**REGISTERED COMPANY NUMBER: 12440181 (England and Wales) REGISTERED CHARITY NUMBER: 1191048** ## **BRIGHTWATER RESEARCH** **(A COMPANY LIMITED BY GUARANTEE)** **TRUSTEES' REPORT AND** **UNAUDITED FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 29 FEBRUARY 2024** **BRIGHTWATER RESEARCH** ## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024** |||**Page**|| |---|---|---|---| |**Reference and Administrative Details**||1|| |**Trustees' Report**|2|to|3| |**Independent Examiner's Report**||4|| |**Statement of Financial Activities**||5|| |**Statement of Financial Position**||6|| |**Notes to the Financial Statements**|7|to|11| **BRIGHTWATER RESEARCH** ## **REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 29 FEBRUARY 2024** ## **TRUSTEES** Mrs S M Crane Mr D R Crane Dr D J Garnett Mr E A Youngman ## **REGISTERED OFFICE** c/o Acuity Law Limited 3 Assembly Square Britannia Quarry Cardiff CF10 4PL **REGISTERED COMPANY** 12440181 (England and Wales) **NUMBER** ## **REGISTERED CHARITY** 1191048 **NUMBER** ## **INDEPENDENT EXAMINER** TCA (Shrewsbury) LLP Third Floor 21 St Mary's Street Shrewsbury Shropshire SY1 1ED Page 1 **BRIGHTWATER RESEARCH** ## **TRUSTEES' REPORT FOR THE YEAR ENDED 29 FEBRUARY 2024** The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 29 February 2024. The trustees have adopted the provisions of 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) (effective 1 January 2019). ## **OBJECTIVES AND ACTIVITIES** ## **Objectives and aims** Brightwater Research was registered on 27 August 2020 with the specific focus of conducting research and proving the efficacy of new treatments for various forms of cancers and disseminating those proven results to oncology clinicians and others for the successful treatment of cancer patients. ## **Public benefit** In setting our objectives and planning our activities our trustees have given serious consideration to the Charity Commission's general guidance on public benefit. ## **ACHIEVEMENT AND PERFORMANCE** ## **Charitable activities** Brightwater Research is developing a new drug to stop the spread of the cancer clone cells using our new drug 'Valoxydin'. Research continued in 23/4 to refine Valoxydin to measure its efficacy during planned In vivo trial taking place in Oct-Dec 2024. Whilst our primary objective remains the evolution of treatments for Ewing Sarcoma, it is our belief that Valoxydin will prove to be a useful anti-metastatic against a range of non-hormonal cancers. Brightwater sponsors two Doctoral studies, one studying in detail how Valoxydin works within the human body, and the other, investigates the biological sequences of a core biological driver of Ewing sarcoma's development. If successful, this will enable details of a protein which is fundamental to the growth to Ewing's Sarcoma to be understood at an exact and fundamental level. ## **FINANCIAL REVIEW** ## **Financial position** Brightwater continues to have adequate funding for all the year's activities, courtesy of our chief benefactor. Our capital expenditure for the year was relatively low, with the majority of the money being spent on purchase of research specific consumables as well as the costs associated with our Doctoral students. The charity has generated income during this financial year of £99,181 (2023: £50,356) which includes donations from its Trustees of £74,000 (2023: £50,000). Expenditure for the year totals £210,023 (2023: £78,214), including purchases of lab equipment and research material of £34,492 and sub-contracted research costs of £37,062. During this financial year, the Trustees' have revisited the depreciation policy of the Charity and on reflection, feel that the previous depreciation policy of 20% reducing balance does not accurately reflect the actual depreciation of the lab equipment. This has been updated to 3 years straight line and the appropriate adjustments have been made, which has generated a higher depreciation charge for this financial year of £124,512. (2023: £28,339). The charity has ended the year with a net deficit of £110,842 (2023: £27,858). The reserves policy of the charity is currently under review by the board of Trustees. The free reserves of the charity, calculated as unrestricted funds less fixed assets and designated funds at the year end was £23,544 (2023: £13,460). ## **Going concern** After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Page 2 **BRIGHTWATER RESEARCH** ## **TRUSTEES' REPORT FOR THE YEAR ENDED 29 FEBRUARY 2024** ## **FUTURE PLANS** We plan to run tests against lung cancer in 2024, with a follow-on test with Ewing Sarcoma if successful and if funds permit. Doctoral studies will continue throughout the next financial year. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing document** The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. ## **Organisational structure** Brightwater has four trustees, each bringing their own unique skillsets. They are: - Dr David Garnett - Chair, trustee and director - Edward Youngman - Trustee and Director - David Crane - Trustee and Director - Sonja Crane - Trustee and Director The board meets quarterly to review ongoing research and expenditure, as well as to plan future operational and strategic activities. Please contact: david.crane@brightwater-research.com for any further information. ## **TRUSTEES' RESPONSIBILITY STATEMENT** The trustees (who are also the directors of Brightwater Research for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". 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 incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charity SORP; - make judgements and estimates that are reasonable and prudent; - 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 keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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. Approved by order of the board of trustees on ............................................. and signed on its behalf by: ................................................................. Dr D J Garnett - Trustee Page 3 INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF BRIGHTWATER RESEARCH Independent examinerfs report to the trustees of Brightwator Res*arch {'the Company'l I report lo the charty trustees on my eXaMinat￿n ol the aw)unls of the Company for the year ended 29 February 2024. Rgsponslbllltles and basls of report As the Chanty's Iruslees of the Company land also rts directors for the purposes of company lawl you are responsible for the preparalK)n of the accounts in accordance with the requirements of the Companies Act 20061'the 2006 Act'l Having Satisfi￿ mysem that the accounts of the Company are not required to be auditèj under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your ¢harily's accounts as carried out under Sectton 145 of the Charrties Act 2011 1.the 2011 Act'l. In carrying out my examination I have followed the Directions gNen by the Charity Commission uThJer seCt￿n 145151 Ibl of the 2011 Act Independent examinef's Statement I have completed my examination. I confirm that no matters have ccAne to my attention in connectK)n with the examination giving me cause lo belwe.. accounting records were not kept in resFect of the Company as required by Section 386 of the 2006 Aet., or the accounts do not aecord wrth those records; or the accounts do not comply wrth the accounting requirements of se￿￿)n 396 of the 2006 Act other than any requirement th* the accounts give a tn￿ and fair wh￿h is not a matter conSide￿d as part of an independent examination", or the accounts have not bèen prepared in aceordance wrth the methods and prinCip￿S of the Statemer>t of Recommended Practv for accounting and reporting by tharities (applicable lo charities preparing their acwunls in accordance with the Finanoal Reporting Standard applicable in the UK and Republic of Ireland IFRS 10211. I have no concerns and have come across no other matters in connection wf(h the examination lo which attenlton shoukd be drawn in this report in order to enable a proper understsnding of the a￿oUnts to be reached. C m￿￿n-￿IlIaMS Bsc FCA TCA Ishrewsburyl LLP Third Floor 21 Sl Mary's Street Shrewsbury Shropshire SY1 1ED Date.. p￿e4 **BRIGHTWATER RESEARCH** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 29 FEBRUARY 2024** |2024
Unrestricted
fund
Notes
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
98,189
Other trading activities
2
992
**Total**
99,181
**EXPENDITURE ON**
**Charitable activities**
General
208,613
Other
1,410
**Total**
210,023
**NET INCOME/(EXPENDITURE)**
(110,842)
**RECONCILIATION OF FUNDS**
Total funds brought forward
151,569
**TOTAL FUNDS CARRIED FORWARD**
40,727|2023
Total
funds
£
50,356
-
50,356
77,284
930
78,214
(27,858)
179,427
151,569| |---|---| ## **CONTINUING OPERATIONS** All income and expenditure has arisen from continuing activities. The notes form part of these financial statements Page 5 **BRIGHTWATER RESEARCH** ## **STATEMENT OF FINANCIAL POSITION 29 FEBRUARY 2024** |2024
Unrestricted
fund
Notes
£
**FIXED ASSETS**
Tangible assets
6
17,183
**CURRENT ASSETS**
Debtors
7
1,568
Cash at bank
23,356
24,924
**CREDITORS**
Amounts falling due within one year
8
(1,380)
**NET CURRENT ASSETS**
23,544
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
40,727
**NET ASSETS**
40,727
**FUNDS**
9
Unrestricted funds
40,727
**TOTAL FUNDS**
40,727|2023
Total
funds
£
138,109
6,979
7,321
14,300
(840)
13,460
151,569
151,569
151,569
