PILGRIM HOMES TRUST
Financial Statements
For the year ended 31 March 2023
COMPANY NUMBER 11685624 CHARITY NUMBER 1183226
Contents of the financial statements For the year ended 31 March 2023
PILGRIM HOMES TRUST
Page
1 Trustees' report – statutory information 2 - 5 Trustees’ report 6 - 9 Independent auditor’s report 10 Statement of financial activities 11 Balance sheet 12 Statement of cash flows 13 - 24 Notes to the financial statements
Trustee’s report – statutory information For the year ended 31 March 2023
PILGRIM HOMES TRUST
DIRECTORS AND TRUSTEES
Michael Abbott Andrew Symonds (Chairman) Dr Judy McLaren John Edwards Sylvia Clovey (appointed 6 October 2022) Mark Curran (appointed 6 October 2022) Sheila Warnes (resigned 9 June 2022) Philip Oliver (resigned 1 December 2022)
Legal title to the assets of the charity are held by a wholly owned subsidiary and nominee company, The Aged Pilgrims’ Friend Society Trust Ltd. A charity trustees’ indemnity insurance policy is maintained by the group of charities.
REGISTERED OFFICE
175 Tower Bridge Road London SE1 2AL
CHARITY NUMBER
1183226
BANKERS
Lloyds Bank plc 25 Gresham Street London EC2V 7HN
AUDITORS
Jacob Cavenagh & Skeet Chartered Accountants 5 Robin Hood Lane Sutton Surrey SM1 2SW
KEY MANAGEMENT PERSONNEL
The Key Management Personnel of the charity were the Trustees and the members of the Senior Management Team of Pilgrims' Friend Society, whose names and responsibilities are listed below:
| Stephen Hammersley | Chief Executive Officer |
|---|---|
| Maureen Sim | Director of Operations |
| Andy Walsh | Director of Property Services |
| Joshua Field | Director of Human Resources |
| Debbie Buggs | Director of Finance and Company Secretary |
| Alexandra Davis | Director of Marketing and Communications |
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Trustee’s report For the year ended 31 March 2023
PILGRIM HOMES TRUST
The trustees are pleased to present their report, together with the financial statements of the charity (hereafter in this report referred under the short name of Pilgrim Homes) for the year ended 31 March 2023.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The trustees are pleased to present their report, together with the financial statements of the company for the year ended 31 March 2023. The trustees' report incorporates the directors’ report prepared for the purposes of company law. The results of all group entities are consolidated in the accounts of The Pilgrims Friend Group. The trustees make significant decisions for the running of the charity. Responsibility for the day-to-day operations of the charity is delegated to the Chief Executive and Senior Management Team of Pilgrims' Friend Society which has been the main operating charity for the group.
The Company was recognised as a charity on 2 May 2019 being essentially an incorporated form of the original Pilgrim Homes charity (founded in 1807) with articles which, although rendered in modern English, faithfully reproduce those of the original Pilgrim Homes Charity.
On 5 February 2020, the charity acquired the Aged Pilgrims Friend Society Trust Limited, a dormant company, which holds title to the assets of the former Pilgrim Homes and Housing Schemes. To avoid unnecessary costs this company will continue to hold title to these assets as nominee for this Company.
As part of the group reconstruction, on 31 March 2020, the charity acquired, by way of a gift, the operating assets of the former Pilgrim Homes, being both freehold properties and operating assets and equipment.
OBJECTIVES AND ACTIVITIES
The objects of the charity are to provide grants, housing and care for needy Protestant Christians over 60 years of age for the public benefit and to the glory of God.
The charity’s trustees have considered the guidance regarding public benefit when considering and planning its objectives and activities for the year.
ACHIEVEMENTS AND PERFORMANCE
During the year the Charity contributed to the Group’s renewal programme by realising assets
FINANCIAL REVIEW
As noted above the major activity of this year was the business of the former Pilgrim Homes charity (charity number 242266) which gives rise to rental and investment income from the investments held by the charity from which it funds capital improvements to the properties when necessary.
During this year, the Redbourn land and buildings plus the Chippenham Care Home and associated Wood Lane investment properties were sold. The charity received £5,000 (2022: £1,326,000) in donations from Pilgrim Homes, which consisted of entirely of legacies (2022: £742,000 legacies and £584,000 overage receipt).
The deficit for the year, as dealt with within the SOFA and after charging depreciation amounted to £366,000 (2022: surplus of £616,000).
