Registered number: 12935802 Charlty number: 1196714 THE WATCHES OF SWITZERLAND GROUP FOUNDATION (A company Ilmlted by guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022
THE WATCHES OF SWITZERLAND GROUP FOUNDATION IA company limlt•d by guaranleel CONTENTS Paga Reference and adminlstratNe dotalls of the tharlty, Its Trustaes and advlsers Truste¢$' report Independent auditorfs report on tho flnanclal slalements Statement of flnanclal actlviti88 2-10 15 Balanco sheet 16 statement of cash floy 17 Note8 to the flnanclal ststements 18-24
THE Y4ATCHES OF swifzERLAND GROUP FOUNDATION IA company Ilmltad by guarantO91 REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARI, ITS TrUSTEES AND ADVISERS FOR THE YEAR ENDED 30 APRIL 2022 Trustees Brian Duffy Ruth Benford lappoinled 14 October 20211 David Gandy lappointed 14 Odober 2021) John Hannah lappoinled 14 Octobèr 20211 Terence Parris lappoinled 14 October 20211 Mary Port88 (appointed 2 March 20221 Johnathan Joseph (appointed 11 April 20221 Paul Eardley (resigned 14 October 20211 Company rryi$t•r•d numbar 12935802 Charity reglstered number 1196714 Regiered offl¢e Aurum House 2 Elland R¢)ad Braunslone Leice8t8r LE31 Company secretary Patricia K8ndall Ind8pandent audltor CrcAve U.K. LLP Black Country House Rounds Green Road Oldbury West Midlands B69 2DG Bankorn Barclays Bank UK plc 1 Churchill Place L(dOn E14 5HP Solicitors Slaughter & May One Bunhill Row London EC1Y 8YY Page 1
THE WATCHes OF SWITZERLAND GROUP FOUNOATION A company limited by gu4r•ntoel TRUSTEES. REPORT FOR THE YEAR ENDED 30 APRIL 2022 Introduction FY 2022 was an exciting year for The Watches of Switzerland Group Foundallon (the 'Foundation'l following its fomial registration as a charity. A hh-prof11e Trustee Board has been appointed and as at the date of this Rep)rt over £1.3 mlllion of the fund$ donated to the Foundation have been distributed. The Watches of Swtzerland Group PLC I'WOSG PLC, or the 'Group'l has aayS placed great importance on giving back lo the communities within whtch rts colleagues live and work. Supporting these communitiès is an important part of the Group's culture. one of the Company's core values is 'We Do The Right Thing,. alongside focusing on charith'es where long-standing personal relth"onships and partnerships are developed 50 Collaboratn$ can be achieved to Create Change. In order to give consideration lo the future and in order to continu8 the strong philanthrop legacy of the luxury watch industry the Chief Executive and the Board of WOSG PLC established the Foundation. Whilst the Foundation cperales independenty from the Group il relie8 iipon the GTOUP fof the outsourcing of various fvnctions to enable it lo manage it's advities including reliance on financial controls to ensure the proper use of the Foundation's assets. Pur se A5 sel out in the Foundats'on's articles of association, the Foundation's objects are to advance, promote or carry out such Charitablè Purposes (bng those purposes which are char((able under the law of England and Wales from lime to timel as the Trustees in their ab501ule discretion think fit. For thè avoidance of doubt, the Foundation 11 not advance, promte or carry out any purpose that is not such a Charitable Purpose. The Foundats"on has developed Charitable Purpo$8s which aim lo further enhance the Group's prev$ charitable inrtialives. We consider somg of our partnership with charities lo be 5tTategic partnerships which are defined as., continual proJ8cts' arKI l oi will r1ve an investment of over £200,000., and are likety to be partners for minimum three-year period. It is intended that the benefi¢i8rie$ of the Foundation will be members of the local communrt¢es 8etved by thè Group and that the Foundation will pursue the followng charitab PuoSe3-. the prevention or reliof of poverty.. the advancement of education., and the relief of those in need. by reason of youth, age, 11h9ah, disabilty. financial hardship or oth8r disadvantsge. The Charitable Purposes have been identffied because they can be closely linked to the charities which have b8en supported by the Group before the registration of the Foundation as a charity and continue lo be of interest to the Group. The Foundation is a grant making charity and supports purposes whkn are within those listed in the Charities Act 2011. The Foundation does not currently respond to requests from other chaTilies but insleatl selects strategic partners or projects th* wll diredy impact the communfties within which the Group's stakeholder8 live and seNe. Strategic partnerships are being developed with.. Food Banks., The Fuel Bank Foundation- The Prince's Trust- Page 2
