual savings of £50,000.
The decision was taken to streamline the management structure of WRT to further adjust the cost-base to expected market demand. A planned closure of lower performing stores was also initiated, with three lower performing shops closing in January 2025. At the same time, the sales team drew up a renewed customer-first sales plan which has been cascaded to all stores.
2
**WHITE ROSE**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023**
## **Achievements and Performance (continued)**
Alongside an ambitious sales plan for White Rose Recycled Fashion (WRT), the Directors have considered the external economic uncertainties in making prudent forecast for 2025. These projections indicate a return to cash generation, notwithstanding these conditions. This is confirmed by an encouraging uptick of sales at the end of January 2025. Nonetheless the ongoing impact of the cost-of-living crisis, strong cost inflation, especially wages, and market changes to the recycled clothing sector will continue to challenge the performance of White Rose in 2025
The current strategy is to maximise cash generation from its existing retail activities without further growth in the retail footprint. Therefore no new shops are planned in 2025, in order to focus on driving sales in highest performing stores and to emphasize customer first approach.
As noted in the prior year report, the Board decided in early 2023 to discontinue its interests in Rwanda to focus solely on the UK. White Rose has had an interest in visitor services at the Kigali Genocide Memorial since White Rose was formed in 2016. Key achievements include growing the net income from around USD100,000 per year to over USD500,000 per year and supporting the staff and activities during Covid. The majority of the income-generating activities were transferred back to the Memorial (under the management of Aegis Trust) in early 2023, which has made a significant positive impact to the self-sustainability of the Memorial and its genocide prevention education activities.
## **Financial Review**
The charity had net deficit for the year of £101,697 (2022 deficit of £27,036). The total funds carried forward at 31st December 2023 amounted to a deficit of £179,575 (2022 – deficit of £77,878), represented by unrestricted funds of a deficit of £261,066 and restricted funds of £81,491. The deficit was principally due to the effects of the cost-of-living crisis in the UK and its impact upon retail activities.
## **Reserves Policy**
Reserves will fluctuate from year to year, as they are built up and then applied as is appropriate. The trustees consider from time to time the appropriate minimum level of reserves that should be retained. The long term aim is the development of reserves in White Rose as a key component of creating social impact that can be sustained.
## **Plans for the Future**
Plans are to develop the charitable income by continuing to develop the White Rose retail activity through measured growth, in order to donate and support peacebuilding in fragile communities. White Rose is known among a young demographic for its quality recycled product, which will become a greater focus in 2025. Improving the quality and quantity of upcycled product in White Rose stores will reduce landfill of ‘rag’ product, appeal to our customer base and provide further volunteering and employment opportunities in the communities that White Rose serves in the UK.
On behalf of the trustees:
.................................. Dr J M Smith
Date: ..................................
3
## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WHITE ROSE**
## **Opinion**
We have audited the financial statements of White Rose (the ‘parent charitable incorporated organisation’) and its subsidiaries (the ‘Group’) for the year ended 31 December 2023 which comprise the Consolidated Statement of Financial Activities, the Group and Charity Balance Sheet, the 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:
- give a true and fair view of the state of the charitable group and parent charitable incorporated organisation’s affairs as at 31 December 2023, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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 charity 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.
## **Material uncertainty related to going concern**
We draw attention to note 2(c) in the financial statements concerning the trustees’ assessment of going concern.
White Rose CIO’s subsidiary company, White Rose Trading CIC, has been significantly impacted by the cost-of-living crisis and low consumer confidence in 2023 and 2024, creating a slowdown in retail sales. The Autumn budget further affected market demand. The Group and Trustees have initiated a recovery plan late in 2024 and early 2025 to reduce the cost base to market demand and revise the sales strategy.
In the year to 31 December 2023 the Group incurred a loss of £101,697 and, as of that date, the Group’s current liabilities exceeded its total assets by £179,575. As stated in note 2(c), these events and market conditions indicate that a material uncertainty exists that may cast doubt on the Group’s ability to continue as a going concern.