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Trustees’ report (continued) For the year ended 31 March 2023
PILGRIM HOMES TRUST
FUTURE DEVELOPMENTS
It is hoped that the property in Brighton will be sold, and the cash held to fund future capital projects.
INVESTMENT POLICY
The charity’s investments are detailed in note 9 to these accounts. They include a number of houses and bungalows which are either located close to or within the curtilage of the Care Homes. These properties are unsuitable for use by the beneficiaries of this charity and they are therefore let on assured shorthold tenancies either to staff members or unrelated third parties.
The trustees intend to maximise the return on these investments by maintaining them well and letting them at market rents. Three of these properties are adjacent to the existing Chippenham Care Home and were disposed of during the year.
RESERVES POLICY
The Charity holds funds of £30,377,000 at the year end. Restricted funds account for £2,290,000. Of the general and designated funds, £23,274,000 could only be realised by disposing of tangible fixed assets or programme related investments. This means that the reserves (that is, the part of the charity’s unrestricted funds that is freely available to spend on any of the charity’s purposes) are £4,813,000 against a target of £50,000, which is three months' worth of annual expenditure excluding depreciation.
TRUSTEE RECRUITMENT AND TRAINING
Trustees are appointed at a board meeting following a nomination process. Candidates must meet a strict set of specifications concerning personal competence, specialist skills, availability and Christian belief. Once the Board and new trustee decide to proceed with a formal appointment there follows an induction period to familiarise the new trustee with the charity's operations. Newly appointed trustees meet with the Chief Executive and members of the Senior Management Team to provide an introduction to the affairs of the charity, key operational methods and the current strategic plan. Trustee performance is subject to an annual review by the Chairman.
RISK MANAGEMENT
The charity maintains a comprehensive register of risks which is reviewed by the Key Management Personnel at their monthly meetings and by trustees at every trustee meeting. Risks are rated as to both their likelihood and severity. The greatest risk affecting the Charity is the loss of value of its assets; this risk is mitigated by the purchase of insurance and a good maintenance programme for property.
STAFF ISSUES
The Charity does not have any employees.
KEY MANAGEMENT PERSONNEL
The key management personnel of the charity (all of whom are employed by Pilgrims’ Friend Society, a fellow member of the Pilgrims Friend Group, are listed on page 1) are in charge of directing, controlling, running and operating the charity on a day-to-day basis. Details of their remuneration and expenses reimbursed, and other
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Trustees’ report (continued) For the year ended 31 March 2023
PILGRIM HOMES TRUST
related party transactions are disclosed in Note 8 to the financial statements of the Pilgrim Friends Group. Their pay is reviewed annually.
FUNDRAISING POLICY
The charity does not seek to raise donations, directing these instead to Pilgrims’ Friend Society.
RELATED PARTIES
The trustees of the charity consider the following to be related parties:
-
Key Management Personnel of Pilgrims' Friend Society
-
The following charities:
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a. Pilgrims’ Friend Society (charity no. 1045920, company no. 3027071)
-
b. The Pilgrims Friend Group (formerly APFS 1807) (charity no. 1134979, company no. 7169875)
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c. Pilgrim Homes (charity no. 242266)
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d. Strathclyde House Trust (charity no. SC025550, company no. SC169848)
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PFG Trading Limited - a limited company
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Aged Pilgrims' Friend Society Trust Limited - a limited company which holds title to the properties owned by Pilgrim Homes Trust.
STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The trustees (who are also directors of Pilgrim Homes Trust for the purposes of company law) are responsible for preparing the Trustees' Report (incorporating the directors’ report) and the financial statements in accordance with 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).
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 of the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
-
select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
STATEMENT OF DISCLOSURE TO AUDITOR
So far as each person who was a trustee at the date of approving this report is aware, there is no relevant audit information of which the charity’s auditor is unaware. Additionally, the trustees individually have taken all the
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Trustees’ report (continued) For the year ended 31 March 2023
PILGRIM HOMES TRUST
necessary steps that they ought to have taken as trustees in order to make themselves aware of all relevant audit information and to establish that the charity’s auditor is aware of that information.
AUDITORS
Jacob Cavenagh & Skeet were the charitable company’s auditors during the year and have expressed their willingness to continue in that capacity.
