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2024-04-30-accounts

Registered number: 12935802 Charity number: 1196714

THE WATCHES OF SWITZERLAND GROUP FOUNDATION (A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2024

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the charity, its Trustees and advisers 1
Trustees' report 2 - 10
Independent auditor's report on the financial statements 11 - 14
Statement of financial activities 15
Balance sheet 16
Statement of cash flows 17
Notes to the financial statements 18 - 26

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 APRIL 2024

Trustees Hugh Brian Duffy
Ruth Benford
David Gandy
John Hannah
Terence Parris
Johnathan Joseph
Company registered
number
12935802
Charity registered
number
1196714
Registered office
Aurum House
2 Elland Road
Braunstone
Leicester
LE3 1TT
Company secretary
Patricia Kendall
Independent auditor
Crowe U.K. LLP
Black Country House
Rounds Green Road
Oldbury
West Midlands
B69 2DG
Bankers
Barclays Bank UK plc
1 Churchill Place
London
E14 5HP
Solicitors
Slaughter & May
One Bunhill Row
London
EC1Y 8YY

Page 1

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 30 APRIL 2024

Introduction

The Watches of Switzerland Group Foundation (the ‘Foundation’) had an impactful FY24, building on the momentum of the last two financial years. The Foundation distributed £1.95million to charities of which £0.8million was donated to the Watches of Switzerland Group US Foundation (the ‘US Foundation’) to be distributed to US charities.

The Watches of Switzerland Group PLC (WOSG PLC) has always prioritised on giving back to communities within which its colleagues live and work. Supporting these communities is an important part of the Group’s culture, the Company’s core values ‘We Do The Right Thing Always’ and ‘We Care for Our Communities’ alongside focusing on charities where long-standing personal relationships and partnerships are developed to enable collaboration and to create change. For this reason, WOSG PLC established the Foundation.

Whilst the Foundation operates independently from the Group it relies upon the Group for the outsourcing of various functions to enable it to manage its activities including reliance on financial controls to ensure the proper use of the Foundation's assets.

Purposes

As set out in the Foundation’s Articles of Association, the Foundation’s objects are to advance, promote or carry out such Charitable Purposes (being those purposes which are charitable under the law of England and Wales from time to time) as the Trustees in their absolute discretion think fit. For the avoidance of doubt, the Foundation will not advance, promote or carry out any purpose that is not such a Charitable Purpose. The Foundation has developed its own Charitable Purposes which aims to further enhance the Group’s previous charitable initiatives. We consider some of our partnerships with charities to be strategic partnerships which are defined as continual projects, and / or will receive an investment of over £200,000 and are likely to be partners for a minimum three-year period. It is intended that the majority of beneficiaries of the Foundation will be members of the local communities served by the Group and that the Foundation will, in particular, pursue the following charitable purposes:

The Charitable Purposes have been identified because they can be closely linked to the charities which have been supported by the Group before the registration of the Foundation as a charity and continue to be of interest to the Group.

Page 2

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2024

The Foundation is a grant making charity and supports purposes which are within those listed in the Charities Act 2011. During FY24 the Foundation did not respond to requests from other charities but instead selects strategic partners or projects that will directly impact the communities within which the Group’s stakeholders live and serve.

The Foundation operates as an independent organisation separate from the Watches of Switzerland Group and our Trustees are original thinkers, who approach all proposals with intrigue, open minds and are not beholden to anyone. In FY24 all meetings were held at the WOSG PLC’s London offices, excluding one virtual meeting in July 2023.

Strategic Partnerships

1. Foodbank Network

In response to the growing food poverty crisis caused by the impact of the pandemic, the Group launched a Foodbank programme in June 2020. The Foundation has been evolving this work as the need for emergency food provision increases.

