2024-03-31-accounts - Number Seven

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Number Seven

Report and Financial Statements for the year ending 31 March 2024

Charity number: 1185667

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Number Seven Reference and administration information

Name:	Number Seven
Charity number:	1185667
Address and	7 Princes Pavement
registered office:	Grange Precinct
	Birkenhead
	Wirral
	CH41 5LH
Trustees:	David Williams
	Frank Field (served until 23rd April 2024)
	Andrew Forsey
	Moira McLaughlin
	Ian Lewis

Bankers:

Lloyds Bank 25 Gresham Street, London EC2V 7HN

Independent Examiner:

Patrick Morrello, Third Sector Accountancy Ltd, Holyoake house, Hanover Street, Manchester M60 0AS

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Number Seven Trustees Annual Report for the year ended 31 March 2024

The trustees present their report and the unaudited financial statements for the year ended 31 March 2024.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

Number Seven’s objectives are:

The relief of financial hardship by providing services to enable people to access and afford food.
The relief of unemployment by providing training and employment opportunities to people who are unemployed or who face barriers to employment.
The promotion of social inclusion by preventing people from becoming socially excluded, relieving the needs of those people who are socially excluded and assisting them to integrate into society.
The promotion of the conservation and protection of the physical and natural environment through the recycling of surplus produce.

Number Seven carries out these objectives through the operation of a community supermarket, where members can access affordable food in person or through home deliveries. The cafe provides tasty and nutritious food to local residents and at reduced prices to Members. Surplus produce is recycled through the cafe/supermarket. Training and employment opportunities are provided.

Achievements and performance

Number Seven served an active membership of 1200 households on low incomes. The project utilised more than 50 tonnes of food which would otherwise have gone to waste. The project, along with the broader network of social supermarkets operating within the Feeding Birkenhead Supporting Wirral programme, has helped to prevent at least some of the need for food banks and other forms of crisis provision.

Training and volunteering opportunities have continued to be offered to local people, and Number Seven remains open early each morning to support the local homeless and vulnerably housed community, offering them a free packed lunch, hot meal and a hot or cold drink, as a takeaway service. On average, this service was provided to 40 people per day, five days a week. In addition, local advice agencies regularly came to Number Seven and engaged with people to understand how they may be able to help with their current position, with much success in resolving difficulties.

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Number Seven

Trustees Annual Report for the year ended 31 March 2024

Financial review

In the reporting period Number Seven received £356,608 in income (£98,537 from Feeding Britain, £42,000 from Wirral Council, £10,486 from other grants and £205,584 in cafe and market receipts). Total charitable expenditures for the period were £428,467 resulting in a net deficit for the period of £71,859.

Prior to registering as a separate charity in October 2019, Number Seven had operated under the Feeding Britain network from 2018. From 2018 to the end of this reporting period Feeding Britain raised funds to support the ongoing and future operations of Number Seven. As of the 31st of March 2024, Feeding Britain held £4,786 in funds, restricted for Number Seven's continuing operations.

Plans for future periods

Plans were developed within the reporting to make greater use of the recently expanded community cafe, including group activities among the membership as well as engagement with local credit union services so as to tackle social isolation and financial exclusion.

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six months' expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds may be raised.

Structure, governance and management

The organisation is a charitable incorporated organisation, incorporated on and registered as a charity on 7th October 2019.

The charity constitution established the objects and powers of the charity and its rules of governance.

All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 8 to the accounts.

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Number Seven Trustees Annual Report for the year ended 31 March 2024

Statement of responsibilities of the trustees

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).

Charity 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 group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

Select suitable accounting policies and then apply them consistently
Observe the methods and principles in the Charities SORP
Make judgements and estimates that are reasonable and prudent
State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Charities Act 2011 and The Charities (Accounts and Reports) Regulations 2008. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees’ annual report has been approved by the trustees on behalf by

and signed on their

Andrew Forsey

Trustee

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Number Seven

Independent examiner’s report to the trustees for the year ended 31 March 2024

I report on the accounts of the charity for the year ended 31 March 2024 set out on pages 6 to 17.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (“the Charities Act”) and that an independent examination is needed. The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of [named body.

It is my responsibility to:

examine the accounts under section 145 of the Charities Act,
to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act, and
to state whether particular matters have come to my attention.