The above report is prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
Approved by the trustees and signed on their behalf by
John Edwards
John Edwards Trustee
Date: 20 July 2023
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PILGRIM HOMES TRUST
Independent auditor’s report to the trustees of Pilgrim Homes Trust For the year ended 31 March 2023
OPINION
We have audited the financial statements of Pilgrim Homes Trust (the charity) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the 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).
In our opinion the financial statements:
-
give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources for the year then ended;
-
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.
BASIS FOR OPINION
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 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.
CONCLUSIONS RELATING TO GOING CONCERN
In auditing the financial statements, we have concluded that the director’s 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 charity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
OTHER INFORMATION
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. 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.
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PILGRIM HOMES TRUST
Independent auditor’s report to the trustees of Pilgrim Homes Trust (continued) For the year ended 31 March 2023
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.
OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion, based on the work undertaken in the course of our audit:
-
the information given in the Trustees' Report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the strategic report and the directors’ report included within the Trustees' Report has 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 charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included with the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
RESPONSIBILITIES OF TRUSTEES
As explained more fully in the trustees' responsibilities statement, 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 financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’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 company or to cease operations, or have no realistic alternative but to do so.
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PILGRIM HOMES TRUST
Independent auditor’s report to the trustees of Pilgrim Homes Trust (continued) For the year ended 31 March 2023
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
We have been appointed as auditor under section 145 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the charity, we identified that the principal risks of non-compliance with laws and regulations related to charity, financial reporting legislation, health & safety regulations and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and the Companies Act 2006.
We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management, considering the internal controls in place and discussion amongst the engagement team.
We determined that the principal risks were related to:
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accounting measurements of property
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disclosure of capital commitments or provisions
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recognition of legacy income
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fraudulent extraction of cash
In response to the risks identified we designed procedures which included, but were not limited to:
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reviewing third party evidence of investment property valuations
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agreeing financial statement disclosures to underlying supporting documentation
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identifying and reviewing journal entries
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discussions with management and review of legal correspondence
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reviewing Trustees’ meeting minutes
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evaluating the charity’s internal controls
There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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PILGRIM HOMES TRUST
Independent auditor’s report to the trustees of Pilgrim Homes Trust (continued) For the year ended 31 March 2023
USE OF OUR REPORT
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and regulations made under that Act. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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 charitable company and its members as a body, for our audit work, for this report, or for the opinions we have formed.
P Newton
Paul Newton FCA (Senior Statutory Auditor) for and on behalf of Jacob Cavenagh & Skeet
Chartered Accountants Statutory Auditor
5 Robin Hood Lane Sutton Surrey SM1 2SW
Date: 20/7/2023
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PILGRIM HOMES TRUST
Statement of financial activities (including Income and Expenditure Account) For the year ended 31 March 2023
| Note Income from: Donations, legacies and grants 2 Investments 3 Charitable activities 4 Other income 5 Total income Expenditure on: Raising funds Charitable activities 6 Total expenditure (Losses) on investments 9 Net (expenditure)/income 7 Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
2023 | |
|---|---|---|
| Unrest- Rest- ricted ricted Funds Funds £000 £000 17 - 47 - 499 - 234 - 797 - 7 - 1,142 - 1,149 - ( 14) - ( 366) - ( 366) - 28,453 2,290 28,087 2,290 |
All of the activities are continuing. There were no recognised gains or losses other than those stated above.
The notes on pages 13 to 24 form part of these financial statements.
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PILGRIM HOMES TRUST
Balance sheet As at 31 March 2023
| 2023 Note £000 Fixed assets Tangible assets 8 Investments 9 Current assets Stock of flats held for resale 10 1,234 Debtors and prepayments 11 4,869 Cash at bank and in hand 304 6,407 Creditors: Amounts falling due within one year 12 ( 165) Net current assets Total assets less current liabilities Creditors: Amounts falling due after more one year 13 Net assets Funds: 14,15,16 Unrestricted funds (including revaluation reserve of £0.523m (2022: £0.378m)) Restricted funds Total Funds |
£000 23,274 861 24,135 6,242 30,377 - 30,377 28,087 2,290 30,377 |
2022 £000 1,442 4,165 122 5,729 ( 393) |
£000 25,025 1,632 26,657 5,336 31,993 ( 1,250) 30,743 28,453 2,290 30,743 |
|---|---|---|---|
The financial statements were approved by the Trustees on 20 July 2023 and signed on their behalf by:
John Edwards
J Edwards
Trustee
Company Registration No: 11685624
The notes on pages 13 to 24 form part of these financial statements.