In FY24 the Foundation continued to strengthen its partnerships with foodbanks by providing both voluntary and financial support. Overall, the food bank network spans eleven food banks with five key strategic hubs in Euston, Leicester South, Glasgow Southeast, Manchester Central and Newcastle. Our funding has supported the mobile pantries, food vouchers, Christmas hampers, the move to new premises and even new vans to help distribute emergency food and collect important food deliveries. In FY24, our foodbank network supported over 168,726 people with emergency food. As the Foundation continues to strengthen the relationship with the Foodbank network and offer more strategic support, it will look too fund more projects within the welfare space which are supporting foodbanks to move people out of poverty and away from their need for emergency food.

2. Fuel Bank Foundation

Since its registration, the Foundation has embarked upon a strategic partnership with the Fuel Bank Foundation. This partnership came about as a direct result of the Foodbank network’s feedback, and a trend in the need for fuel across the network, as some service users were finding they had no power to heat or cook their emergency food.

To date the Foundation has donated £500,000 which has been spent across a three year period. These funds supported eight foodbank centres with fuel vouchers (all from The Foundation’s foodbank network), and an additional eleven centres. To date our funding has supported 26,288 people to turn their lights and heating back on.

3. The King's Trust (formerly the Prince’s Trust) (the 'Trust')

To date the Foundation has donated monies towards core education programmes and a digital education hub which support young people in developing resilience and key skills. This is a continuation from the pre-existing partnership that the Group has had with the charity since 2013 and which has supported over 7,000 young people through education programmes.

In FY24 the Foundation renewed its partnership with the Trust – with a significant increase in funding and a greater focus on Education. Our funding in FY24 supported over 1,200 young people across education programmes, whilst volunteers supported the Trust’s Enterprise Challenge finals as judges, through online CV reviews and being part of a celebration for International Youth Day.

Page 3

THE WATCHES OF SWITZERLAND GROUP FOUNDATION (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2024

4. Crisis

In December 2021, the Foundation began its partnership with Crisis by supporting the Crisis at Christmas campaign and enabling Crisis to provide service users with somewhere safe to stay over Christmas. The Foundation has continued to support Crisis through the funding of clinical psychologists, core services and continued support of their Christmas campaign. In FY24, Crisis were able to support 578 homeless people with hotel accommodation over the Christmas period.

5. US Foundation

The Foundation made a £0.8million donation to the US Foundation during FY24. The US Foundation Steering Committee selected strategic US based charity partners and made donations too:

Public Benefit

As a charity, the Trustees recognise their legal duty to report on the Foundation’s public benefit in their Annual Report and to clearly demonstrate that the Objects of the Foundation are for the public benefit, in recognition that being a registered charity is a privilege, not a right. The Trustees assert that the charity is compliant with the requirements of the Charities Act 2011, having due regard for the public guidance published by the Charity Commission.

The Trustees acknowledge and accept that there exists a kind of covenant between charities and society: charities bring public benefit and, in their turn, are accorded high levels of trust and confidence, as well as the benefits of charitable status.

Volunteers

The Trustees operate on a voluntary basis within the Foundation. The Head of The Foundation seconded 80% of their time to focus on Foundation duties, whilst being employed by The Watches of Switzerland Company Limited. Other Group colleagues support the Foundation and do not receive any separate payment.

Page 4

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2024

Achievements

FY24 saw

Future Plans

The Foundation plans to:

Thanks

We are grateful to the Trustees of the 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 period. We also wish to thank the Board of Watches of Switzerland Group PLC for their generous donation to support the Foundation.

Page 5

THE WATCHES OF SWITZERLAND GROUP FOUNDATION (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Trustees of The Watches of Switzerland Group Foundation (the ‘Foundation or Charity’) present their Annual Report & Accounts for the financial year ended 30 April 2024, in accordance with the Companies Act 2006.

The Accounts have been prepared in accordance with the accounting policies set out in Note 1 of the Accounts and comply with the Charity’s governing document, applicable law, and the Statement of Recommended Practice, ‘Accounting and Reporting by Charities’, 2019.

The Trustees’ Annual Report has been prepared in accordance with the guidelines set out by the Charity Commission in the Charities Statement of Recommended Practice (SORP) and the Charity Governance Code.

