Annual Report 24–25 Reviewing the year 1 ~~2024–25~~ Annual Report Books Council of Wales Annual Report 24–25 2 Reviewing the year ## Contact us Books Council of Wales Castell Brychan Aberystwyth SY23 2JB 01970 624 151 post@books.wales books.wales ## Our services Your favorite books from Wales available to buy in digital formats – with your purchase supporting local bookshops. ## **› ffolio.wales** ## **The Distribution Centre** Home to around a million books – distributing Wales’ best books to shops throughout Wales and beyond. **› books.wales** ## **Editorial & Design** Design and editing services for publishers across Wales offering advice and expertise. **› books.wales** Order books online to be delivered to your home, and choose a bookshop to support. **› gwales.com** _Registered Charity Number 1192269_ Annual Report 24–25 Reviewing the year 3 OUR VISION We want a Wales where each one of us has found the right book; the words that inspire, educate, heal, or simply delight us. _Wales: A Reading Nation Strategic Plan 2022–27_ Reviewing the year Annual Report 24–25 4 ## Expressing appreciation over a difficult year ## _A word from the Chair_ Linda Tomos, Chair of the Board This has been a particularly challenging year for the Books Council of Wales and our partners. ## OVERVIEW The decrease of 10.5% in our annual budget was very difficult to manage and I would like to express our appreciation as a Board of Trustees for the hard work and skill shown by our staff led by Helgard to address the subsequent issues. Despite this difficult context, we have continued to deliver support to the publishing industry which has once again produced very highquality books in both English and Welsh for people in Wales. The New Audiences Fund has continued to provide opportunities for new and existing authors and publishers to explore innovative directions for their work. It was particularly Annual Report 24–25 Reviewing the year 5 heartening to learn more about the success of the New Audiences Fund at an event held in Wrexham where Rebecca Evans MS, Cabinet Secretary for Economy, Energy and Planning was able to meet participants and discuss their projects. These achievements would not have been possible without the active support of Jack Sargeant MS, Minister for Culture, Skills and Social Partnership, and the positive relationship which has continued with civil servants in Creative Wales and Welsh Government Culture Division. I know that I speak for all my fellow Trustees in sincerely thanking them for their contribution to the success of the Books Council’s work. The contribution and interest of the Cabinet Secretary for Education, Lynne Neagle MS has also been invaluable in supporting the Book Council’s relationship with Welsh schools to encourage all children to enjoy reading. This includeses Rhyngom – our special project to publish more books for young readers that represent the culture, people and history of the whole of Wales, and that celebrate and promote diversity. During the year, the Board was delighted to welcome Professor Angharad Price to join us as a Trustee. Angharad is Professor of Welsh and Creative Writing at Bangor University and is the author of several novels, essays and scholarly works on Welsh literature. As Chair, I would like to also sincerely thank a longstanding Board member, Professor Jane Aaron who has provided an immense contribution to the work of the Books Council over the years and to wish her well in future endeavours. Jane is a distinguished scholar who has provided wise counsel to me and others who have benefitted from her friendship. Once again, the highlights of this past year are numerous, and I encourage you to read this Annual Report. I’m sure that you will be as impressed as I was by the breadth of work that has been accomplished despite the challenging financial constraints. The Books Council continues to play a vital role in terms of providing expert advice, maintaining the quality of the books supported and connecting books with readers. However, there needs to be an acknowledgement that this unique expertise can only be sustained and extended through the maintenance of a core budget which is commensurate with the expectations of the industry and the public that high quality publications and services will continue to be supported and produced. Finally, as Chair, I have greatly benefitted from the input of many colleagues. I would like to sincerely thank all our supporters, volunteer members of the panels, Friends of the Books Council, and my fellow Trustees who have given their time and expertise to enable us to achieve more. Without the dedication of the staff who ensure that our work flourishes under Helgard’s leadership and our many partners in Government, local authorities and the publishing industry, we would not have succeeded in achieving the outputs and results outlined in this report. I really look forward to working with you all as we move forward. With my very best wishes, _Linda_ Annual Report 24–25 ## 6 ~~A year of~~ Reviewing the year prioritising and making difficult choices _Reflecting over the year_ Helgard Krause, CEO Annual Report 24–25 Reviewing the year 7 ## OVERVIEW Our vision for a Wales as a nation of readers empowered by knowledge is reflected in the multitude of activities we delivered during this last financial year. However, a 10.5% cut in our budget, after over a decade of standstill funding, meant prioritising and making difficult choices; consultation with publishers and booksellers was key to achieving temporary workable solutions but the challenges we as a charity and a sector made up of micro-enterprises face, remain very stark. Market conditions in Wales are difficult: dramatically reduced multi-book sales to institutions such as schools, libraries and the early years sector due to shrinking public budgets; less discretionary spending by consumers on books and magazines; and ever-increasing competition from the entire UK book sector, are set against dramatically increased production and distribution costs. And yet, against this backdrop we also delivered the final year of Books are powerful vessels of knowledge and cultural identity, and we believe that investing in publishing is not just about books, it is about preserving our heritage, empowering communities, and building a stronger future. one of the most transformative strategic interventions in recent years, the New Audiences Fund, which started a process of systemic change which otherwise would not have been possible. As our showcase in Wrexham and impact report clearly demonstrated we were able to connect with more diverse communities, making a real difference and enabling change at a grass-roots level. We are hopeful that based on our evidence we will be able to secure further project funding in the future. was launched to much acclaim in March, having successfully secured the franchise until March 2028, and we look forward to the venture flourishing and providing an important platform for writers in Wales. Having secured additional funding, we were delighted to be able to showcase Wales and its tremendous talent by exhibiting at Frankfurt Book Fair with 17 publishers from Wales participating, and to be able to support Cyhoeddi Cymru / Publishing Wales to have a presence at London International Book Fair and the Children’s Books Fair in Bologna. We also took a lead role in developing and submitting an application to UNESCO to secure the prestigious status of City of Literature for Aberystwyth & Ceredigion; we expect to hear of the outcome in autumn 2025. We also had the opportunity to propose a significant expansion of our Reading Promotion activities, by submitting an ambitious threeyear plan to Welsh Government’s Education Department, which was subsequently approved, and we are looking forward to working in partnership with Welsh Government to turn a spotlight on the transformative power of reading for pleasure. In compiling evidence during a very intense year of lobbying for a better settlement for the sector, we can demonstrate that our sector has experienced a real terms cut This last year also saw the arrival of a new literary journal. _Folding Rock_ Reviewing the year Annual Report 24–25 8 of 40% over the last decade; that is substantially less well funded than Scotland, Ireland or any of the smaller European nations. Never are the generous contributions of trustees and volunteers more needed than during tumultuous times and I am deeply indebted to them all for the support and advice my team and I had over the last year. I would also like to pay tribute to all my colleagues, who worked tirelessly to secure reasonable outcomes during the most challenging times. A special thank you should also go to the formidable management team with whom I have the pleasure of leading our organisation – none of it would be possible without them. The publishing sector makes an important contribution to many Welsh Government policies. However to achieve our vision of Wales as a Nation of Readers and to improve PISA ratings and literacy ratings in Wales, we need a publishing sector that is adequately funded to ensure its resilience and enable it to thrive. We want to see publishers producing quality books for readers of all ages, life stages and interests that authentically reflect our realities here in Wales. Our main focus as the Books Council in the coming year is to make the case for investment in our sector. In addition to making significant contributions to almost all of the Well-being Goals, this is a sector that has also passionately committed to serving readers in Wales over many years. Reviewing the year 9 **----- Start of picture text -----**
