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2023-06-30-accounts

Registered number: 10058858 Charity number: 1168868

Flair Foundation

(A company limited by guarantee)

Unaudited

Trustees’ Report and Financial Statements

For the year ended 30 June 2023

Flair Foundation

(A company limited by guarantee)

Contents

Reference and administrative details of the Company, its Trustees and advisers 1
Trustees’ report 2 - 6
Independent examiner’s report 7 - 8
Statement of financial activities 9
Balance sheet 10
Notes to the financial statements 11 - 16

Flair Foundation

(A company limited by guarantee)

Reference and Administrative Details of the Company, its Trustees and Advisers For the year ended 30 June 2023

Trustees Mr D Shah
Mr N Shah
Mrs P Riggs
Company registered number 10058858
Charity registered number 1168868
Registered office Etherow Works
Woolley Bridge Road
Hadfield
Derbyshire
SK13 2NS
Independent examiner David Hoose
Mazars LLP
First Floor
Two Chamberlain Square
Birmingham
B3 3AX

Page 1

Flair Foundation

(A company limited by guarantee)

Trustees’ report For the year ended 30 June 2023

The Trustees present their annual report together with the financial statements of Flair Foundation for the year ended 30 June 2023. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Since the Company qualifies as small under section 382 of the Companies Act 2006, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

The charity was established on 11 March 2016 and commenced activities on 16 May 2016.

Objectives and activities

a. Policies and objectives

The objectives of the charity as set out in the company's Memorandum and Articles of Association are for the public benefit and are specifically restricted to the following:

The charity’s aims are to work hand in hand with Flair Flooring Group Limited to acquire funds (predominantly from group companies) to support and enhance other charitable bodies enabling them to carry out their own specific aims. Flair Flooring Group Limited thrives to inspire and educate their employees on how to assist those in need and provide opportunities for them to do so. Such opportunities are listed below.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit running a charity (PB2)'.

b. Strategies for achieving objectives

The charity's main activities are detailed below, all of which further our aims and objectives for the public's benefit.

Page 2

Flair Foundation

(A company limited by guarantee)

Trustees’ report For the year ended 30 June 2023

Achievements and performance

The Foundation measures its performance using the following key performance indicators:

Donations received from Flair Flooring Group £173,985 (2022: £122,084). External donations received of £17,971 (2022: £9,233).

UK organisations supported: 29

Overseas organisations supported: 9

Page 3

(A company limited by guarantee)

Flair Foundation

Trustees’ report For the year ended 30 June 2023

Amount of money donated to worthy causes in the period £103,227 (2022: £51,067)

Donations to UK organisations £47,723 (2022: £18,608)

Donations to overseas organisations £55,504 (2022: £32,459)

b. Achievements against objectives set

Detailed below are the various charities we have practically and financially supported in the period, allowing them to accomplish their own aims and thus allowing us to fulfill our charitable objectives.

c. Investment policy and performance

The overall objectives are to create sufficient income and capital growth to enable the charity to carry out its purposes consistently year-on-year with due and proper consideration for future needs and the maintenance of, and if possible, enhancement of the value of the invested funds while they are retained.

The objectives are achieved by investing prudently in a broad range of fixed interest securities and equities which are quoted on a Recognised Investment Exchange the Transact Platform Service and unit which are authorised under the Financial Services and Markets Act 2000.

The investment manager Wren Sterling Financial Planning Limited provides a quarterly review of performance and a review of activity to the Trustees and the policy will be regularly reviewed to ensure the overall objectives continue to be achieved.

During the year, the above policy has generated a gain on investments of 7% (2022: Loss of 15%).

the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

Page 4

Flair Foundation

(A company limited by guarantee)

Trustees’ report For the year ended 30 June 2023

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt

b. Reserves

As part of the ongoing activities of the Foundation, reserves totaling £742,449 were held at 30 June 2023 (2022: £696,562). These are held to ensure the availability of continued funding for those activities that are deemed suitable by the Trustees, namely for the promotion of education and welfare.

Structure, governance and management

a. Constitution

The company is registered as a charitable company limited by guarantee and was set up by the Memorandum and Articles of Association on 11 March 2016.

The company is constituted under the Memorandum and Articles of Association dated 11 March 2016 and is a registered charity, number 1168868.

b. Methods of appointment or election of Trustees

The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum and Articles of Association.