THE WATCHES OF SWITZERLAND GROUP FOUNDATION IA company Ilmlted by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 30 APRIL 2022 Crisis., and Glasgtrw Hospice The Foundation operates as an independent organisation and our Trustees are original thinkers, who approach all proposals with inlri9ue, open minds and are not beholden to anyone. The Foundation held one of the Trustee quartedy meetings at the offices of tha Prince's Trust, London and the Trustee8 al80 Msited the Euslon Focd Bank, London. Other location visits are planned during th8 next financial year Main ActNtS Fotsj Banks In response to the grovAng food povety crisis USed by the impact of the pandemic, the Group launched a Food Bank programme in June 2020. The Foundation has undertakgn to continue the work and lo evolve the programme. Th8 development of strategic partnerships th five Food bank$, located in afftas which are key to the operations of the Group, have led lo the support of the eslablishmenl of a mobile pantry project in Newcastle, the creation of a Regional Distribution Centr8 in Lei¢e$ter and the re1catIon of th¢ Eu5ton Food Bank lo premises that are much more fil for purpose. The Foundation also supports six cty centre hubs. Fuel 8ank Foundation Since its registration, the Foundation has embaed upon a stratagle partnership with the Fuel Bank Foundation. This partnership came about as a direct result of the Group supporting a network of f¢)od bank partners who share ideas and thoughts and where fuel povety was priortised. Following the Foundation's registration as a charity (( has continued wth supporting this nehvor The Fuel Bank Foundation y11 work with the Foundation's food banks lo provide relief from crisis fuel povety for those in need. The Prince's Trust During FY 2022 the Foundation has donated monies towards core education programm&s which will support young Peop in developing resilience and key skills. Additionalty, the Foundation has allocated donations to the Trust's new Educalton Hub and new employa)ilty pilot in the Leicester area in support of the Group's colleague8 who are based in their Support Centre. Crisis In Decembar 2021 the Foundation began its partnership wth Crisis by supporting the Crisis at Christmas c8mpaBJn and helping Crisis provide 511 guasts with somewhere safe lo stay over Christmas. Aftèrwards the Foundion continues to support Crisis wrth rts widar wèllbeing offering of suppottng people on Iheirjourn6y out of homel8ssn8ss. Page 3
THE WATCHES OF SWITZERLAND GROUP FOUNDATION IA company Ilmltgd by guarants•l TRUSTEES. REPORT {CONTINUED} FOR THE YEAR ENDED 30 APRIL 2022 Public Benefi As a charity. the Trust8es recognise their legal duty to report on the Foundation's public benerrt in their Annual Report and lo clearty demonslrale that the Objects of the Foundalion are for the public benefit. in recognition that being a registered charity is a privileg8, not a right. The Tru51ees assert that the charity is compliant wrth the requirements of th8 Charities Act 2011, having due regard for the publ guidance published by the Charrty Commission. The Trustees acknowlédge and accept that there exist5 a kind of venant between charities and society.. charities bring public benefit and, in their tum, are acwrded high levels of trust and eonfidence, as well as the beneffts of charriable status. The Trustees operate on a voluntary basis within the Foundation. Group colleagugs support the Foundation and do nol r8ceNe any separate pay7m8nt. chi Since receiving rt charitable status the Foundation is proud of the followng achievements.. Formation of an independent, experienced and knowledgeable Board of Trustees Appointment of four Ambassadors., Continued development of strategic partnerships with a number of Food Banks. Crisis, the Prince'$ Twst and the Fuel Bank., Donation to the prin & Princess of Wales HospKe in Glasg¢)w.' and Formation and registration as a non-profit making organisalion the US Foundation, as a route to establishing partnerships with chariti68 who heve a similar objective lo those partnerships established in the UK. The Foundation plans lo conbnue to support communities Document and foTmalise the direction of the Foundation In conjunction wth the GTOUP play a role in ancouraging other like minded businesse8 to participate in charitable aCtiVe5 To encourage participate in the facilialion of volunleering opportunities for collwu8s of the Watches of Switserfand Group Support opportunities that arise during the course of the year that suppcxl the Charitable Purposes and objectives of the Found*ion Page4
THE WATCHES OF swrrzERLAND GROUP FOUNDATION {A company Ilmlted by guarnntO01 TRUSTEES. REPORT ICONTINUED) FOR THE YEAR ENDED 30 APRIL 2022 Thank We are gra18ful to the Truste8$ of lh& Foundation for agreeing to be part of this journey and for wanting to make a difference, their support, their time, expertise and Continued enthusiasm over the peri¢xl. We also wish to thgnk the Board of Watches of Sw"tzerland Group PLC for their generous donation to support the Found*ion. Page 5
THE WATCHES OF SWITZERLAND GROUP FOUNDATION IA company Ilmftod by guarantsel TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 30 APRIL 2022 STRUCTURE. GOVERNANCE AND MANAGEMENT The Trustees of th& Watches of Switzerfand Group Foundation present Ihair Annual Report & Accounts for the year ended 30 April 2022. The Accounts have been prepare(l in accordance wf(h the accounting poli¢i8s set out in Note 1 of the Accounts and comply wth the Chantys governing document. applicable law. the Companies Act 2006 and the Statement of Recommended Practice, 'Accounts"ng and Reporting by Charities,, 2015. The Trustees, Annual Report has been prepared in accordance with the guiddines sel out by the Charty Commission in the Charrties Statement of Recomrnended Practice ISORPI. Trustees are committed to the standards outlined in the Charty Commission'8 Charity Governance Code. A rewew of the Code and how thè Foundation functions is Nirrenlly underway. Iructure of nd Gove nin nt The Watches of Switzarfand Group Foundation is a company limited by guarantee, wthout share capital