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PILGRIM HOMES TRUST
Statement of cash flows For the year ended 31 March 2023
| 2023 | 2022 | |
|---|---|---|
| £000 | £000 | |
| Cash flows (used in)/provided by operating activities | ||
| Trading and donations | ||
| Net (expenditure)/income | ( 366) | 616 |
| Interest and dividends included in investing activities | ( 47) | ( 65) |
| Depreciation | 581 | 576 |
| (Gain) on disposal of tangible fixed assets | ( 234) | ( 149) |
| Net losses on investments | 14 | 272 |
| Net cash (used in)/provided by trading and donations | ( 52) | 1,250 |
| Working capital movements | ||
| Decrease/(increase) in stocks | 208 | ( 120) |
| (Increase) in debtors | ( 704) | (1,530) |
| Increase/(decrease) in creditors | 22 | ( 405) |
| Net cash (used in) working capital movements | ( 474) | (2,055) |
| Net cash (used in) operating activities | ( 526) | ( 805) |
| Cash flows from investing and financing activities | ||
| Tangible fixed assets | ||
| Payments on additions of tangible fixed assets | ( 263) | (1,892) |
| Proceeds on disposal of tangible fixed assets | 1,662 | 344 |
| Net cash provided by/(used in) tangible fixed assets | 1,399 | (1,548) |
| Fixed asset investments | ||
| Interest and dividends received | 47 | 65 |
| Proceeds on disposal of fixed asset investments | 762 | 814 |
| Net cash provided by fixed asset investments | 809 | 879 |
| Financing activities | ||
| Proceeds from new loans | - | 2,500 |
| Repayment of borrowings | (1,500) | (1,035) |
| Net cash (used in)/provided by financing activities | (1,500) | 1,465 |
| Net cash provided by investing and financing activities | 708 | 796 |
| Net cash inflow/(outflow) | 182 | ( 9) |
| Cash and cash equivalents at 1 April 2022 | 122 | 131 |
| Cash and cash equivalents at 31 March 2023 | 304 | 122 |
The notes on pages 13 to 24 form part of these financial statements.
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Notes to the financial statements For the year ended 31 March 2023
PILGRIM HOMES TRUST
1. ACCOUNTING POLICIES
The company is registered as a charitable company limited by guarantee incorporated in England and Wales and is governed by its Memorandum and Articles of Association. Its registered office is 175 Tower Bridge Road, London SE1 2AL.
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
1a. Basis of accounting
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for Charities applying FRS 102, the Companies Act 2006, the Charities Act 2011 and UK Generally Accepted Accounting Practice. The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1,000.
The financial statements have been prepared on the historical cost convention, modified to include certain investments and financial instruments at fair value.
1b. Consolidation
This charity is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this charity, which are intended to give a true and fair view of the assets, liabilities, financial position and surplus or deficit of the group. The charity has therefore taken advantage of exemptions from the requirement to disclosure transactions with other group undertakings.
The financial statements of the charity are consolidated in the financial statements of The Pilgrims Friend Group. These consolidated financial statements are available from its registered office at 175 Tower Bridge Road, London SE1 2AL.
1c. Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1d. Tangible fixed assets
Fixed assets are recorded at historic cost. Expenditure on existing properties is capitalised when works result in an enhancement of economic benefits of the asset. Other expenditure on the properties is charged to the income and expenditure account. Where appropriate, the historic cost less accumulated depreciation of any replaced components is released from the asset and recognised as a loss on disposal.
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Notes to the financial statements (continued) For the year ended 31 March 2023
PILGRIM HOMES TRUST
1. ACCOUNTING POLICIES (continued)
1d. Tangible fixed assets (continued)
Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost or valuation, less estimated residual value, of each asset over its expected useful life. The following rates are used on a straightline basis:
| Land | nil |
|---|---|
| Buildings | 100 years |
| Roof | 70 years |
| Electrics | 40 years |
| Windows, doors, heating and plumbing | 30 years |
| Bathrooms and lifts | 20 years |
| Kitchens – sheltered | 20 years |
| Boilers | 15 years |
| Kitchens – residential | 10 years |
| Furniture and equipment – sheltered | 10 years |
| Hard landscaping | 5 years |
| Computer equipment | 4 years |
1e. Income
Rental and ancillary income is recognised on the basis of when the service was provided to the resident. Voluntary income and donations (including legacies) are accounted for once the charity has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. Where material assets are donated to the charity for its use, these are capitalised at the estimated market value at the date of the gift and included under income.
