1175005
The Abinger Green Charitable Incorporated Organisation
Annual report for the period from 1[st] June 2021 to 31[st] May 2022
| Contents | |
|---|---|
| Page | |
| Reference & administrative details | 3 |
| Trustees’ report | 4‐7 |
| Accountants’ report | 8 |
| Receipts and Payments Account | 9 |
| Statement of Assets and Liabilities | 10 |
| Notes to the financial statements | 11 |
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Reference & administrative details
| Registered charity | 1175005 |
|---|---|
| Principal address | c/o Ian Nolan |
| Circularity Capital | |
| 1stFloor | |
| 22 King Street | |
| St James’s | |
| London | |
| SW1Y 6QY | |
| Trustees | Ian Nolan |
| Jamie Butterworth | |
| Robert Craig | |
| Accountants | Wilson Wright LLP |
| 1stFloor | |
| 5 Fleet Place | |
| London | |
| EC4M 7RD |
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Trustees’ Report
The Trustees are pleased to present the report of The Abinger Green Charitable Incorporated Organisation (“the CIO”) for the year from 1[st] June 2021 to 31[st] May 2022.
The Trustees’ Report and accounts are prepared in accordance with sections 132‐166 of the Charities Act 2011.
Structure, governance & management
The Trustees who served throughout the period were Ian Nolan, Robert Craig and Jamie Butterworth.
The Trust is governed by its constitution, dated 5[th] October 2017, and is constituted as a Charitable Incorporated Organisation. Future Trustee appointments will be made by a resolution passed at a properly convened meeting of the charity Trustees.
None of the Trustees receive any remuneration from the CIO in respect of their role as Trustees.
The only ongoing costs incurred by the CIO are: to maintain its bank account and to have its year end accounts prepared.
The CIO has to date been funded by donations from a single individual and this is expected to remain the case.
Objectives & activities
The object of the CIO is to promote sustainable development for the benefit of the public by:
– the preservation, conservation and protection of the environment and the prudent use of resources;
– the relief of poverty and the improvement of the conditions of life in socially and economically disadvantaged communities; and
– the promotion of sustainable means of achieving economic growth and regeneration.
“sustainable development” means development which meets the needs of the present without compromising the ability of future generations to meet their own needs.
The charity seeks to meet its object by pro‐actively seeking out projects, in the UK or overseas, which are aligned with these objectives, and which they judge to be worthy of financial support. Such support may be in the form of grants, loans or investment. In so far as the CIO makes social investments (as defined by section 292A of the Charities Act 2011) it will comply as appropriate with sections 292B and 292C of the Charities Act 2011.
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For the first few years of its life, the principal activity of the CIO will be pro‐actively to seek out, and provide financial support by way of investment in, social enterprises whose missions are aligned with those of the CIO. Potential recipients will be evaluated against the criteria of: fit with the CIO’s objectives; the credibility of their plans to fulfil their mission and the prospects of their using the social capital provided to develop themselves into self‐ sustaining ventures.
Finding and evaluating these projects is undertaken by Ian Nolan, who makes recommendations to the Trustees.
The nature of the projects supported means that the CIO may find itself providing investment alongside other “impact investment” organisations. “Impact Investing” refers to ”investments made into companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return” ‐ ref. Global Impact Investing Network (GIIN).
Our ambition, as Trustees, is to achieve both the “impact” return on our investments, as well as to sustain, or grow, our financial capital. If we are successful in this regard, then these resources will become available again for future deployment and further impact, alongside any future donations received.
In the medium to longer term, it is the expectation of the Trustees that the activities of the CIO will evolve, and move to the disbursement of its then remaining capital by means of grants. This will seek to achieve the same charitable objectives, but will involve the disposition of all of the CIO’s then resources, and therefore be followed by its winding‐up.
Achievements and performance
During the year the CIO made no new disbursements.
The two existing social enterprises in the portfolio made good progress.
Pula, based in Kenya, is an agricultural insurance and technology company that designs and delivers innovative agricultural insurance and digital products to help smallholder farmers endure yield risks, improve their farming practices, and bolster their incomes over time.
Having raised $6m of incremental capital last year, Pula continued its rapid expansion. It now covers nineteen different crops and has insured some 6.5million smallholder farmers, at an average premium of $15. It operates at scale in Kenya, Nigeria, Zambia & Uganda; is scaling in Malawi and Tanzania, and has pilot operations in six further African countries, plus Pakistan, Nepal and Bangladesh. It expects to be profitable in 2022 and has ambitious plans for further expansion.
The CIO’s other social enterprise is Recoolit, in Indonesia.
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Recoolit is an ambitious, start‐up social enterprise seeking to mitigate the environmental damage which arises from the escape of CFC’s from used refrigerants, and has launched its activities in Indonesia, where a large volume of such refrigerants are currently uncollected and treated.
Recoolit is at a much earlier stage of its development than Pula, as is still endeavouring to validate its business model, and establish a viable social enterprise mitigating refrigerant emissions. It recently raised a further funding round of some $250,000, to which the CIO did not contribute. This has extended the cash runway of the enterprise to the middle of 2023. The Trustees remain hopeful that a viable operation can be established but are well aware that success remains to be achieved.
