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2023-12-31-accounts

Charity registration number 1193986

Company registration number 13101459 (England and Wales)

SWELL REVOLUTION

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

SWELL REVOLUTION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Nicola James
John Lovell
Rebecca Offley
Peter James
Charity number 1193986
Company number 13101459
Registered office 10 Upperton Gardens
Eastbourne
East Sussex
BN21 2AH
Independent examiner Paul Newton FCA
5 Robin Hood Lane
Sutton
Surrey
SM1 2SW
Bankers HSBC Bank Plc
94 Terminus Road
Eastbourne
East Sussex
BN21 3ND

SWELL REVOLUTION

CONTENTS

Page
Trustees' report 1 - 4
Independent examiner's report 6
Statement of financial activities 7
Balance sheet 8
Notes to the financial statements 9 - 14

SWELL REVOLUTION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

The trustees present their annual report and financial statements for the year ended 31 December 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The charity is a charitable company and is governed by its Constitution. The objects of the charity, as set out in the governing document are:

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Activities

Swell Revolution was established to reach millions of children and families with the good news of God’s love for them.

Our vision is to produce the most professional and enjoyable Christian content for children and youth that has ever been created in the UK. Our mission is to equip churches, families, schools and youth groups across the world, meeting the enormous need for high-quality multimedia resources for a digital generation.

Our journey started in 2018, when Pete James began producing children’s worship songs and music videos, creating the brand Cheeky Pandas, and Swell Revolution was established as a charity in 2021. More than 125,000 printed copies of an accompanying AR prayer map were distributed to schools, churches, and houses.

There is a significant lack of good quality, Bible-based digital resources in the UK, yet research shows that almost half of Christians come to faith before the age of 11. YouTube use among 3–7-year-olds now stands at 86%, watching an average of 3 hours a day, mainly cartoons. Through Cheeky Pandas we are reaching children and families at a critical age, through a format they love, pointing children and families to Christ. Cheeky Pandas is uniquely placed in that its appeal to the unchurched is vast, but it is also used by churches and families as a discipleship resource, helping children to go deeper in their faith.

Cheeky Pandas is our animated TV series and suite of resources for children aged 3-8. Young children love high energy songs, quality animation and engaging characters. It delivers the good news of Christ and biblical content in a format that will engage them most at a critical age for faith formation and in a way which can be used by schools, churches and groups, supported by a robust network to track usage and impact.

Swell Revolution partner with Wonderborn Studios to deliver Cheeky Pandas resources, working with the Three Arrows team to create the TV shows, and Raise Up Faith to create accompanying activity packs and assembly plans. Our Sunday school curriculum is distributed globally through Wonderborn’s Raise Up Faith platform.

We work with the leading UK Christian publishing group SPCK to create Cheeky Panda story books and all of our TV shows are available with BSL interpretation, making it one of the few children’s UK Christian resources to be accessible to children and parents with additional needs.

There is evidence of growing commercial viability. Through creating digital resources, books, and merchandise, we are generating an economic engine that will provide a commercial income stream for the future, helping us to staff the work set before us.

SWELL REVOLUTION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Achievements and performance

Significant activities and achievements against objectives

In the last year, we have produced and released:

We currently have distribution deals in place with Minno, Catholic TV, Shalom Media, and Castle/ Yes TV. We are also in negotiation with an Australian channel as well as being in active conversation with an education platform and a South Korean broadcaster.

Our YouTube channel has grown by 70% since April 2023 with total views of 1.2 million views and over 52,000 hours of watch time. Our Fruit of the Spirit album was streamed over 55,000 times in 39 different countries. We have TV distribution deals in place with Minno, Catholic TV, Shalom Media, and Castle/ Yes TV.

The Cheeky Pandas did live performances at the two largest UK Christian festivals. Spring Harvest was attended by approx. 20,000 people. Cheeky Pandas delivered praise parties for children across both sites, as well as giving out stickers and postcards with QR codes linking to our content to all families that attended. Big Church Festival was attended by approx. 30,000 people, where the Pandas performed both praise parties and on the Main Stage.