1f. Expenditure
Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities. Charitable expenditure includes all support costs in respect of the charity’s activities.
1g. Governance costs
This comprises expenditure on compliance with statutory legal requirements and is included in charitable activities.
1h. Stock of leasehold flats held for resale
Stock is comprised of flats held for sale to new residents and are valued at the lower of cost and net realisable value. Cost is comprised of the purchase price of the properties.
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Notes to the financial statements (continued) For the year ended 31 March 2023
PILGRIM HOMES TRUST
1. ACCOUNTING POLICIES (continued)
1i. Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund are set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors. The aim and use of each restricted fund are set out in note 16 to the financial statements.
1j. Fixed asset investments
Fixed asset investments are freehold properties let on assured shorthold tenancies at market rents. These properties are included in these accounts at the trustees’ estimate of market value. Gains and losses arising from revaluation are recognised in the Statement of Financial Activities.
1k. Debtors
Debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.
1l. Cash and cash equivalents
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit.
1m. Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.
1n. Financial instruments
The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
2. INCOME FROM DONATIONS AND LEGACIES
| Grants receivable Other sources |
2023 £000 5 12 17 |
2022 £000 1,326 14 1,340 |
|---|---|---|
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PILGRIM HOMES TRUST
Notes to the financial statements (continued) For the year ended 31 March 2023
3. INCOME FROM INVESTMENTS
| Rental of investment properties Bank interest Other interest 4. INCOME ON CHARITABLE ACTIVITIES Extra Care Housing lease sales 5. OTHER INCOME Gain on disposal of fixed assets CBIL loan interest grant 6. EXPENDITURE ON CHARITABLE ACTIVITIES Housing costs Cost of Extra Care Housing lease sales Other administrative costs Loan interest Governance costs: Auditors’ fees for audit Auditors’ fees for accountancy Depreciation 7. NET (EXPENDITURE)/INCOME This is stated after charging: Depreciation (Gain) on disposal of tangible fixed assets Loan interest Auditors’ remuneration for audit services Auditors’ remuneration for other services |
2023 £000 42 3 2 47 2023 £000 499 2023 £000 234 - 234 2023 £000 1 499 27 22 6 6 581 1,142 2023 £000 581 (234) 22 6 6 |
2022 £000 62 3 - 65 2022 £000 523 2022 £000 149 35 184 2022 £000 - 523 72 42 5 4 576 1,222 2022 £000 576 (149) 42 5 4 |
|---|---|---|
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PILGRIM HOMES TRUST
Notes to the financial statements (continued) For the year ended 31 March 2023
8. TANGIBLE FIXED ASSETS
| TANGIBLE FIXED ASSETS | |||
|---|---|---|---|
| Freehold and | Furniture, | ||
| leasehold | fixtures and | ||
| properties | fittings | Total | |
| £000 | £000 | £000 | |
| Cost | |||
| As at 1 April 2022 | 30,788 | 953 | 31,741 |
| Additions | 240 | 23 | 263 |
| Transferred to investments | ( 5) | - | ( 5) |
| Disposals | **( 1,621) ** | ( 61) | ( 1,682) |
| As at 31 March 2023 | 29,402 | 915 | 30,317 |
| Depreciation | |||
| As at 1 April 2022 | 6,164 | 552 | 6,716 |
| Charge for the year | 502 | 79 | 581 |
| Released on disposals | **( 214) ** | ( 40) | ( 254) |
| As at 31 March 2023 | 6,452 | 591 | 7,043 |
| Net book value | |||
| As at 31 March 2023 | 22,950 | 324 | 23,274 |
| As at 31 March 2022 | 24,624 | 401 | 25,025 |
| The cost of freehold and long leasehold property comprises the following: | |||
| 2023 | 2022 | ||
| Freehold property: | £000 | £000 | |
| Dorothea Court, Bedford | 4,401 | 4,398 | |
| Leonora Home, Chippenham | - | 327 | |
| Great Finborough Home | 1,838 | 1,803 | |
| Great Finborough Housing | 2,623 | 2,542 | |
| Evington Home, Leicester | 2,348 | 2,263 | |
