Company registration number: 10722497 Charity registration number: 1172675
The Brothers Trust
(A company limited by guarantee)
Annual Report and Financial Statements for the Year Ended 31 March 2022
The Brothers Trust
Contents (continued)
| Reference and Administrative Details | 1 |
|---|---|
| Strategic Report | 2 - 13 |
| Trustees' Report | 14 - 23 |
| Statement of Trustees' Responsibilities | 24 |
| Independent Examiner's Report | 25 |
| Statement of Financial Activities | 26 |
| Balance Sheet | 27 |
| Notes to the Financial Statements | 28 - 41 |
The Brothers Trust
Reference and Administrative Details
| Trustees | Dominic Holland |
|---|---|
| Thomas Holland | |
| Nicola Holland | |
| Greg Cook | |
| Janine Cook | |
| Andrea Michele Coates | |
| Lena Suan Hoon Koay | |
| Principal Office | Acre House |
| 11-15 William Road | |
| Kings Cross | |
| London | |
| NW1 3ER | |
| The charity is incorporated in England and Wales. | |
| Company Registration Number | 10722497 |
| Charity Registration Number | 1172675 |
| Independent Examiner | Shaun Ellis |
Page 1
The Brothers Trust
Strategic Report for the Year Ended 31 March 2022
The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 31 March 2022, in compliance with s414C of the Companies Act 2006.
Achievements and performance
Although the Charity saw impacts from the Covid-19 pandemic, it was able to expand its charitable activities. The sale of merchandising continued to be a success to the point where we have had to set up a separate company to look after these activities. This contributed over £71k to our reserves. Below the Charity has set out some of its major activites in a year in photos to give an indication of what has been achieved.
We began the year with a podcast featuring Tom, Sam and Harry looking back on past year and discussing the plans for The Brothers Trust in the year to come. Content such as this is a tremendous way to create engagement with our supporters.
A news story broke about a little boy, Bridger Walker being savaged by a dog when defending his little sister from attack. Convalescing, Bridger talked about his heroics in-line with his favourite character, Spider-Man and so we organised for the two heroes (one real, one make believe!) to meet. Bridger and his family were welcomed on to the movie set of Spider-Man, No Way Home creating memories they will never forget - a good example of life experiences that TBT can create in addition to our fund-raising efforts.
Page 2
The Brothers Trust
Strategic Report for the Year Ended 31 March 2022 (continued)
The Holland’s love their tea and are particular about their mugs, so considerable effort was invested in creating the perfect Brothers Trust mug as part of our merchandise range. We ran a competition with our supporters to design the mug creating great engagement and won by Jessica Murray (@jmurfanart) from Canada. The mugs were Made in England and our house was used as a warehouse/distribution hub with everyone on packing duties, Tom included. All proceeds from this sold-out line went to Alex’s Wish £18,924 Alex Hallam is a young man with Muscular Dystrophy and we are sure he enjoyed making a promotional video with our mug which featured on our website and across all our social media channels.
Page 3
The Brothers Trust
Strategic Report for the Year Ended 31 March 2022 (continued)
The sale of Brothers Trust dog collars (Made in Kenya with all proceeds to Lunch Bowl, Kenya) was a great success. In addition to this venture, we created an Instagram account @thebrotherstrustdogsclub for owners to upload photos of their dogs looking resplendent in their BT collars which created a sense of involvement and great engagement. Then, we used these images to create a collage replicating a photograph of Tom and his dog, Tessa. Tom signed the limited edition print run which were sold and distributed across the world, with all proceeds to The Empowerment Plan, Detroit. Our final amount raised for The Empowerment Plan was £69,760.
The Holland’s love a jigsaw and in particular, Wentworth puzzles which are Made in England and are as beautiful as they are fiendishly difficult and so we decided to launch a jig-saw puzzle of our own. Designed by Jessica Murray (of BT mug fame!), Tom and his family visited the factory to see them being manufactured and all filmed by Harry for a promotional video. In addition, Tom made a jig-saw himself which he signed and this puzzle was a lucky-dip prize for anyone who purchased one of our puzzles.
The collage image of our jigsaw as well as featuring images of the Holland brothers, it also featured the children we have met who are afflicted with EB as all proceeds from this sale went to DEBRA and EBRP, two charities fighting this most vicious skin disease. Very poignantly, some of the children featured had already succumbed to the disease and permission was sought from their families for their inclusion. This raised £19,092 for our EB charities.
