2022-01-31-accounts

Trustees’ Report & Consolidated Financial Statements

For the year ended 31 January 2022

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Contents

Trustees and Professional Advisors	p4
Trustees’ Report Incorporating Strategic Report	p7-21
Independent Auditor’s Report	p22-25
Consolidated Statement of Financial Activities	p26-29
Balance Sheets	p30
Consolidated Statement of Cash Flows	p31
Notes to the Financial Statements	p32-60

2 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2022

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Trustees & Charity Information Year ended 31 January 22

Trustees Timothy M Marsh

Neville B Sanders LLB (resigned 23 September 2021) Annette C Haynes Hugh E B Mayes (resigned 23 September 2021) Micheal Penn Richard G Bugler Christopher M D Haynes Christopher K Copson (appointed 23 September 2021)

Our Vision is to inspire people to explore, discover and experience the motor car, to empower them to learn and invite them to question.

Chief Executive Officer Christopher Scudds

Governing document Memorandum and Articles incorporated 5 May 2017

Principal office Sparkford Yeovil Somerset BA22 7LH

Charity number 1176857

Company number 10757195

Solicitors Stone King Solicitors LLP 13 Queen Square Bath BA1 2HJ

Bankers Barclays Bank Plc King George Street Yeovil Somerset BA20 1PX

Auditors Saffery Champness LLP St Catherine’s Court Berkeley Place Clifton Bristol BS8 1BQ

4 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2022

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Year ended 31 Jan 22 Report of the Trustees

Objectives & Activities

The main objective of the Charity is to provide a museum for the public display of a collection of motor vehicles, with the primary purpose of promoting public education in the appreciation and knowledge of the historical development and evolution of motor vehicles, their attendant parts, designs and technology. As a vital part of the Museum’s main objective, it has an active programme to retain, conserve and restore motoring and motorcycling items of historical and cultural interest.

Our Mission is to enable our audiences to experience and explore the motor car’s development and the evolution of automotive design, engineering and technology. We will stimulate a desire to reflect on the motor car’s influence on social history and we will fuel a curiosity to consider how the motor car and automotive technology might impact the world, its environment and its people in the future.

Haynes Motor Museum (which changed its name during the year from The Haynes International Motor Museum) has a wholly owned trading subsidiary, Haynes Motor Museum Trading Ltd (formerly Haynes Motor Museum), which is split into the following four key business units:

Our Vision is to inspire people to explore, discover and experience the story of the motor car, to empower them to learn and challenge them to question.

Conference & Events

Café 750

Workshop & Restoration Centre

Retail

Please note that reference to the Museum is in reference to both Haynes Motor Museum Ltd and Haynes Motor Museum Trading Ltd as one group.

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Public Benefit Requirement

The Trustees have had due regard to the public benefit guidance published by the Charity Commission in compliance with its duties under section 4 of the Charities Act 2011.

The guidance sets out two key principles:

1. The organisation must have an identifiable benefit

2. That identifiable benefit must be to the public or a section of the public

The Museum meets these principles through its primary activities which are education and the preservation and restoration of the Collection.

Governance

The Charity is managed by a Board of Trustees/ Directors. The Trustees meet regularly, usually no less than four times a year, to review and approve strategy and plans, to review financial performance against budget and to consider and offer advice to the executive on specific matters of operational importance.

During the year, one new Trustee joined the board at the AGM in an ex-officio position as Head of Collections. Chris Copson is a museum professional who brings many years of experience in the heritage sector. A second Trustee, Jeff Lau, was co-opted onto the board. Hugh Mayes and Neville Sanders both stood down from the board having been Trustees since the original founding of the Charitable Trust. Dr Jon Murden also stood down. The remaining Trustees would like to thank them all for their dedication to the Museum over many years.

Haynes Motor Museum Trading Ltd has a Board of Directors comprising members of the Senior Executive Team (SET) and one or more Trustees of the Charity. The SET provides a review of each business unit to the Board of Trustees at their quarterly meetings. These reviews are intended to provide an overview of the

strategy and business performance to assist the Trustees in their understanding of the Museum’s performance as a whole organisation.

The Chief Executive Officer (CEO) has executive responsibility for running the Museum in accordance with the strategy and annual budget as approved by the Trustees. The CEO is supported by a Senior Executive Team (SET) and the Management Group (MG). Drawing upon their individual expertise, they ensure that all aspects of the organisation operate in a coordinated manner to achieve the objectives of the Charity and Trading Company.

The SET meets no less than once a month to discuss the Museum and collectively take responsibility for all aspects of the organisation. This includes: The preservation and restoration of the Collection, education through learning and engagement, property maintenance, finance, ensuring provision of monthly management accounts, annual budgets and statutory accounts, sales and marketing, retail and visitor services, the activities of the trading subsidiary and ensuring that the Trustees fulfil their duties regarding governance including charity investments and long term financial planning.

Whilst the CEO is ultimately responsible for the executive decisions and operational management, he actively engages managers in a collaborative manner, to draw upon their professional and subject matter expertise. The CEO works closely with the SET and MG to develop and refresh a robust and sound overall strategy for the Museum. The strategy is presented to the Trustee Board for discussion, development and approval. Once approved the CEO oversees the implementation of that strategy.

The remuneration of the CEO is set by the Trustees using published remuneration of similar positions as a benchmark. Salaries of all other staff are set by the CEO.

Trustees’ Responsibilities

The Trustees (who are also directors of the Charity 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 which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

• Select suitable accounting policies and then apply them consistently;

• Observe the methods and principles in the Charities SORP (FRS 102);

• Make judgements and estimates that are reasonable and prudent;

• State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business

The trustees are responsible for keeping proper accounting records that 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

• There is no relevant audit information of which the charitable company’s auditor is unaware; and

• The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the reparation and dissemination of financial statements may differ from legislation in other jurisdictions.

• The Trustees receive regular information concerning Charity governance from a wide variety of sources and have the opportunity of attending training sessions provided by professional advisers.

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Volunteer Contribution

Core to the Museum’s strategy is the involvement of volunteers to enhance the visitor experience and support the Charity to develop its services to its beneficiaries.