151,569| |---|---| The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 29 February 2024. The members have not required the company to obtain an audit of its financial statements for the year ended 29 February 2024 in accordance with Section 476 of the Companies Act 2006. The trustees acknowledge their responsibilities for - (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and - (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: ............................................. Dr D J Garnett - Trustee The notes form part of these financial statements Page 6 **BRIGHTWATER RESEARCH** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024** ## **1. ACCOUNTING POLICIES** ## **Basis of preparing the financial statements** The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. ## **Financial reporting standard 102 - reduced disclosure exemptions** The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland': - the requirements of Section 7 Statement of Cash Flows; - the requirement of paragraph 3.17(d); - the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); - the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; - the requirement of paragraph 33.7. ## **Income** All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. ## **Expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. ## **Tangible fixed assets** Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. - Plant and Machinery 3 years straight line ## **Taxation** The charity is exempt from corporation tax on its charitable activities. ## **Fund accounting** Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. ## **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. Page 7 continued... **BRIGHTWATER RESEARCH** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 29 FEBRUARY 2024** ## **1. ACCOUNTING POLICIES - continued** ## **Cash at bank and in hand** 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 acquisition or opening of the deposit or similar account. ## **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. ## **2. OTHER TRADING ACTIVITIES** |Recharge for chemicals
**3.**
**NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
Depreciation - owned assets|2024
£
992
2024
£
124,512|2023
£
-
2023
£
34,527|2023
£
-| |---|---|---|---| ## **4. TRUSTEES' REMUNERATION AND BENEFITS** There were no trustees' remuneration or other benefits for the year ended 29 February 2024 nor for the year ended 28 February 2023. ## **Trustees' expenses** There were no trustees' expenses paid for the year ended 29 February 2024 nor for the year ended 28 February 2023. ## **5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES** ||Unrestricted| |---|---| ||fund| ||£| |**INCOME AND ENDOWMENTS FROM**|| |Donations and legacies|50,356| |**EXPENDITURE ON**|| |**Charitable activities**|| |General|77,284| |Other|930| |**Total**|78,214| |**NET INCOME/(EXPENDITURE)**|(27,858)| |**RECONCILIATION OF FUNDS**|| |Total funds brought forward|179,427| Page 8 continued... **BRIGHTWATER RESEARCH** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 29 FEBRUARY 2024** ## **5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued** |**TOTAL FUNDS CARRIED FORWARD**
**6.**
**TANGIBLE FIXED ASSETS**
**COST**
At 1 March 2023
Additions
At 29 February 2024
**DEPRECIATION**
At 1 March 2023
Charge for year
At 29 February 2024
**NET BOOK VALUE**
At 29 February 2024
At 28 February 2023
**7.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade debtors
Prepayments
**8.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Accrued expenses
**9.**
**MOVEMENT IN FUNDS**
At 1.3.23
£
**Unrestricted funds**
General fund
151,569
**TOTAL FUNDS**
151,569|Unrestricted
fund
£
151,569
Plant and
machinery
£
242,796
3,586
246,382
104,687
124,512
229,199
17,183
138,109
2024
2023
£
£
1,568
-
-
6,979
1,568
6,979
2024
2023
£
£
1,380
840
Net
movement
At
in funds
29.2.24
£
£
(110,842)
40,727
(110,842)
40,727| |---|---| Page 9 continued... **BRIGHTWATER RESEARCH** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 29 FEBRUARY 2024** ## **9. MOVEMENT IN FUNDS - continued** Net movement in funds, included in the above are as follows: |**Unrestricted funds**
General fund
**TOTAL FUNDS**|Incoming
resources
£
99,181
99,181|Resources
Movement
expended
in funds
£
£
(210,023)
(110,842)
(210,023)
(110,842)| |---|---|---| ## **Comparatives for movement in funds** |At 1.3.22
£
**Unrestricted funds**
General fund
179,427
**TOTAL FUNDS**
179,427
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
50,356
**TOTAL FUNDS**
50,356
A current year 12 months and prior year 12 months combined position is as
At 1.3.22
£
**Unrestricted funds**
General fund
179,427
**TOTAL FUNDS**
179,427|Net
movement
At
in funds
28.2.23
£
£
(27,858)
151,569
(27,858)
151,569

Resources
Movement
expended
in funds
£
£
(78,214)
(27,858)
(78,214)
(27,858)
follows:
Net
movement
At
in funds
29.2.24
£
£
(138,700)
40,727
(138,700)
40,727| |---|---| Page 10 continued... **BRIGHTWATER RESEARCH** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 29 FEBRUARY 2024** ## **9. MOVEMENT IN FUNDS - continued** A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: |**Unrestricted funds**
General fund
**TOTAL FUNDS**|Incoming
resources
£
149,537
149,537|Resources
Movement
expended
in funds
£
£
(288,237)
(138,700)
(288,237)
(138,700)| |---|---|---| ## **10. RELATED PARTY DISCLOSURES** During the year, the charity received donations from Trustees totalling £74,000. (2023: £50,000). The charity paid £9,802 during the year to Pathway Intermediates Ltd for the purchase of lab materials and sub-contracted research staff. The charity also received £992 from Pathway Intermediates Ltd in relation to chemicals recharged back to Pathway Intermediates. Mr E Youngman, Trustee, is a director of Pathway Intermediates Ltd. Page 11