Page 4
The Brothers Trust
Strategic Report for the Year Ended 31 March 2022 (continued)
Following the success of our original range of dog collars and coinciding with a family holiday to Kenya and a visit to the Masai ladies who manufacture our collars, we decided to add two new collars to our range. Once again, all proceeds from this endeavour went to Lunch Bowl, the charity that feeds and educates kids living in Nairobi slums, creating a virtuous circle of employment and wealth creation with helping some of the world’s poorest children. To date we have raised £25,650 through the sales of dog collars.
We are keen that our supporters are aware that any visits made by the Holland family to visit our works in Kenya are not funded by The Brothers Trust, in-keeping with our determination to dedicate as much of our income as possible to good works and outcomes.
Page 5
The Brothers Trust
Strategic Report for the Year Ended 31 March 2022 (continued)
In-line with the young demographic of our supporters and Childhood Cancer Awareness Month, we launched a Brothers Trust hoodie. Made in the U.K and in the gold colour (Go Gold for cancer awareness), the hoodies featured our BT logo and the gold ribbon on the arm. All proceeds went to Momentum Children's Charity, a local charity specialising in care provision for young people and their families affected by cancer. We encouraged supporters to send us photos of them wearing their hoodies which we featured across our channels to serve as promotions for our venture and cancer awareness but also to create inclusion and involvement within the BT community.
Packing over a thousand hoodies with our house as the hub was a feat in itself. Momentum Children's Charity weighed in with much needed help providing young local children to help with packing and processing. Many of these young volunteers are busy with their Duke of Edinburgh pursuits, so this is a neat alignment for everyone concerned. We raised £42,920 from this initiative.
Page 6
The Brothers Trust
Strategic Report for the Year Ended 31 March 2022 (continued)
Tom surprises a Spider-Man fan with a visit to his home.
Organised by Momentum Children's Charity, a local charity we support, we were made aware of a young man who is battling cancer and is confronted by significant difficulties. Tom and his mum went along to meet with him and his family, another example of a non-fund-raising initiative but no doubt creating great solace and hope for a family in need.
Tom and Harry were invited to play in the pro-am at the flagship PGA Golf Championships at Wentworth Golf Club. Playing with the Ryder Cup Captain, Padraig Harrington, their playing group drew very large crowds and attracted enormous interest online and across social media channels. Good news for a professional sport but great news for JAVA JOY since Tom opted to wear a golf cap bearing their name. In keeping with our mission to shine a light on charities that struggle to be heard, Java Joy could never have expected such attention on their important and noble work. The videos of Tom were viewed millions of times bringing great exposure to Java Joy who provide employment for mentally disabled people as barristers or “Joyristas” as they are known.
Page 7
The Brothers Trust
Strategic Report for the Year Ended 31 March 2022 (continued)
Tom was happy to find time in his busy filming schedule for Spider-Man, No Way Home to host an on-line fund-raising event called "Venture in to Cures" on behalf of EBRP, the US charity dedicated to medical research to find a cure for the skin disease, EB. With Tom's celebrity and fanbase, the event was considerably more successful than previous similar events. For our part, The Brothers Trust fully supported the broadcast, sharing it across our channels and publishing a blog and other original pieces of content to promote the event and to create further revenue streams.
Page 8
The Brothers Trust
Strategic Report for the Year Ended 31 March 2022 (continued)
November was a big fund-raising opportunity for us with the release of Tom’s new Spider-Man movie set for December. With the easing of Covid restrictions and travelling and mixing allowed once again, we were delighted to organise a worldwide sweepstake to win tickets to the LA premiere of Spider-Man, No Way Home. The two winners were flown to LA and accommodated for two days with spending money and of course a chance to attend the glittering event and meet the stars of the movie.
As well as the premiere sweepstake, we added three further fun challenges for chances to win signed memorabilia including a tee-shirt worn by Tom in the movie (and since signed) as ways to raise funds and create supporter inclusion and engagement.
Page 9
The Brothers Trust
Strategic Report for the Year Ended 31 March 2022 (continued)
A live stream featuring the four brothers concluded this venture where the winners were announced and a further live pictionary competition was staged with two further people winning premiere tickets plus flights and accommodation. We would like to give a huge thank you to our clever friends at Rally up https://rallyup.com/ who helped us organise and host this event.