| Shottermill Home, Haslemere | 1,564 | 1,498 | |
| Milward Home, Tunbridge Wells | 1,384 | 1,384 | |
| Wantage Home | 1,773 | 1,703 | |
| Royd Court, Mirfield | 3,458 | 3,448 | |
| Pilgrim Gardens, Evington, Leicester | 2,081 | 2,081 | |
| Middlefields House | 7,468 | 7,577 | |
| Redbourn retirement flats | - | 1,300 | |
| 28,938 | 30,324 | ||
| At Committee’s revaluation, 31st March 1954 plus cost since: | |||
| Brighton Home | 464 | 464 | |
| Total properties and assets in the course of construction | 29,402 | 30,788 |
Page 17
PILGRIM HOMES TRUST
Notes to the financial statements (continued) For the year ended 31 March 2023
8. TANGIBLE FIXED ASSETS (continued)
The net gain on disposal of tangible fixed assets for the year is made up of:
| The net gain on disposal of tangible fixed assets for the year is made up of: | |
|---|---|
| £000 | |
| Loss on disposal of Redbourn retirement flats | ( 120) |
| Gain on disposal of Leonora Home, Chippenham | 360 |
| Net loss on flat movements | ( 6) |
| 234 |
9. INVESTMENTS
| INVESTMENTS | ||
|---|---|---|
| Investment | ||
| properties | ||
| £000 | ||
| Valuation | ||
| As at 1 April 2022 | 1,632 | |
| Additions | - | |
| Disposals | ( 762) | |
| Transferred from fixed assets | 5 | |
| Revaluations | ( 14) | |
| As at 31 March 2023 | 861 | |
| Historic cost as at 31 March 2023 | 338 | |
| Investment properties comprise the following: | 2023 | 2022 |
| £000 | £000 | |
| At fair value: | ||
| Transferred from Pilgrim Homes: | ||
| House on Pilgrims’ Way, Great Finborough | 275 | 280 |
| 60 Royd Court, Mirfield | 206 | 210 |
| 90a Wood Lane, Chippenham | - | 223 |
| 90 Wood Lane, Chippenham | - | 212 |
| 92 Wood Lane, Chippenham | - | 327 |
| Redbourn Land | 5 | - |
| House on Liphook Road, Haslemere | 375 | 380 |
| 861 | 1,632 |
The investment properties were revalued at the open market value as at 31 March 2023 by the Director of Property Services, Andy Walsh ARIBA.
The net losses on investments for the year is made up of:
Revaluation of investment properties
£000 ( 14)
Page 18
Notes to the financial statements (continued) For the year ended 31 March 2023
PILGRIM HOMES TRUST
10. STOCK
| STOCK | |||||
|---|---|---|---|---|---|
| 2023 | 2022 | ||||
| £000 | £000 | ||||
| Stock of leasehold flats held for resale (see below) | 1,234 | 1,442 | |||
| Royd | Court | Pilgrim Gardens | |||
| Number | Cost | Number | Cost | Total | |
| No | £000 | No | £000 | £000 | |
| As at 1 April 2022 | 6 | 733 | 5 | 709 | 1,442 |
| Sold | ( 4) | (498) | ( 1) | (130) | ( 628) |
| Bought back | 1 | 120 | 2 | 300 | 420 |
| As at 31 March 2023 | 3 | 355 | 6 | 879 | 1,234 |
Contingent liabilities on housing stock
Under the terms of the sale of leases at Royd Court, the Society is committed to repurchase leases should leaseholders cease to be residents. The total potential value of the flats not held in stock at 31 March 2023 is £3.8 million.
Under the terms of the sale of leases at Pilgrim Gardens, the Society is committed to repurchase leases should leaseholders cease to be residents. The total potential value of the flats not held in stock at 31 March 2023 is £1.17 million.
11. DEBTORS AND PREPAYMENTS
| Due from group entities and associated undertakings Other debtors and prepayments |
2023 £000 4,858 11 4,869 |
2022 £000 4,140 25 |
|---|---|---|
| 4,165 |
12. CREDITORS AND ACCRUALS: amounts falling due within one year
| 2023 | 2022 | |
|---|---|---|
| £000 | £000 | |
| Trade creditors | 95 | 90 |
| Bank loans | - | 250 |
| Other creditors | 70 | 53 |
| 165 | 393 |
Page 19
Notes to the financial statements (continued) For the year ended 31 March 2023
PILGRIM HOMES TRUST
13. CREDITORS AND ACCRUALS: amounts falling due after more than one year
| Bank loans | 2023 £000 - |
2022 £000 1,250 |
|---|---|---|
The bank loan was secured on the Dorothea Court and Brighton properties. Interest on the bank loan was payable at 2.6% above base rate over the period until May 2027. The loan was fully repaid during the year.
14. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| General Designated Restricted Funds Funds Funds 2023 £000 £000 £000 Fixed assets Tangible - 23,274 - Investments 861 - - Current assets 3,037 1,080 2,290 Current liabilities ( 165) - - ( Total Net Assets 3,733 24,354 2,290 General Designated Restricted Funds Funds Funds 2022 £000 £000 £000 |
General Designated Restricted Funds Funds Funds 2023 £000 £000 £000 Fixed assets Tangible - 23,274 - Investments 861 - - Current assets 3,037 1,080 2,290 Current liabilities ( 165) - - ( Total Net Assets 3,733 24,354 2,290 General Designated Restricted Funds Funds Funds 2022 £000 £000 £000 |
General Designated Restricted Funds Funds Funds 2023 £000 £000 £000 Fixed assets Tangible - 23,274 - Investments 861 - - Current assets 3,037 1,080 2,290 Current liabilities ( 165) - - ( Total Net Assets 3,733 24,354 2,290 General Designated Restricted Funds Funds Funds 2022 £000 £000 £000 |
General Designated Restricted Funds Funds Funds 2023 £000 £000 £000 Fixed assets Tangible - 23,274 - Investments 861 - - Current assets 3,037 1,080 2,290 Current liabilities ( 165) - - ( Total Net Assets 3,733 24,354 2,290 General Designated Restricted Funds Funds Funds 2022 £000 £000 £000 |
Total Funds £000 23,274 861 6,407 165) 30,377 Total Funds £000 |
|---|---|---|---|---|
| Fixed assets | ||||
| Tangible - |
25,025 | - | 25,025 | |
| Investments 1,632 |
- | - | 1,632 | |
| Current assets 2,359 |
1,080 | 2,290 | 5,729 | |
| Current liabilities ( 393) |
- | - |
( 393) | |
| Non -Current liabilities |
(1,250) | - | - |
(1,250) |
| Total Net Assets | 2,348 | 26,105 | 2,290 | 30,743 |
Page 20
PILGRIM HOMES TRUST
Notes to the financial statements (continued) For the year ended 31 March 2023
15. FUNDS
| FUNDS | ||||||
|---|---|---|---|---|---|---|
| Brought | Carried | |||||
| Forward at | forward at | |||||
| 1 April | Revaluations | 31 March | ||||
| 2023 | April 2022 | Income | Expenditure | and losses | Transfers | 2023 |
| £000 | £000 | £000 | £000 | £000 | £000 | |
| Unrestricted funds | ||||||
| General fund | 2,348 | 797 | (1,149) | (14) | 1,751 | 3,733 |
| Designated funds | ||||||
| Operational Assets Equity Fund | 25,025 | - | - | - | (1,751) | 23,274 |
| Operational Risk Reserve | 1,030 | - | - | - | - | 1,030 |
| Property Emergency Repair Fund | 50 | - | - | - | - | 50 |
| 26,105 | - | - | - | (1,751) | 24,354 | |
| Restricted funds | ||||||
| Lucy McNeil Fund | 1,849 | - | - | - | - | 1,849 |
| St Albans Fund | 441 | - | - | - | - | 441 |
| 2,290 | - | - | - | - | 2,290 | |
| Total funds | 30,743 | 797 | (1,149) | (14) | - | 30,377 |
Page 21
PILGRIM HOMES TRUST
Notes to the financial statements (continued) For the year ended 31 March 2023
15. FUNDS (continued)
| Brought Carried Forward at forward at 1 April Revaluations 31 March 2022 April 2021 Income Expenditure and losses Transfers 2022 £000 £000 £000 £000 £000 £000 |
Brought Carried Forward at forward at 1 April Revaluations 31 March 2022 April 2021 Income Expenditure and losses Transfers 2022 £000 £000 £000 £000 £000 £000 |
Brought Carried Forward at forward at 1 April Revaluations 31 March 2022 April 2021 Income Expenditure and losses Transfers 2022 £000 £000 £000 £000 £000 £000 |
Brought Carried Forward at forward at 1 April Revaluations 31 March 2022 April 2021 Income Expenditure and losses Transfers 2022 £000 £000 £000 £000 £000 £000 |
Brought Carried Forward at forward at 1 April Revaluations 31 March 2022 April 2021 Income Expenditure and losses Transfers 2022 £000 £000 £000 £000 £000 £000 |
Brought Carried Forward at forward at 1 April Revaluations 31 March 2022 April 2021 Income Expenditure and losses Transfers 2022 £000 £000 £000 £000 £000 £000 |
Brought Carried Forward at forward at 1 April Revaluations 31 March 2022 April 2021 Income Expenditure and losses Transfers 2022 £000 £000 £000 £000 £000 £000 |
Brought Carried Forward at forward at 1 April Revaluations 31 March 2022 April 2021 Income Expenditure and losses Transfers 2022 £000 £000 £000 £000 £000 £000 |
|---|---|---|---|---|---|---|---|