and governed by f(5 Memorandum and Articles of Association dated 7 October 2020, as amended by a Board Resolution 27 October 2021. The Company was registered as a charity on 22 November 2021. The Obj8¢ts of the Foundation are Set OLrt in this report. Throughout this Annual Report the Company is referred to as 'the Foundation,. Or The Trustees are uliimately responsible for the policies. activitses and assets of th8 Foyndation. The Trustees appfove all grants to be made by the Foundation Lfore such grants are mado. The Trustees have delegated the following rèsponsibilrties to employees of the WOSG PLC, for which no charge has been incurred by the Foundation in connectson wth serwces provided: research and investigate charitable causes and organisations. with the goal of idgntifying opportunits that align with the Foundation's mis5i0nlvision liaising wrih grant applicants and monitor tha perfomiance of grants to ensure that the Foundation's funding is being diroclad towards areas with demonstrated gaps and opportunilh8S maintaining the Foundation's records and infom)ation 8yStems', acting as the main point of contact for the Foundation for all stakeholders-, and managing the financial affairs of the Foundation. Page 6
THE WATCHES OF swifzERLAND GROUP FOUNDATION (A c(knpany limiled by guarantee) TRUSTEES. REPORT ICONTINUED) FOR THE YEAR ENDED 30 APRIL 2022 Recruitment and A ointment of Trustee$ The appoinknenl of Iruslees is governed by the Artides of Associatron and th8 Memorandum of Understsnding between the Foundation, the Watches of Swrtzerland Company Limited and the Watches of Switzerland Group PLC. Theio musl at all time5 be a minimum of three Iruslees, the majority of who must be independent. None of the trustees are remunerated in respect of their 8ervices as a trustee. All trustees are appointed based on their experience. skills and eMpathYth the FndatIon'S vtslon. TNslee Induction and Trainin The Trustees of the Foundation are provided wth guidance and training as rgquirecl and are re9ularfy reminded of their rasponsibiltties as Tru$lee5. From the tounding of the Foundation to the date of this Report all trustees have received a training session. Th8 Trustee Board works to en$ure Klnpliancg with its legal duties to: Act in the interests of the Foundation and its beneficiaries. lill Protect and safeguard the assets of the Foundation. {iii) Act with reasonable care and skill. (iv) Ensure the Founéation is accountable. In addition, the Trustee Board- Where appropriate, m8nages any conflicts of interest {iil Rewew8 the financial position of the Foundation at each meeting liiil Takes appropriate advice from third parties when it needs to. Risk Mana &ment Th& Foundation is primarily a grant-mak8r. The FoUndatn has developed grant procedures to ensure grant5 ar8 monitored appropriately. The Trustees believe that the key risk facing the Foundation is that the Group ceases to donal8 any fvrther funds lo the Foundation. Fundraisin Statement During the year the Foundation did not undertake any public fundraising activty. nor doe$ it employ commercial third parties lo undertake fvndraisiny on their behalf. Pago 7
THE WATCHES OF SWITZERLAND GROUP FOUNDATION {A company Ilmltod by guarants81 TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 30 APRIL 2022 Grant makin The Trustees will nomially award grants lo r&Jister8d charities. Exceptions to this policy wilj be reviev gn case-by-case basis in light of the status of the applicant, rts organisational structure (for exampb, was it established for philanthropic and benevolent purposes). and the requested purpose of the grant. DurirvJ the year no grants were made lo ch8ritse$ that wgrè not ragislarad. Fundin riorities The Foundation's grant making 18 focused on supporting ¢ommunilies and colleagues in locations within which the Group operates. In considering requests for support, tha Foundation considers projects that, are monaged cCfflpèteny. with clear accountabilty, cost effectiveness. Strong teadeT8hip and crealivily,. provld6 a signifunt and mewrable irnpact", are loc in a community wher& Group colleagues live and Work", and have the potential to offer volunteering opportunities for the Group collèagues. The Foundation alms lo make grants to recipients where long-18mi strategic partnerships can be dovelopgd and gr8rits can be focused on specrfic projects which the Trustees belve will ensura sustainabilty of activf(ies. Grant partners provide regular feedback and updates to the Trustees. Orbce grants have been made, Group colleagues aw encouraged to participate in volunteer opportunf(ias with the charitie5 where possible. The Group sUPPOrts this volunteering through a range of Programmes and policies which are designed to leverage the impact of grants made by the Foundation. Trustees will not con$idor grant5 to project$ that discriminate on the basis of race, gender, relKJion, disability or sexual orientstK)n. The Foundation operates independently from the Group. To ensure that they act lahrfully al all times, the Trustees are encouraged to take advice from the Secretary of the Foundation, whfrn appropriate. As the Foundation ha5 no empk)yee's, work is carried out by Group colleagues, referred to as Foundation Volunteers. This staff time is donated by the Group and has been reCniSed as a donation in kind in the Finanrjal Slatemenls. The Foundation complie5 with all relevant laws regarding charitablè donations and charity benefficiaries in all countries where it is active. Currently the Foundation donates money to the US Foundation - this ¢xcurred after the end of the financial peri¢xl but before the dale of this Report. for onward distribution lo chosen US ¢harilies. There is a Memorandum of Understanding between the Foundation and th& US Foundation which defined the contractual relationship and ongoing commitments. Pag8 8