Page 5

Flair Foundation

(A company limited by guarantee)

Trustees’ report For the year ended 30 June 2023

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Company 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. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees and signed on their behalf by:

N Shah (May 19, 2024 17:07 GMT+1) Mr N Shah Trustee Date: May 19, 2024

Page 6

Flair Foundation

(A company limited by guarantee)

Independent Examiner’s Report For the year ended 30 June 2023

I report on the financial statements of Flair Foundation for the year ended 30 June 2023 which are set out on pages 9 to 16.

Respective Responsibilities of Trustees and Examiner

The Trustees (who are also Directors of the Company for the purposes of Company Law) are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements as carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(b) of the 2011 Act.

This report, including my statement, has been prepared for and only for the charity’s trustees as a body. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body for my examination work, for this report, or for the statements I have made.

Basis of Independent Examiner’s Report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent Examiner’s Statement

In connection with my examination, which is complete, no matters have come to my attention which give me reasonable cause to believe that in any material respect:

Page 7

Flair Foundation

(A company limited by guarantee)

Independent Examiner’s Report For the year ended 30 June 2023

I have no concerns and have come across no other matters in connection with the examination to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

David Hoose (May 19, 2024 19:46 GMT+1)

David Hoose Mazars LLP First Floor Two Chamberlain Square Birmingham B3 3AX

Date: May 19, 2024

Page 8

(A company limited by guarantee)

Flair Foundation

Statement of financial activities For the year ended 30 June 2023

Unrestricted Total Total
Funds Funds Funds
2023 2023 2022
Note £ £ £
Incomefrom:
Donations and legacies 3 191,956 191,956 131,317
Investment income 7,399 7,399 6,615
────── ────── ──────
Total income 199,355 199,355 137,932
══════ ══════ ══════
Expenditure on:
Charitable activities 4 103,227 103,227 51,067
Support costs 4 4,301 4,301 3,728
────── ────── ──────
Total expenditure 107,528 107,528 54,795
══════ ══════ ══════
Net income before net gains on investments 91,827 91,827 83,137
Net gains / (losses) on investments 43,764 43,764 (25,005)
────── ────── ──────
Net movement in funds before other 135,591 135,591 58,132
recognised gains
────── ────── ──────
Net movement in funds 135,591 135,591 58,132
══════ ══════ ══════
Reconciliation of funds:
Total funds brought forward 696,562 696,562 638,430
Net movement in funds 135,591 135,591 58,132
────── ────── ──────
Total funds carried forward 832,153 832,153 696,562
══════ ══════ ══════

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 11 to 16 form part of these financial statements.

Page 9

(A company limited by guarantee)

Flair Foundation

Balance sheet As at 30 June 2023

2023 2022
Note £ £ £ £
Current assets
Debtors 6 84,202 -
Investments 7 616,376 569,514
Cash at bank and in hand 10 131,575 144,180
────── ──────
832,153 713,694
────── ──────
Net current assets 832,153 713,694
Current liabilities
Creditors 8 - (17,132)
────── ──────
Total net assets 832,153 696,562
══════ ══════
Charity funds
Unrestricted funds 9 832,153 696,562
────── ──────
Total funds 832,153 696,562
══════ ══════

The Company was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

N Shah (May 19, 2024 17:07 GMT+1)

Mr N Shah Trustee

Date: May 19, 2024

The notes on pages 11 to 16 form part of these financial statements.

Page 10

Flair Foundation

(A company limited by guarantee)

Notes to the financial statements For the year ended 30 June 2023

1. General information

The charity is a company limited by guarantee domiciled and incorporated in England and Wales, registered number 10058858. The members of the company are the Trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Trust.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements 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 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Flair Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

After making appropriate enquiries. the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason. they continue to adopt the going concern basis in preparing the financial statements.

2.3 Income

All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Company, can be reliably measured.

Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the Company's accounting policies.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Company which is the amount it would have been willing to pay to obtain services

Page 11

Flair Foundation

(A company limited by guarantee)

Notes to the financial statements For the year ended 30 June 2023

2. Accounting policies (continued)

or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 Taxation

The Company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the 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.