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## PUBLISHING ## _Folding Rock_ magazine receives £80,000 annual funding print magazine. You can find out more at **foldingrock.com** . In September we announced that _Folding Rock_ , a new venture by writer, editor and creative producer Kathryn Tann, and editor and designer Robert Harries, was the recipient of £80,000 of annual funding to publish a new literary magazine from Wales. This funding will be available up to March 2028, following the advertisement of an open tender for a new English-language literary magazine in March 2024. Four other publications received funding as part of the Englishlanguage Cultural Periodicals funding franchise for the same period: _Nation.Cymru_ , _Poetry Wales_ , _The Paper_ and _The Welsh Agenda_ . _Folding Rock: New Writing from Wales and Beyond_ will provide a platform for new and established writers, celebrating Welsh writing in English. Its aim to champion and celebrate the best emerging and established Welsh and Wales-based writers goes to the heart of our work at the Books Council – strengthening the publishing industry in Wales by creating opportunities for the next generation of authors to hone their craft. The first issue of _Folding Rock_ was published in March 2025, and it will be published three times a year, with digital content alongside the p.*TI .111111. Annual Report 24–25 Reviewing the year 11 SECTOR ## Wales on the world stage Publishers and partners from Wales offering a Welsh publishing presence at the Frankfurt, Bologna and London book fairs. - _**17 publishers and partners** from Wales attending the fair_ - _**230,000 visitors** attended the fair over a period of five days_ - _**4,300 exhibitors**_ - _**92 countries present**_ We were pleased to secure funding from Welsh Government via Creative Wales this year to showcase the very best of books and content from Wales at international book fairs in London, Bologna and Frankfurt. Wales-based publishers had the opportunity to meet representatives from other creative industries, such as film and games, as well as other publishers, to discuss collaborations, rights and licensing, and build relationships. We co-ordinated Wales’ presence at Frankfurt Book Fair in October, the largest content fair in the world. 17 publishers and partners from Wales attended, and the five-day event attracted around 230,000 visitors with 4,300 exhibitors from 92 countries. The Wales presence at London and Bologna book fairs was managed by Cyhoeddi Cymru / Publishing Wales. Annual Report 24–25 > 12 ~~New Audiences~~ Reviewing the year ## Fund reaches £1.5m R. Arwel Jones _Head of Publishing Development_ Annual Report 24–25 Reviewing the year 13 ## FUNDING Visit the Book Council of Wales’ website for more information on the New Audiences Fund: **books.wales** We would like to thank Creative Wales and Welsh Government for their support for this transformative fund, which has the potential to continue to create lasting change in our publishing sector for the benefit of all of Wales. The challenges faced in the sector in 2024 mean that New Audiences funding has been of vital help to the publishing industry 2024 saw a third year of New Audiences grants, and in June we announced the recipients who would share £500,000 of additional funding to support over 40 projects across Wales. This year, applications were invited under three themes: book promotion and marketing programmes that reach new readers in Welsh and English; provide opportunities to new voices in news services and popular magazines; and develop and publish new content that represents Wales in all its diversity. increasing representation and supporting businesses. Three years and £1.5million later, we can look back on over 100 projects across Wales. But the stories behind these figures are more important still as we see how the grants have created jobs, supported fair pay, facilitated collaboration, mentored new voices and enabled the publication of new cultural materials. In February 2025 we held a celebration event at Tŷ Pawb in Wrexham, inviting past and present recipients to discuss their projects, achievements and challenges in reaching new audiences in Wales. We were very pleased to welcome the Cabinet Secretary for the Economy, Energy and Planning, Rebecca Evans MS, as we reflected on the impact of the investment and exchanged ideas for the future. The challenges we faced as a sector in 2024 meant that this year more than ever, New Audiences funding has been a crucial support for the publishing industry during difficult times. It supported yet more fresh ideas and new voices, but it also enabled projects that started out as pilots or start-ups under the scheme to grow and reach their full potential. When we established the fund, we were looking for projects that would be catalysts for lasting change in our sector: creating opportunities, **----- Start of picture text -----**
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## Stars of the Shelves **Over 5,000 children across Wales have the opportunity to meet an author** PARTNERSHIP Launching a new resource pack to support teachers NEW Reviewing the year Annual Report 24–25 Thanks to funding from Welsh Government’s Culture Division, 5,170 children across Wales were able to meet up with popular children’s authors in a series of special workshops held in their local libraries. The Stars of the Shelves scheme was formed as a partnership to bring children out of the classroom and into their local library, working with authors in creative workshops to celebrate books and inspire reading. A recent research report from the National Literacy Trust found that: “More children and young people who had experienced an author visit said that they enjoyed reading in their free time compared with their peers who hadn’t had a visit (58.6% vs. 39.3%).” Between January and March 2025, workshops were held at 74 libraries with over 30 authors, including Robin Bennett, Claire Fayers, Mari Lövgreen and Siôn Tomos Owen. October saw the launch of a new set of school resources specially created to support teachers to embed reading for pleasure in the classroom, across all age groups and key stages. The Celebrate Reading Pack has been developed following feedback from teachers on how we could support them to make reading for pleasure part of daily school life: developing literacy, language skills and empathy, and delivering the Curriculum for Wales. The packs include activities and ideas for all key stages, as well as progression steps to help young readers of all ages discover a love of reading. Annual Report 24–25 Reviewing the year 15 ## Launching a brand new podcast ## PROMOTION Watch and listen to the _Sut i Ddarllen_ podcast: Over six episodes of our new Welshlanguage podcast, _Sut i Ddarllen_ (How to Read) our Reading Promotions Officer, Francesca Sciarrillo, was joined by a range of special guests to discuss reading, its influence and the impact it can have on our daily lives, as well as books of all kinds. Among the guests sharing their memories and reading recommendations are Siôn Tomos Owen, Kayley Roberts and Manon Steffan Ros. Francesca explains the choice of name ‘Sut i Ddarllen’: “I’m such a bookworm myself and when we were planning this podcast, we wanted to include certain themes in each episode that reflected the different relationships we all have with reading. We discussed how to return to reading – maybe if you hadn’t enjoyed reading growing up and wanted to give it another go – or how to find the right book for you, or even how to make time for reading in our busy lives – the word ‘how’ just kept coming up in all our ideas! So, while it’s quite a playful title, I love it because for me, once you discover how you can make books and reading part of your life, it can change everything for you.” _Sut i Ddarllen_ is available on all podcast platforms. Francesca’s guests in series one are: Siôn Tomos Owen, Kayley Roberts, Manon Steffan Ros, Sara Yassine, Joe Healy, and Dr Eirini Sanoudaki. A second series will follow next year. Reviewing the year Annual Report 24–25 16 ## PROJECT ## Rhyngom project boosts number of books celebrating diversity for children and young people Rhyngom is a three-year, £810,000 project, funded by Welsh Government’s Education Department and Adnodd. Its aim is to publish more reading books for pleasure that celebrate and promote diversity, for children and young people. The funding has enabled us to commission 20 brand-new original books in Welsh and English, as well as the adaptation of 28 Englishlanguage books into Welsh, to create books that reflect more of our stories, people and communities. We’re very grateful to our many partners who have contributed their experience and expertise to this project, and we celebrated the first milestone this year as the 20 original books commissioned in Welsh and English were published. The new books include works by first-time writers as well as established authors. One of the main aims of commissioning original Welsh- and Englishlanguage books as part of the scheme was to ensure publishing opportunities for authors and illustrators from a range of underrepresented backgrounds and communities, and some new authors were supported to work with a mentor or to co-author with a more experienced writer. The second phase of this project is to publish Welsh adaptations of 28 English titles that promote and celebrate diversity – some of which have won awards such as the Diverse Book Award, and which include books by Malorie Blackman and Benjamin Zephaniah. We’re producing educational resources to accompany all 48 titles and every state school in Wales will receive a free supply of the books and the educational resources for use in the classroom by autumn 2025. Every book published as part of the scheme has been endorsed by Welsh Government. For more information about the Rhyngom project, contact the Children’s Books and Reading Promotion Department: children[@] books.wales Annual Report 24–25 17 **----- Start of picture text -----**
