2023-01-31-accounts

Trustees’ Report & Consolidated Financial Statements

For the year ended 31 January 2023

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Contents

Trustees and Professional Advisors	p4
Trustees’ Report Incorporating Strategic Report	p7-19
Independent Auditor’s Report	p20-23
Consolidated Statement of Financial Activities	p24-29
Balance Sheets	p36
Consolidated Statement of Cash Flows	p31
Notes to the Financial Statements	p30-59

2 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2023

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Trustees & Charity Information Year ended 31 January 23

Trustees Timothy M Marsh

Annette C Haynes Micheal Penn Richard G Bugler Christopher M D Haynes Christopher K Copson Jeffery Lau (appointed 26 September 2022) Rebecca Beresford (appointed 26 September 2022)

Our Vision is to inspire people to explore, discover and experience the motor vehicle, 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 2023

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Year ended 31 Jan 23 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 vehicle’s development and the evolution of automotive design, engineering and technology. We will stimulate a desire to reflect on the motor vehicle’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 has a wholly owned trading subsidiary, Haynes Motor Museum Trading Ltd, 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 vehicle, 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 two new Trustees joined the Board at the AGM. Rebecca Beresford and Jeff Lau bring with them extensive experience in the legal field and also in motorsport. Chris Copson who had previously been an ex-officio

Trustee due to his executive role as Head of Collections, left his executive role during the year. Chris is a museum professional with many years of experience in the Museum and the wider heritage sector and has therefore been invited to remain on the Board. Executive responsibility for the Collection now falls to the Curator, Dr Luca Hoare, who is expected to be invited to become the ex-officio Trustee in due course.

Haynes Motor Museum Trading Ltd has a Board of Directors comprising the Chief Executive Officer (CEO) and Finance Director of the Charity and one or more Trustees of the Charity. The Senior Executive Team (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 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 are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales 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 Charity and the Museum and of the incoming resources and application of resources of the Museum 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

• Make judgments 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 Charity and the Group and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and the Group and hence for

taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the Charity and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation 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.

8 Report of the Trustees Year ended 31 January 2023

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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 and permanent exhibition research and preparation

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

The Museum has recruited a Visitor Experience and Volunteers Officer and part of his role is to recruit, train and engage volunteers in an expanding spectrum of projects and roles. The volunteers’ commitment remains exemplary and the significant value they add across all areas remains exceptional.

The contribution of the volunteers to the Museum during the year was over 15,000 hours. This is the equivalent of eight full time members of staff.

Volunteers time over

15,000 hours a year

the equivalent of 8 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 laid out the core actions required to deliver each priority and was set against a five year timeline. The Plan was reviewed and updated at the end of the financial year.

Collection care and maintenance

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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 provides the basis for the Museum’s charitable aspirations. However, the Strategic Priorities Plan outlines the ambition to transform the Museum and therefore incorporates further new income streams to support this. These include grant funding, individual giving and commercial sponsorship. 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

The Trustees have nominated a Finance Committee to review all financial matters, liaise with designated financial advisors, and make recommendations to the Trustee board for management of the Museum’s funds, including investments.

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.

During the year the Museum transferred its investments to the management of Brewin Dolphin Ltd. It set up two portfolios. One is a longer term (>10 year) portfolio holding £2m. The other has a 3-5 year horizon holding £750k set aside for the development of the exhibition spaces.

Principal Risks & Uncertainties

Risk analysis shows that 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 Haynes Heritage Engineering workshop 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 year in question was the first full year of the Strategic Plan and the work completed was laying the foundation for the development over the coming years. One key achievement was the strengthening of the Marketing and Communications function both in terms of a new Head of Communications, Steve Mytton, and also development of a CRM system. Improved communications with visitors is critical to future growth in visitor numbers. A review of the Plan at the year end showed that most objectives for year one were achieved and activities were on track for the coming year.

After a very turbulent year operationally in 202122 dealing with the final Covid lockdowns and then increasing public confidence in going out, this year signalled a return to normality. Visitor numbers held up well with 76,634 (2019:76,053) visitors to the Museum during the year. Comparisons against recent years are difficult. School holiday periods over February, October and December significantly exceeded both budget and 2019 numbers. However, numbers were hampered over the summer period with a mix of the prolonged heat wave and the cost-ofliving crisis proving challenging. Visitor attraction insight from ALVA (Association of Leading Visitor Attractions) suggests that on average in 2022 visitor attractions were 25% down on 2019 visitor numbers and in some cases as much as 50% for those more reliant on inbound tourism.