Structure of Company and Governing Document

The Watches of Switzerland Group Foundation is a company limited by guarantee, without share capital and governed by its 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 Objects of the Foundation are set out in this report.

Organisation

The Trustees have delegated the following responsibilities to employees of the Group, for which no charge has been incurred by the Foundation in connection with services provided:

The Trustees who served during FY24 and to the date of this Report were Brian Duffy Ruth Benford David Gandy John Hannah Terence Parris Johnathan Joseph Mary Portas (resigned 5 October 2023)

Patricia Kendall was appointed as Company Secretary on 27 September 2024 when Daniela Pulido-Lopera resigned as the Company Secretary. Daniela was appointed as the Company Secretary on 15 May 2024.

Page 6

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2024

Recruitment and Appointment of Trustees

The appointment of trustees is governed by the Articles of Association and the Memorandum of Understanding between the Foundation, the Watches of Switzerland Company Limited and the Watches of Switzerland Group PLC, under which new trustees may be appointed by the existing trustees. There must at all times be a minimum of three trustees, the majority of whom must be independent. None of the Trustees are remunerated in respect of their services as a trustee.

All Trustees are appointed based on their experience, skills and empathy with the Foundation’s vision.

Trustee Induction and Training

The Trustees of the Foundation are provided with further guidance and training notes as required and are reminded of their responsibilities as Trustees as appropriate. Trustees have all received training since the Foundation received charitable status in 2021. They are reminded of their responsibilities regularly with support from the company secretary.

The Trustee Board works to ensure compliance with its legal duties to:

In addition, the Trustee Board:

Risk Management

At each meeting the Trustees review the financial position of the Foundation taking into consideration the closing bank balance. The Foundation relies on key financial controls of the WOSG as described in the Annual Report and Accounts 2024 which can be found on the Group’s corporate website www.thewosgroup.com.

The Foundation is a grant-maker, which also reduces the overall level of risk.

The Trustees believe that the key risk facing the Foundation is that the Watches of Switzerland Group ceases to donate any further funds to the Foundation.

Page 7

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2024

Fundraising Statement

During the year the Foundation did not undertake any public fundraising activity, nor does it employ commercial third parties to undertake fundraising on their behalf.

Grant Making and Grant Making Policy

The Trustees only award grants to registered charities. This year the Foundation has implemented a new Grant Making Policy to streamline due diligence. To be eligible for funding from the Foundation, organisations applying for funding must meet the following criteria:

By adhering to these principles and procedures, The Foundation aims to maximise the positive impact of its grant funding on the communities and causes supported. During the year no grants were made to charities that were not registered. The Grant Making policy was put in place during FY24. The only exception to this, is the donation to the US Foundation.

Funding priorities

The Foundation's grant-making is focused on supporting communities and colleagues in locations within which The Group operates.

In considering requests for support, the Foundation considers projects that:

The Foundation aims to make grants to recipients where long-term strategic partnerships can be developed and grants can be focused on specific projects which the Trustees believe will ensure sustainability of activities. Grant partners provide feedback and updates to the Trustees.

Once grants have been made, where possible, Group colleagues are encouraged to participate in volunteer opportunities with the charities. 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 consider grants to projects that discriminate on the basis of race, gender, religion, disability or sexual orientation.

The Foundation operates independently from the Group. To ensure that they act lawfully at all times, the Trustees are encouraged to take advice from the Secretary of the Foundation, when appropriate. As the Foundation has no employees, work is carried out by Group colleagues, referred to as Foundation Volunteers. This staff time is donated by the Group and has been recognised as a donation in kind in the Financial Statements.

Page 8

THE WATCHES OF SWITZERLAND GROUP FOUNDATION (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2024

The Foundation complies with all relevant laws regarding charitable donations and charity beneficiaries in all countries where it is active.

Related parties

In order to support the Watches of Switzerland Group PLC’s (WOSG PLC) standing, as a responsible company listed on the London Stock Exchange, the strong philanthropic legacy of the luxury watch industry and the Group’s increasing focus on its ESG agenda, The Watches of Switzerland Group Foundation was established.