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_I am delighted, and thank you from the bottom of my heart for the honour._ _It means the world to me._ ## **Bethan Gwanas** AWARDS ## Honoring Bethan Gwanas with the Mary Vaughan Jones Award In November we awarded the 2024 Mary Vaughan Jones Award to Bethan Gwanas, in recognition of her outstanding contribution to children’s literature. This award, which is presented every three years, was established in 1985 to commemorate Mary Vaughan Jones’ significant and unique contribution to children’s literature, and it is the highest accolade in the field of children’s books in Wales. A special celebration was held at Glan-Llyn in Llanuwchllyn in November to present the award to Bethan in the company of family and friends from the publishing industry. **Recent past-winners of the award:** 2021 – Menna Lloyd Williams 2018 – Gareth F. Williams 2015 – Siân Lewis 2012 – Jac Jones 2009 – Angharad Tomos 18 ## Annual Report 24–25 English-language Shortlist **The Song that Sings Us** _Firefly_ Illustration: Jane Matthews Design: Becka Moor Author: Nicola Davies **Ceri a Deri: 1,2,3** _Graffeg_ Illustration: Max Low Design: Joana Rodrigues, Graffeg Author: Max Low ## NEW ## New awards to celebrate the best of book covers The Children’s Book Cover of the Year Awards is a pilot scheme to highlight the illustration and design talents in Wales. This year we launched our Wales Children’s Book Cover of the Year Awards, with the help of our Young People’s Panel. The awards were established to celebrate and recognise the contribution of illustrators and designers in bringing stories to life, and creating eye-catching, attractive books that appeal to young readers. There are two categories – Englishlanguage Book Cover and Welshlanguage Book Cover. The eight shortlisted books were selected by members of our Young People’s Panel and the winners were chosen by an online public vote. _**What an honor to hear that this little winter book has been chosen to win the prize!**_ _**I am very proud to win this wonderful new award. I am delighted that this award has been set up to celebrate cover designs.**_ Lily Mŷrennyn _Winner of the Welsh-language category_ Jane Matthews _Winner of the English-language category_ **Lilly & Myles: The Torch** _Graffeg_ Illustration: Hannah Rounding Design: Joana Rodrigues, Graffeg Author: Jon Roberts **Tapper Watson and the Quest for the Nemo Machine** _Firefly_ Illustration: Becka Moor Author: Claire Fayers ## Welsh-language shortlist **Mynd i Weld Nain** _Y Lolfa_ Illustration: Lily Mŷrennyn Design: Richard Pritchard Author: Delyth Jenkins **Ac Rwy’n Clywed Dreigiau / And I Hear Dragons** _Firefly_ Illustration: Eric Heyman Design: Becka Moor Golygydd: Hanan Issa **Diwrnod Prysur** _Gwasg Carreg Gwalch_ Illustration and Design: Huw Aaron Author: Huw Aaron **Mwy o Straeon o’r Mabinogi** _Rily_ Illustration: Valériane Leblond Design: Gwasg Rily Author: Siân Lewis wlldness and ri8e.' TIMe5 THE SINI s J8 'Stran8e, bloodyy grand nd unlorgetlable. The Guardia NICOLA DAVIE Nominated For EhE Yolo C?rne6Le Medal"4i*rf,... MYND i h/ELD MA1￿1 DEIYTkl JENhitl LILY MY FlE￿TrIYN Ilupxa¥ y Annual Report 24–25 Our year in numbers ## Our year in numbers The numbers behind our stories 549,539 books sent out by Distribution Centre INDUSTRY kWh 24,966 electricity generated by solar panels ## 62 volunteers on our Board, panels and subcommittees VOLUNTEERING 536 shops in Wales serviced INDUSTRY SUSTAINABILITY Our year in numbers Annual Report 24–25 5,170 children took part in Stars of the Shelves author workshops READING PROMOTION 145 Welsh-language books supported with grants PUBLISHING ## 90 English-language books supported with grants PUBLISHING 27,207 children aged 4–11 took part in the Summer Reading Challenge in Wales £500,000 distributed through New Audiences Fund 3 FUNDING ## 16 Welsh-language magazines supported with grants PUBLISHING READING PROMOTION 17½ job posts supported through grants SUSTAINING JOBS 5 English-language magazines supported with grants PUBLISHING Annual Report 24–25 22 Reviewing the year ## Contact us Books Council of Wales Castell Brychan Aberystwyth SY23 2JB 01970 624 151 post@books.wales books.wales _Registered Charity Number 1192269_ _Mae’r ddogfen hon hefyd ar gael yn y Gymraeg A Welsh-language version of this document is also available_ ## **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025** Registered Charity: 1192269 www.books.wales ## **CYNGOR LLYFRAU CYMRU / BOOKS COUNCIL OF WALES** ## **CONTENTS** |Trustees’ Report|| |---|---| |Main Aims and Activities of the Charity|2–4| |A Summary of the Year|4–7| |Achievement and Performance|8–9| |Financial Review and Future Plans|10–11| |Statement of Trustees’ Responsibility|12| |Independent Auditors’ Report|13–16| |Statement of Financial Activities|17| |Balance Sheet|18| |Cash Flow Statement|19| |Notes to the Financial Statements|20–38| 1 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025** The trustees present their report, together with the accounts for the year ending 31 March 2025. ## **Main Aims and Activities of the Charity** - To encourage and support the book industry in Wales by awarding grants and otherwise; - To encourage, promote and assist the production and distribution of books and other recorded literary and artistic material howsoever recorded (whether by known means or by means as yet unknown) in the two official languages of Wales, Welsh and English, or which are of Welsh interest; - To organise events to support the promotion of books, reading and the book sector as a whole; - To encourage and promote the publication of such books and other material in Wales. ## **Public Benefit Declaration of Interest** The Executive Committee have considered their duty in accordance with Section 17 of the Charities Act 2011 regarding Public Benefit. They are satisfied that the charity’s activities during the year, as described in this report, are in accordance with these criteria. The core aim of Cyngor Llyfrau Cymru – The Books Council of Wales is to provide benefit to the readers of Wales – in both languages. ## **Administrative details** Name of Charity Cyngor Llyfrau Cymru – The Books Council of Wales Registered Charity 1192269 Registered Address Castell Brychan Aberystwyth Ceredigion SY23 2JB Auditors Llŷr James Chartered Certified Accountants & Registered Auditors 25 Bridge Street Carmarthen SA31 3JS Bank HSBC plc Harford Square Lampeter Ceredigion SA48 7DU Chief Executive Helgard Krause Investments Broker BlackRock 12 Throgmorton Avenue London EC2N 2DL 2 **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** **TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025** ## **Trustees** The Books Council of Wales, as a Charitable Incorporated Organisation, is governed by the Board of Trustees which includes the Chair, Vice Chair and Trustees and up to 12 members. Trustees are elected to serve for a term of 4 years with an option of an additional second term of 4 years. The chair is elected annually by the Board of Trustees. An Annual General Meeting is held in the summer where the membership receives the accounts and annual report. ## **The Trustees for 2024/25 are:** Mrs Linda Tomos Chair Mrs Rona Aldrich Vice Chair Mr Alfred Oyekoya Treasurer Professor Jane Aaron End of term – 12/2024 Mrs Meinir Ebbsworth Mrs Alwena Hughes Moakes Ms Lowri Ifor Professor Carwyn Jones Professor Angharad Price Appointed 27/01/2025 Ms Ruth Thomas Professor M. Wynn Thomas Dr Caroline Owen Wintersgill 3 **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** **TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025** ## **Constitution** Cyngor Llyfrau Cymru – The Books Council of Wales’s governing instrument is a written constitution. Cyngor Llyfrau Cymru – The Books Council of Wales was transferred into a Charitable Incorporated Organisation on 1 April 2021. ## **The Council and its Committees** The Books Council is governed by a Board of Trustees who are appointed under the terms of its Constitution. The Board of Trustees appoints members to specialist subcommittees which report to the Board of Trustees. An open advertising process is fair and transparent, in line with best practice, for all available positions on the Board and subcommittees. ## **A Summary of the Year –** This last financial year has been one of the most challenging periods the current management team of the Books Council has experienced, and it is evidenced by the loss detailed in the accounts. The position was inevitable given the devastating cuts which followed a decade of standstill funding compounded the pressures brought by a weak consumer demand and a lower than ever institutional spending on books. Added to this, severe rises in distribution and production costs as well as wage costs, the Books Council and the publishing sector found itself facing a perfect storm. Whilst we were grateful to receive a small additional in-year grant from Welsh Government to help with wages, we were very disappointed that another round of New Audiences Funding was not made available at the end of the year. The management team is now considering all options to put in place a plan to mitigate against further losses and is expected to present the Board of Trustees with a plan in the next board meeting. In September 2024 we held a crisis summit with publishers to discuss a strategy to lobby government for better support and potential further cuts. It was pleasing to see publishers come together and mount a successful campaign, highlighting the real risks to the already fragile ecosystem that is publishing in Wales. There is no doubt that it was our continued efforts, including giving detailed evidence to the Culture Committee in October, together with a very public campaign that led to an improved settlement announcement for the following year, which succeeded in getting funding back to 2023/24 levels. A welcome, albeit very late, decision by Welsh Government to support Frankfurt Book Fair once more brought its own challenges, but it was pleasing to deliver a successful event with a new stand in a new location, which took on board previous feedback for improvements. The theme of unprecedented challenges continued further into the pre-Christmas period with weaker than anticipated sales and the announcement by the Welsh Government education department of a complete overhaul of their funding arrangements for reading promotion activities. We had six working weeks, interrupted by the Christmas break, to prepare a brand-new application for increased multiyear funding. We were delighted to be awarded the full amount for a much-extended programme in what turned out to be a very competitive process. The Children’s Books and Reading Promotion Programme will be much strengthened, and we will be able to increase our programme provisions to support literacy improvements and contribute to addressing the very poor PISA results. We were delighted that the Prif Weinidog visited Aberystwyth to meet with the steering group leading the bid for Aberystwyth and Ceredigion City of Literature. Her enthusiastic support for the project was very welcome and we were delighted to be able to inform her in March that we had successfully 4 **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025** cleared the first hurdle to win against other bids. It was pleasing to hear that our application was not only accepted and put forward by the UNESCO British Committee, but it also received excellent scores and high praise from the assessor. We now await the outcome of further external assessments and anticipate an announcement in autumn 2025. ## **Business Developments** Having completed a full year in the Distribution Centre on the new IT system, we are beginning to see real efficiencies with regard to our processes; more importantly, we are able to respond positively to the ever-increasing demands from trade customers, and especially online retailers. Our integration with industry-standard data and distribution systems has produced a seamless workflow which also meets customer and consumer demands with real-time reporting on distribution and delivery status of orders. Moving from a paper-based picking system to scanners has significantly cut our error