The financial statements do not include the adjustments that would result if the Group were unable to continue as a going concern. Our opinion is not modified in this respect.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Key audit matters**
Except for the matter described in the Material uncertainty related to going concern section, we have determined that there are no other key audit matters to be communicated in our report.
## **Other information**
The other information comprises the information included in the Trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
- the charity has not kept adequate accounting records; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
4
## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WHITE ROSE**
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement, the trustees 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 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 charity’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 charity 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 auditor under section 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
Our objectives are to obtain reasonable assurance about whether the 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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
- Reviewing minutes of meetings of those charged with governance;
- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
5
## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WHITE ROSE**
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **John Howard (Senior Statutory Auditor)**
For and on behalf of Azets Audit Services Statutory Auditor, Chartered Accountants 2nd Floor, Regis House 45 King William Street London EC4R 9AN
Date 4 April 2025
6
## **WHITE ROSE**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023**
|**Note**
**Unrestricted**
**Funds**
**£**
**INCOME**
Donations, grants and legacies
3
24,143
Other trading activities
4
2,821,655
Interest receivable
5
42,000
Other income
800
_____________
**Total income**
2,888,598
_____________
**EXPENDITURE**
Raising funds
6
2,888,758
Charitable activities
7
85,349
Interest payable
8
39,523
_____________
**Total expenditure**
3,013,630
_____________
**NET INCOME**
(125,032)
Transfers between funds
21
-
_____________
**NET MOVEMENT IN FUNDS**
(125,032)
Total funds brought forward
(136,034)
_____________
**Total funds carried forward**
(261,066)|**Restricted**
**Funds**
**Total Funds**
**2023**
**Total Funds**
**2022**
**£**
**£**
**£**
37,403
61,546
113,009
-
2,821,655
2,776,029
-
42,000
35,400
-
800
-
_____________
_____________
_____________
37,403
2,926,001
2,924,438
_____________
_____________
_____________
-
2,888,758
2,867,753
14,068
99,417
62,711
-
39,523
21,010
_____________
_____________
_____________
14,068
3,027,698
2,951,474
_____________
_____________
_____________
23,335
(101,697)
(27,036)
-
-
-
_____________
_____________
_____________
23,335
(101,697)
(27,036)
58,156
(77,878)
(50,842)
_____________
_____________
_____________
81,491
(179,575)
(77,878)|
|---|---|
All of the results are from continuing activities and include all gains and losses recognised in this year and last.
The notes on pages 9 to 18 form part of these financial statements.
7
## **WHITE ROSE**
## **CONSOLIDATED AND CHARITY BALANCE SHEET AT 31 DECEMBER 2023**
|**Note**
**FIXED ASSETS**
Intangible assets
10
Tangible assets
11
Fixed asset investments
12
**CURRENT ASSETS**
Stocks
13
Debtors
14
Cash at bank and in hand
**CREDITORS**
Amounts falling due within one year
15
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**CREDITORS**
Amounts falling due after more than one year
16
**NET ASSETS**
**FUNDS**
Restricted funds
20
Unrestricted funds
**TOTAL FUNDS**|**Consolidated**
**2023**
**2022**
**£**
**£**
23,310
33,300
558,364
508,082
7,310
7,310
_____________
_____________
92,989
-
193,248
153,056
104,497
77,310
_____________
_____________
(552,361)
(325,661)
_____________
_____________
(161,627)
(95,295)
_____________
_____________
427,357
453,397
_____________
_____________
(606,932)
(531,275)
_____________
_____________
(179,575)
(77,878)
_____________
_____________
81,491
58,156
(261,066)
(136,034)
_____________
_____________
(179,575)
(77,878)|**Charity**
**2023**
**2022**
**£**
**£**
-
-
1,024
-
7,330
7,330
_____________
_____________
-
-
926,489
838,878
29,246
57,412
_____________
_____________
(31,141)
(30,600)
_____________
_____________
924,594
865,690
_____________
_____________
932,948
873,020
_____________
_____________
(565,987)
(485,865)
_____________
_____________
366,961
387,155
_____________
_____________
81,491
58,156
285,470
328,999
_____________
_____________
366,961
387,155|**Charity**
**2023**
**2022**
**£**
**£**
-
-
1,024
-
7,330
7,330
_____________
_____________
-
-
926,489
838,878
29,246
57,412
_____________
_____________
(31,141)
(30,600)
_____________
_____________
924,594
865,690
_____________
_____________
932,948
873,020
_____________
_____________
(565,987)
(485,865)
_____________
_____________
366,961
387,155
_____________
_____________
81,491
58,156
285,470
328,999
_____________
_____________
366,961
387,155|
|---|---|---|---|
||||_____________
58,156
328,999
_____________
387,155|
The financial statements were approved by the Board of Trustees on and were signed on its behalf by:
.................................. Dr J M Smith
The notes on pages 9 to 18 form part of these financial statements.