THE WATCHES OF SWITZERLAND GROUP FOUNDATION {A company Ilmltod by guarantsal TRUSTEES. REPQRT {CONTINUEDI FOR THE YEAR ENDED 30 APRIL 2022 Financiol Review A summary of the perictyj's results can be found on page 13 of the Financial SLement5. During tha year ended 30 April 2022, l¢al income amounted to £4,519,875. The Trustees committed to grants of £1,375,DOO lo various charities during tho wriod. The FoundatKJn incurred costs of £32,913. This resutted in 8 net expendire and movernent in funds for the year of £3.111,962. The balance sheet shows total funds of £3.111.962 of which £Nil are restricted funds with £3,111,962 unrestrfcted. The financial activities of the Foundation for the year undèr review and the financial position al the Balance Sheet dale are sel out in the Financial Statements. The Statement of Financial Activities {SOFAI is set out al page 13 and includes both unrestricted and re5trict8d fund$. The Trustee Board is satisfied with the financial pos((ion of the Foundalw)n. Reserves Pol The Trustees have decided that holding reserve$ Is unnecessary due lo the Foundation having no day-lo-day administration expenses or long-lerm commitments. As such no Reserves Policy is thought lo be appropriate. As al the yèar end the Foundation was holding reserves of approximatgty £3 million. 11 is the intention of th8 Trustees that this balance will be used during th8 next finanual period lo continue to support th8 charities which rt has already madg donations to. The Trustees will also consider other charities whom il may wlsh lo enter into a strategic partnership with arKI any other charities from time lo time, th* are in occo¥dance with ils Charitable Purposes. The Trustees have assessed whether tho use of the going concem a$5umption Is appropriate in preparing these financial 8tatèmenls. The Trustees have made this assessmanl in resp8cI lo a period of one year from the date of approval of the$e financial ststements. AS the Foundation has nel assets and expects this lo continue for a minimum of 12 months from the dale of signing the accounts the Trustees of the Foundation have condutjed ther& are no material uncertainties related to av8n¢s or conditions that may Gast 81gnrfanI doubl on the ability of the Foundati¢Jn to continue as a gc4ng concern. The TNsteas {who are also Dlrectors of the company The Watches of Switzerland Group Foundation for the purposes of company lawl are responsible for preparing the Trustees. Report and the financial Statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Praclicel. Company requires the Trustees to prepare financial s18lement5 for 8ach financiol year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair vièw of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expanditure, of the charitable company for that period. In Preparing these financial stslemenls, the Trustees are requir8d to.. select suitable acLounting policies and then app them consistentty. observe the methods and principles in Ihg Charities SORP.. make judgments and accounting estimates that are reasonable and prudent.. Page 9
THE WATCHES OF SWITZERLAND GROUP FOUNDATION IA company Ilmlted by guaranteol TRUSTEES, REPORT {CONTINUEDI FOR THE YEAR ENDED 30 APRIL 2022 prepare the financial statements on the going concem basis unless it is inappropriat8 to presume that the charitsble company wll continue in operation. The Trustees are responsible for keeping adequate accounting rocords that are Sufficnt to show and axplain the charitable companls transactions and disclose with reasonabla accuracy al any time the financial position of the charitsble Company and enable th8m lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charilabk MpanY and h6ncé for taking reasonable Steps for the prevention and detection of fraud and other irregularitie5. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the chaTitable eompanl8 websf(e. Legislation In the Unfled Kingdom governing the preparation and dissemination of financigl statements may drffer from legislation in other jurfsdiclKJns. tion lo Each of the person$ who are Trustees at the time when this Trustees, Report is approved has confirmed that.. so far as that Trustee is aware. therè is no relevant audit infomiation of vthich the Charitab companls audrtors are unaware. and that Trustee has taken all the steps that ought to have been taken as a Twstee in order to be aware of any relevant audit infomiation and to establish that the Charitab company's auditors are aware olthat information. ptoved by order of the members of the board of Trustees and signed on their behalf by. Bria Chair of Trustees Dale.. 1511212022 Page 10