rates, which will be further improved by using a ‘scan to box’ system helping to cut down on enquiries and costly returns. On the finance reporting side, the implementation has been more challenging, in part due to the loss of a key staff member (Head of Corporate Services) during a key stage of the implementation. This was further compounded by a severe cut to our budgets which led to further capacity issues, slowing down implementation and also the inevitable fix requirements. In view of the experience, we are continuing to review and make changes where necessary, both systemic and operational, which have included moving the AGM date to September, beginning in 2026. Improving the carbon footprint of the organisation continues to be a priority and we are looking to invest further in battery storage, thanks to a capital grant from Welsh Government, as well as continuing to prioritise paper-based packing materials wherever possible. We have also moved one of our fleet cars to electric and we are considering the feasibility to extend this to other vehicles. ## **Publishing Development Highlights** A brand-new literary magazine, _Folding Rock_ , was the successful applicant for the new franchise, and they held several successful launches for the first issue which was widely praised for the quality of its content and production value. We look forward to seeing further developments over the franchise period which will strengthen the publishing ecosystem by giving an important new platform to new and established writers in Wales. It has been universally acknowledged that the Welsh-language novel is experiencing something of a golden age in terms of quality, themes, variety and output, and it is pleasing to witness the commitment of both writers and publishers to respond positively to our strategic priorities without having to curtail their creativity and editorial independence. With the consumer market at its most challenging in years for English-language independent publishers across Britain, it was encouraging to witness the transformation of Seren Books under the new leadership of Bronwen Price whilst one of Graffeg Poetry titles, _Choose Love_ , won a Carnegie award. After three rounds of New Audiences funding specifically aimed at making the publishing sector and its output in Wales fairer in its representation, the findings of the impact report were that we supported over 100 projects which created 117 jobs, of which 75 were early career opportunities, and 113 new publications were also commissioned. The project funding enabled participants to take the kind of risk that is not possible when working on purely commercial terms but are vital in breaking down barriers and instigating real systemic change. 5 **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025** We are delighted to have confirmation of another round of programme funding of the Reading Well Scheme, which this time is focused on perinatal support for families, an area that is very underpublished in the Welsh-language and will therefore make an important contribution in making books available for the first time. In acknowledgment of the ever-increasing impact of AI on the sector, we are continuing to seek specialist advice in order to support publishers, especially with regard to contracts and copyrights queries. Much will depend on the outcome of a couple of Lawsuits in the USA which will inevitably influence how the sector will respond and react to further developments. ## **Equality, Diversity and Inclusion** At the Books Council of Wales, we recognise that the structural inequalities that exist within the wider society in Wales also exist in our own sector. We are committed to achieving fair representation within both our own organisation and the book sector in Wales. Our Board of Trustees, executive leadership, managers and team leaders, understand that ensuring opportunities is both an individual and a collective responsibility and lies at the heart of the culture of our organisation. We have increased diversity within our sub-committees and judging panels, but there is more to do. In particular, we are seeking to overcome the challenges of attracting staff from under-represented communities, being based in rural Wales and committed to conducting our day-to-day business in the Welsh language. These challenges are shared by others and will not be solved by us alone. It requires a collective Wales-wide effort, and we are collaborating with partners and stakeholders to create solutions for real and lasting change. As the main supporters and funders of the publishing industry in Wales, we have a responsibility for the impact we have on the people we support, our partners, our employees, and wider society. Considerations of equality, diversity and inclusion are central to making all our funding decisions to assist partners to deliver positive change and achieve fair representation in the content we fund. The Board of Trustees has agreed the terms of reference and membership of a new EDI advisory panel to further support the strategic direction of the organisation. The Board Treasurer has agreed to chair two panel meetings a year, with the first meeting taking place in September 2025. ## **Corporate Matters** We were pleased to welcome Rhian Davies as our new Finance and Business Manager in May 2024, and she has become a key member of the Management Team. Joining mid-implementation of a major new system has been a challenge which Rhian readily took on, and her contribution during this first year has been invaluable. Due to the cuts, however, the inevitable pressure on capacity has meant that progress happened at a slower pace than was originally envisaged. The Board of Trustees recruited new members to fill vacant positions, and recruitment to the board, as for all the subcommittees, continues on an open, competitive and annual basis to ensure the seamless functioning of all areas of our work. The Chair and Chief Executive met with the new minister to discuss challenges and opportunities, and it was a real pleasure to see the Cabinet Secretary for the Economy giving the keynote address at the showcase event of the New Audience Fund in Wrexham. Cyber security remains a key concern, and we have invested wherever possible to ensure that our servers are secure. We are considering taking out additional insurance with regards to the threat of business continuity in case of an attack, to further mitigate any potential risk. 6 **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025** Due to the budget cuts, we have been unable to continue investing in staff and publisher training at the previous levels, but the following took place during this financial year: Book Production, Forklift training, AI training: A Practical Guide to AI in Publishing, Publishing and Copyright training, PR on a Shoestring, First Aid Course and KNK System training. 7 **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025** ## **Achievement and Performance** |**KEY TARGETS 2024/25**||| |---|---|---| ||**2024/25**
**Target**|**2024/25**
**Achieved**| |Number of manuscripts – Editorial
Department|170|130| |Number of titles assisted by the Design
Department|110|53| |Distribution Centre|£4m gross
£2.64m net|£4.06m gross
£2.71m net| |Level of Distribution Centre debtors|No more than 2%|2%| |Gwales: targets for online sales|£75,000|£87,447| 8 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025** |**KEY TARGETS 2024/25 – PUBLISHING GRANTS**|**KEY TARGETS 2024/25 – PUBLISHING GRANTS**|| |---|---|---| ||**2024/25**
**Target**|**2024/25**
**Achieved**| |**Publishing Grants (Welsh-language)**||| |Number of titles published|122|121| |Average sales|750 after 18 months|781| |Number of Welsh-language
magazines|16|16| |Prompt publishing in accordance
with the timetable|98%|95%| |**Publishing Grants (English-language)**||| |||| |Number of Literature Grant titles
published|42|42| |Number of author advance titles
published|10|14| |Marketing Grants|15|32| |Number of magazines funded|5|5| |Average sales of literary
magazines|General – 400
Multi-focus – 300
Individual focus – 300|General – 940
Multi-focus – to follow
Individual focus – 541| |Prompt publishing in accordance
with the timetable|98%|100%| 9 **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025** ## **Financial Review** A total income of £7.5m was received during the year compared to £8.3m in 2024/25. In a year of significant funding cuts and higher than anticipated pay award, both the Council and the Distribution Centre ended the year with Expenditure exceeding Income. Additional funding of £50K from Creative Wales during the year helped to reduce the loss on core activities to £32K. The Distribution Centre however, which is funded purely from its operating activities, suffered a loss of £70k. The loss arose due to a fixed pay award which equated to a 5% pay award for the majority of the Distribution Centre staff along with increased postage costs and sales figures less than experienced during recent years. Of the expenditure of £8.2m (compared to £8.7m in 2023/24), £500k related to New Audiences funding which was received in 2023/24, this along with the treatment of capitalising expenditure on the new system has largely generated a deficit of £723,824 (compared to the net deficit of £374,524 in 2023/24). The Books Council’s investments £197K (£190k for the same period in 2024) and Pension Scheme investments have increased. At 31 March 2025, net assets (excluding pension liabilities) stood at £2.9m (2023/24: £3.6m). The decrease is largely due the reduction in Restricted Funds, with no New Audiences Funding occurring, (£500k in 2023/24). ## **Reserves Policy** This Reserves Policy is designed to ensure that the Council has enough funds to meet unforeseen capital expenditure, and to deal with risk factors associated with the running of a Distribution Centre that receives no funding from the public purse. The Books Council keeps these financial funds in several categories: ## _**Unrestricted Funds**_ - Capital Funds – £304,020 (£500,000 2023/24) to meet the historic cost of buildings and unexpected capital expenditure. £195,980 was transferred to Designated Funds during the year to fund the continued development of the new system. - Revenue Funds - Pension: At 31 March 2025, there was a surplus of £5,264,000 (2023/24: surplus £3,753,000). The trustees have decided not to identify this as an asset on the balance sheet, but a full narrative is provided on note 22. Employer contributions have been agreed with the Dyfed Pension Fund until 31 March 2027. - Council: Maintain a reserve balance of no more than 4% of core funding (which equates to £138,214 in 2024/25). The fund reduced to £147,520 as a result of the loss incurred due to the cut in core funding and increase in salary and energy costs. - Distribution Centre: Target of a sufficient fund to cover overheads for 6 months (excluding discount) (£328,451)based on 2024/25 figures). The size of the fund this year has reduced to £423,456. Although higher than the target due to historic Caru Darllen surpluses, the fund has reduced due to the loss incurred during the year. The loss arose due to a number of factors including a higher than anticipated salary pay settlement, increased postage costs coupled with sales figures lower than in previous years. ## _**Designated Funds**_ As new system development is capitalised, there is a fund of £1,364,632 which equates to the £1,337,918 investment in new systems and equipment out to date. The fund has increased to the continued development of the new system is depreciated in the current year as it went live in March 2024 and will be depreciated over 10 years. 