8
**WHITE ROSE**
## **CONSOLIDATED AND CHARITY CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023**
|**Note**
**Cash used in operating activities**
21
**Cash flows from investing activities**
Interest received
Purchase of tangible fixed assets
Purchase of fixed asset investments
**Cash (used in) investing activities**
**Cash flows from financing activities**
Interest paid
**Cash (used in) financing activities**
**Change in cash and cash equivalents in the**
**reporting period**
Cash and cash equivalents at the beginning of the
reporting period
**Cash and cash equivalents at the end of the**
**reporting period**|**Consolidated**
**2023**
**2022**
**£**
**£**
_____________
_____________
193,139
80,883
_____________
_____________
42,000
35,400
(168,429)
(138,830)
-
-
_____________
_____________
(126,429)
(103,430)
_____________
_____________
(39,523)
(21,010)
_____________
_____________
(39,523)
(21,010)
_____________
_____________
27,187
(43,557)
77,310
120,867
_____________
_____________
**104,497**
**77,310**
|**Consolidated**
**2023**
**2022**
**£**
**£**
_____________
_____________
193,139
80,883
_____________
_____________
42,000
35,400
(168,429)
(138,830)
-
-
_____________
_____________
(126,429)
(103,430)
_____________
_____________
(39,523)
(21,010)
_____________
_____________
(39,523)
(21,010)
_____________
_____________
27,187
(43,557)
77,310
120,867
_____________
_____________
**104,497**
**77,310**
|
|---|---|---|
|||_____________
35,400
(138,830)
-
_____________
(103,430)|
|||_____________
(21,010)
_____________
(21,010)|
|||_____________
(43,557)
120,867
_____________
**77,310**
|
The notes on pages 9 to 18 form part of these financial statements.
9
**WHITE ROSE**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **1 GENERAL INFORMATION**
White Rose is a registered charitable incorporated organisation no. 1167035. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are set out on page 2.
## **2 ACCOUNTING POLICIES**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **(a) Basis of accounting**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (FRS 102) and the Charities Act 2011.
The financial statements are 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.
The significant accounting policies applied in the preparation of these financial statements are set out below.
These policies have been consistently applied to all years presented unless otherwise stated.
## **(b) Basis of consolidation**
These financial statements consolidate the results of the Charity and its wholly owned subsidiary, White Rose Trading CIC (the ‘Charitable Company’), on a line by line basis in accordance with FRS 102 – section 9 and the SORP (FRS 102) – section 24.
## **(c) Going concern**
After reviewing the charity’s forecasts and projections, the trustees have concluded that White Rose is a going concern over the next 12 months. This is despite the low performance of its subsidiary, White Rose Trading CIC which has been significantly impacted by the cost-of-living crisis and low consumer confidence in 2023 and 2024, creating a slowdown in retail sales. The Autumn budget further affected market demand.
White Rose Trading CIC initiated a recovery plan late in 2024 and early 2025 to reduce the cost base to market demand and revise the sales strategy. Although uncertainties remain regarding the market, the plan is yielding improvements which demonstrated an encouraging uptick of sales at the end of January 2025.