THE WATCHES OF SMTZERLAND GROUP FOUNDATION (A company limitod by guarantse) INDEPENDENT AUDITOR'S REI>ORT TO THE MEMBERS OF THE WATCHES OF SWITZERLAND GROUP FOUNDATION Oplnton We have audited the financial statements of The Watches of Switzerland Croup Foundation (the 'charityl for the year ended 30 April 2022 which Gomprise the statement of financial activities. the balance sheet, the statement of cash fl(Yws and th8 related notes, inclLsdin9 a summary of significant accounting polici8s. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard appllcable in the UK and Republic of Ireland, lun11 Kingdom GenerallyAccept&J Acc¢JJnts'ng PraCtI)- In our opinptin the financral statements.. give a tnje and fair of the slate of the charitable companls affairs a$ at 30 April 2022 and of its incomlng SOUrCeS and application of resources, including its income and expenditure for the year then ended.. have bn prop8rty prepared in &cordan¢e with United Kingdom GeneTalty Accepted Accounting Practice," and have bean prepared in OrdanCe wrth the requirements of the Companias Act 2006. Ba$1$ for ¢plnlo Vve conducted our audit In aetordance with Intemalional Standards on Auditing IUKI IISAS IUKI) and applicable I. Our re5ponsibilrties under those standards are further described in the Auditorfs responsibilities for th8 audit of the financial statements section of our rèport. We are independent of the ¢harrtable company in accordance wrth the athical requirements that are relevant lo our audit of the financial slalements in the United Kingd<m, including the Financial Reporting Council's Ethical Standard. and we have fijifillod our other ethical responsibilities In accordanca wf(h these requirements. We believe that the 8udit evidence we have obtsined is Sufflent and appropriate lo ptDvide a basis for our opinion. Conclusions rolating to going conrn In audtting the financial slalemènts, we have concluded that the Trustees, use of thg gn9 concem basls of accounting in the preparation of the financial statements is appropriate. Based on the work have perfomied, y have not idanlified any material uncertainties relating to events or conditions that, individually or colleetwely, may cast significant doubl on the Charitab companls ability to continue as a going concem for a p8riod of at least tsvee months from when the financlal statements are authorised for issue. Our responsfoilities and the responsibillties of the Trustees with raspect to going concern are de8eribed in th8 relevant saclions of this report. Page 11
THE WATCHES OF SWITZERLAND GROUP FOUNDATION IA company Ilmlted by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE WATCHES OF SWITZERLAND GROUP FOUNDATION ICONTINUEDI Other Snformatlon The other information comprises the infomalion included in the annual report other than the financial ststements and our auditor's report thereon. The Trustees are responsible for the other infomiation contained within the annual report. Our opinion on the financial Statements does not cover the other information and, except to th8 extent olherwse explicitly stated in our report. we do not express any form of assurance conclusion thereon. Our responsibility is to read thg Other information and, in doing so. consider whether the other infomation is materially incon5iStent with tho financial slalements or our knowledge obtained in the Course of thè aud((, or otherwise appears to b8 materially misstated. If we identify such material inconsistencies or apparent material mis51alements, we afe required to determine whether this gives rise lo a material misstatemenl in the financial ststemenls themselves. If, based on the work we have perfomed, we conclude that there is a material misstatement of this other infom)ati¢Jn. we are Tequired to report that fact. We have nothing to report in this ragard. Oplnion on other mattws prescrib by the Companies Act 2006 In our opinion. based on the work undertaken in the course of the audit" the Infomialion gNerb in the TNstees' report for tho financial y8ar for which the financial statements are prepared is consistent wf(h thè financial statements. the Tru51ees' report has been prepad in accardance with applicable legal requirements. Matters on whlch we are requlred to report by excoptlon In the light of our knowledge and understanding of the charff8ble company and its environment obtained in the course of the audit, wa have not identified material mlsstatements in the Trusteès, rèport. We have nothing to report in resp&t of the following matters in relation to which Companie5 Act 2006 requires us to report to you Ir. in our opini?n'. adoquale accounting records have not been kept. or returns adequate for our audit have not been reiVed from branches not visrted by us," or the financial statements are not in agreement wlh the accounting records and retums.. QT certain disc105ures of Trustees, remuneration specrfied by law are not made. or we have not receNed all the information and explanations we require for our audit., or the Trustees were not entitled to prepare the financial statements in accordan with the small companies regime and tske advantage of the small companies, exemptions in preparing the Trustee$, report and from the requirement to prepare a Strategic report. Page 12