Page 10
The Brothers Trust
Strategic Report for the Year Ended 31 March 2022 (continued)
An assortment of our winners at the LA premiere of Spider-Man, No Way Home with the stars of the movie. The competitions we ran to win these tickets raised enormous funds for TBT and enabled us to make many important grants to charities so that they can continue on with their important works.
Page 11
The Brothers Trust
Strategic Report for the Year Ended 31 March 2022 (continued)
This event was a great success and crucially important, given that it raised the most amount of money for The Brothers Trust this year ($470,000).
Myra Saeed is a young lady we have got to know through our support for charities fighting the life limiting skin disease known as EB. Myra (@myraaliedit) is a resourceful young person who is determined not to let the disease restrict her ambitions to become a journalist. Wherever possible, TBT organise for Myra to be included on the London press junkets that Tom is involved with. Myra is able to interview the stars and as well as creating much needed awareness of EB, no doubt the press day is a great distraction from the near constant pain that her condition wreaks.
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The Brothers Trust
Strategic Report for the Year Ended 31 March 2022 (continued)
Stem 4 is a charity we support in the burgeoning problem of mental health crises amongst young people. These tea light holders with lavender infused candles for relaxation are made by the boy’s uncle, Tim Frost. Tim speaks very openly about his own mental frailties which have dogged him his entire adult life.
Because production of the tea lights is obviously restricted, this initiate was much more rooted in creating awareness of Stem4 and their free apps and other on-line provisions. The publicity that TBT has generated for Stem4 has been of real importance and no doubt, a great many young people in crisis have been helped by discovering their important services.
None of this could be possible without your support so a huge thank you from us all at The Brothers Trust
Financial review
The Charity has been able to generate a surplus this year of £54,851 (2021: deficit of £13,406) after giving grants totalling £612,858 (2021: £358,393). Reserves now stand at £172,219 (2021: £117,367). There are no restrictions on how the reserves are used.
Policy on reserves
The Charity seeks to hold sufficient reserves to cover operating activities in the next six months plus support key charities. At the end of this financial year, the trustees felt this should be £125,000. Current reserves are comfortably above this level.
The strategic report was approved by the trustees of the charity on 7 November 2022 and signed on its behalf by:
......................................... Nicola Holland Trustee
Page 13
The Brothers Trust
Trustees' Report
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2022.
Objectives and activities
Objects and aims
The Brothers Trust (the "Charity") is a charity based and regulated in the United Kingdom with the key objectives:
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to raise funds and award grants to charities around the world. These charities are likely to be small and nimble, often managed by their founders and have a high coefficient of converting funds received to positive and tangible outcomes.
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to create awareness of our selected charities using our own social media platforms.
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to create memorable experiences for vulnerable and sick children from the charities that we support and also charities associated with endeavours like Make a Wish.
The charity aims to "support charities who struggle to be heard". It therefore seeks to give out as much as possible in grants and keep admin expenses as low as possible. As can be seen below, we have again been successful this year with only 1% of costs relating to Governance or Office Expenses, 1% on raising funds (excluding cost of merchandising) with around 98% going as grants. This has been achieved by keeping running costs largely unchanged while being able to distribute more funds to our supported charities.
Page 14
The Brothers Trust
Trustees' Report (continued)
Objectives, strategies and activities
In the past financial year, the charity has given a number of key grants to further its aim to ensure these partners can be heard effectively. The Trustees look at how these grants are used to ensure the resources are used effectively. These include the following grants.
Alex's Wish - £26,166
The Brothers Trust is helping to fund research into Duchenne, an aggressive form of Muscular Dystrophy that affects 1 in every 3,500 boys born. Every single muscle is destroyed due to a lack of protein and this also affects the heart and lungs, so boys typically only live until their mid-late twenties. There are no known treatments to slow down the devastating effects of this disease. The Brothers Trust grant helped fund an important aspect of medical research and helped improve the lives of boys living with Duchenne.
Page 15
The Brothers Trust
Trustees' Report (continued)
Debra - £75,000
Debra is a charity that supports people living with EB, a genetic group of conditions which cause the skin to blister and tear at the slightest touch. I is particularly a debilitating, life-threatening and painful condition and the families as well as the patients are in great need of support and respite.