Basis of independent examiner’s statement

My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

Other matters

Your attention is to drawn to the fact that the charity has prepared the accounts (financial statements) in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

We understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

which gives me reasonable cause to believe that, in any material respect, the requirements:
- to keep accounting records in accordance with section 130 of the Charities Act; and
- to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act
have not been met; or
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Patrick Morrello ACA Third Sector Accountancy Limited Holyoake House Hanover Street Manchester, M60 0AS

07 / 01 / 2025

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Number Seven

Statement of Financial Activities for the year ended 31 March 2024

Unrestricted funds Note £ Income from: Donations and legacies 3 144,724 Charitable activities 4 205,584 Total income 350,308 Expenditure on: Charitable activities 5 422,167 Total expenditure 422,167 6 (71,859) Transfer between funds - Net movement in funds for the year (71,859) Reconciliation of funds Total funds brought forward 165,362 Total funds carried forward 93,503 Net income/(expenditure) for the year	Restricted funds £ 6,300 - 6,300 6,300 6,300 - - - - -	Total funds 2024 £ 151,024 205,584 356,608 428,467 428,467 (71,859) - (71,859) 165,362 93,503	Unrestricted funds £ 333,060 111,084 444,144 247,131 247,131 197,013 197,013 (31,651) 165,362	Restricted funds £ - - - - - - - - -	Total funds 2023 £ 333,060 111,084 444,144 247,131 247,131 197,013 - 197,013 (31,651) 165,362

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

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Number Seven

Balance sheet as at 31 March 2024

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Note 2024 2023
£ £ £ £
Fixed assets
Tangible assets 11 49,921 64,211
Total fixed assets 49,921 64,211
Current assets
Stock 12 4,830 -
Debtors 13 36,641 40,627
Cash at bank and in hand 13,432 79,859
Total current assets 54,903 120,486
Liabilities
Creditors: amounts falling
due in less than one year 14 (11,321) (19,335)
Net current assets 43,582 101,151
Net assets 93,503 165,362
The funds of the charity:
Restricted income funds 15 - -
Unrestricted income funds 16 93,503 165,362
Total charity funds 93,503 165,362
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For the year in question, the charity was entitled to exemption from an audit under section 144 of the Charities Act 2011. The Charity Commission has not ordered an audit to be carried out under Section 146 of Charities Act 2011.

The notes on pages 8 to 17 form part of these accounts.

07 / 01 / 2025 Approved by the trustees on ____ and signed on their behalf by:

Andrew Forsey (Trustee)

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Number Seven

Notes to the accounts for the year ended 31 March 2024

1 Accounting policies

The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a Basis of preparation

The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Number Seven meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £ sterling.

b Preparation of the accounts on a going concern basis

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

c Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of a provision of a specified service is deferred until the criteria for income recognition are met.

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Number Seven

Notes to the accounts for the year ended 31 March 2024 (continued)

d Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised; refer to the trustees’ annual report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

e Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

f Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity.

Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose.

Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.

g Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Expenditure on charitable activities includes the costs of activities undertaken to further the purposes of the charity.
Other expenditure represents those items not falling into any other heading.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h Operating leases

Operating leases are leases in which the title to the assets, and the risks and rewards of ownership, remain with the lessor. Rental charges are charged on a straight line basis over the term of the lease.

i Tangible fixed assets

Individual fixed assets costing £2,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows:

Leasehold improvements 5 years

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Number Seven

Notes to the accounts for the year ended 31 March 2024 (continued)

j Stock

Stock is included at the lower of cost or net realisable value. In general, cost is determined on a first in, first out basis. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving, and defective stocks. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

k Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

l Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

m Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting 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 normally recognised at their settlement amount after allowing for any trade discounts due.

n Financial instruments

The charity only has financial assets and financial 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

o Pensions

Employees of the charity are entitled to join a defined contribution ‘money purchase’ scheme. The charity’s contribution is restricted to the contributions disclosed in note 7. There were no outstanding contributions at the year end.

2 Legal status of the charity

The charity is a charitable incorporated organisation registered in England and Wales and has no share capital. The registered office address is disclosed on page 1.

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Number Seven

Notes to the accounts for the year ended 31 March 2024 (continued)

3 Income from donations and legacies

Grants and Donations Total 4 Income from charitable activities Cafe and Social Supermarket Income Total Grants and Donations from Feeding Britain	Unrestricted £ 46,187 98,537 144,724 Unrestricted £ 205,584 205,584	Restricted £ 6,300 - 6,300 Restricted £ - -	Total 2024 £ 52,487 98,537 151,024 Total 2024 £ 205,584 205,584	Unrestricted £ 28,661 304,399 333,060 Unrestricted £ 111,084 111,084	Restricted £ - - - Restricted £ - -	Total 2023 £ 28,661 304,399 333,060 Total 2023 £ 111,084 111,084

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Number Seven

Notes to the accounts for the year ended 31 March 2024 (continued)

5 Analysis of expenditure on charitable activities

Staff costs Travel Food supplies Light and heat Professional fees Accountancy fees Sundry Advertising Depreciation Bank charges Transaction fees Cleaning services Property lease rental Unrestricted expenditure Restricted expenditure 6 Net income/(expenditure) for the year This is stated after charging/(crediting): Operating lease rentals: Property Independent examiner's fee Insurance Telephone costs	2024 £ 136,134 5,407 196,153 26,495 419 1,634 28,519 9,051 6,768 151 14,290 152 370 2,924 - 428,467 422,167 6,300 428,467 2024 £ 5,199 1,600	2023 £ 120,538 7,154 52,552 36,536 178 2,262 10,736 1,600 3,313 - 7,239 706 - 1,817 2,500 247,131 247,131 - 247,131 2023 £ 2,500 1,600

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Number Seven

Notes to the accounts for the year ended 31 March 2024 (continued)

7 Staff costs

Staff costs during the year were as follows:

Wages and salaries Social security costs Pension costs	2024 £ 129,317 3,197 3,620 136,134	2023 £ 112,854 4,010 3,674 120,538

No employees has employee benefits in excess of £60,000 (2023: Nil).