10 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025** ## _**Restricted Funds**_ These funds are for use only as noted in note 20. ## **Main Sponsors** We are extremely grateful to Creative Wales and the Welsh Government for providing a large proportion of the Books Council’s funding; without this support, it would not be possible for the Council to carry out its work. ## **Investments Policy** In accordance with the Constitution, the charity trustees have the power to invest when they believe that investment is appropriate. The assets of the charity are available and sufficient to meet the requirements in the foreseeable future. ## **Volunteers** The charity is very grateful for the contribution of volunteers who work free of charge on the various panels and projects of the Books Council. As we cannot put a financial value on all this work, it is not included in the Statement of Financial Activities. ## **Related Party Transactions** The staff and trustees declare any interests annually and as they arise. There are transactions during the year ending 31 March 2025 by the trustees noted in note 25 of the financial statements. ## **Risk Management** The Council has considered and assessed every risk that could affect the charity. This risk assessment process encompasses not only the financial situation, but also strategic and circumstantial considerations. The Council confirms that systems have been put in place to mitigate all such risks identified as part of this process. ## **Viable Business Assumption** The trustees have a reasonable expectation that the Books Council has enough resources to continue to act as a going concern. For that reason, it continues to prepare a Financial Statement based on being a viable business. ## **Equal Opportunities Policy** The Books Council of Wales is an equal opportunities employer. It does not allow discrimination on the grounds of gender, race, colour, disability, ethnic background or socio-economic background, age, family situation, marital status, part-time or full-time workers, religion, politics, sexual orientation, or any other irrelevant difference, and is committed to positively considering diversity. The principles of fair and open competition are used, and appointments are subject to merit. 11 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025** ## **STATEMENT OF TRUSTEES’ RESPONSIBILITY:** The Trustees are responsible for the preparation of the Trustees’ Report and the financial statements in accordance with applicable legislation and the Acceptable General Accounting Exercises of the United Kingdom. The law requires the Trustees to prepare accounts for each financial year that will give a true and fair view of the Charity’s situation during that period. In preparing those accounts, the Trustees must: - select suitable accounting policies and apply them consistently; - follow the methods and principles in the ‘Statement of Recommended Practice for Charities’ (SORP); - make judgements and estimate reasonably and prudently; state whether applicable standards have been followed, subject to any disclosed material departures explained in the financial statements; - prepare the accounts on the basis that the Charity will continue to act, if it is not inappropriate to assume this. The Trustees are responsible for keeping appropriate accounting records that disclose the Charity’s financial position fairly accurately at any time, and also to enable them to ensure that the financial statements are in accordance with the _Charities (Accounts and Reports) Regulations 2008_ . They also have a responsibility to protect the assets of the Charity and take steps to prevent and detect fraud or other irregularities. According to the Trustees’ understanding: - there is no relevant information of which the Charity’s auditors are unaware; - the Trustees have taken all necessary steps to ensure that they are aware of any relevant auditable information and to ensure that the Charity’s auditors are aware of that information. The Trustees are responsible for the care and accuracy of the corporate and financial information that is included on the charity’s website. Legislation in the United Kingdom that manages, prepares and distributes financial statements may differ from legislation in other authorities. ## **AUDITORS** The reappointment of the auditors, Llŷr James, will be proposed at the Annual Meeting. The Trustees’ report and the annual accounts were approved on 15 September 2025. .......................................................................................... Mrs Linda Tomos 12 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE BOOKS COUNCIL OF WALES FOR THE YEAR ENDED 31 MARCH 2025** ## **Opinion** We have audited the financial statements of the Books Council of Wales (the ‘charity’) for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes, 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 FRS 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 charity’s affairs as at 31 March 2025 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 Charities Act 2011. ## **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 charity 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. ## **Conclusion relating to a going concern** In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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. 13 **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE BOOKS COUNCIL OF WALES FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)** In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies, or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 Charities Act 2011** In our opinion, based on the work undertaken in the course of the audit: - the information given in the trustees’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the annual report and the trustees’ report have been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion: - adequate accounting records have not been kept; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the Trustees’ Responsibilities Statement, the trustees are responsible for the preparation of 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 charity or to cease operations, or have no realistic alternative but to do so. 14 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE BOOKS COUNCIL OF WALES FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)** ## **Auditor’s responsibilities for the audit of the financial statements** We have been appointed as auditor under the Charities Act 2011, section 144, and report in accordance with regulations made under 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 is accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below: Based on our understanding of the charity and industry, we identified that the principal risks of noncompliance with laws and regulations related to breaches of UK regulatory principles, such as those governed by the Charity Commission, 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 financial statements such as the Charities Act 2011. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the timing of recognition of grant income and expenditure to manipulate financial performance. Audit procedures performed included: - Discussions with management, including consideration of potential instances of non-compliance with laws and regulations and fraud; - Reviewing key correspondence with the Charity Commission in relation to compliance with laws and regulations; - Reviewing relevant meeting minutes of the Board; - Selecting a sample of transactions and tracing to documentation to establish that they are _bona fide_ business transactions; and - Selecting a sample of grant income and tracing to ensure that the corresponding expenditure is included in the same financial period; - Ensuring that the procedures for identifying the correct treatment of income as restricted or designated are correctly applied to any new funding; - Reviewing the valuation of the pension fund ensuring that the treatment is in line with FRS 102 section 28.22 regarding the recognition of a defined benefit plan asset; and - Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing; - Identifying large or unusual transactions to ensure that we understood the reasoning behind them and agreed that they were appropriate; and - Identifying journal entries, to make sure that we understood the reasoning behind them and agreed that they were appropriate. There are inherent limitations in the audit procedures described above. We are less likely to become 15 CYNGOR LLYFRAU CYMRU- THE BOOKS COUNCIL OF WALES INDEPENDENT AUDITORS, REPORTTO THE TRUSTEES OF THE BOOKS CQUNCIL OF WALES FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED) aware of instances of non-compliante with laws and regulations that are not closely related to events and transactions reflected in the financial statements. As part of an audit in accordance with ISAS IUKI, we exercise professional judgement and maintain professional scepticism throughout the audit. We also.. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate lo provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. Evaluate the appropriatene55 of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. Conclude on the appropriateness of the trustees, use of the 80in8 concern basis of accounting ond, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that 3 material uncertainty exists, we are required to draw attention in our auditorfs report to the related disclosures in the financial statements or, if such distlosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorfs report. However, futljfe events or conditions may cause the charity to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial Statements represent the underlyirbg transactions and events in a manner that achieve5 fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings. including any significant deficiencies in internal control that we identify durirbg our audit. Use of our report This report 15 made solely to the charity's trustees. as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the chariWs trustees those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibiltty to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed. DATE.. BETHAN VAUGHAN Senior Statutory Auditor For and on behalf of LLYRJAMES Cyf. Statutory Auditors 16 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2025** |**Note**