This Brothers Trust grant will enable Debra to buy an additional holiday chalet to enable them to offer families much-needed holidays and respite breaks in beautiful surroundings. After careful consultation with Debra families, the new lodge-style chalet will be based in Weymouth, Dorset, offering the best location for most families.
Page 16
The Brothers Trust
Trustees' Report (continued)
EBRP - EB Research Partnership – $97,500
EBRP is the largest 501c(3) US non-profit organisation dedicated to funding research aimed at treating and ultimately curing EB.
During FYE2, Tom hosted an online fundraiser for EBRP which raised over U$2.4m - The Brothers Trust is now looking to support EBRP and raise further awareness and help fund critical research into EB.
This grant assists EBRP to allocate funds to research projects, assessed to be viable by EBRP’s Scientific Advisory Board and they have created the BT Cure Award to be an annual research grant.
John Foundation - $63,000
Our grants help fund truly life-changing opportunities. The John Foundation rescues vulnerable children and young adults from being trafficked; providing education, medical care, training, and employable skills for an independent future. The John Foundation’s slogan is ‘Bringing hope the sustainable way’. Through education and skills training, thousands of young people are given hope for a better future. The Brothers Trust, in particular this year, has offered grant funding to support a clinical Pharmacy and Paramedics training Course with laboratory facilities.
Page 17
The Brothers Trust
Trustees' Report (continued)
Momentum - £110,000
Momentum offers emotional, physical and financial support to children living with life-limiting conditions.
This Brothers Trust grant contributed to funding 3 of their essential Support Care Workers Team, which is at the core of everything Momentum offers to help families through extremely difficult times. A Family Support Worker, is assigned to each family, with the aim of offering emotional and practical support to the family, to try and ease the stress of dealing with the enormous strain of caring for their seriously ill child.
The team supports around 240 families going through treatment for cancer and a further 100 bereaved families. This work cannot be underestimated, and it offers vital emotional and practical support.
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The Brothers Trust
Trustees' Report (continued)
stem4 - £27,500
This UK based mental health charity supports teenagers and their families by providing mental health information, apps and education, which can be used globally. Our grant has specifically helped to fund ‘ Head Ed ’ which provides clinically informed, trusted resources delivered in a safe space to inform on some of the most commonly occurring mental health concerns in young people such as anxiety, depression, eating disorders and self-harm.
By opening up the conversation and reducing the stigma, it is hoped that young people will gain an enhanced understanding of what to look out for in both themselves and those around them to encourage early identification and intervention, thus avoiding prolonged distress and avoiding the need for further clinical intervention.
Artists for Africa $27,000
This grant gives Kenyan children from under privileged backgrounds a safe home to grow up in, where they have opportunities beyond anything their backgrounds would have ever provided.
Empowerment Plan $110,000
This supported the overall mission of the Empowerment Plan to help permanently break the generational cycles of poverty, homelessness, and unemployment. Huge impact on changing lives. Offers skills training and employment for homeless people in Detroit in manufacturing specially designed coats/sleeping bags for homeless people.
Kares 4 Kids $25,000
We are supporting a number of different projects. Helping to fund a drama program for individuals with autism including the cost of sets, costumes and scripts and to supplement the cost for participants. Also we help over 300 under privileged children play on soccer teams this year - equipping and empowering youth to WIN on the Field and in Life through the influence of mentor coaches. And 2 JoyRistas (JavaJoy) will be sponsored for an entire year to be able to participate in the program designed to help older physically challenged adults have positive employment.
The Lunchbowl Network - £100,310
This helped fund operational salary costs for teachers at both the kindergarten and the primary school. Hugely transformational impact and through education, providing a route out of poverty. The Lunchbowl Network educates and feeds over 400 of the most vulnerable and disadvantaged children in the Kibera slum in Nairobi, Kenya. This year we have also bought some amazing classroom smart boards, helped fund the unit for deaf children and also fund a Speech & Language Therapist which has been life changing for students and their families.
Mama Biashara £10,000
This small charity helps to support women and children leaving abusive relationships in Kenya and providing training and employment. This grant will rescue 700-800 women with an average of 2 children each from a life of violence (tribal/domestic/sexual and/or extreme physical) and fear.