The going concern assessment is based on the forecasts and projections of the charity and its trading subsidiaries, White Rose Trading CIC and Champion Humanity Enterprises as well as a cash reserve of £155,000 made available by the directors to provide White Rose Trading CIC with extra liquidity. Without this and the support of suppliers, especially landlords, staff and volunteers, there would be material uncertainty of going concern.
The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements which have been prepared on a going concern basis. The forecast income and expenditure will be sufficient with the level of funds for the charity to be able to continue as a going concern.
## **(d) Funds**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements
10
**WHITE ROSE**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **2 ACCOUNTING POLICIES**
## **(e) Income**
Income is recognised in the Statement of Financial Activities when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that income be received and the amount can be measured reliably.
- Voluntary income is received by way of donations, gifts and other fundraising activities and is included in the Statement of Financial Activities when receivable.
- Investment income is included when receivable.
- Income from grants where entitlement is not conditional on the delivery of a specific performance by the charity are recognised when the charity becomes unconditionally entitled to the grant. Grants relating to performance and specific deliverables are accounted for as the Charity earns the right to consideration by its performance.
## **(f) Expenditure**
All expenditure is accounted for on an accruals basis and have been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:
- Charitable activities comprise those costs incurred by the Charity in the delivery of its activities and its services for beneficiaries. It includes both costs that can be allocated to such activities and those costs of an indirect nature necessary to support them.
- Other costs include costs associated with meeting the constitutional and statutory requirements of the charity and include the independent audit fees and costs linked to the strategic management of the charity
- All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource.
## **(g) Allocation of support costs and governance costs**
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the Trusts artistic programmes and activities. These costs have been allocated within expenditure on charitable activities.
## **(h) Operating lease**
The Charitable Company classifies the rental lease as an operating lease; the title to the building remains with the lessor. Rental charges are charged on a straight line basis over the term of the lease.
## **(i) Intangible fixed assets - goodwill**
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rate on the basis of the carrying amount of each asset in the unit.
11
**WHITE ROSE**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **2 ACCOUNTING POLICIES**
## **(j) Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment 5% on cost Fixtures and fittings 33% on cost and 15% on cost Motor vehicles 25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is credited or charged to profit or loss.
## **(k) Fixed asset investments**
Fixed asset investments are measured at cost.
## **(l) Programme related investments**
Programme related investments are measured at fair value.
## **(m) Stocks**
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Stock relates to vested costs in clothing stock held for online sales, which incurs significant processing costs at the point of listing.
## **(n) Debtors**
Other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid. Accrued income is measured at the amount due to be received.
## **(o) Cash at bank and in hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar accounts.
## **(p) Creditors**
Creditors are recognised where there is a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.
Other creditors and accruals are recognised at their settlement amount due.
## **(q) Loans and borrowings**
Loans and borrowings are initially recognised at the transaction price. Subsequently, they are measured at amortised cost.
## **(r) Financial instruments**
The Charitable Company 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.
12
**WHITE ROSE**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **2 ACCOUNTING POLICIES**
## **(s) Taxation**
White Rose is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part II Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **(t) Foreign exchange**
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in the statement of financial activities.
## **(u) Judgements and key sources of estimation uncertainty**
Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The board of trustees do not believe that any accounting judgements or estimates have been applied to these financial statements that have a significant risk of causing a material judgement to the carrying amount of assets and liabilities within the next financial year.
## **3 DONATIONS, GRANTS AND LEGACIES**
||**Unrestricted**|**Restricted**|**Total Funds**|**Total Funds**|
|---|---|---|---|---|
||**Funds**|**Funds**|**2023**|**2022**|
||**£**|**£**|**£**|**£**|
|Corporate sponsors|20,097|-|20,097|92|
|Individual donations|4,046|37,403|41,449|112,917|
||_____________|_____________|_____________|_____________|
||24,143
_____________|37,403
_____________|61,546
_____________|113,009
_____________|
In 2022, £77,413 of income from donations, grants and legacies were allocated to the restricted fund, with the remaining £35,596 allocated to the unrestricted fund.