The Museum has a diverse group of volunteers ranging from people who help when asked for a special purpose to those who volunteer on a regular weekly basis. Some examples of specific tasks which the volunteers undertake are as follows:

• Visitor guides doing tours and talks

• Live exhibit demonstrations

• Collection care and maintenance

• Work within the archive and library

• Assistance with shows and events

• Temporary exhibition research and preparation

• Assistance with educational visits and the wider Learning and Engagement offering

The Museum continues to recruit, train and engage volunteers in an expanding spectrum of projects and roles. Their commitment remains exemplary and the significant value they add across all areas remains exceptional. While the contribution from volunteers fell during the immediate aftermath of the Covid pandemic, the volunteer cohort have since resumed all of their activities and during the year contributed over 9,000 hours to the Museum. This is the equivalent of five full time members of staff.

Volunteers time

9,000 hours a year

the equivalent of 5 full-time staff

Visitor guides

Strategy

The Strategic Review, carried out in 2020, included a comprehensive programme of research and analysis about the Museum, its visitors and its place within the heritage and leisure sector. Five clear strategic priorities were developed from this work:

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The Strategic Priorities Plan lays out the core actions required to deliver each priority and is set against a timeline over the next five years.

Live exhibit demonstrations

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Financial structure

To remain financially independent the Museum needs to maintain a broad range of funding streams. It charges an admission fee to visitors and also conducts various other revenue generating activities through the trading company. Expanding these activities to the maximum possible extent will provide for a powerful financial base on which to grow the Museum’s charitable aspirations. Donations to the Museum made by individuals or other charitable trusts are also welcomed, but are only accepted on the clear understanding that they will not influence the Museum’s independent values.

The Charity has three unrestricted funds and one restricted fund: a fixed asset designated fund, a designated future resilience fund and a general fund. The general unrestricted fund relates to the accumulated surplus of income over expenditure for the year and is utilised to further the Charity’s objectives. The restricted fund is the balance of a private donation to be used for restoration of two vehicles and further social history interpretation within the Museum.

Management accounts are prepared monthly on a year to date basis for the Charity and its trading company and quarterly accounts are considered at Trustees’ meetings. In addition, budgets are compiled for the next financial year and considered at a Trustees’ meeting prior to the new financial year. These budgets are then reviewed against actual performance in the monthly management accounts.

Investment Policy

There are no restrictions on the Charity’s power to invest nor any special preferences for investing in particular sectors of the market or financial instruments.

Principal Risks & Uncertainties

With the exception of a global pandemic, the key risk is considered to be the risk of fire in the premises. A fire detection and alarm system is installed and maintained to the highest specification and the fire brigade is directly notified for immediate attendance. Fire tests and emergency evacuation tests are regularly conducted. The separation of the Workshop and Restoration Centre from the main body of the Museum isolates the source of the highest risk to the Collection. There is a fire suppression system in the kitchen but not in any other part of the Museum buildings. A Disaster Management Plan has been prepared to improve the response to a disaster and thereby minimise its impact. This is reviewed and updated annually.

The Museum has extensive policies to deal with public liability (£20 million cover), fire, theft, accidental damage, specialist workshop policy and fully comprehensive cover for Museum vehicles being driven on the public highways.

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Achievements & performance

The Museum started the year in the midst of the Covid-19 lockdown and wasn’t able to reopen its doors until mid-May 2021. Although there was initially some reluctance amongst the public to go out, the Museum was able to create a safe and welcoming environment to bring visitors back. The absence of opportunities for overseas travel meant that many families took their holidays in the South West of England with the Museum ideally placed as a family activity during their stay. Visitor numbers were therefore strong throughout the summer period. By the end of the summer, when most people had had two vaccinations, older visitors felt confident about coming out so visitor numbers held up well for the rest of the year. Total visitors during the nine months that the Museum was open, totalled 63,474 resulting in Entrance fees of £676,692 for the year.

The Museum continued to utilise schemes put in place by the government to help those organisations recovering from the effects of the pandemic. It has therefore benefited from a reduction in business rates, a temporary VAT reduction for leisure and hospitality businesses, and the use of the Job Retention Scheme to furlough members of staff at the beginning of the year when there was insufficient work for them to do. These schemes, in additional to Local Authority Grants benefitted the Museum by a total of £220k during the year.

Conferences and Events for both business and private clients effectively ceased in March 2020 reducing income in this department to zero for 14 months. However, the Museum was fortunate to have been chosen as a regional hub for the NHS Vaccination programme from April 2021. This generated significant income over the remainder of the year in addition to raising the profile of the Museum to a new audience of vaccination visitors, 84,635 of whom visited the Museum to have a Covid vaccination.

The Haynes Breakfast Club resumed in May 2021. It has continued to be popular throughout

the year, gradually building up a loyal following of enthusiasts who enjoy visiting the monthly events, each of which now has a theme based on a specific marque or period of vehicles. The Breakfast Clubs during the year generated funds from ticket sales of £22,334 (plus income from catering sales).

The Workshop and Restoration Centre returned to pre-pandemic levels of turnover but a number of internal issues meant that it did not fulfil its potential for profitability during the year. However, analysis of the outcomes has resulted in a number of significant changes to the structure of the business unit which is expected to return to profitability in the current year.

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Education - Learning & Engagement

Following the reopening of schools after lockdown, the Education Service has regained much of its momentum, with many schools eager to make up for lost time. Groups range from YrR/Yr1 to Post 16. The Education Team is now Volunteer led under supervision from the Collections Department.

The Collection

The Museum is still the UK’s largest collection of motor vehicles from around the world with over four hundred cars and motorcycles. From the dawn of motoring in the late 1800s through nostalgic classics of the 1950s and 1960s, from glorious Bentleys and Rolls Royces to world renowned supercars like the Jaguar XJ220, there is something for everyone.

The public continue to be extremely generous with offers of donations and loans to the Museum, the former including a 1985 Mk I Nissan Micra and the latter a 1985 Ford RS200, a rare and iconic vehicle with its origins in Group B rallying.

Our Volunteers have been working on two restoration projects, a Heinkel KR 200 bubble car and a Dayton Albatross scooter, both now nearing completion. Both projects have been carried out in a public area of the Museum and have attracted a good deal of interest.

Exhibitions

The refurbishment of several halls of the Museum has now ‘bedded in’ and received very favourable comments from our visitors, both in terms of better interpretation and better access to the vehicles on display. Several of the main halls are now carpeted and rope barriers have been removed allowing all-round access to most cars on display.