Page 19
The Brothers Trust
Trustees' Report (continued)
Story Book Dads £13,000
This charity allows families to reconnect through the magic of storytelling. They help parents in prison to record bedtime stories and messages for their children on CD or DVD. We are also supporting some projects which act as icebreakers when parents see their children and also funding people released from prison to assist with editing from home.
Warmheart $10,000
This charity is helping elderly people living in remote areas of Thailand. The funding of a new vehicle.This will be used to visit and transport the elderly and disabled in our District. With a more reliable car, we expect to increase the number of people we can visit from 68 to 100 in the next 12 months. This will mean an increase to over 700 visits.
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The Brothers Trust
Trustees' Report (continued)
Public benefit
The Brothers Trust aims to help small charities either financially or through publicity. The charities supported cover a range of areas broadly split into education, health and social benefit. The split between each sector can be seen below.
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Grant making policies
It is important to The Brothers Trust to find charities without expensive administrative costs and can demonstrate that they are efficiently run. The Trust generally discourages the notion that beneficiaries become dependent or expectant on The Brothers Trust.
The Charity has regularly evaluated the effectiveness of its grants, asking for regular feedback and progress reports from its beneficiaries. This is then reported on The Brothers Trust website so that our supporters are able to understand the positive impact of their support.
Use of volunteers
The Charity could not function without the help and assistance of its volunteer trustees who give so much time to the running of the charity.
Going concern
The Trustees consider that it is appropriate to prepare the financial statements on a going concern basis. There are sufficient reserves in the charity to continue to operate, and the fundraising plans continue to be successful, alongside its merchandising.
Page 21
The Brothers Trust
Trustees' Report (continued)
Structure, governance and management
Nature of governing document
The Charity operates under its memorandum and articles of incorporation as a private company limited by guarantee. These documents were created 12th April 2017 and have not been updated.
Recruitment and appointment of trustees
The Trustees are recruited based on the needs of the Charity. In the past year, the board has been strengthened considerably through reviewing missing skills and seeking to fill these gaps. This has included legal, financial, and governance.
Arrangements for setting key management personnel remuneration
None of the Trustees receive remuneration.
Organisational structure
The Charity operates with a very small staff comprised of some paid contractors and volunteers. They work together making collective day-to-day decisions. The Trustees then meet at least 6 times per year to discuss strategic aims and objectives.
As noted elsewhere, the sale of Brothers Trust merchandising has moved to its wholly owned subsidiary, The Brothers Trust (Trading) Ltd. This gives all of its profits in cash each year to the Charity, and the same team are responsible for running this company.
Relationships with related parties
The Brothers Trust (Trading) Ltd
Wholly owned subsidiary selling Brothers Trust merchandise
Financial instruments
Objectives and policies
The charity's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. Generally, the charity does not need to use these contracts but may do if required. The charity does not use derivative financial instruments for speculative purposes.
Cash flow risk
The charity’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The charity uses foreign exchange forward contracts and interest rate swap contracts to hedge these exposures.
Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.
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The Brothers Trust
Trustees' Report (continued)
Credit risk
The charity’s principal financial assets are bank balances and cash, trade and other receivables, and investments. The charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity uses a mixture of long-term and short-term debt finance. Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.
The annual report was approved by the trustees of the charity on 7 November 2022 and signed on its behalf by:
......................................... Nicola Holland Trustee
Page 23
The Brothers Trust
Statement of Trustees' Responsibilities
The trustees (who are also the directors of The Brothers Trust for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
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 charitable 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:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees of the charity on 7 November 2022 and signed on its behalf by:
......................................... Nicola Holland Trustee
Page 24
The Brothers Trust
Independent Examiner's Report to the trustees of The Brothers Trust
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2022 which are set out on pages 26 to 41.
Respective responsibilities of trustees and examiner
As the charity’s trustees of The Brothers Trust (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of The Brothers Trust 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 your charity’s accounts 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(5)(b) of the 2011 Act.