For the first four months of the year the Conferencing facilities continued to be used by the NHS for their Covid vaccination programme. Following that, the executive has been concentrating on rebuilding the Conference and Events business which effe-ctively ceased in March 2020. With difficulties in recruiting a new Business Development Manager, rebuilding the business to pre-pandemic levels will be a lengthy process.

Each of the four business units within the trading company returned a net profit during the year resulting in a total profit of £184k to be donated to the Charity.

Accreditation

The Museum has been working towards becoming an accredited Museum for some years and this work culminated in a submission for Accreditation being made to Arts Council England in December 2022. This has been approved and final certification was received in March 2023. Accredited museums benefit from the process in a variety of ways both in terms of checks and assurances that their procedures and conduct are of a universally high standard and also the opportunity to apply for sources of funding from bodies such as the National Heritage Lottery Fund.

Conference & Events, inside and outside the Museum

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Education -

Learning & Engagement

The Education programme continues to be popular with local schools. Whereas in the past, most school visits were for primary year groups, the development of programmes relating to business studies or design courses, mean that secondary and tertiary student numbers have increased significantly. During the year 1,480 students with 186 accompanying adults attended sessions run by the Education team. These comprised 656 at primary level, 505 secondary level and 319 tertiary level.

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.

During the year the Museum was fortunate to receive the donation of both an MG Magnette and a Honda Civic (cutaway) along with a number of smaller artefacts.

Further work on the restoration of the Aston Martin DB4 was carried out by Haynes Heritage Engineering. The restoration of the Heinkel KR 200 being carried out by Volunteers is also nearing completion. Both vehicles have been on public display throughout the restoration and have generated considerable interest from visitors.

Exhibitions

The exhibition of the Forshaw collection of speedway motorcycles closed in October 2022 having been part of the Museum for over twenty years. A series of talks from volunteers with a particular interest in speedway took place before the exhibition closed and was very well received. The space will now be reimagined into a new motorcycle exhibition (working title Life on Two Wheels) telling the story of the British motorcycle within a broader framework incorporating both interactive as well as social history elements. This new exhibition is being match funded with the British Motorcycle Charitable Trust (BMCT) and the Trustees would like to thank the BMCT Trustees for their generosity and collaboration in putting this together.

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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 24 and 26 and the balance sheet on page 28.

Annual income from Museum entrance fees was £724,345 for the period to 31 January 2023 (2022:£676,692). This was boosted by Gift Aid of £170,226 (2022: £156,492). Income from the trading company was £1,606,459 (2022: £1,524,283).

Total balance sheet funds decreased by 0.2% to £17.3m from £17.4m 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.

Plans for Future Periods

The plans for future periods are laid out in the Strategic Plan document mentioned above. Specific objectives for the coming year are as follows:

The new Life on Two Wheels exhibition, being match-funded by the BMCT, is due to open in October 2023. This will be a blueprint for the proposed exhibitions of the future. This incorporates re-imagined gallery spaces with a range of interpretation including social history and technical journeys along with more interactive elements.

Now that the Museum has become Accredited, there are new potential funding streams which can be used to further develop a balanced and diverse funding mix to ensure long term sustainability. These opportunities, which include grant funding, individual giving and corporate sponsorship, will be explored in the coming year.

The Collections Management System, Modes, is being introduced in summer 2023. All objects in the Collection will be loaded onto the software in due course to provide a complete catalogue of exhibits and artefacts along with supporting information in a SPECTRUM compliant manner.

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

The level of free reserves considered by the Trustees to be appropriate is that equivalent to twelve months of operational costs. This should be retained to guard against future unforeseen interruptions to Museum operations. These £2m funds are to be held in a designated future resilience fund.

The total reserves at the year-end were £17,328,595 of which £2,096,742 were unrestricted general funds.