**Income through charitable**
**activities**
Welsh Government Grants
3
Other Grants
4
Departmental Income
5
**Other commercial activities**
Distribution Centre
9
Investments
5
**Total incoming resources**
**Resources expended**
**Charitable activities**
Grants distributed
6/7
Specific projects
Charitable expenditure
8
**Other commercial activities**
Distribution Centre
9
**Total resources expended**
10
**Net incoming resources before**
**transfers**
**Other recognised gains / (losses)**
Actual gain / (loss) on defined
benefit scheme
22
Movement on investments
14
Transfer between funds
**Net movement in funds**
23
Balances brought forward at
1 April 2024
**Balances carried forward at**
**31 March 2025**
18–20|**Unrestricted**
**Designated**
**Restricted**
**Total Funds**
Total Funds
**Funds**
**Funds**
**Funds**
**2025**
2024
**£**
**£**
**£**
**£**
£
1,060,704
30,000
3,220,211
**4,310,915**
4,678,601
–
–
194,497
**194,497**
226,807
263,280
–
–
**263,280**
216,069
2,722,297
–
–
**2,722,297**
3,162,094
–
6,179
**6,179**
4,035| |---|---| ||**4,046,281**
**30,000**
**3,420,887**
**7,497,168**
8,287,606| ||–
–
2,364,647
**2,364,647**
2,600,722
–
–
1,167,729
**1,167,729**
993,902
1,360,648
192,972
349,284
**1,902,904**
1,932,986
2,785,424
6,590
–
**2,792,014**
3,139,474| ||**4,146,072**
**199,562**
**3,881,660**
**8,222,294**
8,667,084| ||**(99,791)**
**(169,562)**
**(460,773)**
**(730,126)**
(379,478)
–
**–**
–
–
-
–
–
6,302
**6,302**
4,954
(189,801)
195,980
(6,179)
**–**
–| ||**(289,592)**
**26,418**
**(460,650)**
**(723,824)**
(374,524)
1,164,588
1,338,214
1,082,985
3,585,787
3,960,311| ||
**874,996**
**1,364,632**
**622,335**
**2,861,963**
3,585,787| A separate income and expenditure statement has not been prepared. The Charity Trustees wish to note that the pension fund has influenced the final financial outcome. They wish to note that the Dyfed Pension Fund is beyond the charity’s control. The notes on pages 20 to 38 form a full part of these accounts. 17 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **BALANCE SHEET AS AT 31 MARCH 2025** |**Note**
**Fixed assets**
Tangible fixed assets
13
Investments
14
**Current assets**
Debtors
15
Distribution Centre stock
Cash at bank and in hand
16
**Liabilities:**Amounts falling
due within one year
17
**Net current assets**
**Total assets less liabilities**
**Pension Fund**
22
**Funds**
Unrestricted
18
Pension Fund
22
Unrestricted due to
pension adjustment
18
Designated
19
Restricted
20|**£**
**610,360**
**144,790**
**1,979,489**|**2025**
**£**
**1,617,640**
**196,630**|2024
£
£
1,420,150
190,328
1,610,478
498,082
123,021
2,862,863
3,483,966
1,508,657
1,975,309
3,585,787
–
3,585,787
1,164,588
–
1,164,588
1,338,214
1,082,985
3,585,787|2024
£
£
1,420,150
190,328
1,610,478
498,082
123,021
2,862,863
3,483,966
1,508,657
1,975,309
3,585,787
–
3,585,787
1,164,588
–
1,164,588
1,338,214
1,082,985
3,585,787| |---|---|---|---|---| |||**1,814,270**||1,610,478| ||**2,734,639**
**1,686,946**
**874,996**
**–**||3,483,966
1,508,657
1,164,588
–|| |||**1,047,693**
**2,861,963**
**–**||1,975,309
3,585,787
–| |||**2,861,963**||3,585,787| |||**874,996**
**1,364,632**
**622,335**||1,164,588
1,338,214
1,082,985| |||||| |||**2,861,963**||3,585,787| Approved by the Trustees and Chief Executive of the Council at their meeting on 15 September 2025 and signed on their behalf by: LINDA TOMOS Chair ALFRED OYEKOYA Treasurer HELGARD KRAUSE Chief Executive 18 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **CASH FLOW FOR THE YEAR ENDED 31 MARCH 2025** |
Note
**_Cash flow from operating activities_**
Net cash provided by operating activities
24
Cash at beginning of year

Cash at end of year
24|**2025**
**£**
**(883,374)**
**2,862,863**
**1,979,489**|2024
£
(1,682,897)
4,545,760| |---|---|---| |||2,862,863| 19 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **NOTES TO THE ACCOUNTS** ## **1. Accounting policies** The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows: - a. **Basis of preparation** The financial statements have been prepared in accordance with 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 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). Cyngor Llyfrau Cymru – The Books Council of Wales meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value, unless otherwise stated in the relevant accounting policy note(s). - b. **Stocks** Stocks are stated at the lower of cost and net realisable value. Cost is calculated based on purchase value. Commercial value is based on the objective of selling less than the estimated cost of disposal. - c. **Preparation of the accounts on a going concern basis** Cyngor Llyfrau Cymru – The Books Council of Wales has a surplus balance on the Balance Sheet. The trustees are of the view that on this basis the charity is a going concern. The accounts have been prepared on the assumption that the charity is able to carry on operating as a going concern, which the trustees consider appropriate. ## d. **Pension costs** Cyngor Llyfrau Cymru – The Books Council of Wales operates a defined benefit pension within the Dyfed Pension Fund. With the adoption of FRS 102 in April 2014, this liability is shown in full on the Balance Sheet. The adjustments to the financial statement following this adjustment are shown in note 18, with the full pension liability shown in note 22. - e. **Investments** Investments are stated at market value. ## f. **Fixed assets** Tangible fixed assets are stated at historical cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost, less estimated residual value, evenly over its expected useful life, as follows: - Computers and other equipment – over 10 years - Fixtures and fittings – over 5 years - Motor vehicles – 5 years 20 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **NOTES TO THE ACCOUNTS (CONTINUED)** Freehold land and buildings are not depreciated as the residual value is higher than the value in the Balance Sheet. ## g. **Grants payable** Grants payable are charged to the Statement of Financial Activities when a constructive obligation exists notwithstanding that they may be paid in the future accounting periods. ## h. **Incoming resources** All incoming resources are included in the Statement of Financial Activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies apply to categories of income: - Grants: where related to performance and specific deliverables, these are accounted for as the charity earns the right to consideration by its performance. Where income is received in advance of its recognition it is deferred and included in creditors. Where entitlement occurs before income being received the income is accrued. Capital grants are accounted for as income as soon as they are receivable. - Trading Income: income raised through the operation of the Distribution Centre under the charity’s management is considered at the time a contractual obligation exists. - Legacies: entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. ## i. **Tax** The Charity is exempt from the need to pay corporation tax due to its charitable status. ## **2. Statement of Financial Movement** The deficit for the year after withdrawing the following: ||**2025**|2024| |---|---|---| ||**£**|£| |Bank costs|**8,280**|10,644| |Auditors’ Fee|**7,800**|7,800| |Depreciation|**195,104**|154,487| 21 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **NOTES TO THE ACCOUNTS (CONTINUED)** |**3.**
**Grants received – Welsh Government**
**Creative Wales**
Core funding
Publishing Grants for distribution
Capital grant
New Audiences Fund
Book Fair funding
Additional magazine funding
**Welsh in Education department**
Books for schools project – Adnodd
Catalogue funding
Rhyngom project (previously Belonging)
**Education department**
Reading Promotion Schemes
**Culture Division**
Reading Well Scheme
Reading Promotion Schemes
Stars of the Shelves Scheme
**4.**
**Other Grants**
ARFOR – Cyngor Sir Ceredigion
UNESCO City of Literature partners
The Reading Agency|**2025**
**£**
**1,060,704**
**2,364,646**
**30,000**
**–**
**150,000**
**–**
**37,988**
**3,000**
**432,296**
**140,000**
**46,514**
**16,070**
**29,697**
**4,310,915**
**2025**
**£**
**36,597**
**10,750**
**147,150**
**194,497**||2024
£
1,129,278
2,600,722
130,000
500,000
**–**
100,000
–
4,999
9,747
140,000
43,477
20,378
–| |---|---|---|---| ||||4,678,601| ||||2024
£
–
10,000
216,807| ||||226,807| 22 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **NOTES TO THE ACCOUNTS (CONTINUED)** |**5.**
**Income – Other Departments and Investments**
**Unrestricted funds**
Editorial
Design
Communication and Marketing
Sales & Information
Children’s Books and Reading Promotion
Investment Income
Sundry Income
**Restricted funds**
Mary Vaughan Jones Award
**6.**
**Expenditure – Publishing Grants**
Welsh-language
Grants towards books
Authors’ and illustrators’ grants
Appointments and training scheme
Grants towards magazines
Funding for Welsh-language press
Grants towards marketing
Partnerships and research
Grants to booksellers
Cwlwm Cyhoeddwyr Cymru
Cam Cynnydd project
Middle grade book project
English-language
Grants towards books
Grants towards magazines
Grants towards marketing
Appointments scheme
Authors’ grants
Classics
Training
Cyhoeddi Cymru Publishing Wales
Administrative costs
Total Publishing Grants|**14,686**
**6,179**|**14,686**
**6,179**| |---|---|---| ||Note
7a
7b
7c
7d
7e
7f
7g|| The above does not include one-off restricted grants (New Audiences Fund) distributed to publishers which are included in note 20 of the financial statements. 23 **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **NOTES TO THE ACCOUNTS (CONTINUED)** |**7.**
**Grants per publisher**
**7a.**
**Welsh-language Publishers – Grants for books**
Y Lolfa
Gwasg Carreg Gwalch
Gwasg y Bwthyn
Rily
Atebol / Sebra
Gwasg y Dref Wen
Cyhoeddiadau Barddas
University of Wales Press
Firefly
Cwmni Cyhoeddi Gwynn
Graffeg
Dalen Newydd
Honno
Llyfrau Broga
Cyhoeddiadau’r Gair