The temporary exhibition which opened in 2021, featuring Williams F1 cars and covering the history of the team, has proved very popular indeed. The exhibition also features an F1 cinema experience and elements relating to F1 safety and refuelling. This exhibition is intended to run until 2026.

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Capital Projects

The new car park which was begun in 2020 was completed in spring 2021. It has capacity for over 550 vehicles so not only relieves all the pressure on parking for Museum visitors and conference guests, but also offers a superb outdoor space for Haynes Breakfast Club and other external events.

As part of its commitment to sustainability the Museum installed 684 solar panels on the roof of the building. This was especially fortuitous in view of the unprecedented increases in the cost of electricity in 2022. The panels are expected to generate approximately 50% of the overall consumption during the year. A number of Pod Point chargers for electric vehicles have also been installed in the new car park.

Solar panels - Best day of Summer

Consumption	Self Consumption	Self Consumption
109.558 kW	109.558 kW
Solar Production 159.576 kW	Exported back to the grid 50.017 kW

Solar panels - Worst Day Since Installation Consumption Self Consumption 168.115 kW 29.717 kW Solar Production Exported back to the grid 29.717 kW 0 kW

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Financial Review

The results for the year may be found in the attached accounts with the statement of financial activities on pages 28 and 29 and the balance sheet on page 30.

Note that direct comparisons with prior year are difficult due to the various lockdowns in 20202021.

Annual income from Museum entrance fees was £676,692 for the period to 31 January 2022 (2021:£107,895). This was boosted by Gift Aid of £156,492 (2021: £20,006). Income from the trading company was £1,524,283 (2021: £746,839). There was an exceptional, and very generous, donation of £150,000 from Mrs Annette Haynes to finance restoration of two specific vehicles in the Collection, the Aston Martin DB4 and the Heinkel KR 200.

Total balance sheet funds increased by 2% to £17.4m from £17.1m in the prior year.

Reserves

The Charity is committed to providing an educational experience for the benefit of the public long into the future and must therefore plan to meet all financial obligations in furtherance of its charitable objectives.

The Trustees have considered what level of income reserves are required by the Charity. The Museum carries a business interruption insurance policy which will fund a shortfall in income from entry ticket sales and funding raised by trading activities to the point of recovery should the Museum be forced to close due to certain unforeseen events resulting in loss or damage to the property. Sadly, it did not cover closure due to a global pandemic.

to Museum operations. In prior years, six months of expenditure had been deemed to be sufficient. These £2m funds are to be held in a designated future resilience fund.

Total balance sheet funds increased by 2% to £17.4m from £17.1m in the prior year

Plans for Future Periods

The Strategic Priorities Plan developed during the year lays out the core actions required to deliver each priority identified in the Strategic Plan and is set against a timeline over the next five years.

Whilst some of the actions such as developing a Collections Management System, will be implemented in 2022-23, most of the work in the year is planning and preparation for a step change to the Museum in the following years. Central to this is use of professional consultants to re-imagine the gallery spaces to allow us to move definitively from a Car Collection to a Museum. In order to implement these changes, and use the latest digital, audio and mechanical interpretation, the Museum will need to access additional funding streams in the form of grants, corporate sponsorship and National Lottery Heritage Funding. Continuing our journey towards Arts Council England Accreditation is key to achieving this.

There are no material uncertainties over the going concern of the Museum as an entity.

Statement as to Disclosure of Information to the Auditor

The Trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the Trustees have confirmed that they have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

By order of the trustees

Mr Christopher M D Haynes Trustee

Date

In common with many other organisations, the assumption about the level of reserves held has proved to be incorrect and the Museum has concluded that free reserves equivalent to twelve months of operational costs should be retained to guard against future unforeseen interruptions

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Independent Auditors’ Report

to the Trustees Year ended 31 January 2022

Basis for Opinion

Opinion

We have audited the financial statements of Haynes Motor Museum Ltd (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 January 2022 which comprise the group Statement of Financial Activities, the group and parent charitable company Balance Sheets, the group Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

In our opinion the financial statements:

Conclusions relating to going

• Give a true and fair view of the state of the affairs of the group and the parent charitable company as at 31 January 2021 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group or the parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

• Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• Have been prepared in accordance with the requirements of the Companies Act 2006.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact.

We have nothing to report in this regard.

Other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• The information given in the Trustees’ Annual Report which includes the Directors’ Report and the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The Trustees’ Annual Report which includes the Directors’ Report and the Strategic Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report which includes the Directors’ Report and the Strategic Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 require us to report to you if, in our opinion:

• Adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or

• The parent charitable company’s financial statements are not in agreement with the accounting records and returns; or

• Certain disclosures of trustees’ remuneration specified by law are not made; or

• We have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 4, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due

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to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

Our objectives are to obtain reasonable assurance about whether the group and parent financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Laws and regulations of direct significance in the context of the group and parent charitable

company include The Companies Act 2006 and guidance issued by the Charity Commission for England and Wales.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve noncompliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of noncompliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement

due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at:

www.frc.org.uk/auditorsresponsibilities This description forms part of our auditor’s report.

Use of our Report

This report is made solely to the parent charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent charitable company and the parent charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Strong (Senior Statutory Auditor) for and on behalf of Saffery Champness LLP

Chartered Accountants Statutory Auditors

Statutory Auditors

St Catherine’s Court Berkeley Place Clifton, Bristol BS8 1BQ

Date

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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Consolidated Statement of Financial Activities Year ended 31 January 2022