18 Report of the Trustees Year ended 31 January 2023

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Independent Auditors’ Report

to the Trustees Year ended 31 January 2023

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 2023 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 2023 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 to fraud or error.

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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 reviewedthe 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 noncompliance 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: 22 August 2023

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 2023

		Unrestricted	Designated	Restricted		Unrestricted	Designated	Restricted
		funds	funds	funds	Total	funds	funds	funds	Total
		2023	2023	2023	2023	2022	2022	2022	2022
		£	£	£	£	£	£	£	£
	Notes
Income from:
Gift aid, grants and donations	4	287,351	-	-	287,351	220,233	-	150,000	370,233
Charitable activities	5	730,142	-	-	730,142	682,277	-	-	682,277
Other trading activities	3	1,582,439	-	-	1,582,439	1,517,710	-	-	1,517,710
Investments	6	50,769	-	-	50,769	75,680	-	-	75,680
		__	__	__	__	__	__	__	__
Total		2,650,701	-	-	2,650,701	2,495,900	-	150,000	2,645,900
		__	__	__	__	__	__	__	__
Expenditure from:
Charitable activities	7	(872,548)	(364,186)	(13,486)	(1,250,220)	(1,005,226)	(183,948)	-	(1,189,174)
Expenditure on raising funds	3	(1,408,862)	(35,422)	-	(1,444,284)	(1,232,694)	-	-	(1,232,694)
		__	__	__	__	__	__	__	__
Total		(2,281,410)	(399,608)	(13,486)	(2,694,504)	(2,237,920)	(183,948)	-	(2,421,868)
		__	__	__	__	__	__	__	__
Realised and unrealised gains on revaluation of investment assets	16	898	-	-	898	73,961	-	-	73,961
		__	__	__	__	__	__	__	__
Net income/(expenditure)	10	370,189	(399,608)	(13,486)	(42,905)	331,941	(183,948)	150,000	297,993
		__	__	__	__	__	__	__	__

24 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2023

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Consolidated Statement of Financial Activities Year ended 31 January 2023

		Unrestricted	Designated	Restricted		Unrestricted	Designated	Restricted
		funds	funds	funds	Total	funds	funds	funds	Total
		2023	2023	2023	2023	2022	2022	2022	2022
		£	£	£	£	£	£	£	£
	Notes
Net income / (expenses) brought forward		370,189	(399,608)	(13,486)	(42,905)	331,941	(183,948)	150,000	297,993
		__	__	__	__	__	__	__	__
Transfer between funds	21	(44,898)	44,898	-	-	(8,625,043)	8,676,657	(51,614)	-
		__	__	__	__	__	__	__	__
Net movement in funds		325,291	(354,710)	(13,486)	(42,905)	(8,293,102)	8,492,709	98,386	297,993
Reconciliation of funds:
Total funds brought forward as at 1 February	21	1,784,937	15,488,177	98,386	17,371,500	10,078,039	6,995,468	-	17,073,507
		__	__	__	__	__	__	__	__
Total funds carried forward as at 31 January	21	2,110,228	15,133,467	84,900	17,328,595	1,784,937	15,488,177	98,386	17,371,500
		__	__	__	__	__	__	__	__

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 £1,340,853 (2022: £1,350,486). The net expenditure for the Charity for the year was £17,342 (2022: net income of £84,620).

26 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2023

27

Balance Sheets As at 31 January 2023

The net expenditure for the Charity for the year was £17,342 (2022: net income of £84,620).

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

22 June 2023 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 2023

Notes Cash flow from operating activities: Cash (absorbed)/ generated by operations 26 Bank charges Net cash from/ (used in) operating activities Cash flows from investing activities: Income and proceeds from investments Purchase of tangible assets Purchase of exhibits Proceeds of tangible asset disposals Net cash (used by) / from investing activities Movement in cash Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period Analysis of cash and cash equivalents: Cash at bank and in hand Analysis of net debt At 1 February 2022 £ Cash at bank and in hand 2,537,107 _ 2,537,107 _

2023 2022 £ £ (1,157,406) 695,317 (16,902) (13,949) _ _ (1,174,308) 681,368 50,769 75,680 (54,898) (557,673) - - 12,006 32,417 _ _ 7,877 (449,576) _ _ (1,166,431) 231,792 2,537,107 2,305,315 _ _ 1,370,676 2,537,107 _ _ 1,370,676 2,537,107 _ _ Cashflow At 31 January 2023 £ £ (1,166,431) 1,370,676 _ _ (1,166,431) 1,370,676 _ _

28 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2023

29

Notes to the Consolidated Financial Statements Year ended 31 January 2023

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

These accounts have been prepared in accordance with Financial Reporting Standard 102 – “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 2019 (the SORP 2019) 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 2019.