## **4**
## **OTHER TRADING ACTIVITIES**
|**OTHER TRADING ACTIVITIES**|||||
|---|---|---|---|---|
||**Unrestricted**|**Restricted**|**Total Funds**|**Total Funds**|
||**Funds**|**Funds**|**2023**|**2022**|
||**£**|**£**|**£**|**£**|
|Income from trading activities|2,821,655
_____________|-
_____________|2,821,655
_____________|2,776,029
_____________|
In 2022, all £2,776,029 of income from other trading activities was allocated to the unrestricted fund.
## **5 INVESTMENT INCOME**
|**INVESTMENT INCOME**|||||
|---|---|---|---|---|
||**Unrestricted**|**Restricted**|**Total Funds**|**Total Funds**|
||**Funds**|**Funds**|**2023**|**2022**|
||**£**|**£**|**£**|**£**|
|Bank interest|42,000
_____________|-
_____________|42,000
_____________|35,400
_____________|
In 2022, all £35,400 of the investment income was allocated to the unrestricted fund.
## **6**
## **RAISING FUNDS**
||**Unrestricted**|**Restricted**|**Total Funds**|**Total Funds**|
|---|---|---|---|---|
||**Funds**|**Funds**|**2023**|**2022**|
||**£**|**£**|**£**|**£**|
|Expenditure on trading activities|2,888,758
_____________|-
_____________|2,888,758
_____________|2,867,753
_____________|
In 2022, all £2,867,753 of expenditure on raising funds was allocated to the unrestricted fund.
13
## **WHITE ROSE**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **7 CHARITABLE ACTIVITIES**
|**CHARITABLE ACTIVITIES**|||||
|---|---|---|---|---|
||**Unrestricted**|**Restricted**|**Total Funds**|**Total Funds**|
||**Funds**|**Funds**|**2023**|**2022**|
||**£**|**£**|**£**|**£**|
|Consultancy fees|20,000|-|20,000|315|
|Accountancy fees|26,640|-|26,640|26,700|
|Travel and accommodation|30,630|4,778|35,408|10,903|
|Advertising|1,155|-|1,155|13,876|
|Events|-|-|-|606|
|Computer equipment|-|-|-|80|
|Computer running costs|2,896|-|2,896|2,321|
|Telephone|283|-|283|842|
|Carriage and postage|-|-|-|-|
|Bank charges|1,052|-|1,052|1,114|
|Sundry expenses|565|-|565|3,880|
|Depreciation|128|-|128|-|
|Foreign exchange|-|-|-|(739)|
|Donations|2,000|9,290|11,290|2,813|
||_____________|_____________|_____________|_____________|
||**85,349**
_____________|**14,068**
_____________|**99,417**
_____________|**62,711**
_____________|
In 2022, £19,257 of expenditure on charitable activities was allocated to the restricted fund, with the remaining £43,454 allocated to the unrestricted fund.
## **7.1 GOVERNANCE COSTS**
|Auditor’s remuneration
-
Audit fee
-
Audit of subsidiary
-
Non-audit fee
-
Over-under accrued in previous year|**2023**
**£**
10,200
14,400
2,100
(60)
|**2022**
**£**
9,600
14,400
2,700
-
|
|---|---|---|
## **7.2 ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL**
|Wages and salaries
Social security costs
Pension
The average number of employees (full time equivalent) during the year was:|**Consolidated**
**2023**
**£**
**2022**
**£**
1,384,280
1,448,912
111,048
107,384
26,466
20,714
_____________
_____________
**1,521,794**
**1,577,010**
_____________
_____________
79
89
|**Consolidated**
**2023**
**£**
**2022**
**£**
1,384,280
1,448,912
111,048
107,384
26,466
20,714
_____________
_____________
**1,521,794**
**1,577,010**
_____________
_____________
79
89
|
|---|---|---|
|||_____________
89
|
Employee time has been allocated either; i) To direct costs on a percentage of the time spent by an employee on an activity ii) To support costs allocated on a percentage basis over all the costs.
During the year, no employee received total employee benefits (excluding employer’s pension costs) between £60,000 - £70,000 (2022: none).