		Unrestricted	Designated	Restricted		Unrestricted	Designated	Restricted
		funds	funds	funds	Total	funds	funds	funds	Total
		2022	2022	2022	2022	2021	2021	2021	2021
		£	£	£	£	£	£	£	£
	Notes
Income from:
Gift aid, grants and donations	4	220,233	-	150,000	370,233	265,602	-	-	265,602
Charitable activities	5	682,277	-	-	682,277	109,090	-	-	109,090
Other trading activities	3	1,517,710	-	-	1,517,710	712,712	-	-	712,712
Investments	6	75,680	-	-	75,680	31,561	-	-	31,561
		__	__	__	__	__	__	__	__
Total		2,495,900	-	150,000	2,645,900	1,118,965	-	-	1,118,965
		__	__	__	__	__	__	__	__
Expenditure from:
Charitable activities	7	(1,005,226)	(183,948)	-	(1,189,174)	(963,354)	(158,660)	-	(1,122,014)
Expenditure on raising funds	3	(1,232,694)	-	-	(1,232,694)	(972,266)	-	-	(972,266)
		__	__	__	__	__	__	__	__
Total		(2,237,920)	(183,948)	-	(2,421,868)	(1,935,620)	(158,660)	-	(2,094,280)
		__	__	__	__	__	__	__	__
Realised and unrealised gains on revaluation of investment assets	16	73,961	-	-	73,961	32,158	-	1,751,400	1,783,558
		__	__	__	__	__	__	__	__
Net income/(expenditure)	10	331,941	(183,948)	150,000	297,993	(784,497)	(158,660)	1,751,400	808,243
		__	__	__	__	__	__	__	__

26 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2022

27

Consolidated Statement of Financial Activities Year ended 31 January 2022

		Unrestricted	Designated	Restricted		Unrestricted	Designated	Restricted
		funds	funds	funds	Total	funds	funds	funds	Total
		2022	2022	2022	2022	2021	2021	2021	2021
		£	£	£	£	£	£	£	£
	Notes
Net income / (expenses) brought forward		331,941	(183,948)	150,000	297,993	(784,497)	(158,660)	1,751,400	808,243
		__	__	__	__	__	__	__	__
Transfer between funds	21	(8,625,043)	8,676,657	(51,614)	-	3,911,603	498,397	(4,410,000)	-
		__	__	__	__	__	__	__	__
Net movement in funds		(8,293,102)	8,492,709	98,386	297,993	3,127,106	339,737	(2,658,600)	808,243
Reconciliation of funds:
Total funds brought forward as at 1 February	21	10,078,039	6,995,468	-	17,073,507	6,950,933	6,655,731	2,658,600	16,265,264
		__	__	__	__	__	__	__	__
Total funds carried forward as at 31 January	21	1,784,937	15,488,177	98,386	17,371,500	10,078,039	6,995,468	-	17,073,507
		__	__	__	__	__	__	__	__

All income and expenses of the Group relate to continuing operations.

The Charity has elected not to present the Charity Statement of Financial Activities. Total income for the Charity for the year was £1,350,486 (2021: £301,850). The net income for the Charity for the year was £84,620 (2021: £907,962).

28 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2022

29

Balance Sheets As at 31 January 2022

The net income for the Charity for the year was £84,620 (2021: £907,962).

The financial statements on pages 14 to 41 were approved by the Trustees and authorised for issue

On and are signed on their behalf by:

Mr Christopher M D Haynes, Trustee

Company Registration No. 10757195

Consolidated Statement of Cashflows Year ended 31 January 2022

30 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2022

31

Notes to the Consolidated Financial Statements Year ended 31 January 2022

1. Accounting policies

1.1. Charity Information

Haynes Motor Museum Ltd is a charity registered in England and Wales.

Haynes Motor Museum Ltd and its group meet the definition of a public benefit entity under section 34 of FRS 102.

1.2. Basis of Preparation

“The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland” (FRS 102) and with the Statement of Recommended Practice “Accounting and Reporting by Charities” FRS 102 as revised in 2015 (the SORP 2015) together with the reporting requirements of the Companies Act 2006 and the Charities Act 2011. The Charity has adapted the Companies Act formats to reflect the SORP 2015.

The accounts have been prepared under the historical cost convention, as modified by the inclusion of investments at market value or transaction value, unless otherwise stated in the relevant accounting policy.

The financial statements are presented in sterling which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1.

The accounts have been prepared on the going concern basis. There are no material uncertainties about the Charity’s ability to continue. The Charity is a public benefit entity. The accounting policies have been applied consistently throughout the accounts and the prior year.

1.3. Basis of Consolidation

Haynes Motor Museum Ltd was incorporated in May 2017 and was registered as a charity on 5 May 2017. On 31 October 2018 it received the net assets and undertakings of the unincorporated Haynes International Motor Museum, an existing unincorporated charitable trust with the same charitable objectives as the incorporated charity. The results of the Charity are consolidated with its wholly owned subsidiary undertaking, on a line by line basis. In the consolidated accounts, uniform accounting policies have been used. The consolidated entity is referred to as “the Group”.

No separate charitable company Statement of Financial Activities (SOFA) has been prepared by the Charity as permitted by section 408 Companies Act 2006.

1.4. FRS 102 Reduced Disclosure Exemptions

In accordance with FRS 102, the charitable company has taken advantage of the exemptions from the following disclosure requirements;

• Section 7 ‘Statement of Cash Flows’ – Presentation of a Statement of Cash Flow and related notes and disclosures

• Section 11 ‘Basic Financial Instruments’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income.

1.5. Accounting for income

Admission fees, gifts, exhibits and donations are accounted for as the income is received. Donated exhibit assets are valued by the Curatorial Director at the date of the donation for insurance purposes but held at historical cost. Donated investments are valued at the date of the gift. All incoming resources have been included in the SOFA gross of any related expenditure. Income from the trading subsidiary is accounted for on an accruals basis. Rental income is recognised on an accruals basis.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.6. Interest Receivable

Interest on UK listed investments is accrued on a day to day basis. All income arising on deposits is accounted for on a receivable basis.

1.7. Donated Assets and Core Collection

Additions to the collection are capitalised at valuation only when an appropriate valuation is provided, otherwise the purchase cost is used when known or can be reliably ascertained. No value is attributed to physically donated assets within the financial statements where no reliable valuation can be obtained.

1.8. Donated Services

Core to the museum’s strategy is the involvement of volunteers to enhance the visitor experience and help the Charity develop its services to its beneficiaries.

The museum has a strong group of volunteers ranging from people who help at the museum when asked for a special purpose, to those who work at the museum on a regular weekly basis.

The time spent by volunteers during the year was 9,087 hours (2021: 2,902). The estimated costs of these services are based on the national living wage for £8.91 (2019/20 at £8.72) and the values of these services are therefore £80,965 (2021: £25,305). In accordance with the Charities SORP (FRS 102) this value is not recognised in the SOFA.