Production started on our first collaborative series with The Jesus Storybook Bible. In the period up to December 2023, we wrote and produced the animation for the first six episodes of the series and produced and directed the Narrators for the Jesus Storybook Bible sections. These included Bear Grylls and the Archbishop of Canterbury. Our intention is to finish this series and launch in April 2024.

Financial review

With the support of the trustees and volunteers the charity raised £95,105 (2022: £116,912) during the period through grants and donations. The funds raised are used to pay for the production of Cheeky Pandas TV, accompanying resources, marketing costs, and overheads.

Reserves policy

The trustees have determined that the charity should aim to hold unrestricted reserves of no less than £9,125 (which equates to about 3 months' of unrestricted expenditure) so that the charity could continue to operate should income and / or expenditure vary adversely. At the end of the period, the charity held funds of £16,023, which were all unrestricted.

SWELL REVOLUTION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Plans for future periods

Cheeky Pandas is uniquely placed in that there are enormous ministry opportunities paralleled with commercial viability. Its global reach through the internet is not limited, and its live shows could run simultaneously in multiple countries. Its appeal to the unchurched is vast but can lead to deeper resources that disciple faith in children and families.

Over the next two years, we would like to bring the total number of Jesus Story Book Bible episodes to 18. Our goal is to maximise distribution and expand our reach overseas through dubbing episodes into other languages.

We want all our episodes to remain free to watch, and free activity packs, assembly plans, BSL episodes, and widget packs for neurodivergent children should accompany every episode.

The first six episodes will launch over Easter 2024. We hope that the project will:

We also aim to measure our impact and extend our reach. The Church of England has committed to using and amplifying the resource to many thousands more as part of its mission to double the number of children in the Church of England by 2030. Our presence at Christian festivals will continue alongside the extension of the TC channels we supply. We also aim to extend our partnerships and gain greater insight into how the material is being used.

We are fully anticipating that we will impact millions of lives around the world.

Structure, governance and management

The organisation is a charitable company limited by guarantee, incorporated on the 29 December 2020. The charity was established under a Memorandum and Articles of Association which established the objects and powers of a charitable company and is governed under its Articles of Association. Trustees are aware of Charity Commission's guidance on public benefit and how this is provided by the charity. Routine training will be available to trustees. The trustee and other organisational details are on page 2 of this report.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Nicola James John Lovell Rebecca Offley Stephen Offley (Resigned 10 February 2024) Peter James

Recruitment and appointment of trustees

Trustees, including the first trustees, shall be appointed for terms of three years and a Trustee who has served their term must retire at the next meeting of the Trustees nearest to the expiry of their term. A retiring Trustee who remains eligible may be re-appointed for a maximum of three consecutive terms of office including their initial term but may be reappointed after an interval of at least one year. The Trustees may, in circumstances which they consider to be exceptional, permit one or more of the Trustees to serve one or more additional consecutive terms of office, provided that any such further appointment may only take effect with the consent of at least 75% of the other Trustees.

SWELL REVOLUTION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (COPrnNUED) FOR THE YEAR ENDED JI DECEMBER 2023

SWELL REVOLUTION

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2023

The trustees, who are also the directors of Swell Revolution for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SWELL REVOLUTION

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SWELL REVOLUTION

I report to the trustees on my examination of the financial statements of Swell Revolution (the charity) for the year ended 31 December 2023.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Paul Newton FCA

Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton Surrey SM1 2SW

Dated: .........................1 August 2024

SWELL REVOLUTION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted
Unrestricted
Restricted
funds
funds
funds
2023
2022
2022
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
95,105
116,912
-
Charitable activities
4
30,600
64,488
-
Investments
5
176
-
-
Other income
6
12,044
16,444
-
Total income
137,925
197,844
-
Expenditure on:
Raising funds
7
8,331
18,953
6,000
Charitable activities
8
137,374
269,053
-
Total expenditure
145,705
288,006
6,000
Net expenditure and movement in funds
(7,780)
(90,162)
(6,000)
Reconciliation of funds:
Fund balances at 1 January 2023
23,803
113,965
6,000
Fund balances at 31 December 2023
16,023
23,803
-		 Total
2022
£
116,912
64,488
-
16,444
197,844
24,953
269,053
294,006
(96,162)
119,965
23,803