The Watches of Switzerland Company Limited (the “Company”) is the UK trading entity of the Group. The Company has entered into a trademark licence agreement with the Foundation, pursuant to which the Company has granted the Foundation the right to use the Watches of Switzerland brand. All donations, volunteer and management services are provided to the Foundation through the Company.

Both the Company and The WOSG Group PLC are parties, with the Foundation, to a Memorandum of Understanding (“MOU”) which details these arrangement and outlines their contractual relationship.

Currently the Foundation donates money to the US Foundation – the donation is made for onward distribution to chosen US charities. There is a MOU between the Foundation and the US Foundation which defines the contractual relationship and ongoing commitments.

Financial Review

A summary of the FY24 results can be found on page 16 of this report and financial statements.

During the year ended 30 April 2024, total income amounted to £1.5million from WOSG PLC. The Trustees committed to grants of £1.95million to various charities during the year. This includes a £0.08million donation to the US Foundation. The Foundation incurred costs of £0.09 million. This resulted in a net expenditure and movement in funds for the year of £0.53million.

The balance sheet shows total funds of £2.42million.

The financial activities of the Foundation for the year under review and the financial position at the Balance Sheet date are set out in the Accounts. The Statement of Financial Activities (SOFA) is set out at page 15. The Trustees are satisfied with the financial position of the Foundation.

Reserves Policy

The Trustees have decided that holding reserves is unnecessary due to the Foundation having no day-to-day administration expenses or long-term commitments. As such no Reserve Policy is thought to be appropriate at present.

Going Concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Trustees have made this assessment in respect to a period of one year from the date 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 the accounts the Trustees of the Foundation have concluded there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Foundation to continue as a going concern.

Page 9

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2024

DECLARATIONS

The Trustees (who are also Directors of the company The Watches of Switzerland Group Foundation for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of Information to Auditor

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Approved by order of the members of the board of Trustees and signed on their behalf by:

Brian Duffy Chair of Trustees

Date:

Page 10

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE WATCHES OF SWITZERLAND GROUP FOUNDATION

Opinion

We have audited the financial statements of The Watches of Switzerland Group Foundation (the 'charity') for the year ended 30 April 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows 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 Financial Reporting Standard 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:

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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.

Conclusions relating to 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 charitable company'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.

Page 11

THE WATCHES OF SWITZERLAND GROUP FOUNDATION (A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE WATCHES OF SWITZERLAND GROUP FOUNDATION (CONTINUED)

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 contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company 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 Companies Act 2006 requires us to report to you if, in our opinion:

Page 12

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE WATCHES OF SWITZERLAND GROUP FOUNDATION (CONTINUED)

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the 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 charitable company'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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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 in 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:

We obtained an understanding of the legal and regulatory frameworks within which the Company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the Company's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the Company for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), Anti-fraud, bribery and corruption legislation, environmental protection legislation, Health and safety legislation, Taxation legislation and Employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be in the following areas: timing of recognition of income; the override of controls by management, including posting of unusual journals; inappropriate treatment of non- routine transactions and areas of estimation uncertainty.

Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, review and discussion of non-routine transactions, sample testing on the posting of journals and income transactions and review of accounting estimates for biases.

Page 13

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE WATCHES OF SWITZERLAND GROUP FOUNDATION (CONTINUED)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Helen Blundell LLB FCA FCIE DChA (senior statutory auditor)

for and on behalf of Crowe U.K. LLP

Statutory Auditor Black Country House

Rounds Green Road

Oldbury

West Midlands B69 2DG

Date:

Page 14

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 APRIL 2024

Note
Income from:
Donations
3
Total income
Expenditure on:
Charitable activities
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2024
£
1,515,044
1,515,044
2,041,911
2,041,911
(526,867)
2,951,810
(526,867)
2,424,943		 Total
funds
2024
£
1,515,044
1,515,044
2,041,911
2,041,911
(526,867)
2,951,810
(526,867)
2,424,943		 Total
funds
2023
£
1,513,170
1,513,170
1,673,322
1,673,322
(160,152)
3,111,962
(160,152)
2,951,810

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 18 to 26 form part of these financial statements.