Independent examiner’s statement
Since The Brothers Trust's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ACCA, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of The Brothers Trust as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... Shaun Ellis ACCA
7 November 2022
Page 25
The Brothers Trust
Statement of Financial Activities for the Year Ended 31 March 2022 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income and Endowments from: Donations and legacies 3 Other trading activities 4 Total income Expenditure on: Raising funds 5 Charitable activities 6 Total expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 17 Note Income and Endowments from: Donations and legacies 3 Other trading activities 4 Total income Expenditure on: Raising funds 5 Charitable activities 6 Total expenditure Net expenditure Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 17 |
Unrestricted funds £ 317,711 414,558 732,269 (50,205) (626,624) (676,829) 55,440 55,440 117,367 172,807 Unrestricted funds £ 272,956 159,831 432,787 (53,559) (392,634) (446,193) (13,406) (13,406) 130,774 117,368 |
Unrestricted funds £ 317,711 414,558 |
Total 2022 £ 317,711 414,558 |
|
|---|---|---|---|---|
| 732,269 | 732,269 | |||
| (50,205) (626,624) |
(50,205) (626,624) |
|||
| (676,829) | (676,829) | |||
| 55,440 | 55,440 | |||
| 55,440 117,367 |
55,440 117,367 |
|||
| 172,807 | 172,807 | |||
| Total 2021 £ 272,956 159,831 |
||||
| 432,787 | ||||
| (53,559) (392,634) |
||||
| (446,193) | ||||
| (13,406) | ||||
| (13,406) 130,774 |
||||
| 117,368 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 17.
The notes on pages 28 to 41 form an integral part of these financial statements. Page 26
The Brothers Trust
(Registration number: 10722497) Balance Sheet as at 31 March 2022
| Note Current assets Stocks 12 Debtors 13 Investments 14 Cash at bank and in hand 15 Creditors: Amounts falling due within one year 16 Net assets Funds of the charity: Unrestricted income funds Unrestricted funds Total funds 17 |
2022 £ - 56,761 1 129,527 186,289 (13,482) 172,807 172,807 172,807 |
2021 £ 81,338 749 - 110,945 |
|---|---|---|
| 193,032 (75,664) |
||
| 117,368 | ||
| 117,368 | ||
| 117,368 |
For the financial year ending 31 March 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements on pages 26 to 41 were approved by the trustees, and authorised for issue on 7 November 2022 and signed on their behalf by:
......................................... Nicola Holland Trustee
The notes on pages 28 to 41 form an integral part of these financial statements. Page 27
The Brothers Trust
Notes to the Financial Statements for the Year Ended 31 March 2022
1 Charity status
The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
The address of its registered office is: Acre House 11-15 William Road Kings Cross London NW1 3ER
These financial statements were authorised for issue by the trustees on 7 November 2022.
2 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
Basis of preparation
The Brothers Trust 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 notes.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
Exemption from preparing a cash flow statement
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
Income and endowments
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Page 28
The Brothers Trust
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
2 Accounting policies (continued)
Donations and legacies
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
Donated services and facilities
These are only included in income (with an equivalent amount in expenditure) where the benefit to the Charity is reasonably quantifiable, measurable and material.
Gift aid
Income from tax reclaims is included at the same time as the gift/donation to which it relates.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Raising funds
These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Grant provisions
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
Support costs
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
Page 29
The Brothers Trust
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
2 Accounting policies (continued)
Taxation
The charity 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 charity 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.
Current asset investments
Current asset investments are included at the lower of cost and net realisable value / market value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Page 30
The Brothers Trust
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
2 Accounting policies (continued)
Foreign exchange
Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.
The results of overseas operations are translated at the average rates of exchange during the period and their balance sheets at the rates ruling at the balance sheet date. Exchange differences arising on translation of the opening net assets and results of overseas operations are reported in other comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate).
Other exchange differences are recognised in the Statement of Financial Activities in the period in which they arise except for:
1) exchange differences on transactions entered into to hedge certain foreign currency risks (see above);
2) exchange differences arising on gains or losses on non-monetary items which are recognised in other comprehensive income; and
3) in the case of the consolidated financial statements, exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised in other comprehensive income and reported under equity.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Financial instruments
Classification
Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.
Page 31
The Brothers Trust
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
2 Accounting policies (continued)
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
Page 32
The Brothers Trust
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
2 Accounting policies (continued)
Debt instruments
Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:
(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.
(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.
(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).
(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.
(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.
(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).
Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.
With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.
Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.
Investments
Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.
Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.
Page 33
The Brothers Trust
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
2 Accounting policies (continued)
Derivative financial instruments
The charity uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The charity does not hold or issue derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship.