| Unrestricted funds | |||||||
| General fund |
2,853 | 2,112 (1,224) |
(272) (1,121) |
2,348 | |||
| Designated funds | |||||||
| Operational Assets Equity Fund | 23,904 | - | - | - | 1,121 | 25,025 | |
| Operational Risk Reserve | 1,030 | - | - | - | - | 1,030 | |
| Property Emergency Repair Fund | 50 | - | - | - | - | 50 | |
| 24,984 | - | - | - | 1,121 | 26,105 | ||
| Restricted funds | |||||||
| Lucy McNeil Fund | 1,849 | - | - | - | - | 1,849 | |
| St Albans Fund | 441 | - | - | - | - | 441 | |
| 2,290 | - | - | - | - | 2,290 | ||
| Total funds | 30,127 | 2,112 ( |
1,224) | (272) | 1,121 | 30,743 |
Page 22
Notes to the financial statements (continued) For the year ended 31 March 2023
PILGRIM HOMES TRUST
16. DESCRIPTION OF FUNDS
General Fund
Assets held in the General Fund are available for the general purposes of the charity.
Designated Funds
The trustees have designated these unrestricted funds for use for specific purposes as detailed below.
Restricted Funds
These are funds where there is a restriction imposed either by the donor or the charity setting out conditions under which funds may be used.
Designated Funds
Operational Assets Equity Fund
Established by the trustee to reflect the value of fixed asset properties owned by the charity which would not be capable of disposal without affecting the ongoing work of the charity. During the year a transfer has been made to match the value of this fund to the value of the assets owned by the charity.
Operational Risk Reserve
This fund consists of funds required to ensure the continuity of care in the event of a major disruption to the operation of the charity.
Property Emergency Repair Fund
This fund has been established to ensure that funds are set aside to deal with any emergency repairs required to principally any of this charity's properties, but the fund may be used for any emergency property repairs. In general, all repairs to property occupied by the Pilgrim Homes Restricted Fund will be carried out under the auspices of that Fund and the value gifted to this charity by way of an in-specie grant. A cash reserve of at least £50,000 will be maintained within the charity to enable these funds to be accessible in an emergency.
Restricted Funds
St Albans and Lucy McNeil Home Funds
These funds, accepted on 31 March 2020 as part of the transfer from Pilgrims’ Friend Society, relate to the receipt of donations and the proceeds of various fundraising activities for the purpose of establishing new homes.
Page 23
Notes to the financial statements (continued) For the year ended 31 March 2023
PILGRIM HOMES TRUST
17. RELATED PARTY TRANSACTIONS
The Pilgrims Friend Group is the ultimate controlling charity of the group, whose principal activity is to run Christian care homes. It is a charitable company limited by guarantee incorporated in England and Wales. Its registered office is 175 Tower Bridge Road, London SE1 2AL. Company number: 07169875. Charity number: 1134979.
The charity is a subsidiary of The Pilgrims Friend Group by virtue of that charity being the sole member of Pilgrim Homes Trust with the right to appoint directors. Transactions with The Pilgrims Friend Group and its other group undertakings are not disclosed as consolidated financial statements for the group are publicly available.
Details of trustees and key management personnel are given on page 1. No remuneration or reimbursed expenses are paid to any of them from this charity.
There are no other related party transactions.
18. LIFE TENANCY
In 2012 the charity was notified of a legacy which included a share of a freehold property, which is subject to a life tenancy. The conditions for recognition of this income have not been met and therefore this legacy is not included as income in the accounts. The estimated value of the legacy is unknown at present.
19. CHURSTON FERRERS OVERAGE
The sale of the land at Churston Ferrers included an overage agreement stating that Pilgrim Homes Trust will receive payment if planning permission is granted on the land disposed of before 2052.
Page 24