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 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 approximately 15,000 hours (2022: 9,087). The estimated costs of these services are based on the national living wage for £9.50 (2022 at £8.91) and the values of these services are therefore £142,500 (2022: £80,965). 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.

30 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2023

31

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

1.15. 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

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.

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 previous year to include all tangible fixed assets, including exhibits.

32 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2023

33

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

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 theimpairment not previously been recognised. The impairment reversal is recognised in the SOFA.

Financial liabilities

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

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.

34 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2023

35

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 2023 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	2023 £ 1,606,464 (660,612) 945,852 (762,347) - 309 183,814 209,376 (25,562) 2023 £ 96,968 692,765 (485,265) 304,468 2023 £ - 1,606,464 (24,025) 1,582,439 (660,613) (762,339) (1,422,959) 62,623 16,821 (100,769) (1,444,284)	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)

4. Income from gift Aid and Donations

	Unrestricted	Restricted	Total	Unrestricted	Restricted	Total
	funds 2023	funds 2023	2023	funds 2022	funds 2022	2022
	£	£	£	£	£	£
Gift aid on entrance fees	145,226	-	145,226	118,991	-	118,991
Gift aid on donations	25,000	-	25,000	37,501	-	37,501
Grants and	117,125	-	117,125	25,066	150,000	175,066
donations
Government	-	-	-	38,675	-	38,675
grants receivable
	287,351	-	287,351	220,233	150,000	370,233

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

5. Income from Charitable Activities

	Unrestricted	Total	Unrestricted	Total
	funds		funds
	2023	2023	2022	2022
	£	£	£	£
Entrance fees	724,345	724,345	676,692	676,692
Sale of catalogues	5,797	5,797	5,585	5,585
	730,142	730,142	682,277	682,277

6. Income from Investing Activities

	Unrestricted	Total	Unrestricted	Total
	funds		funds
	2023	2023	2022	2022
	£	£	£	£
UK listed investments	-		-	-
Bank interest and investments	3,419	3,419	209	209
Other income	47,350	47,350	75,471	75,471
	50,769	50,769	75,680	75,680

36 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2023

37

7. Expenditure on Charitable Activities

Unrestricted Funds 2023 £ Wages and national insurance 277,898 Training and staff costs 8,187 Rent & General rates 66,734 Water rates 5,125 Repairs and restoration 71,345 Waste removal and cleaning 9,017 Insurance 56,627 Lighting and heating 54,713 Catalogue and education expenses 11,356 Depreciation on property improvements - Loss/(gain) on sale of fixed assets - Support costs (see note 8) 297,146 Governance costs (see note 8) 14,400 _ 872,548 ___	Restricted Funds 2023 £ Designated Funds 2023 £ - - - - - - - - 13,486 - - - - - - - - - - 183,948 - (10,000) - 190,238 - - _ 13,486 364,186 __ _____	_	Total 2023 £ Unrestricted Funds 2022 £ Designated Funds 2022 £ 277,898 237,334 - 8,187 4,668 - 66,734 55,417 - 5,125 5,109 - 84,831 81,112 - 9,017 16,606 - 56,627 57,510 - 54,713 58,244 - 11,356 871 - 183,948 - 183,948 (10,000) (18,250) - 487,384 492,205 - 14,400 14,400 - _ 1,250,220 1,005,226 183,948 _ _ __	_	Total 2022 £ 237,334 4,668 55,417 5,109 81,112 16,606 57,510 58,244 871 183,948 (18,250) 492,205 14,400 _ 1,189,174 __