Fair value measurement
The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.
3 Income from donations and legacies
| Donations and legacies; Donations from companies, trusts and similar proceeds Donations from individuals Total for 2022 Total for 2021 |
Unrestricted funds General £ 189,419 128,292 317,711 272,956 |
Total funds £ 189,419 128,292 |
|---|---|---|
| 317,711 | ||
| 272,956 |
Page 34
The Brothers Trust
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
3 Income from donations and legacies (continued)
Included in the year is a donation of £71,610 from The Brothers Trust (Trading) Limited being the profit for the year on merchandising sales. All such activities have now been moved into this wholly owned subsidiary, and the annual profits will be remitted in full to the charity.
4 Income from other trading activities
| Trading income; Sales of goods and services Events income; Other events income Total for 2022 Total for 2021 |
Unrestricted funds General £ 58,454 356,104 414,558 159,831 |
Total funds £ 58,454 356,104 |
|---|---|---|
| 414,558 | ||
| 159,831 |
5 Expenditure on raising funds
a) Costs of generating donations and legacies
| Total | |
|---|---|
| funds | |
| Note | £ |
b) Costs of trading activities
| Note Costs of goods sold Total for 2022 Total for 2021 |
Unrestricted funds General £ 39,025 39,025 53,559 |
Total funds £ 39,025 |
|---|---|---|
| 39,025 | ||
| 53,559 |
Page 35
The Brothers Trust
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
5 Expenditure on raising funds (continued)
c) Investment management costs
Allocated support costs Total for 2022
| Note 7 |
Unrestricted funds General £ 7,554 7,554 |
Total funds £ 7,554 |
|---|---|---|
| 7,554 |
Page 36
The Brothers Trust
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
6 Expenditure on charitable activities
| Note Grant funding of activities Governance costs 7 Total for 2022 Total for 2021 |
Unrestricted funds General £ 612,858 13,766 626,624 392,634 |
Total funds £ 612,858 13,766 |
|---|---|---|
| 626,624 | ||
| 392,634 |
Total expenditure £
In addition to the expenditure analysed above, there are also governance costs of £13,766 (2021 - £34,241) which relate directly to charitable activities. See note 7 for further details.
7 Analysis of governance and support costs
Governance costs
| Marketing and publicity Other governance costs Marketing and publicity Other governance costs |
Unrestricted funds General £ 5,005 8,761 13,766 Unrestricted funds General £ 2,962 31,029 33,991 |
Total 2022 £ 5,005 8,761 |
|---|---|---|
| 13,766 | ||
| Total 2021 £ 2,962 31,029 |
||
| 33,991 |
Page 37
The Brothers Trust
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
8 Grant-making
Analysis of grants
| Analysis of grants | |
|---|---|
| Grants to institutions 2022 £ 2021 £ Analysis Charitable Grants 612,858 347,893 The support costs associated with grant-making are £Nil (31 March 2021 - £Nil). Below are details of material grants made to institutions |
Grants to individuals 2021 £ 10,500 |
| Name of institution Activity Momentum Lunch Bowl Debra EB Research Partnership The Empowerment Plan John Foundation Stem 4 Alex Wish Artists for Africa Kare's4Kids Inc Storybook Dads Mama Biashara Warm Heart Mind Step Foundation Spark School Book Grant Tear Fund Rachel Lovelocks St Francis' Center Anthony Nolan Shabach Ministry Wimbledon Old Boys |
2022 £ 110,318 100,310 75,000 74,109 70,819 46,854 27,501 26,910 26,167 18,952 13,000 10,000 7,619 3,799 1,500 - - - - - - 612,858 |
2021 £ 77,000 19,746 44,812 - 42,802 23,106 - 5,000 13,033 30,560 - 20,001 7,221 - - 26,822 15,185 10,605 6,000 5,000 1,000 |
|---|---|---|
| 347,893 |
Page 38
The Brothers Trust
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
9 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
10 Independent examiner's remuneration
Other fees to examiners Examination-related assurance services
----- Start of picture text -----
2021
£
250
----- End of picture text -----
11 Taxation
The charity is a registered charity and is therefore exempt from taxation.