1.9. Expenses

Expenses are accounted for on an accruals basis and are recognised in the period in which there is a legal or constructive obligation to make a payment to a third party. In accordance with the Charities SORP, expenditure has been analysed between the expenditure on raising funds and charitable activities. Items of expenditure which involve more than one cost category have been apportioned on a reasonable, justifiable and consistent basis for the cost category concerned. Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the Museum to the expenditure.

Charitable expenditure includes expenditure associated with Exhibitions, Curatorial Matters and Education and shows costs directly attributable to each activity. Costs not

32 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2022

33

directly attributable to one activity including the proportion of support costs relating to charitable expenditure have been allocated on a reasonable basis of resources used.

1.10. Allocation of Support Costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include finance, IT, staff, general office and governance costs which support the charity’s operations and activities. These costs have been allocated to charitable activities. The basis on which support costs have been allocated are set out in note 8.

1.11. Governance Costs

Governance costs include those costs incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

1.12. Employee Benefits

The costs of short-term employment benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or are capitalised.

The best estimate of the expenditure required to settle an obligation for termination benefits is recognised immediately as an expense when the charity and group are demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13. Tangible Fixed Assets

All tangible fixed assets that have an expected useful economic life that exceeds one year and a value of more than £1,250 are capitalised and recorded at cost.

Depreciation has been calculated on fixed assets so as to write off the cost of the assets in equal instalments over their useful lives as follows:

• Freehold land Nil

• Freehold property 2% per annum straight-line

• Assets under construction Nil

• Fixtures and equipment 15% per annum straight-line

• Motor vehicles 25% per annum reducing balance

1.14. Heritage Assets

Heritage assets are capitalised and included at cost where purchased, or if gifted then at their fair value on donation where this is practicable. They represent the exhibit assets of the Museum which are held in support of the Museum’s primary objective.

No depreciation is provided on exhibit assets as, in the opinion of the Trustees, depreciation would be immaterial due to high residual values as a result of extensive maintenance and restoration of the exhibits owned by the Museum. The Trustees carry out an impairment review of the exhibit assets by annually considering the recoverable amount (being the higher of net realisable value and value in use) of the heritage assets as a collection.

1.15. Investment Properties

Investment properties are shown at open market value as estimated by the Trustees. Any surplus or deficit on revaluation is taken to the Statement of Financial Activities.

1.16. Fixed Asset Investments

Investments are stated in the balance sheet at market value, any depreciation or diminution in value in the year being accounted for in the Statement of Financial Activities. Listed investments are valued at the year end at prevailing market prices.

Investments are assessed for indicators of impairment at each reporting end date. Investments are impaired when there is objective evidence from events that the estimated future cash flows have been affected. The impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the investments original effective interest rate. The impairment loss is recognised in the SOFA.

1.17. Stock

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the SOFA. Reversals of impairment losses are also recognised in the SOFA.

1.18. Funds

The museum’s financial statements show the consolidation of four funds. These divide into two distinct categories which have been analysed in accordance with the SORP as follows:

Unrestricted funds

The use of these funds has not been restricted to a particular purpose by a donor or their representatives. They are divided into the general fund and designated funds.

General fund

The general fund is the free fund of the Charity. It is not tied or designated in a particular area or for some other defined or designated purpose.

The general fund has to provide for the general administration of the Charity, for serving the public and for publicity. It also has to meet the Charity’s requirement for working capital and the costs of tangible fixed assets.

Designated funds

Designated funds are those which have been allocated by the Trustees/Charity for particular purposes. The designated funds are:

The designated fixed asset fund, formerly the designated property fund: following completion of the Museum refurbishment, it was decided that all the freehold and leasehold property of the Museum held as fixed assets should be held within one fund. This fund was expanded in the current year to include all tangible fixed assets, including exhibits.

The future resilience fund: A new fund designated this year in case of another period when the Museum is unable to open. This has been based upon expenditure incurred during the year ended 31 January 2021.

34 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2022

35

Restricted funds

The restricted funds are donations and grants which the donors requested be spent on specific projects, see note 21.

1.19. Financial Instruments

As the charity and group only have basic financial instruments it has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102, to all of its financial instruments.

Financial instruments are recognised when the charity or group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, loans to fellow group companies and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the SOFA.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the SOFA.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

De-recognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s contractual obligations are discharged, cancelled or they expire.

1.20. Cash and Cash Equivalents

Cash and cash equivalents includes cash and short term highly liquid investments with a short maturity period.

1.21. Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at net incoming resources.

2. Critical Judgements and Estimates

In the application of the charity’s and group’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The annual depreciation charge is sensitive to any changes in the estimated useful life and residual values of the tangible and heritage assets. The useful economic lives and residual value is assessed on an annual basis and are amended only when evidence shows a change in the estimated economic lives or residual life. Criteria used to assess the economic life and residual value includes technological advancement, economic utilisation, physical condition of the asset and future investments.

De-recognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities

Financial liabilities are classified according to the substance of the contractual arrangements entered into.

36 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2022

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3. Results of Trading Subsidiary

Haynes Motor Museum Trading Ltd, is Haynes Motor Museum Ltd’s wholly owned trading subsidiary incorporated in England and Wales, company number 02016467. A summary of the audited income statement for the year ended 31 January 2022 is stated below:

Turnover Cost of sales Gross profit Administrative expenses Other operating income Interest receivable Profit / (Loss) for the year Amounts payable under Gift Aid Donations Profit retained for the financial year Balance sheet summary Fixed assets Current assets Current liabilities Net assets Reconciliation of trading subsidiary results to SOFA Included in government grants receivable (note 4) Turnover of trading subsidiary Less intercompany sales Income from trading activities from SOFA Cost of sales from trading subsidiary Administrative expenses from trading subsidiary Total expenses in subsidiary Less: Rent of premises Cost of intercompany sales Add: Charity’s expenditure on raising funds Expenditure on raising funds	2022 £ 1,524,283 (561,187) 963,096 (666,216) 9,220 18 306,118 92,745 213,373 2022 £ 110,615 637,224 (417,809) 330,030 2022 £ 9,220 1,524,283 (6,573) 1,517,710 (561,187) (666,216) (1,227,403) 64,828 4,601 (74,720) (1,232,694)	2021 £ 746,839 (304,187)
		442,652 (674,718) 132,154 193
		(99,719) --
		(99,719)
		2021 £ 154,775 457,063 (495,181)
		116,657
		2021 £ 132,154
		746,839 (34,127)
		712,712 (304,187) (674,718)
		(978,905) 27,944 23,889 (45,194)
		(972,266)

4. Income from gift Aid and Donations

	Unrestricted	Restricted	Total	Unrestricted	Total
	funds	funds		funds
	2022	2022	2022	2021	2021
	£	£	£	£	£
Gift aid on entrance fees	118,991	-	118,991	19,650	19,650
Gift aid on donations	37,501	-	37,501	-	-
Grants and donations	25,066	150,000	175,066	19,653	19,653
Government grants	38,675	-	38,675	226,299	226,299
receivable
	220,233	150,000	370,233	265,602	265,602

Government grants received in the year were related to the Coronavirus Job Retention Scheme.