THE WATCHES OF SWITZERLAND GROUP FOUNDATION (A company limited by guarantofr) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE WATCHES OF SWITZERLAND GROUP FOUNDATION (CONTINUED) Responslbllltles of trustee$ AS explained more fully in the trus*885' responsibilities Statement, the Trustees {who are also the dirgctors of the charitable company for the purposes of company law) are responsible for the praparation of the financial Stalernenls and for being satisfi8d that they gNe a true and fair view, and for such intamal contrd as the Trustees delermine is nec8ssary lo &nablg tho preparation of financial statements that are free from materk?I misstatement, whether due to fraud or error. In preparing the ffnancial slatemenls. the Trustees are responsible for assessing the charitable Company's abilty to continue as a going concern. disc105ing, as applicabte, matters related to going concem and using the going oncern basis of accounting unless the Trustees either intend to liquidate the charitable company or to caase operations, or have no roalisti¢ atternative bul to do 50. AudStorfs responslbilities for tho audlt of the financial statam8nts Our objertwes are to obtain reasonable assuranc8 about whether the financi818latements as a ole are fre9 from mat&rial misstatement, whether due lo fraud or error, and to Issue an auditorfs report that indudès our opinion. Reasonable assurance is a high level of assuran, bul Is not a guarantee that an audi( conducted in accordance wth ISAS IUKI will 8hNays delect a material misstatement when it exists. Misstatements can arise frorn fraud or error and are considered materlal if, indNidually or in the aggregat8, they coukl reasonably bo expecl8d to influance the economic decisions of users taken on the b83is of these financial statement5. Irregularitses. including fraud, are instances of non-compliance wlth laws and regulations. We design procedures in line wrth our responsibilities, outlined above, to deteci material mis$tslements in 19spect of irregulariti88. including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those kws and regulations that have a direet effect on the detemlnatltsn of material amounts and discbsures in the financial slalements. The and ragylations we con$Klered in this context were the Companies Act 2006 and Charflie5 SORP. We idenlified the greatest Tisk of material impact on Ihe financial statements from irregularities, inciuding fraud. to be income recognition and the ove¥ride of controls by manag8manl. Our audti procedures to respond to these risks included gnquiries of management about their own identffication and assessment of the risks of irregularities. sample lesling on the posb.ng of joumals, designing audit procedures over income and reviewing accounting estimates for biases. (hving lo the inherent limilalions of an audll, there 1$ an unavoidable risk that we may not have datected s¢)me material misststem8nts in the financial statements, even though we have properly planned and perfom)ed our audit in accordance wAlh auditing standards. We are not responsible for preventing nonOmplianee and cannot be expected to delect non-compli8nc8 with all laws and regUlatnS. These inherent limitations are particulady significant in the case of mi88tatement resulting from fraud as Ihis may invo9 sophislicaled 8ch8m98 designed lo avoid dolection, induding delirate failure to record transactions, Ilusion oi the provision of intentional misrepresentations. A further description of our responsibilities for the audit of the financial ststements is located on the Financial Reporting Council's website at.. vA¥w.frc.or -uklauditorsres auditorfs r8POrt. This description forms part of our Page 13
THE WATCHES OF SWITZERLAND GROUP FOUNDATION IA company limited by guarantsel INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE WATCHES OF SWITZERLAND GROUP FOUNDATION ICONTINUEDI Usa of our report This report is made solely to the charitable companWs members, as a body, in accordance with Chapter 3 of Part 16 of the Companles Act 2006. Our audit work has been undertaken so that we might slate lo the charitable company's members those matterg we are reqUId lo stale to them in an auditor's report and for no other purpose. To the fullest extent permrtted by knv. we do not a¢pt or assume rasponsibility to anyone other than the charitable company and its mefnber5, as a body, for our audit work, for thi8 report, or for the opinions wè have formed. Korry Brown Isenlor statutory audhorl for and on behaw of Crowè U.K. LLP Stslutory Audi(or Black Country House Rounds Green Road Oldbury Wesl Midlands 869 2DG Date.. 21 December 2022 Page 14
THE WATCHES OF swifzERLAND GROUP FOUNDATION (A company limlted by guarant) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 30 APRIL 2022 Unrestricted funds 2022 Total funds 2022 Note Income from: Donations 4.619.876 4.519.875 Total Income 4.519,875 4,519.875 Expendlture on: Charil*le activities 1.407.913 1.407.913 Total eXndItre 1.407.913 1.407.913 Net movoment in fund$ 3.111.962 3,111,962 Roconclllatlon of funds: Net movement in funds 3.111,962 3.111.962 Total fund8 carrlod forward 3.111,962 3.111.962 The Company did not trade in the period to 30 April 2021 and th8r8fore all cornparalives are £Nil. The Statement of financial actmties includes all gains and losse5 e0gnised in the year. The notes on pages 18 to 24 form part of thes& financial stslements. Page1S