Page 15

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee) REGISTERED NUMBER: 12935802

BALANCE SHEET AS AT 30 APRIL 2024

Note
Current assets
Debtors
9
Cash at bank and in hand
Creditors: amounts falling due within one
year
10
Net current assets
Total net assets
Charity funds
Restricted funds
11
Unrestricted funds
11
Total funds		 1,525
2,529,187
2,530,712
(105,769)		 2024
£
2,424,943
2,424,943
-
2,424,943
2,424,943		 -
2,969,058
2,969,058
(17,248)		 2023
£
2,951,810
2,951,810
-
2,951,810
2,951,810

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Hugh Brian Duffy Chair of Trustees Date:

The notes on pages 18 to 26 form part of these financial statements.

Page 16

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 APRIL 2024

Note
Cash flows from operating activities
Net cash used in operating activities
13
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
14
The notes on pages 18 to 26 form part of these financial statements.		 2024
£
(439,871)
(439,871)
2,969,058
2,529,187		 2023
£
(151,904)
(151,904)
3,120,962
2,969,058

Page 17

THE WATCHES OF SWITZERLAND GROUP FOUNDATION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2024

1. General information

The Watches of Switzerland Group Foundation is a Company limited by guarantee (registered number: 12935802) which is registered in England and Wales. It registered as a charity on 22 November 2021 and its charity registration number is 1196714. The registered office is Aurum House, 2 Elland Road, Braunstone, Leicester, LE3 1TT.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Watches of Switzerland Group Foundation 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.

2.2 Going concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Trustees have made this assessment in respect to a period of one year from the date 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 the accounts the Trustees of the Foundation have concluded there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Foundation to continue as a going concern.

2.3 Gifts in Kind

Donated staff time is recognised on the basis of the value of the gift to the charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

2.4 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.

Page 18

THE WATCHES OF SWITZERLAND GROUP FOUNDATION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2024

2. Accounting policies (continued)

2.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

2.6 Debtors

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

2.7 Cash at bank and in hand

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

2.8 Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

2.9 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Page 19

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2024

2. Accounting policies (continued)

2.10 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

3. Income from donations

Unrestricted
funds
2024
£
Donations
1,500,000
Donation in kind
15,044
1,515,044
Unrestricted
funds
2023
£
Donations
1,500,000
Donation in kind
13,170
1,513,170		 Total
funds
2024
£
1,500,000
15,044
1,515,044
Total
funds
2023
£
1,500,000
13,170
1,513,170

Page 20

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2024

4. Analysis of grants

Grant making
Grant making
.
Grants were made to the following charities:
Food Banks
Fuel Bank Foundation
Crisis UK
Children with Cancer UK
Melanoma UK
St Mary's PCC, Primrose Hill
Watches of Switzerland Group US Foundation
The King's Trust (formerly the Prince’s Trust)
The Trussell Trust
The Christie Charity
Refugee Action Kingston
British Red Cross		 Grants to
Institutions
2024
£
1,950,987
Grants to
Institutions
2023
£
1,640,921
2024
£
353,000
-
125,000
-
-
-
795,487
572,500
50,000
10,000
25,000
20,000
1,950,987		 Total
funds
2024
£
1,950,987
Total
funds
2023
£
1,640,921
2023
£
440,000
300,000
125,000
25,000
25,000
25,000
700,921
-
-
-
-
-
1,640,921

Page 21

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2024

5. Analysis of expenditure by activities

Charitable activities
Charitable activities		 Activities
undertaken
directly
2024
£
15,044
Activities
undertaken
directly
2023
£
13,170		 Grant
funding of
activities
2024
£
1,950,987
Grant
funding of
activities
2023
£
1,640,921		 Support
costs
2024
£
75,880
Support
costs
2023
£
19,231		 Total
funds
2024
£
2,041,911
Total
funds
2023
£
1,673,322

Analysis of support costs

Insurance and other support costs
Auditor Fees and Accounts Preparation
Insurance and other support costs
Auditor Fees and Accounts Preparation		 Activities
2024
£
64,180
11,700
75,880
Activities
2023
£
7,531
11,700
19,231		 Total
funds
2024
£
64,180
11,700
75,880
Total
funds
2023
£
7,531
11,700
19,231

Page 22

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2024

6. Auditor's remuneration

The auditor's remuneration amounts to an auditor fee of £9,900 (2023 - £9,900) , and the preparation of financial statements of £1,800 ( 2023 - £ 1,800).