The average number of staff employed during the period was 8 (2023: 5).

The key management personnel of the charity comprise the trustees and the General Manager. The total employee benefits of the key management personnel of the charity were £31,800 including social security (2023: Nil).

8 Trustee remuneration and expenses, and related party transactions

Neither the management committee nor any persons connected with them received any remuneration or reimbursed expenses during the year (2023: Nil).

No members of the management committee received travel and subsistence expenses during the year (2023:Nil).

No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity, including guarantees, during the year (2023: Nil).

Prior to registering as a charity with the Charity Commission, Number Seven was operated by Feeding Britain (Charity Number: 1163986). Andrew Forsey is the National Director of Feeding Britain as well as a trustee of Number Seven.

Feeding Britain maintains a bank account on behalf of Number Seven. The balance of this account at the end of the year was £4,786 (2023: £25,359). During the year Number Seven received £63,720 in charitable grants (2023: £86,900) and £34,817 in donations (2023: £217,499) from Feeding Britain.

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Number Seven

Notes to the accounts for the year ended 31 March 2024 (continued)

9 Government grants

The government grants recognised in the accounts were as follows:

Wirral Borough Council	2024 £ 42,000 42,000	2023 £ 20,000 20,000

10 Corporation tax

The charity is exempt from tax on income and gains falling within Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.

11 Fixed assets: tangible assets

Cost Depreciation Charge for the year Net book value At 1 April 2023 At 31 March 2023 At 31 March 2024 At 1 April 2023 At 31 March 2024 At 31 March 2024	Leasehold improvements £ 71,450 71,450 7,239 14,290 21,529 49,921 64,211

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Number Seven

Notes to the accounts for the year ended 31 March 2024 (continued)

12 Stock

Food for resale 13 Debtors Prepayments and accrued income Tax and social securities Amount due from related parties Sainsbury vouchers 14 Creditors: amounts falling due within one year Accruals Tax and social security Other creditors Pensions payable 15 Analysis of movements in restricted funds Comparative period Balance at 1 April 2023 Income £ £ - 6,300 Total - 6,300 Comparative period Balance at 1 April 2022 Income £ £ - 73,296 - 9,584 Total - 82,880 Wirral Borough Council Magenta Living Steve Morgan Foundation	2024 £ 4,830 2024 £ 1,856 - 4,785 30,000 36,641 2024 £ 8,575 2,746 - - 11,321 Expenditure £ (6,300) (6,300) Expenditure £ (73,296) (9,584) (82,880)	2023 £ - 2023 £ 2,659 12,609 25,359 - 40,627 2023 £ 4,100 - 15,000 235 19,335 Transfers £ - - Transfers £ - - -	As at 31 March 2024 £ - - Balance at 31 March 2023 £ - - -

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Number Seven

Notes to the accounts for the year ended 31 March 2024 (continued)

Name of restricted fund Description, nature and purposes of the fund

Magenta Living To cover staff costs Steve Morgan Contribution towards general manager, cafe manager and assistant manager Foundation salaries Wirral Borough Council Covid local support fund to help vulnerable households

16 Analysis of movement in unrestricted funds

Comparative period General fund General fund Name of unrestricted fund General fund	Balance at 1 April 2023 Income Expenditure Transfers £ £ £ £ 165,362 350,308 (422,167) - 165,362 350,308 (422,167) - Balance at 1 April 2022 Income Expenditure Transfers £ £ £ £ (31,651) 444,144 (247,131) - (31,651) 444,144 (247,131) - Description, nature and purposes of the fund The free reserves after allowing for all designated funds	As at 31 March 2024 £ 93,503 93,503 As at 31 March 2023 £ 165,362 165,362

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Number Seven

Notes to the accounts for the year ended 31 March 2024 (continued)

17 Analysis of net assets between funds

Tangible fixed assets Net current assets/(liabilities) Total Comparative period Net current assets/(liabilities) Total	General fund £ 49,921 43,582 93,503 General fund £ 101,151 165,362	Designated funds £ - - - Designated funds £ - -	Restricted funds £ - - - Restricted funds £ - -	Total 2024 £ 49,921 43,582 93,503 Total 2023 £ 101,151 165,362

18 Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

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Property
2024 2023
£ £
Less than one year 8,358 625
One to five years 34,742 42,475
43,100 43,100
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