38 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2023

39

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 2023 £ Premises costs 2023 £ General office costs 2023 £ Professional fees 2023 £ Depreciation 2023 £ 197,487 - - - - - 11,480 - - - - - 6,261 - - - - 2,625 - - - 6,396 - - - - 49,635 - - - - - 5,856 - - - 504 - - - - - 16,902 - - - - - - - - - 190,238 - - - - - _ _ 197,487 11,480 65,421 22,758 190,238 _ __ __ _ __ - - - 14,400 - _ _ 197,487 11,480 65,421 37,158 190,238 ___ __ _ __ __	_	Total 2023 £ 197,487 11,480 6,261 2,625 6,396 49,635 5,856 504 16,902 - 190,238 - _ 487,384 _ 14,400 _ 501,784 _	_	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 _
	_	_		_

40 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2023

41

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). Expenses to the value of £nil were reimbursed to the Trustees (2022: £448). One employee received emoluments between £70,000 and £80,000 during the year (2022: One between £60,000 and £70,000). No other employees received emoluments in excess of £60,000 (2022: 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	2023 £ 110,812 - _ 110,812 _ 1,011,783 80,092 19,594 _ 1,111,469 _	2022 £ 129,742 - ___ 129,742
		_ 875,444 59,739 16,816 _ 951,999 ___

Emoluments relating to Trustees equal £26,461 (2022: £29,635) and relating to directors equal £107,600 (2022: £100,107).

Average number of persons employed during the year: Curatorial department Administration Fund raising subsidiary	2023 No. 2 21 25 _ 48 _	2022 No. 2 17 22 _ 41 _

42 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2023

43

10. Net Income / (Outgoing) Resources

Unrestricted Funds Designated Funds 2023 2023 £ £ Net incoming/(outgoing) resources is arrived at after charging / (crediting): Depreciation – owned assets 43,416 364,186 Loss/(gain) on disposal of fixed assets - - Debtor impairments - - Auditor’s remuneration Fees payable to the Charity auditor for the audit of the financial statements and the consolidation 13,700 - Fees payable to the Charity auditor and its associates for other services: Accountancy 2,350 - Tax compliance services 1,250 -	Total Unrestricted Funds Designated Funds 2023 2022 2022 £ £ £ 407,602 270,428 183,948 - (18,250) - - - - 13,700 11,975 - 2,350 2,150 - 1,250 1,175 -	Total 2022 £ 454,376 (18,250) - 11,975 2,150 1,175

44 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2023

45

11. Taxation

Haynes Motor Museum Ltd is a registered Charity within the meaning of the Charities Act 2011. 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 2022 156,477 Additions - Disposals - _ At 31 January 2023 156,477 _ Depreciation At 1 February 2022 - Charge for the year - On disposals - _ At 31 January 2023 - _ Net book value At 31 January 2023 156,477 _ At 31 January 2022 156,477 _	Freehold Property £ Fixtures, fittings, plant & equipment £ 10,071,432 1,918,536 - 39,398 - (8,015) _ _ 10,071,432 1,949,919 _ _ 1,995,729 1,196,272 183,948 219,518 - (6,009) _ _ 2,179,677 1,409,781 _ _ 7,891,755 540,138 _ _ 8,075,703 722,264 _ _	Motor Vehicles £ 11,067 15,500 - _ 26,567 _ 10,018 4,136 - _ 14,154 _ 12,413 _ 1,049 _	Total £ 12,157,512 54,898 (8,015) _ 12,204,395 _ 3,202,019 407,602 (6,009) _ 3,603,612 _ 8,600,783
			_ 8,955,493 _

12. Tangible Fixed Assets

Charity Assets under Construction £ Cost At 1 February 2022 156,477 Additions - Transfers - Disposals - _ At 31 January 2023 156,477 _ Depreciation At 1 February 2022 - Charge for the year - On disposals - _ At 31 January 2023 - _ Net book value At 31 January 2023 156,477 _ At 31 January 2022 156,477 _	Freehold Property £ Fixtures, fittings, plant & equipment £ 10,071,432 1,627,631 - 33,123 - - - - _ _ 10,071,432 1,660,754 _ _ 1,995,729 1,014,933 183,948 190,238 - - _ _ 2,179,677 1,205,171 _ _ 7,891,755 455,583 _ _ 8,075,703 612,698 _ _	Total £ 11,855,540 33,123 - - _ 11,888,663 _ 3,010,662 374,186 - _ 3,384,848 _ 8,503,815 _ 8,844,878 _

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.