7. Staff costs

During the year support was provided by Watches of Switzerland Group PLC. The cost of this has been calculated at £70,166 (2023: £12,997). £60,666 (2023: £5,547) was recharged to Watches of Switzerland Group plc and £9,500 has been recognised as a donation in kind.

The key management personnel of the charity comprise Trustees and the Senior Management Team. No employee benefits were paid to key management personnel directly through The Watches of Switzerland Group Foundation. However of the support noted above £60,666 (2023: £12,997) related to services provided by key management personnel.

There was no individual earning over £60K in 2024 or 2023.

8. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2023: £Nil).

During the year ended 30 April 2024, no Trustee expenses have been incurred (2023: £Nil).

9. Debtors

2024 2023
£ £
Due within one year
Prepayments and accrued income 1,525 -

10. Creditors: Amounts falling due within one year

2024 2023
£ £
Accruals 105,769 17,248

Page 23

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2024

11.
Statement of funds
Statement of funds - current year
Balance at 1
May 2023
£
Unrestricted funds
General funds - all funds
2,951,810
Statement of funds - prior year
Balance at
1 May 2022
£
Unrestricted funds
General Funds - all funds
3,111,962
12.
Analysis of net assets between funds
Analysis of net assets between funds - current period
Current assets
Creditors due within one year
Total		 Income
£
Expenditure
£
Balance at
30 April
2024
£
1,515,044
(2,041,911)
2,424,943
Income
£
Expenditure
£
Balance at
30 April 2023
£
1,513,170
(1,673,322)
2,951,810
Unrestricted
funds
2024
Total
funds
2024
£
£
2,530,712
2,530,712
(105,769)
(105,769)
2,424,943
2,424,943

Page 24

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2024

12. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior period

Current assets
Creditors due within one year
Total		 Unrestricted
funds
2023
£
2,969,058
(17,248)
2,951,810		 Total
funds
2023
£
2,969,058
(17,248)
2,951,810

13. Reconciliation of net movement in funds to net cash flow from operating activities

Net expenditure for the period (as per Statement of Financial Activities)
Increase in creditors
Increase in debtors
Net cash used in operating activities
Analysis of cash and cash equivalents
Cash in hand		 2024
£
(526,867)
88,521
(1,525)
(439,871)
2024
£
2,529,187		 2023
£
(160,152)
8,248
-
(151,904)
2023
£
2,969,058

14. Analysis of cash and cash equivalents

Page 25

THE WATCHES OF SWITZERLAND GROUP FOUNDATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2024

15. Analysis of changes in net debt

Cash at bank and in hand At 1 May
2023
£
2,969,058
2,969,058		 Cash flows
£
(439,871)
(439,871)		 At 30 April
2024
£
2,529,187
2,529,187

16. Related party transactions

During the year, the charity received donations totalling £1,500,000 (2023: £1,500,000) from Watches of Switzerland Company Limited of which the Trustee Brian Duffy is a director.

The charity benefits from certain staff time and rent donated by Watches of Switzerland Group plc of which the Trustee Brian Duffy is a director. During the year staff time and rent totalling £15,044 (2023: £13,170) was donated to the charity.

During the year, staff time totalling £72,864 (2023: £5,547) was recharged from Watches of Switzerland Group plc of which Trustee Brian Duffy is a director. At the year end there are no amounts owed to Watches of Switzerland Group PLC.

During the year, the Foundation made grants totalling £795,487 (2023: £700,921) to the The Watches of Switzerland Group US Foundation..

Page 26