Financial review
The CIO’s assets, net of liabilities, stand at £111,670. This reflects the value of the investments in Pula and Recoolit, plus cash of £17,822 minus our accounting cost provisions.
Public benefit
The Trustees confirm that they have referred to the Charity Commission’s general guidance on public benefit when making investments and generally in pursuing the objectives of the charity in the period. These objectives will continue to be pursued in the coming period.
Investment Policy and Performance
The investment policy of the charity is primarily to preserve the capital of the charity, while carrying out investment in social enterprises as explained above, and with a view to long‐ term income and capital growth. The investments held will continue to be monitored against the policy of the charity.
Achievements and Performance
The trustees are glad that they have been able to contribute to the launch and growth of Pula, which is now making a real social contribution in helping farmers in emerging markets to manage the climate risks which they face and the enterprise is scaling rapidly. They are also encouraged by the resilience of Recoolit, and hopeful that it can establish a viable social enterprise mitigating refrigerant emissions in Indonesia.
Reserves Policy
Reserves are maintained at the discretion of the Trustees. They aim to maintain reserves at a level to provide sufficient funds to respond to further applications for social investment, and to ensure that sufficient funds are available to meet support and governance costs.
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Risk Assessment
The Trustees have considered the major risks to which the charity is exposed. They consider that the principal risk is investment risk, which they minimise by a careful evaluation of all possible investments, and subsequent monitoring. They believe that systems are in place to meet such other risks as they have identified.
Declaration
The Trustees declare that they have approved the Trustees’ report above.
Signed on behalf of the charity’s trustees
Ian Nolan Trustee 7/02/2023
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CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF TRUSTEES ON THE PREPARATION OF THE UNAUDITED FINANCIAL STATEMENTS OF THE ABINGER GREEN CIO FOR THE YEAR ENDED 31 MAY 2022
In order to assist you to fulfil your duties under the Charities Act 2011, we have prepared for your approval the financial statements of The Abinger Green CIO for the year ended 31 May 2022 which comprise the Receipts and Payments Account, Statement of Assets and Liabilities, and notes to the financial statements from the charity’s accounting records and from information and explanations you have given us.
As a member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations‐standards‐and‐guidance.
This report is made solely to the Board of Trustees of The Abinger Green CIO, as a body, in accordance with the terms of our current engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of The Abinger Green CIO and state those matters that we have agreed to state to the Board of Trustees of The Abinger Green CIO, as a body, in this report in accordance with ICAEW Technical Release 08/16 AAF. To the fullest extent, permitted by law, we do not accept or assume responsibility to anyone other than The Abinger Green CIO and its Board of Trustees as a body, for our work or for this report.
It is your duty to ensure that The Abinger Green CIO has kept adequate accounting records and to prepare financial statements that give a true and fair view of the assets, liabilities, financial position and surplus or deficit of The Abinger Green CIO. You consider that The Abinger Green CIO is exempt from both the statutory audit requirement and the requirement for an Independent Examination for the year ended 31 May 2022.
We have not been instructed to carry out an audit or a review of the financial statements of The Abinger Green CIO. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Wilson Wright LLP,
Chartered Accountants, First Floor, 5 Fleet Place, London, EC4M 7RD,
7 February 2023
The Abinger Green CIO
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Charity number 1175005
Receipts and Payments Account for the year 1[st] June 2021 to 31 May 2022
| Total & Unrestricted Funds 2022 £ |
Total & Unrestricted Funds 2021 £ |
||
|---|---|---|---|
| Receipts | |||
| Interest income | ‐ | 1 | |
| ‐ | 1 | ||
| Asset and investment sales |
|||
| Income from the sale of social investments |
‐ | 51,715 | |
| Total receipts | ‐ | 51,716 | |
| Payments | |||
| Accountingfees | (2,700) | (2,568) | |
| Bank charges | (96) | (101) | |
| (2,796) | (2,669) | ||
| Asset and investment purchases |
|||
| Social investment assets | ‐ | (30,143) | |
| Total payments | (2,796) | (32,812) | |
| Net(payments)/receipts | (2,796) | 18,904 | |
| Cash at 1 June 2021 | 20,618 | 1,714 | |
| Cash at 31 May 2022 | 17,822 | 20,618 | |
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The Abinger Green CIO
Charity number 1175005
Statement of Assets and Liabilities at 31 May 2022
| Assets | £ | |
|---|---|---|
| Cash funds | bank deposits | 17,822 |
| Investment assets | social investments | 96,548 |
| Liabilities | ||
| provision for accountingfees | (2,700) | |
| Total | 111,670 |
Signed on behalf of all the trustees
I M Nolan
7 February 2023
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The Abinger Green CIO
Charity Number 1175005
Notes to the financial statements
Note 1: Basis of preparation
These accounts have been prepared on a receipts and payments basis and include a statement of assets and liabilities at 31 May 2022.
Note 2: Transactions with related parties
No remuneration or expenses were paid to any Trustee or related party.
Note 3: Investment assets
Investment assets are dollar denominated. These are carried at the Trustees’ assessment of market valuation which is retranslated into sterling at 31 May 2022.
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