Urdd Gobaith Cymru
Cara
Dalen Llyfrau
O’r Pedwar Gwynt
Cyhoeddiadau Modern
Evaluation cost
**7b.**
**Welsh-language Publishers Appointment Scheme**
Y Lolfa
Gwasg Carreg Gwalch
Atebol/Sebra
Rily
Gwasg y Bwthyn
Cyhoeddiadau Barddas
Cyhoeddiadau’r Gair
Training|**2025**
**£**
**120,800**

**75,700**
**43,382**
**43,100**
**40,527**
**28,000**
**24,800**
**1,790**
**1,605**
**1,500**
**1,160**
**749**
**560**
**–**
**–**
**–**
**–**
**–**
**–**
**–**
**4,215**
**387,888**

**2025**
**£**
**71,217**
**49,324**
**32,783**
**28,045**
**24,559**
**14,303**
**–**
**664**
**220,895**
|2024
£
101,315
93,027
36,790
45,725
41,278
54,850
24,520
3,000
3,000
–
3,855
2,200
1,425
16,185
5,027
3,000
1,475
–
–
–
1,320| |---|---|---| |||437,992| |||2024
£
70,951
46,494
15,116
26,832
24,480
15,180
6,752
25,049| |||230,854| 24 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **NOTES TO THE ACCOUNTS (CONTINUED)** |**7c.**
**Welsh-language Publishers – Support for magazines**
Barn
Golwg
O’r Pedwar Gwynt
Cip
Wcw
Y Cymro
Barddas
Lysh
Lingo Newydd
Cara
Y Selar
Y Wawr
Cristion
Llafar Gwlad
Y Traethodydd
Fferm a Thyddyn
Cost of assessment panel
**7d.**
**Welsh-language Publishers – Support for magazines**
Golwg
**7e. English-language Publishers – Grants for books**
Seren
Parthian
Firefly
Honno
Lucent Dreaming
Calon
Gwasg Carreg Gwalch
Y Lolfa
University of Wales Press
404 Ink
Arachne Press
Watermark Press
Graffeg
Pantolwen Press
Culture Matters
New Welsh Review
I-Pigeon|**2025**
**£**
**90,000**
**63,750**
**26,250**
**40,000**
**21,000**
**28,513**
**24,000**
**34,000**
**18,000**
**15,000**
**9,000**
**5,000**
**2,000**
**–**
**–**
**–**
**–**
**376,513**

**2025**
**£**
**180,000**

**180,000**

**2025**
**£**
**67,550**
**54,100**
**39,700**
**36,000**
**20,000**
**12,700**
**12,500**
**11,500**
**3,750**
**1,450**
**1,149**
**1,000**
**–**
**–**
**–**
**–**
**–**
**261,399**
|2024
£
90,000
85,000
35,000
20,000
28,000
29,000
24,000
17,000
18,000
15,000
12,000
6,250
2,500
–
–
–
500| |---|---|---| |||382,250| |||2024
£
200,000| |||200,000| |||2024
£
38,850
50,100
49,850
36,000
24,000
–
8,700
16,600
29,642
–
–
–
12,000
2,000
1,030
–
–| |||268,772| 25 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **NOTES TO THE ACCOUNTS (CONTINUED)** ## **7f. English-language Publishers – Support for magazines** |Folding Rock
New Welsh Review
Planet
Wales Arts Review
Poetry Wales
Nation.Cymru
The Welsh Agenda & Click on Wales
The Paper
Grants for small magazines
Other magazine evaluation costs
**7g. English-language Publishers – Appointments Scheme**
Parthian
Seren
Honno
Firefly
University of Wales Press
Graffeg
Lucent Dreaming
Calon
Y Lolfa
Gwasg Carreg Gwalch
**8.**
**Departmental Expenditure**
**Costs**
Editorial
Design
Communication and Marketing
Sales
Corporate and Customer Services
Children’s Books
Reading Promotion Schemes
Reading Well Scheme
Renewal and Capital Expenditure and depreciation
Support costs
**_Unusual costs_**
Provision for holiday pay|| |---|---| 26 **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **NOTES TO THE ACCOUNTS (CONTINUED)** ## **9. Income and Expenditure at the Distribution Centre** |**9.**
**Income and Expenditure at the Distribution Centre**|**9.**
**Income and Expenditure at the Distribution Centre**|**9.**
**Income and Expenditure at the Distribution Centre**| |---|---|---| |**2025**
2024
**£**
£
**Income**
**2,722,297**
3,162,094
**Costs**
Books purchased
**2,135,113**
2,485,623
Salaries, insurance, pension
**435,487**
366,375
Running costs of vehicles
**3,412**
5,617
Travelling and subsistence
**151**
–
Carriage, post, packaging materials
**140,090**
152,471
Purchase and maintenance of equipment
**4,862**
49,562
Rent, rates, heating, lighting, telephone
**18,763**
18,550
Insurance, maintenance of buildings
**15,877**
16,912
Printing and stationery
**1,671**
2,498
Discounts allowed
**16,688**
21,484
Sundries
**15,335**
16,493
Bad Debts
**(2,025)**
(2,701)
Depreciation
**6,590**
6,590
**Total Expenditure**
**2,792,014**
3,139,474
Profit /(Deficit) for the year
**(69,717)**
22,620
**10. Total cost of resources**
**Staff costs**
**Other costs**
**Grants**
**Total**
Total
**2025**
2024
**£**
**£**
**£**
**£**
£
Direct charitable costs
**1,766,374**
**4,300,729**
**2,166,457**
**8,233,560**
8,667,084
**11. Staff**
**2025**
2024
**£**
£
Salaries
**1,378,388**
1,213,184
Employer’s National Insurance Contribution
**135,503**
123,492
Employer’s Pension Contribution
**252,483**
251,713
Total salaries
**1,766,374**
1,588,389
The average number of staff employed during the year (Full-time posts)
**38**
36||| ||**2025**
**£**
**1,378,388**
**135,503**
**252,483**
**1,766,374**
**38**|2024
£
1,213,184
123,492
251,713| |||1,588,389| |||36| During the year, 1 member of staff (2024 – 0) earned, including national insurance, between £80,000 and £90,000 **.** 27 **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES NOTES TO THE ACCOUNTS (CONTINUED)** ## **Remuneration to key staff** Including the Chief Executive, there are six members of the Executive Team (2024 – 6) and the following payments were made during the year: |Salaries
Social Security Costs
Pension Costs|**2025**
**£**
**316,295**
**35,888**
**57,430**
**409,613**|2024
£
305,957
34,690
60,273| |---|---|---| |||400,920| ## **12. Remuneration to trustees** The trustees do not receive any remuneration as they are appointed by outside authorities or bodies and are not entitled to payment. The total cost paid to trustees (travelling to meetings etc.) during the year was £363 (2024: £518). Travel costs to volunteer members of the Board’s subcommittees amount to £2,202(2024: £2,288). ## **13. Fixed Assets** |**Value**
At 1 April 2024
Additions
Disposals
At 31 March 2025
**Depreciation**
At 1 April 2024
Provided during
the year
Disposals
At 31 March 2025
**Net value**
At 31 March 2025
At 31 March 2024|**Freehold**
**land and**
**buildings**
**£**
253,008
–
–
**253,008**
**–**
–
–
**–**
**253,008**
253,008|**Computers**
**and digital**
**development**
**£**
1,276,573
379,024
–
**1,655,597**
148,042
169,637
–
**317,679**
**1,337,918**
1,128,531|**Fixtures and**
**fittings**
**£**
55,851
13,570
–
**69,421**
44,735
11,720
–
**56,455**
**12,966**
11,116|**Motor**
**vehicles**
**£**
68,736
–
–
**68,736**
41,241
13,747
–
**54,988**
**13,748**
27,495|**Total**
**£**
1,654,168
392,594
–| |---|---|---|---|---|---| ||||||**2,046,762**| ||||||234,018
195,104
–| ||||||**429,122**| ||||||**1,617,640**| ||||||1,420,150| All assets are used for charitable purposes. 28 **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** **NOTES TO THE ACCOUNTS (CONTINUED)** ## **14. Investments** The market value of these investments as at the end of the financial year was £196,630 (2024 – £190,328). The investments are held by BlackRock in their Charinco and Charinshare Investment Funds that are based in the UK. The investments are recognised at their commercial value at the balance sheet date. The investments have been revalued, and any gains or losses are recognised in the Financial Activities Analysis. ## **15. Debtors** |Trade debtors
Other debtors
Prepayments|**2025**
**£**
**315,694**
**188,068**
**106,597**
**610,359**|2024
£
269,970
215,382
12,730| |---|---|---| |||498,082| All amounts stated are due in less than one year. ## **16. Cash at bank and in hand** |Book Tokens
Others|**2025**
**£**
**428,764**
**1,550,725**
**1,979,489**|2024
£
734,902
2,127,961| |---|---|---| |||2,862,863| ## **17. Liabilities: Amounts falling due within one year** |
Trade creditors
Book Tokens
Taxation and social security
Other creditors|**2025**
**£**
**253,550**
**560,327**
**59,431**
**813,637**
**1,686,945**|2024
£
109,256
580,366
53,830
765,205| |---|---|---| |||1,508,657| There are no creditors for more than one year, excluding book tokens, where one cannot be certain when they will be paid. 29 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **NOTES TO THE ACCOUNTS (CONTINUED)** ## **18. Unrestricted Funds** |**8. Unrestricted Funds**|||||| |---|---|---|---|---|---| |Capital Funds
Income Funds
Pension Fund
Council
Distribution Centre|**Balance**
**1 April**
**2024**
**£**
**500,000**
**–**
**178,005**
**486,583**
**1,164,588**|Incoming
£
–
–
1,323,984

2,722,297

4,046,281
|Outgoing
£
–
–
(1,360,648)
(2,785,424)
(4,146,072)|Transfers
£
(195,980)
–
6,179
–
(189,801)|**Balance**
**31 March**
**2025**
£
**304,020**
**–**
**147,520**
**423,456**| ||||||**874,996**| ## **19. Designated Fund** |Capital Funding
Welsh Government
Computer development fund|**Balance**
**1 April 2024**
**£**
1,107,520
230,694
1,338,214|**Incoming**
**£**
30,000
–
30,000|**Outgoing**
**£**
(199,562)
–
(199,562)|**Transfer**
**£**
195,980
–
195,980|**Balance**
**31 March 2025**
**£**
**1,133,938**
**230,694**| |---|---|---|---|---|---| ||||||**1,364,632**| 30 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES NOTES TO THE ACCOUNTS (CONTINUED)** ## **20. Restricted Funds** |**0. Restricted Funds**||||| |---|---|---|---|---| |Dr Dewi Davies Fund
i
Promotion of Authors Fund
ii
Mary Vaughan Jones Award
iii
Cymdeithas Lyfrau Ceredigion
Fund
iv
Grants for distribution
Publishing Grants
v
Book Fairs
vi
New Audiences Fund
vii
Reading Promotion Schemes
viii
Dept. of Welsh in Education
ix
Love Reading / Caru Darllen
x
Catalogue
Rhyngom
xi
Cheltenham Literary Festival
xii
UNESCO City of
Literature/ARFOR
xiii
The Reading Agency – Reading
Well
xiv
Culture Division – Reading Well
xv
Culture Division – Stars of the
Shelves
xvi
Adnodd Cyf – Love Reading
Extension
xvii|Balance
1 April
2024
£
63,513
50,168
4,849
76,648
–
–
500,000
–
27,369
334,838
–
(110,940)
440
7,765
128,335
–
–
–
**1,082,985**|Incoming
£
1,913
3,474
–
792
2,364,646
150,000
–
156,070
–
–
3,000
432,296
–
47,347
147,150
46,514
29,697
37,988
**3,420,887**|Outgoing
£
(268)
247
1,870
(101)
2,364,646
150,000
500,000
156,070
–
79,963
3,000
309,766
100
46,820
193,213
46,514
29,697
–