46 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2023

47

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 2022	4,279,684
Additions	-
Disposals	-
Net book value at 31 January 2023	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)

	2022-23	2021-22	2020-21	2019-20	2018-19
	£	£	£	£	£
Additions:
Purchases	-	-	5,500	12,100	19,100
Disposals
Carrying value	-	-	-	-	3,500
Sale proceeds	-	-	-	-	-

15. Investment Properties

Investment Properties
	Investment properties
Group and Charity	£
Cost
At 1 February 2022 and at 31 January 2023	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 2023.

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 2022	1,156,824	1,156,824
Revaluation (losses)/gains	898	898
Additions	2,666,136	2,666,136
Proceeds on disposal	(1,033,896)	(1,033,896)
	___	___
As at 31 January 2023	2,789,962	2,789,962
	___	___
Historical cost as at 31 January 2023	2,461,998 ___	2,461,998 ___

Unrestricted funds comprise two funds held through RBC Brewin Dolphin. One is a longer term (>10 year) portfolio holding £2m. The other has a 3-5 year horizon holding £750k.

Investments held by the Charity also include an additional £2 (2022: £2) investment in the subsidiary company held at £nil net book value (2022: £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.

48 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2023

49

17. Stocks

20. Financial instruments

20. Financial instruments

17. Group 2023 2022 £ £ Goods for re-sale 159,124 116,415 Work in progress 1,511 4,860 _ _ 160,635 121,275	Charity 2023 2022 £ £ 768 3,197 - - _ _ 768 3,197

18. Debtors

Debtors Trade debtors Amounts owed by subsidiary undertaking Prepayments VAT receivable	Group 2023 2022 £ £ 162,056 263,729 - - 27,593 39,158 (9,076) (4,788) _ _ 180,573 298,099	Charity 2023 2022 £ £ 29,046 10,140 318,617 298,939 25,922 38,575 (9,076) (4,788) _ _ 364,509 342,866

Financial instruments
	Group		Charity
	2023	2022	2023	2022
	£	£	£	£
Financial assets that are debt
instruments measured at amortised
cost:
Trade debtors	162,056	263,729	29,046	10,140
Amounts owed by subsidiary	-	-	318,616	298,939
undertaking
	162,056	263,729	347,662	309,079
Financial liabilities measured at
amortised cost:
Trade creditors	228,842	122,910	101,965	76,976
Accruals and deferred income	43,037	37,901	18,767	23,857
	271,879	160,811	120,732	100,833

19. Creditors

Creditors Trade creditors Other taxes and social security Accruals and deferred income	Group 2023 2022 £ £ 228,842 122,910 34,839 69,171 43,037 37,901 _ _ 306,718 229,982 _ _	Charity 2023 2022 £ £ 101,965 76,976 - 10,279 18,767 23,857 _ _ 120,732 111,112 _ _

50 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2023

51

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 2022 £ 1,784,937 2,000,000 13,488,177 _ 17,273,114 _ 98,386 ____ 17,371,500	Income £ 2,650,701 - - _ 2,650,701 _ - ____ 2,650,701	Expenditure Realised & unrealised (losses)/gains £ £ (2,281,410) 898 - - (399,608) - _ _ (2,681,018) 898 _ _ (13,486) - _ _ (2,694,504) 898	Transfer between funds £ (44,898) - 44,898 _ - _ - ____ -	At 31 January 2023 £ 2,110,228 2,000,000 13,133,467 _ 17,243,695 _ 84,900 ___ 17,328,595

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 previous year to include all tangible fixed assets, including exhibits.

52 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2023

53

21. Statement of Funds

The future resilience fund: A fund designated in the previous year in case of another period when the Museum is unable to open. This was based upon expenditure incurred during the year ended 31 January 2023.