5. Income from Charitable Activities

	Unrestricted	Total	Unrestricted	Total
	funds		funds
	2022	2022	2021	2021
	£	£	£	£
Entrance fees	676,692	676,692	107,893	107,893
Sale of catalogues	5,585	5,585	1,197	1,197
	682,277	682,277	109,090	109,090

6. Income from Investing Activities

	Unrestricted	Total	Unrestricted	Total
	funds		funds
	2022	2022	2021	2021
	£	£	£	£
UK listed investments	-	-	-	-
Bank interest and investments	209	209	860	860
Other income	75,471	75,471	30,701	30,701
	75,680	75,680	31,561	31,561

38 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2022

39

7. Expenditure on Charitable Activities

Unrestricted Funds 2022 £ Designated Funds 2022 £ Wages and national insurance 237,334 - Training and staff costs 4,668 - General rates 55,417 - Water rates 5,109 - Repairs and restoration 81,112 - Waste removal and cleaning 16,606 - Insurance 57,510 - Lighting and heating 58,244 - Catalogue and education expenses 871 - Depreciation on property improvements - 183,948 Loss/(gain) on sale of fixed assets (18,250) - Support costs (see note 8) 492,205 - Governance costs (see note 8) 14,400 - _ 1,005,226 183,948 __ _____	_	Total 2022 £ Unrestricted Funds 2021 £ Designated Funds 2021 £ 237,334 257,400 - 4,668 2,274 - 55,417 58,475 - 5,109 6,842 - 81,112 70,260 - 16,606 11,037 - 57,510 39,322 - 58,244 49,531 - 871 1,325 - 183,948 - 158,660 (18,250) (1,550) - 492,205 453,663 - 14,400 14,775 - _ 1,189,174 963,354 158,660 _ _ __	_	Total 2021 £ 257,400 2,274 58,475 6,842 70,260 11,037 39,322 49,531 1,325 158,660 (1,550) 453,663 14,775 _ 1,122,014 __

40 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2022

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8. Allocation of Support Costs and Governance Costs

Support costs Wages and national insurance Security Printing & stationery Motor expenses Travel expenses Telephone, postage and IT Professional fees Sundry expenses Bank charges and interest Depreciation: Fixtures and fittings Motor Cars Governance costs Audit	Staff costs 2022 £ Premises costs 2022 £ General office costs 2022 £ Professional fees 2022 £ Depreciation 2022 £ 169,221 - - - - - 9,736 - - - - - 4,098 - - - - 1,159 - - - - 1,912 - - - - 48,906 - - - - - 6,321 - - - 654 - - - - - 13,949 - - - - - 236,249 - - - - - _ _ 169,221 9,736 56,729 20,270 236,249 _ __ __ _ __ - - - 14,400 - _ _ 169,221 9,736 56,729 34,670 236,249 ___ __ _ __ __	_	Total 2022 £ 169,221 9,736 4,098 1,159 1,912 48,906 6,321 654 13,949 236,249 - _ 492,205 _ 14,400 _ 506,605 _	_	Total 2021 £ 165,393 15,312 4,144 2,621 1,605 40,371 10,002 231 5,671 208,313 - _ 453,663 _ 14,775 _ 468,438 _
	_	_		_

42 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2022

43

9. Information Regarding Staff Costs and Trustee’s Remuneration

C Copson was paid a salary in relation to his role as Curatorial Director in the year (appointed as trustee 23 September 2021). L Gangadeen was paid a salary in relation to her role as Curatorial Director in the prior year (resigned as trustee 13 May 2020). Expenses to the value of £448 were reimbursed to the Trustees (2021: £699). One employee received emoluments between£60,000 and £70,000 during the year (2021: one). No other employees received emoluments in excess of £60,000 (2021: nil).

Key management personnel emoluments during the year: Emoluments from Charity Emoluments from subsidiary Employee costs during the year: Wages and salaries Social security costs Defined contribution pension costs	2022 £ 129,742 - _ 129,742 _ 875,444 59,739 16,816 _ 951,999 _	2021 £ 113,335 - ___ 113,335
		_ 927,011 71,275 18,275 _ 1,016,561 ___

Emoluments relating to Trustees equal £29,635 (2021: £15,116) and relating to directors equal £100,107 (2021: £98,219).

Average number of persons employed during the year: Curatorial department Administration Fund raising subsidiary	2022 No. 2 17 22 _ 41 _	2021 No. 3 18 27 _ 48 _

There were termination costs in the year of £nil (2021: £4,603).

44 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2022

45

10. Net Income / (Outgoing) Resources

Unrestricted Funds Designated Funds 2022 2022 £ £ Net incoming/(outgoing) resources is arrived at after charging / (crediting): Depreciation – owned assets 270,428 183,948 Loss/(gain) on disposal of fixed assets (18,250) - Debtor impairments - - Auditor’s remuneration Fees payable to the Charity auditor for the audit of the financial statements and the consolidation 11,975 - Fees payable to the Charity auditor and its associates for other services: Accountancy 2,150 - Tax compliance services 1,175 -	Total Unrestricted Funds Designated Funds 2022 2021 2021 £ £ £ 454,376 244,849 158,660 (18,250) (1,550) - - - - 11,975 11,300 - 2,150 2,010 - 1,175 1,110 -	Total 2021 £ 403,509 (1,550) - 11,300 2,010 1,110

46 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2022

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11. Taxation

As such its source of income and gains, received under Section 505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992, are exempt from taxation to the extent that they are applied exclusively to its charitable objectives. No tax charge has arisen in the Charity or the group in the year.