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

SWELL REVOLUTION BALAMCE SHEET AS AT 310ECEAI8ER 2023 48.323 10. 17.•53 13 11 I￿.126) 11.023 1S 11.Ib23 /:J:2a2*

SWELL REVOLUTION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

Charity information

Swell Revolution is a private company limited by guarantee incorporated in England and Wales. The registered office is 10 Upperton Gardens, Eastbourne, East Sussex, BN21 2AH.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Income tax recoverable in relation to donations is recognised at the time the donation is receivable.

1.5 Expenditure

Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.

1.6 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

SWELL REVOLUTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.7 Financial instruments

The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Except for creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive).

Creditors

Creditors are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are recognised at their settlement amount.

1.8 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.9 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Income from donations and legacies

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Donations and gifts 70,105 59,704
Grants 25,000 56,708
Other - 500
95,105 116,912

SWELL REVOLUTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

4 Income from charitable activities

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Cheeky Pandas
Book sales - 38,000
Media sales 30,600 26,488
30,600 64,488

5 Income from investments

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Interest receivable 176 -
6 Other income
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Royalties 12,044 14,982
Other income - 1,462
12,044 16,444

7 Expenditure on raising funds

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Fundraising and publicity
Advertising
8,331
-
Other fundraising costs
-
-
8,331
-		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
8,331
14,303
6,000
-
4,650
-
8,331
18,953
6,000		 Total
2022
£
20,303
4,650
24,953

SWELL REVOLUTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

8 Charitable activities

Direct costs
2023
£
Materials and Video
97,948
Management fees
24,000
Overheads
-
Accountancy
-
Independent Exam
-
Trustee expenses
-
121,948		 Support
costs
2023
£
-
-
10,688
-
-
-
10,688		 Total
2023
£
97,948
24,000
10,688
3,838
900
-
137,374		 Total
2022
£
215,148
38,000
7,349
3,316
690
1,006
265,509

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year, apart from those listed in Note 15. One trustee received reimbursed expenses of £nil for travelling expenses to trustee meetings (2022: £576).

10 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2023
Number
-
2023
£
-
-
-
-		 2022
Number
1
2022
£
3,222
257
65
3,544

There were no employees whose annual remuneration was more than £60,000.

11 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

SWELL REVOLUTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

12 Debtors
2023 2022
Amounts falling due within one year: £ £
Trade debtors 5,292 36,456
Other debtors 2,063 11,867
7,355 48,323
13 Creditors: amounts falling due within one year
13 Creditors: amounts falling due within one year
2023 2022
£ £
Loans - 3,020
Trade creditors - 25,456
Accruals and deferred income 1,930 1,650
1,930 30,126
14 Retirement benefit schemes
2023 2022
Defined contribution schemes £ £
Charge to profit or loss in respect of defined contribution schemes - 65

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

15 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1
General funds
Previous year:
At 1
General funds		 January
2023
£
23,803
January
2022
£
113,965		 Income
Expenditure
At 31
December
2023
£
£
£
137,925
(145,705)
16,023
Income
Expenditure
At 31
December
2022
£
£
£
197,844
(288,006)
23,803

SWELL REVOLUTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

16 Related party transactions

During the period the charity received donations totalling £nil (2022: 5,000) from related parties (which includes trustees, any other members of key management and anyone closely connected to them).

During the period the charity also made the following payments to, or for, related parties: a) Peter Martin, who was a trustee, received payments totalling £400 (2022: £14,000) for providing CEO services to the charity.

b) Peter James, who is a trustee, received payments totalling £24,000 (2022: £24,075) for creative services.

There have been no other transactions with related parties during the period.