The key management personnel of White Rose Trading CIC comprise the Chief Executive Officer and Business Director. The total employee benefits of the key management personnel were £61,368 (2022: £93,455).
14
**WHITE ROSE**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **8 INTEREST PAYABLE**
|**INTEREST PAYABLE**|||||
|---|---|---|---|---|
||**Unrestricted**|**Restricted**|**Total Funds**|**Total Funds**|
||**Funds**|**Funds**|**2023**|**2022**|
||**£**|**£**|**£**|**£**|
|Interest|39,523
_____________|-
_____________|39,523
_____________|21,010
_____________|
In 2022, all £21,010 of the interest payable was allocated to the unrestricted fund.
## **9 COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES (2022)**
|||**Unrestricted**|**Restricted**|**Total Funds**|
|---|---|---|---|---|
|||**Funds**|**Funds**|**2022**|
|||**£**|**£**|**£**|
||**INCOME**||||
||Donations, grants and legacies|35,596|77,413|113,009|
||Other trading activities|2,776,029|-|2,776,029|
||Interest receivable|35,400|-|35,400|
|||_____________|_____________|_____________|
||**Total income**|2,847,025|77,413|2,924,438|
|||_____________|_____________|_____________|
||**EXPENDITURE**||||
||Raising funds|2,867,753|-|2,867,753|
||Charitable activities|43,454|19,257|62,711|
||Interest payable|21,010|-|21,010|
|||_____________|_____________|_____________|
||**Total expenditure**|2,932,217|19,257|2,951,474|
|||_____________|_____________|_____________|
||**NET INCOME**|(85,192)|58,156|(27,036)|
||Transfers between funds|-|-|-|
|||_____________|_____________|_____________|
||**NET MOVEMENT IN FUNDS**|(85,192)|58,156|(27,036)|
||Total funds brought forward|(50,842)|-|(50,842)|
|||_____________|_____________|_____________|
||**Total funds carried forward**|(136,034)
_____________|58,156
_____________|(77,878)
_____________|
||||||
|**10**|**INTANGIBLE FIXED ASSETS**||||
||||**Consolidated**|**Charity**|
||||**Goodwill**|**Goodwill**|
||||**£**|**£**|
||**Cost**||||
||At 1 January 2023 and 31 December 2023||**99,900**|**-**|
||||_____________|_____________|
||**Amortisation and impairment**||||
||At 1 January 2023||**66,600**|**-**|
||Amortisation charged for the year||**9,990**|**-**|
||||_____________|_____________|
||At 31 December 2023||**76,590**|**-**|
||||_____________|_____________|
||**Carrying amount**||||
||At 31 December 2023||**23,310**
_____________|**-**
_____________|
||At 31 December 2022||**33,300**|**-**|
||||_____________|_____________|
15
## **WHITE ROSE**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **11 TANGIBLE FIXED ASSETS**
|**11**
**TANGIBLE FIXED ASSETS**|||
|---|---|---|
|**CONSOLIDATED**
**Plant and**
**equipment**
**£**
**Fixtures and**
**fittings**
**£**
**Cost**
At 1 January 2023
192,727
558,309
Additions
-
168,429
Disposals
(2,401)
-
_____________
_____________
At 31 December 2023
**190,326**
**726,738**
_____________
_____________
**Depreciation and impairment**
At 1 January 2023
31,742
213,782
Charge
11,915
103,662
Eliminated on disposal
(2,401)
-
_____________
_____________
At 31 December 2023
**41,256**
**317,444**
_____________
_____________
**Carrying amount**
At 31 December 2023
**149,070**
**409,294**
_____________
_____________
At 31 December 2022
160,985
344,527
_____________
_____________
**12.1**
**INVESTMENTS**
**Consolidated**
**2023**
**£**
**2022**
**£**
Investment in White Rose Trading CIC
-
-
Investment in Champion Humanity
Enterprises
7,310
7,310
_____________
_____________
**7,310**
**7,310**|**Motor**
**Vehicles**
**£**
35,205
-
-
_____________
**35,205**
_____________
32,635
2,570
-
_____________
**35,205**
_____________
**-**
_____________
2,570
_____________
**Charity**
**2023**
**£**
20
7,310
_____________
**7,330**|**Total £**
786,241
168,429
(2,401)
_____________
**952,269**
_____________
278,159
118,147
(2,401)
_____________
**393,905**
_____________
**558,364**|
|||_____________
508,082
_____________
**2022**
**£**
20
7,310
_____________
**7,330**|
White Rose Trading CIC is a private limited Company, registered number 09899636. The company was incorporated on the 2[nd] December 2015 and 100% of the £20 ordinary share capital is owned by White Rose. It has been consolidated on a line by line basis. During the year to 31 December 2023 White Rose Trading CIC made a loss of £56,536 (2022: loss of £106,124). The company had negative capital and reserves of £521,549 (2022: negative £465,013).