THE WATCHES OF swifLERLAND GROUP FOUNDATION IA company limited by guaranto•} REGISTEREO NUMBER: 12936802 BALANCE SHEET AS AT 30 APRIL 2022 2022 Not• Current assets Cash at bank and in hand 3.120.962 3,120.962 Creditors: amounts falling dug wrthin one year {9.0001 Ngt Current assets 3.111.962 Total net assets 3.111,962 Charlty fvnds Restricted fiJnds Unrestricted funds 11 3.111,962 Total funds 3,111.962 The Trustees acknowledge their responsibiliti&s for complying wf(h the requirements of the Act th resp1 lo acc¥)unting records and pr8paratKJn of financial statements. Tha financial statements have been prepared in accordance vAlh the provisions applicable to entities subject to the small Companies regime. The Company did not trade in the period to 30 April 2021 and thereftKe all cornparats'ves are £Nil. The finanal 8tat8ments were approved and dhorISed for issue by the Trustee$ on 1511212022 and sgned on their behalf by.. Brlan Duffy Chalr ef Trustees The notes on page5 18 to 24 fomi part of these finanoal Statements. Page 16
THE WATCHES OF sMfzERLAND GROUP FOUNDATION IA company Ilmlted by guararrteel STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 APRIL 2022 2022 Cash Ilovrn from oparating actlvlti•s Net cash used in operating activrties 3,120.982 Change In cash and G•sh equlvalents in the year 3,120.962 Cash and cash equlvalents at thg gnd of the year 3.120.962 The nol&$ on page3 18 to 24 form part of these financi81 statements Page 17
THE WATCHES OF swifLERLAND GROUP FOUNDATION (A company Ilmlted by guarant) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022 General infonnation The Watches of Swtzerland Group Foundation is a company limited by gurant88 Iiegistered number. 12935802) which is registered in EnglBnd and Wales. 11 registered as a charity on 22 November 2021 and ils charity r8gislration number is 1196714. Thè registered office is Aurum House, 2 Elland Road. Braunstone, LeirEsler, LE3 1Th. Accounllng pollcles 2.1 Bag18 of preparntion of flnanclal Statements The financial StatentS have been prepared in accordance with the Charities SORP IFRS 1021 AOUntIng and Reporting by Charities.. Stslement Df Recommanded Prarti applicable lo chanties preparing their accounts in accordance wrth the Financial Reporting Standard applicable in the UK and RepublK of Ireland {FRS 1021 leffectiva 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companie5 Act 20C6. The Watches of Switzerland Group Foundation meets the definlon of a public benefrt entity under FRS 102. Assats and liabilities are inf(ially recognised at historral cost or transaction value unles$ olhemse staled in the relevant accounting policy. 2.2 Golng concom The Trustees have assessed whether the uso of the going concorn assumption 18 appropriate in preparing these finanual statements. The Truslees have made this asse$$menl in respect lo a period of one year from the dale of approval of these financial statements. As the Foundation has net assets and expects this to continue for a minimum of 12 months from the date of signing tho accounts th8 Trustees of the Foundation have concluded there are no material uncertainties related to events or conditions that may cast Significant doubl on the abiliiy of the Foundation to continue as a going coneem. 13 InGoffl¢ All income is recognised once the charity has entrtlernent to the income, it is probable that the inccrfne 11 be received and the amount of income reLeNable can be measured reliably. The rewgnitK)n of income from legacie$ is dependent on establishing enliuemenl, the probabilty of receipt and the ability to estimate with gufficient accuracy the amount receivable. Evidence of entitlement to a legacy 8xsls when the charty has Suff1@nt evidence that a grft ha8 been left to them (through knowledg& of th8 existence of a valid wll and the death of the benefactor) and the executor is satisfied that the property in question will not be required to $811sfy ¢laims in the est8te. Receipt of a legacy must be recognisèd when il is probable Ihal it will be recewed and the fair valua of the amount receivable, which will genera15y be the expected Gash amount to be distributed to the charity. can be reliabty measured. Page 18
THE WATCHES OF SWITZERLAND GROUP FOUNDATION IA MpanY Ilmited by guarant801 MOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022 Accounting policles Icontlnuedl 14 Expendlturo Expenditure is recognised once there is a le981 or constructive obligation to transfer economic benefrt lo a third party, il is probab that a transfer of 8conomi¢ beneffts will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is dassified by adivity. The costs of each actmly are rnade up of tha total of direct costs and shafed costs, including 8UPPOrt C1$ involved in undertaking each activty. Direct CO8ls attributable to a single activty are allocated dir8¢lly to that activty. Shar8d costs which contribute lo more than one activty and support ¢o$ts which are not attribulab19 to a single actwity are apportion8d betsveen those aGli)rilies on a basis consistent wi(h the use of resources. Central staff costs ar& all¢xated on the basis of time spent, and d8preciatson charges alk)cated on the portion of the asset's use. Eyenditure on charilabla actNf(ies Is Incurred on dire¢tty undertaking the a¢tiMties which further the charitys objectives, as well as any asSlated support costs. Grant5 payabl8 are charged in the year when the offer is made except in those cases where the offer is condrtional, such grants being recognised as expenditure when the con(litions attaching are fulfilled. Crants offered subject lo conditions which hava not been met at the year end are noted as a commitment but not accrued as expenditure. All eyndituTe is induswe of irrecover8bl8 VAT. 2.5 Ca¥h at bank and In hand Cash at bank and in hand includes cash and short-term hSghty liquid investments with a short maturity of three month5 or less from the date of acquisition or opening of the deposit or similar account. 