12 Stock
| Finished goods 13 Debtors Due from group undertakings Other debtors 14 Current asset investments Shares in group undertakings and participating interests 15 Cash and cash equivalents Cash at bank |
2022 £ - 2022 £ 56,724 37 56,761 2022 £ 129,527 |
2021 £ 81,338 |
|---|---|---|
| 2021 £ 725 24 |
||
| 749 | ||
| 2022 £ 1 |
||
| 2021 £ 110,945 |
Page 39
The Brothers Trust
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
16 Creditors: amounts falling due within one year
| Trade creditors Other creditors Accruals 17 Funds Unrestricted funds General Unrestricted funds General |
Balance at 1 April 2021 £ 117,367 Balance at 1 April 2020 £ 130,774 |
Incoming resources £ 732,269 Incoming resources £ 432,787 |
2022 £ 144 13,088 250 13,482 Resources expended £ (676,829) Resources expended £ (446,193) |
2021 £ 75,414 - 250 |
|---|---|---|---|---|
| 75,664 | ||||
| Balance at 31 March 2022 £ 172,807 |
||||
| Balance at 31 March 2021 £ 117,368 |
18 Analysis of net assets between funds
| Current assets Current liabilities Total net assets |
Unrestricted funds General £ 186,289 (13,482) 172,807 |
Total funds at 31 March 2022 £ 186,289 (13,482) |
|---|---|---|
| 172,807 |
Page 40
The Brothers Trust
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
18 Analysis of net assets between funds (continued)
| Current assets Current liabilities Total net assets |
Unrestricted funds General £ 193,032 (75,664) 117,368 |
Total funds at 31 March 2021 £ 193,032 (75,664) |
|---|---|---|
| 117,368 |
Page 41
The Brothers Trust
Statement of Financial Activities by fund for the Year Ended 31 March 2022
Unrestricted Funds
| Unrestricted Funds | ||
|---|---|---|
| Income and Endowments from: Donations and legacies Other trading activities Total income Expenditure on: Raising funds Charitable activities Total expenditure Net income/(expenditure) Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
Total Unrestricted Funds 2022 £ 317,711 414,558 732,269 (50,205) (626,624) (676,829) 55,440 55,440 117,367 172,807 |
Total Unrestricted Funds 2021 £ 272,956 159,831 |
| 432,787 | ||
| (53,559) (392,634) |
||
| (446,193) | ||
| (13,406) | ||
| (13,406) 130,774 |
||
| 117,368 |
This page does not form part of the statutory financial statements. Page 42
The Brothers Trust
Detailed Statement of Financial Activities for the Year Ended 31 March 2022
| Income and Endowments from: Donations and legacies (analysed below) Other trading activities (analysed below) Total income Expenditure on: Raising funds (analysed below) Charitable activities (analysed below) Total expenditure Net income/(expenditure) Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
Total 2022 £ 317,711 414,558 732,269 (50,205) (626,624) (676,829) 55,440 55,440 117,367 172,807 |
Total 2021 £ 272,956 159,831 |
|---|---|---|
| 432,787 | ||
| (53,559) (392,634) |
||
| (446,193) | ||
| (13,406) | ||
| (13,406) 130,774 |
||
| 117,368 |
This page does not form part of the statutory financial statements. Page 43
The Brothers Trust
Detailed Statement of Financial Activities for the Year Ended 31 March 2022 (continued)
| Donations and legacies Appeals and donations Appeals and donations - companies Other trading activities Sales of purchased goods Fundraising Events Raising funds Fundraising costs Purchases Subcontract cost Casual wages Office expenses Charitable activities Grants payable - institutions Grants payable - individuals Repairs and maintenance Office expenses Computer software and maintenance costs Advertising Promotional expenses Accountancy fees Independent examiner's fee Bank charges Foreign currency (gains)/losses |
Total 2022 £ 128,292 189,419 317,711 58,454 356,104 414,558 (3,626) (39,025) - (7,491) (63) (50,205) (612,858) - - - - (5,005) - (6,730) - (643) (1,388) (626,624) |
Total 2021 £ 85,075 187,881 |
|---|---|---|
| 272,956 | ||
| 96,781 63,050 |
||
| 159,831 | ||
| - (46,427) (7,132) - - |
||
| (53,559) | ||
| (347,893) (10,500) (404) (361) (866) - (2,962) (4,282) (250) (15,763) (9,353) |
||
| (392,634) |
This page does not form part of the statutory financial statements. Page 44