**3,881,537**|**Balance**
**31 March**
**2025**
**£**
**65,694**
**53,395**
**2,979**
**77,541**
**–**
**–**
**–**
**–**
**27,369**
**254,875**
**–**
**11,590**
**340**
**8,292**
**82,272**
**–**
**–**
**37,988**| |||||**622,335**| ## **i. Dr Dewi Davies Fund** The interest on the fund is used to fund prizes for competitions to promote reading amongst children and young people. ## **ii. Promotion of Authors Fund** A general fund for the promotion of creative writing in Welsh. ## **iii. Mary Vaughan Jones Award** The fund is used every three years to award a person for an outstanding contribution in the field of children’s books over a substantial period. The 2024 Award Ceremony was held in November. ## **iv. Cymdeithas Lyfrau Ceredigion Fund** The interest of the fund is to be used to fund prizes for the Tir na n-Og competition and other activities to promote reading through the medium of Welsh amongst children and young people. ## **v. Welsh Government Publishing Grant** An annual grant is received which is limited to specific purposes noted in the Operational Plan and the Award Letter. The publishing development subcommittees receive regular reports regarding this funding, and they approve any expenditure from the fund. 31 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **NOTES TO THE ACCOUNTS (CONTINUED)** ## **vi. Book Fairs** £150,000 was awarded by Creative Wales to attend Book Fairs. The Books Council arranged a presence at the Frankfurt Bookfair at a cost of £95k, with the remaining £55k awarded to Cyhoeddi Cymru / Publishing Wales to attend Book Fairs. ## **vii. New Audiences Fund** £500,000 was awarded by Creative Wales towards a third programme to strengthen and diversify the publishing industry in Wales at the end of the 2023/24 financial year. The grant beneficiaries from this fund which was paid during the year were as follows: |**Grant recipient**|**Value (£)**| |---|---| |Rily|34,000| |Firefly|32,000| |Nation.Cymru|32,000| |Parthian|29,000| |Seren|29,000| |Y Lolfa|29,000| |Graffeg|26,000| |Atebol|22,000| |Lucent Dreaming|21,000| |Barn|20,000| |Gwasg y Bwthyn|20,000| |Sôn am Lyfra|16,495| |Gwasg Carreg Gwalch|16,300| |Institute of Welsh Affairs|12,000| |Golwg|10,600| |Cwlwm|10,000| |Hanes Byw|10,000| |Just Another Poet|10,000| |Romani Cultural and Arts Company|10,000| |Urdd Gobaith Cymru|10,000| |Golwg 360|8,000| |Material Queer|8,000| |Al Naaem|7,000| |Poetry Wales|6,650| |Calon Books|6,000| |Literature Wales|6,000| |Merched y Wawr|6,000| |Modron|6,000| |Buzz Culture|5,000| |Paned o Gê|5,000| |These Pages Sing|5,000| |Y Cymro|5,000| |Y Selar|4,000| |PYST|3,000| |Barddas|2,700| |Promotion of Scheme & Books|17,255| |**TOTAL**|**500,000**| 32 **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **NOTES TO THE ACCOUNTS (CONTINUED)** ## **viii. Reading Promotion Schemes** An annual grant is received which is limited to reading promotion schemes (Quick Reads/Stori Sydyn, World Book Day and the Summer Reading Challenge). £140,000 of the funding is awarded by the Welsh Government’s Education Department, £16,070 awarded by the Culture Division. No funds were carried forward. ## **ix. Department of Welsh in Education** Remaining funds from the Iechyd Da project are being used to fund the Children’s Books and Reading Promotion Department. ## **x. Caru Darllen / Love Reading** The Department of Education’s aim is for each state school pupil in Wales to be given a book. This project has multiple layers including books to food banks, individual books to pupils, book tokens to pupils (to make their own selection) and a box of books for schools. All the books have been distributed to schools and the book tokens shared needed to be exchanged by the booksellers by June 2024. ## **xi. Rhyngom** This is a 3-year project to develop books for children in Welsh and English. The aim is to produce books which reflect the diversity of Wales. Funding of the project transferred from the Department of Education and Department of Welsh in Education to Adnodd Cyf in November 2024. ## **xii. Cheltenham Literary Festival** The Literary Festival provided £1,500 towards the Reading Teachers = Reading Pupils programme and its delivery in Wales. The Teachers Love Reading pilot is now underway and books have been purchased and teachers supply time covered to try and replicate the RTRP programme in Wales. ## **xiii. UNESCO City of Literature/ARFOR** The aim of Ymgyrch Dinas Llên (City of Literature Campaign) is to make it possible for Wales to display its unique and rich literary and cultural heritage under UNESCO’s prestigious banner in Aberystwyth and Ceredigion. The Books Council is leading a collaboration between a group of local organisations to create an application. Grant funding was received during the year from the ARFOR project administered by Ceredigion County Council along with partnership funding from members of the Stakeholder Group to create the application that was submitted in January. ## **xiv. The Reading Agency – Reading Well** Work and funding of the fifth programme commissioned by The Reading Agency continued throughout the year. The programme which focuses on Dementia will be completed in the 2025/26. The funding is provided by the Reading Agency, which is a UK registered charity receiving funding for this project from the Welsh Government’s Department of Health. This work is limited to the translation and publication of books relating to Dementia, and the books will be available in libraries and for purchase. 33 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **NOTES TO THE ACCOUNTS (CONTINUED)** ## **xv. Culture Division – Reading Well** A grant of £46,514 was received towards the promotion of the Reading Well programmes. Resources focusing on Dementia were procured and distributed to libraries across all 22 of Wales’ Local Authorities. ## **xvi. Culture Division – Stars of the Shelves** Funding was obtained from the Culture Division in relation to Engaging primary school Children in Public libraries. This was a pilot project that ran from December to March and enabled School Children to meet Authors of their favourite books at their local library. Following the success of the pilot project, it is hoped that funding can be secured for a similar project in 2025/26. ## **xvii. Adnodd Cyf. – Reading Well** Funding was secured in March from Adnodd Cyf. to expand the Athrawon Caru Darllen (Teachers Love Reading) Programme. Initial funding of £38k was received during the year for the purchase of 3 copies of each book on the reading list for 47 new practitioners and 64 high schools in Wales. The books will be distributed in April when the balance of the funding of £2k will be received. 34 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **NOTES TO THE ACCOUNTS (CONTINUED)** ## **21. Analysis of Net Assets Between Funds** |**Restricted Funds**
Dr Dewi Davies Fund
Promotion of Authors Fund
Mary Vaughan Jones Award
Cymdeithas Lyfrau Ceredigion Fund
Rhyngom
Department of Education
Love Reading / Caru Darllen scheme
Cheltenham Literary Festival
UNESCO City of Literature/ARFOR
The Reading Agency – Reading Well
Adnodd Cyf – Love Reading
**Restricted Funds**
**Designated Funds**
**Unrestricted Funds**|**Fixed**
**Assets**
**£**
65,694
53,395
–
77,541
–
–
–
–
–
–
–|**Net**
**Current**
**Assets**
**£**
–
–
2,979
–
11,590
27,369
254,875
340
8,292
82,272
37,988|**Long Term**
**Creditors**
**£**
–
–
–
–
–
–
–
–
–
–
–|**Total**
**£**
**65,694**
**53,395**
**2,979**
**77,541**
**11,590**
**27,369**
**254,875**
**340**
**8,292**
**82,272**
**37,988**| |---|---|---|---|---| ||196,630
1,364,632
253,008
**1,814,270**|425,705
–
621,988
**1,047,693**|–
–
–
**–**|**622,335**
**1,364,632**
**874,996**| |||||**2,861,963**| 35 **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES NOTES TO THE ACCOUNTS (CONTINUED)** ## **22. Pension Scheme** The charity is a member of Dyfed Pension Scheme, which is a defined benefit scheme. For the year commencing 1 April 2024 the employer contributions were 18.3% of pensionable pay. Date of last full Actuarial Valuation: 31 March 2022 |**ACTUARIAL ASSUMPTIONS**||| |---|---|---| |**Financial Assumptions**|Beginning of Year|End of Year| |Rate of inflation|2.7%|2.6%| |Rate of increase in salaries|4.2%|4.1%| |Rate of increase in pensions|2.8%|2.7%| |Discount rate|4.9%|5.8%| The end of year figures for the market value of the assets and split assets between investment categories have been calculated as at 31 March 2025. The corresponding figures for the start of the year have been calculated as at 31 March 2024. ## **Statement of Financial Position Items as at 31 March 2025** |Fair Value of Assets
Value of Benefit Obligations
Impact of Asset Ceiling
Surplus (Deficit)
**Change in asset ceiling to 31 March 2025**
Benefit obligation at beginning of the year
Interest on Asset Ceiling
Administration Cost
Remeasurement net Gain or (Loss)
Benefit obligation at the end of the year|£’000
16,045
(10,781)
5,264| |---|---| ||0| ||£’000
3,753
184
(6)
1,333| ||5,264| * The asset in 2023 and 2024 was restricted to comply with FRS 102 paragraph 28. An entity shall recognise a plan surplus as a defined benefit plan asset only to the extent that it is able to recover the surplus either through reduced contributions in the future or through refunds from the plan. These criteria were not considered to be met, therefore an asset was not recognised. 36 ## **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **NOTES TO THE ACCOUNTS (CONTINUED)** ## **Additional Disclosure Pension Assets** |**Additional Disclosure Pension Assets**||||| |---|---|---|---|---| ||**Assets on**||Assets on|| ||**31.03.25**||31.03.24|| ||**£000**|%|£000|%| |Equities|**11,633**|73|11,505|73| |Government Bonds|**–**|0|**–**|0| |Other Bonds|**1,476**|9|1,486|9| |Property|**1,669**|10|1,944|12| |Liquidity|**1,267**|8|869|5| |Total|**16,045**||15,804|| |Liabilities on 31.03.25|**10,781**||12,051|| |**23. Net movement in the Funds**||||| |||**2025**|2024|| |||**£**|£|| |Unrestricted Funds||||| |Income Funds||||| |Distribution Centre||**(63,127)**|29,210|| |Council||**(30,485)**|27,087|| |Pension Fund||**–**|–|| |Designated Fund||**(169,562)**|(133,362)|| |Restricted Funds||**(460,650)**|(297,459)|| |||**(723,824)**|(374,524)|| |**24. Reconciliation of net income (expenditure) to net cash flow**||**from operating**|**activities**|| |||**2025**|2024|| |||**£**|£|| |Net Income for the year||**(723,824)**|(374,524)|| |Adjustments:||||| |Capital expenditure||**(392,595)**|(586,464)|| |Depreciation||**195,104**|154,487|| |(Gains)/losses in value of investments||**(6,302)**|(4,954)|| |(Gains)/losses on defined benefit scheme||**–**|–|| |Decrease/(Increase) in stock||**(21,769)**|119,363|| |Decrease/(Increase) in debtors||**(112,278)**|1,807|| |(Decrease)/Increase in creditors||**178,289**|(992,612)|| |Net cash provided by operating activities||**(883,375)**|(1,682,897)|| 37 **CYNGOR LLYFRAU CYMRU – THE BOOKS COUNCIL OF WALES** ## **NOTES TO THE ACCOUNTS (CONTINUED)** ## **25. Related Parties** In Note 20, Professor Jane Aaron (a Books Council’s Trustee) is a Honno Press trustee, that received £66,909 in various grants. Lowri Ifor works for Museum Wales for which the Books Council of Wales has a trading relationship, but transactions are not controlled by Lowri in any way. There are strict procedures in place to ensure that where an individual is connected to a deemed related party, they are not included in any part of the decision-making process of awarding grants to these entities. 38