2.6 Llabllltl•s and provision5 Lk4bl1es are recognised when there is an obligation al the balance sheet date as a rasult of a past event, it is probable that a transfer of economic benefrt will be required in settlement, and the amount of the s$Wgmenl can be estimatèd reliabty. 17 Flnancial itrUMents The ¢harity onty has financial assets and firbancial IBbilf(ies of a kind that qualify as basic financial instruments. Basic financial instruments are initialty recogni8ed at transaction value and subsèquently measured at thelr settlement value with the exception of bank loans which are subsequ8ntly measured al amortised cost using the effective interest method. 2.8 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Truslges in furtherance of the general objectives of the charity and which have not beèn designat for other purposes. Restricted funds are funds which ar8 to b8 used in accordance wth specific reslriclions imposed by donors or which have been raised by the charity for particular purp05e8. The costs of raising and adminisl8ring such funds are charged against the specific fund. The aim and use of each re$lricled lund i¥ Set out in the notes Éo the finanaal Statements. Page 19
THE WATCHES OF SWITZERLAND GROUP FOUNDATION IA company limitod by guarant•*l NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022 Income from donatlons Unrestrlcted funds 2022 Total funds 2022 Donations Donation in kind 4.$00,C4)0 19,875 4,500,000 19,875 4,519,875 4,519,875 Analysls of grants Grants to Inslltutions 2022 Total funds 2022 Grant making 1,375,000 1,375,000 Giant$ wore mad8 to the following ¢harMles: 2022 Food Banks Crisis UK The Prince's Trust The Prince and Princess of Wales Hospice Glasglow Br"Sh Red Cross Fuel Bank Foundation 475,000 17S.000 325,000 100,000 100.000 21)0.000 1,375,000 Page 20
THE WATCHES OF SWITZERLAND GROUP FOUNDATION IA Company Ilmltod by guaranto0) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022 Analysis ol oxp•ndlture on charitable actlyltles Summary byfund type UnroslriGt8d funds 2022 Total 2022 Charrtable acts'wties 1.407.913 1,407,913 Anaty$ls of oxpenditure ty a¢tlvltles Activities undertaken dlrectty 2022 Grant fundlng of activities 2022 Support Costs 2022 Total funds 2022 Charitable adNilies 19,875 1,375.000 13,038 1A07.913 Pag8 21
THE WATCHES OF SMTZERLAND GROUP FOUNDATION (A company limit8d by guaranlee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022 Anatysls of exp8nditure by acllvltles Icontinuedl Anatysls of support costs Total funds 2022 Actlvltles 2022 Insurance Audf(or Fees and Accounts Prepar*ion 4,038 9,000 4.038 9.000 13,038 13,038 Auditor's remungra¢lon The auditoes remuneration amounts to an audf(or fee of £7,500. Staff costs During the year support was provided by Walches ol Sw>tsertand Group plc. Th8 Cost of this has been calculated al £14,675 8nd has been reGognised as a donation in kind. The key managemant personnel of the Charity comprise Trustees and the Senior Management Team. No employee benefrts weie paid to key management personnel direcdy through The Watches of Switzertand Group Foundation during the year. However of the support noted above £14.675 related to services providod by key management personnel. Trustees. remuneratlon and gxpens05 During th8 y8ar. no Trustees receNed any remuneration or other benefrts. During the year ended 30 April 2022. no Trustee expenses have been incurred. 10. Creditors: Amounts falling due withln one year 2022 Ae£ruals 9.000 Page 22
THE WATCHES OF SWITZERLAND GROUP FOUNDATION (A company limited by gu8vanteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022 11. St•t8mont of funds Statement of fund5 - current year Balance at 30 Aprfl 2022 Income Expendllura Unrestricted funds Gener81 4,519.875 11,407.9131 3,111.962 12. Summary offunds Summary of fvnds- curront yoAr Balan¢9 at 30 Aprll 2022 Income Expendlture General funds 4,519,875 {1A07.913) 3,111,982 13. Anatysis of net a5s•ts between funds Anatysls of net assets bet*4een funds • current y•ar Unrestrlcted funds 2022 Totsl funds 2022 Current assals Creditors due within one y8ar 3,120,962 19,0001 3,120.962 19,000) Totsl 3,111.962 3.111,962 Page 23
THE WATCHES OF SWITZERLAND GROUP FOUNDATION (A Gompany limlted by guararrtoel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022 14. Reconclllatlon of net movement In funds to nel cash flow from operating actlvltles 2022 Ng1 income for the year las per Statement of Financial Activities) 3.111.962 Increase in creditors 9,000 Net cash provlded by operating activitie8 3.120,962 16. Analysi5 of cash and cash aquivalents 2022 Cash in hand 3,120,962 Total cash and ¢ash equivalonts 3,120.962 16. Analysls of changes In net debt At 30 Aprll 2022 Cash flows Cash at bank and in hand 3.120,962 3.120,%2 3.120.962 3.120,962 17. Related party trnnsadions During the year, the charity received donations tolalling £4,500,000 from Watches of Switz8rland Company mited of which the TTuslee Biian Dufy is a dire¢tor. The Char benefrts from certain staff time and rent donated by WalGhes of Swtzerfand Group plc of which the Trustee Brian Duffy is a director. During the year staff time and rent lotalling £19,875 was donated to charity. Page 24