12. Tangible Fixed Assets

Group Assets under Construction £ Cost At 1 February 2021 1,099,884 Additions 320,775 Transfers (1,264,183) Disposals - _ At 31 January 2022 156,477 _ Depreciation At 1 February 2021 - Charge for the year - On disposals - _ - At 31 January 2022 _ Net book value At 31 January 2022 156,477 _ At 31 January 2021 1,099,885 _	Freehold Property £ Fixtures, fittings, plant & equipment £ 8,807,249 1,695,801 - 236,899 1,264,183 - - (14,167) _ _ 10,071,432 1,918,536 _ _ 1,811,781 926,196 183,948 270,076 - - _ _ 1,995,729 1,196,272 _ _ 8,075,704 722,263 _ _ 6,995,469 769,611 _ _	Motor Vehicles £ 11,067 - - - _ 11,067 _ 9,670 348 - _ 10,018 _ 1,049 _ 1,397 _	Total £ 11,614,004 557,674 - (14,167) _ 12,157,512 _ 2,747,647 454,372 - _ 3,202,019 _ 8,955,493
			_ 8,866,362 _

12. Tangible Fixed Assets

Charity Assets under Construction £ Cost At 1 February 2021 1,099,884 Additions 320,776 Transfers (1,264,183) Disposals - _ At 31 January 2022 156,477 _ Depreciation At 1 February 2021 - Charge for the year - On disposals - _ At 31 January 2022 - _ Net book value At 31 January 2022 156,477 _ At 31 January 2021 1,099,884 _	Freehold Property £ Fixtures, fittings, plant & equipment £ 8,807,249 1,394,911 - 232,720 1,264,183 - - - _ _ 10,071,432 1,627,631 _ _ 1,811,781 778,684 183,948 236,253 - - _ _ 1,995,729 1,014,933 _ _ 8,075,703 612,698 _ _ 6,995,468 616,227 _ _	Total £ 11,302,048 553,491 - - _ 11,855,540 _ 2,590,465 420,201 - _ 3,010,662 _ 8,844,878 _ 8,711,579 _

All assets of material value are held for use on a continuing basis in the Charity’s activities. The Trustees do not consider it practicable to segregate assets used for direct charitable purposes and those used for other purposes.

48 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2022

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13. Heritage Assets (Group and Charity)

The exhibits are classified as Heritage Assets, using the definitions set out in SORP.

	Exhibits
	£
Net book value at 1 February 2021	4,279,684
Additions	-
Disposals	-
Net book value at 31 January 2022	4,279,684

Further details of how the Charity manages, preserves and grants access to its collection of heritage assets is provided in the Trustees Report. The Charity maintains detailed electronic records of its heritage asset collection including date of acquisition and disposal.

14. Five-year Financial Summary of Heritage Asset Transactions (Group and Charity)

2021-22 2020-21 2019-20 2018-19 2017-18 £ £ £ £ Additions: Purchases - 5,500 12,100 19,100 - Disposals - - - - Carrying value 3,500 Sale proceeds - - - - 1,000

15. Investment Properties

. Investment Properties
	Investment properties
Group and Charity	£
Cost
At 1 February 2021 & at 31 January 2022	253,000

The Charity owns a property for rental to a third party and therefore it is considered by the Trustees to be an investment property. The value relates to the original purchase price. The Trustees’ consider there to be no material difference in the market value of this property and the value that it was held under fixed assets and therefore the property is held at its current net book value as at 31 January 2022.

No depreciation is provided in respect of investment properties.

16. Investments Held as Fixed Assets

Group and Charity	Unrestricted	Total
	Funds	2022
	£	£
At market value
As at 1 February 2021	1,082,863	1,082,863
Revaluation (losses)/gains in the year	73,961	73,961
Proceeds on disposal	-	-
	___	___
As at 31 January 2022	1,156,824	1,156,824
	___	___
Historical cost as at 31 January 2022	441,426 ___	441,426 ___

Unrestricted funds comprise funds held through Seven Investment Management. The fund comprises holdings in three low to medium risk investment funds.

Investments held by the Charity also include an additional £2 (2021: £2) investment in the subsidiary company held at nil net book value (2021: £nil) (see note 3). The Charity owns 100% of the share capital. The subsidiary’s principal activities are hospitality services, workshop and restoration centre and retail.

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17. Stocks

17. Stocks Group 2022 2021 £ £ Goods for re-sale 116,415 122,530 Work in progress 4,860 14,428 _ _ 121,275 136,958	Charity 2022 2021 £ £ 3,197 5,629 - - _ _ 3,197 5,629

18. Debtors

18. Debtors Trade debtors Amounts owed by subsidiary undertaking Prepayments VAT receivable	Group 2022 2021 £ £ 263,729 193,728 - - 39,158 47,311 (4,788) 95,040 _ _ 298,099 336,079 _ _	Charity 2022 2021 £ £ 10,140 6,322 298,939 395,614 38,575 34,996 (4,788) 95,040 _ _ 342,866 531,972 _ _

20. Financial instruments

20.	Financial instruments
		Group		Charity
		2022	2021	2022	2021
		£	£	£	£
	Financial assets that are debt
	instruments measured at amortised
	cost:
	Trade debtors	263,729	193,728	10,140	6,322
	Amounts owed by subsidiary	-	-	298,939	395,614
	undertaking
		263,729	193,728	309,079	401,936
	Financial liabilities measured at
	amortised cost:
	Trade creditors	122,910	123,616	76,976	61,502
	Accruals and deferred income	37,901	30,873	23,857	17,943
		160,811	154,489	100,833	79,445

19. Creditors

19. Creditors Trade creditors Other taxes and social security Accruals and deferred income	Group 2022 2021 £ £ 122,910 123,616 69,171 32,257 37,901 30,873 _ _ 229,982 186,746	Charity 2022 2021 £ £ 76,976 61,502 10,279 7,734 23,857 17,943 _ _ 111,112 87,179

52 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2022

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21. Statement of Funds

Group Unrestricted funds General funds Designated fixed asset fund Designated future resilience fund Total unrestricted funds Restricted funds Donations and grants Total funds	At 1 February 2021 £ 10,078,039 6,995,468 - _ 17,073,507 _ - ____ 17,073,507	Income £ 2,509,400 - - _ 2,509,400 _ 150,000 ____ 2,659,400	Expenditure Realised & unrealised (losses)/gains £ £ (2,251,420) 73,961 (183,948) - - - _ _ (2,435,368) 73,961 _ _ - - _ _ (2,435,368) 73,961	Transfer between funds £ (8,625,043) 6,676,657 2,000,000 _ 51,614 _ (51,614) ____ -	At 31 January 2022 £ 1,784,937 13,488,177 2,000,000 _ 17,273,114 _ 98,386 ____ 17,371,500

The designated fixed asset fund, formerly the designated property fund: following completion of the Museum refurbishment, it was decided that all the freehold and leasehold property of the Museum held as fixed assets should be held within one fund. This fund was expanded in the current year to include all tangible fixed assets, including exhibits.