Page 12

Flair Foundation

(A company limited by guarantee)

Notes to the financial statements For the year ended 30 June 2023

2.7 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses_ whether realised or unrealised are combined and presented as 'Gains/(Losses) on Investments’ in the statement or financial activities.

2.8 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.9 Cash at bank and in hand

Cash at bank and 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 account.

2.10 Financial instruments

The 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.11 Fund Accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.

3. Income from donation and legacies

Unrestricted Total Total
Funds funds funds
2023 2023 2022
£ £ £
Donations 191,956 191,956 131,317
══════ ══════ ══════
Total 2022 131,317 131,317
══════ ══════

Page 13

Flair Foundation

(A company limited by guarantee)

Notes to the financial statements For the year ended 30 June 2023

4. Analysis of expenditure by activity

Unrestricted Total Total
Funds funds funds
2023 2023 2022
£ £ £
Charitable donations made 103,227 103,227 51,067
══════ ══════ ══════
Total 2022 51,067 51,067
══════ ══════

Analysis of support costs

The support costs of £4,301 (2022: £3,728) relate to investment expenditure. All other support and governance costs are paid for by the Flair Flooring Group of companies:

Independent examination £2,640 (2022: £3,600) Accounts preparation £1,760 (2022: £2,400)

5. Trustees’ remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).

During the year ended 30 June 2023, no Trustee expenses have been incurred (2022 - £NIL).

**6. ** Debtors
2023 2022
Due within one year £ £
Amounts owed by associated undertakings 83,562 -
Accrued income 640
────── ──────
84,202 -
══════ ══════
**7. ** Current asset investments
2023 2022
£ £
Cash 29,793 26,650
Listed investments 586,584 542,865
────── ──────
616,376 569,514
══════ ══════

The market value of the listed investments at 30 June 2023 was £616,376 (2022: £569,514).

Page 14

(A company limited by guarantee)

Flair Foundation

Notes to the financial statements For the year ended 30 June 2023

7. Investments continued

vestments continued
Brought forward 542,865
Add: additions at cost 165,850
Less: disposals at carrying value (165,895)
Add: gain on revaluation 43,764
──────
Carried forward 586,584
══════

Material investment holdings with a market value of more than 5% of the total market value of investments as at 30 June 2023, which is approximately £29,000.

Investment Holding Market Value
Invesco European Equity Fund 12,099 72,876
Invesco Tactical Bond Z 15,763 42,357
iShares Core 8,602 63,169
iShares Edge MSCI World Quality Factor 1,113 47,442
Jupiter Asian 17,340 35,929
Jupiter Dynamic Bond 4,051 36,740
Liontrust Special Situations 25,305 29,461
Ninety One Global Environment 21,119 33,048
Pacific North of South Emerging 2,199 29,516
Schroder Global Recovery 30,980 31,600
Schroder ISF Asian Total Return 141 55,919

8. Creditors

reditors
2023 2022
£ £
Accruals - 17,132
────── ──────
- 17,132
══════ ══════

Page 15

(A company limited by guarantee)

Flair Foundation

Notes to the financial statements For the year ended 30 June 2023

9. Statement of funds

Balance at 1 Gains /
Balance at 30
Balance at 30
July 2022 Income Expenditure (Losses) June 2023
£ £ £ £ £
Unrestricted funds
General Funds – all funds 696,562 199,355 (107,528) 43,764 832,153
══════ ══════ ══════ ═════ ══════
Statement of funds – prior year
Balance at 1 Gains /
Balance at 30
July 2021 Income Expenditure (Losses) June 2022
£ £ £ £ £
Unrestricted funds
General Funds – all funds 638,430 137,932 (54,795) (25,005) 696,562
══════ ══════ ══════ ═════ ══════
10. Analysis of cash and cash equivalents
2023
2022
£
£
Cash in hand 131,575
144,180
────── ──────
Total cash and cash equivalents 131,575
144,180
══════ ══════

10. Analysis of cash and cash equivalents

11. Related party transaction

Donations totaling £173,985 (2022: £122,084) were received from Flair Flooring Supplies Limited, a company that has common directors with the charity. At the year end, an amount of £83,562 (2022: NIL) was due from Flair Flooring Supplies Limited and is disclosed within Note 6 Debtors.

Page 16