## **12.2 PROGRAMME RELATED INVESTMENTS**
|Investment in Champion Humanity
Enterprises|**Consolidated**
**2023**
**£**
**2022**
**£**
**7,310**
**7,310**
|**Charity**
**2023**
**£**
**7,310**
|**2022**
**£**
**7,310**
|
|---|---|---|---|
The programme related investment relates to Champion Humanity Enterprises and is valued as 100,000 at FRW 100 retranslated to GBP at the year-end spot rate.
Champion Humanity Enterprises is a private limited Company registered in Rwanda. The company was incorporated on 1[st] July 2019 and 100% of the ordinary share capital is owned by White Rose. The share capital was acquired by White Rose on 30 December 2020 and has not been consolidated in the year to 31[st] December 2023.
## **13 STOCKS**
|Finished goods|**Consolidated**
**2023**
**£**
**2022**
**£**
**92,989**
**-**|**Charity**
**2023**
**£**
**-**|**2022**
**£**
**-**|
|---|---|---|---|
16
## **WHITE ROSE**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **14 DEBTORS**
|**14**
**DEBTORS**|||
|---|---|---|
|**Consolidated**
**2023**
**£**
**2022**
**£**
Trade debtors
61,044
32,331
Amounts due from subsidiary undertaking
-
-
Amounts due from related parties
8,242
-
Other debtors
55,986
69,559
Prepayments and accrued income
67,976
51,166
_____________
_____________
**193,248**
**153,056**
_____________
_____________
**15**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
**Consolidated**
**2023**
**£**
**2022**
**£**
Finance lease (note 18)
-
2,326
Trade creditors
208,087
151,437
Amounts owed to related parties
120,000
-
Social security and other taxes
160,737
81,070
Deferred income
11,038
2,830
Other creditors
12,584
17,702
Accrued expenses
39,915
70,296
_____________
_____________
552,361
325,661
_____________
_____________
**16**
**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
**Consolidated**
**2023**
**£**
**2022**
**£**
Finance lease (see note 18)
-
1,635
Other loans
565,987
485,865
Deferred donations
40,945
43,775
_____________
_____________
**606,932**
**531,275**|**Charity**
**2023**
**£**
-
915,569
8,242
2,678
-
_____________
**926,489**
_____________
**Charity**
**2023**
**£**
-
18,841
-
-
-
-
12,300
_____________
31,141
_____________
**Charity**
**2023**
**£**
-
565,987
-
_____________
**565,987**|**2022**
**£**
-
836,200
-
2,678
-
_____________
**838,878**|
|||_____________
**2022**
**£**
-
300
-
-
-
-
30,300
_____________
30,600|
|||_____________
**2022**
**£**
-
485,865
-
_____________
**485,865**|
A number of other loans became repayable in March 2021. Repayment was deferred due to the effects of Covid-19. Interest on these loans is being charged between 3-10% per annum, dependent on the loan type.