54 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2022

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21. Statement of Funds

The future resilience fund: A new fund designated this year in case of another period when the Museum is unable to open. This has been based upon expenditure incurred during the year ended 31 January 2021.

The restricted fund is the balance of a private donation to be used for restoration of two vehicles and further social history interpretation within the Museum.

Charity Unrestricted funds General funds Designated fixed asset fund Designated future resilience fund Total unrestricted funds Restricted funds Donations and grants Total funds	At 1 February 2021 £ 9,961,382 6,995,468 - _ 16,956,850 _ - ____ 16,956,850	Income £ 1,126,525 - - _ 1,126,525 _ 150,000 ____ 1,276,525	Expenditure Realised & unrealised (losses)/gains £ £ (1,081,918) 73,961 (183,948) - - - _ _ (1,265,866) 73,961 _ _ - - _ _ (1,265,866) 73,961	Transfer between funds £ (8,514,428) 6,566,042 2,000,000 _ 51,614 _ (51,614) ____ -	At 31 January 2022 £ 1,565,522 13,377,562 2,000,000 _ 16,943,084 _ 98,386 ____ 17,041,470

56 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2022

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22. Analysis of Net Assets Between Funds

23. Related Party Transactions

Key Management Personnel

Group Fund balances at 31 January 2022 represented by: Tangible fixed assets Heritage assets Investment properties Fixed asset investments Current assets Current liabilities Total net assets	Restricted funds £ Designated property fund £ - 8,955,493 - 4,279,684 - 253,000 - - 98,386 2,000,000 - - _ _ 98,386 15,488,177 _ _	General funds £ Total £ - 8,955,493 - 4,279,684 - 253,000 1,156,824 1,156,824 858,095 2,956,481 (229,982) (229,982) _ _ 1,784,937 17,371,500 ___ __

Charity Fund balances at 31 January 2022 represented by: Tangible fixed assets Heritage assets Investment properties Fixed asset investments Current assets Current liabilities Total net assets	Restricted funds £ Designated property fund £ - 8,844,878 - 4,279,684 - 253,000 - - 98,386 2,000,000 - - _ _ _ 98,386 15,377,562	General funds £ - - - 1,156,824 519,810 (111,112) __ 1,565,522	Total £ 8,844,878 4,279,684 253,000 1,156,824 2,618,196 (111,112) ___ 17,041,470

Total compensation paid to key management personnel during the year was £129,742 (2021: £113,335).

One Trustee received remuneration during the year (see note 9). No other Trustees received remuneration for the provision of their services as Trustees of Haynes Motor Museum Ltd during the year. Expenses to the value of £448 were reimbursed to the Trustees (2021: £699). The Trustees have considered the disclosure requirements of the SORP for Charities (January 2015) and of FRS 102 Section 33 and believe that the following related party transactions require disclosure:

The Charity

• (i) The museum purchased goods and services from Haynes Developments Limited (HDL), of which A C Haynes and C M D Haynes are directors, to the value of £365,281 (2021:£1,208,539). Amounts due to HDL at the year-end were £nil (2021: £41,611). The museum made sales to HDL of £300 (2021: £270). Amounts due from HDL at the year-end were £360 (2021: £324).

• (ii) Sales to Bute Motorsport Limited of which C M D Haynes is a director amounted to £300 (2021: £270). Amounts due at the year-end were £360 (2021: £324).

The Trading Subsidiary

• (a) Sales to directors totalled £55,606 (2021: £17,741). Amounts due from directors at the end of the year were £11,360 (2021: £7,701). Sales to other Haynes family members amounted to £4,309 (2021: £8,914). Amounts due from other Haynes family members at the year-end were £ nil (2021: £ nil).

• (b) Sales to Haynes Developments Limited, of which A C Haynes and C M D Haynes are directors, totalled £2,323 (2021: £17,129). Purchases from Haynes Developments Limited totalled £nil (2021: £715). Amounts due at the year-end were £365 (2021:£4,285).

58 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2022

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24. Capital Commitments

There are no outstanding capital commitments at the year-end (2021: £nil).

25. Company Status

The company is limited by guarantee and the total of those guarantees is £1 per member.

26. Cash Generated from Operations 26. Cash generated from operations

Cash Generated from Operation ash generated from operations	s
	2022	2021
	£	£
Net income/(expenditure)	297,993	808,243
Adjustments for:
Bank charges	13,949	5,671
Investment income received	(75,680)	(31,561)
Depreciation	454,372	403,509
Recognised and unrecognised loss/(gain)	(73,961)	(1,783,558)
on revaluation of investments
(Profit)/loss on disposal of fixed assets	(18,250)	(1,550)
	598,423	(599,246)
Decrease / (increase) in stock	15,683	(19,699)
(Increase) / decrease in debtors	37,980	(144,529)
Increase / (decrease) in creditors	43,226	(103,834)
Net cash provided by / (used in)
operating activities	695,322	(867,308)

No restrictions apply to the cash or cash equivalents.

27. Operating lease commitments

27. Operating lease commitments

perating lease commitments Operating lease commitments
	2022	2021
Equipment and motor vehicles	£	£
Due within 1 year	7,264	26,043
Between 1-5 years	8,702	24,833
	15,966	50,876

60 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2022

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PRESERVATION[•] RESTORATION[•] EDUCATION

T: 01963 440804 E: [e-mail] haynesmuseum.org