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 2022 £ 1,565,522 13,377,562 2,000,000 _ 16,943,084 _ 98,386 ____ 17,041,470	Income £ 1,339,955 - - _ 1,339,955 _ - ____ 1,339,955	Expenditure Realised & unrealised (losses)/gains £ £ (980,523) 898 (364,186) - - - _ _ (1,344,709) 898 _ _ (13,486) - _ _ (1,358,195) 898	Transfer between funds £ (23,123) 23,123 - _ - _ - ____ -	At 31 January 2023 £ 1,902,729 13,036,499 2,000,000 _ 16,939,228 _ 84,900 ____ 17,024,128

54 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2023

55

22. Analysis of Net Assets Between Funds

23. Related Party Transactions

Key Management Personnel

Group Fund balances at 31 January 2023 represented by: Tangible fixed assets Heritage assets Investment properties Fixed asset investments Current assets Current liabilities Total net assets	Restricted funds £ Designated property fund £ - 8,600,783 - 4,279,684 - 253,000 - - 84,900 2,000,000 - - _ _ 84,900 15,133,467	General funds £ Total £ - 8,600,783 - 4,279,684 - 253,000 2,789,962 2,789,962 (373,016) 1,711,884 (306,718) (306,718) _ _ 2,110,228 17,328,595

Charity Fund balances at 31 January 2023 represented by: Tangible fixed assets Heritage assets Investment properties Fixed asset investments Current assets Current liabilities Total net assets	Restricted funds £ Designated property fund £ - 8,503,815 - 4,279,684 - 253,000 - - 84,900 2,000,000 - - _ _ _ 84,900 15,036,499	General funds £ - - - 2,789,962 (766,501) (120,732) __ 1,902,729	Total £ 8,503,815 4,279,684 253,000 2,789,962 1,318,399 (120,732) ___ 17,024,128

Total compensation paid to key management personnel during the year was £110,812 (2022: £129,742).

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 £nil were reimbursed to the Trustees (2022: £448).

The Trustees have considered the disclosure requirements of the SORP for Charities (January 2019) 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 £nil (2022: £365,281). Amounts due to HDL at the year-end were £222 (2022: £nil). The museum made sales to HDL of £360 (2022: £300). Amounts due from HDL at the year-end were £432 (2022: £360).

• (ii) Sales to Bute Motorsport Limited of which C M D Haynes is a director amounted to £360 (2022: £300). Amounts due at the year-end were £432 (2022: £360).

• (iii) Purchases from Foulis Property Investment of which C M D Haynes is a director amounted to £22,006 (2022: £nil). Amounts due at the year-end were £22,006 (2022: £nil).

The Trading Subsidiary

• (a) Sales to directors totalled £159,194 (2022: £55,606). Amounts due from directors at the end of the year were £36,092 (2022: £11,360). Sales to other Haynes family members amounted to £8,758 (2022: £4,309). Amounts due from other Haynes family members at the year-end were £nil (2022: £nil).

• (b) Sales to Haynes Developments Limited, of which A C Haynes and C M D Haynes are directors, totalled £1,658 (2022: £2,323). Purchases from Haynes Developments Limited totalled £nil (2022: £nil). Amounts due at the year-end were £1,766 (2022: £365).

All sales of goods to related parties were made at the Group’s usual list prices.

56 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2023

57

24. Capital Commitments

There are no outstanding capital commitments at the year-end (2022: £nil).

25. Company Status

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

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

Cash Generated from Operatio ash generated from operations	ns
	2023	2022
	£	£
Net income/(expenditure)	(42,905)	297,993
Adjustments for:
Bank charges	16,902	13,949
Investment income received	(50,769)	(75,680)
Depreciation	407,602	454,372
Movement on investments	(1,633,138)	(73,961)
(Profit)/loss on disposal of fixed assets	(10,000)	(18,250)
	(1,312,308)	598,423
Decrease / (increase) in stock	(39,360)	15,683
(Increase) / decrease in debtors	117,526	37,980
Increase / (decrease) in creditors	76,736	43,231
Net cash provided by / (used in)
operating activities	(1,157,406)	695,317

No restrictions apply to the cash or cash equivalents.

27. Operating lease commitments

27. Operating lease commitments

Equipment and motor vehicles Due within 1 year Between 1-5 years	2023 £ 2022 £ 7,264 2,127 7,264 8,702 9,391 15,966

58 Trustees’ Report & Consolidated Financial Statements for the year ended 31 January 2023

59

PRESERVATION[•] RESTORATION[•] EDUCATION

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