## **17 FINANCE LEASE OBLIGATIONS**
Minimum lease payments fall due as follows:
|Net obligations repayable:
Within one year
Between one and five years|**Hire purchase contracts**
**Consolidated**
**Charity**
**2023**
**£**
**2022**
**£**
**2023**
**£**
-
2,326
-
-
1,635
-
_____________
_____________
_____________
**-**
**3,961**
**-**
|**2022**
**£**
-
-
_____________
**-**
|
|---|---|---|
## **18 OPERATING LEASE COMMITMENTS**
At the reporting end date, the group had outstanding commitments for future minimum lease payments under noncancellable operating leases as follows:
|**Non-cancellable operating leases**
**Consolidated**
**Charity**
**2023**
**£**
**2022**
**£**
**2023**
**£**
**2,159,057**
**2,599,621**
**-**|**2022**
**£**
**-**|
|---|---|
17
**WHITE ROSE**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **19 ANALYSIS OF NET ASSETS BETWEEN FUNDS**
||**Unrestricted**|**Restricted**|**Total funds**|**Total funds**|
|---|---|---|---|---|
||**funds**|**funds**|**2023**|**2022**|
||**£**|**£**|**£**|**£**|
|Fixed asset investments|7,310|-|7,310|7,310|
|Intangible fixed assets|23,310|-|23,310|33,300|
|Tangible fixed assets|558,364|-|558,364|508,082|
|Current assets|309,243|81,491|390,734|230,366|
|Current liabilities|(552,361)|-|(552,361)|(325,661)|
|Long-term liabilities|(606,932)|-|(606,932)|(531,275)|
||_____________|_____________|_____________|_____________|
|Net assets|(261,066)
_____________|81,491
_____________|(179,575)
_____________|(77,878)
_____________|
## **20 MOVEMENT IN FUNDS**
|**At 1 January**
**2023**
**£**
Restricted funds:
MHSF
58,156
_____________
Total restricted funds
58,156
Unrestricted funds
(136,034)
_____________
Total funds
(77,878)|**Income**
**£**
**Expenditure**
**£**
37,403
(14,068)
_____________
_____________
37,403
(14,068)
2,888,598
(3,013,630)
_____________
_____________
2,926,001
(3,027,698)|**Transfers**
**£**
-
_____________
-
-
_____________
-|**At 31**
**December**
**2023**
**£**
81,491
_____________
81,491
(261,066)
_____________
(179,575)|
|---|---|---|---|
Restricted funds relate to funds received in memory of Marina H Smith, one of the founders of Aegis Trust and White Rose. The Marina H Smith Foundation was established by her sons, Stephen and James Smith, with funds held by White Rose. The objectives of the Foundation align to the charitable objectives of White Rose.
## **20A MOVEMENT IN FUNDS (PRIOR YEAR)**
|**At 1 January**
**2022**
**£**
Restricted funds:
MHSF
-
_____________
Total restricted funds
-
Unrestricted funds
(50,842)
_____________
Total funds
(50,842)|**Income**
**£**
**Expenditure**
**£**
77,413
(19,257)
_____________
_____________
77,413
(19,257)
2,847,025
(2,932,217)
_____________
_____________
2,924,438
(2,951,474)|**Transfers**
**£**
-
_____________
-
-
_____________
-|**At 31**
**December**
**2022**
**£**
58,156
_____________
58,156
(136,034)
_____________
(77,878)|
|---|---|---|---|
18
**WHITE ROSE**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **21 CASH USED IN OPERATIONS**
|**CASH USED IN OPERATIONS**|||
|---|---|---|
||**Total funds**|**Total funds**|
||**2023**|**2022**|
||**£**|**£**|
|**Net income for the reporting period (per the statement of financial activities)**|(101,697)|(27,036)|
|Adjusted for:|||
|Amortisation charge|9,990|9,990|
|Depreciation charge|118,147|104,270|
|Interest received|(42,000)|(35,400)|
|Interest paid|39,523|21,010|
|(Increase)/decrease in stocks|(92,989)|28,923|
|(Increase)/decrease in debtors|(40,192)|4,568|
|Increase/(decrease) in creditors|302,357|(25,442)|
||_____________|_____________|
|**Net cash provided by/(used in) operating activities**|193,139
_____________|80,883
_____________|
**23 RELATED PARTY TRANSACTIONS** There are no related party transactions during the period (2022: £nil).
19