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2022-12-31-accounts

REGISTERED COMPANY NUMBER: 00726331 (England and Wales) REGISTERED CHARITY NUMBER: 209206

Report of the Trustees and Consolidated Financial Statements

for the Year Ended 31 December 2022

for Kennet and Avon Canal Trust (The)

Monahans Chartered Accountants County Gate County Way Trowbridge Wiltshire BA14 7FJ

Kennet and Avon Canal Trust (The)

Contents of the Consolidated Financial Statements for the Year Ended 31 December 2022

Page
Report of the Trustees 1 to 9
Independent Examiner's Report 10
Consolidated Statement of Financial Activities 11
Consolidated Balance Sheet 12
Charity Balance Sheet 13
Consolidated Statement of Cash Flows 14 To 15
Notes to the Consolidated Financial Statements 16 to 27
Detailed Statement of Financial Activities 28 to 29

Kennet and Avon Canal Trust (The)

Report of the Trustees for the Year Ended 31 December 2022

The trustees who are also directors of the charity and its subsidiary for the purposes of the Companies Act 2006, present their report with the financial statements of the charity and its subsidiary for the year ended 31 December 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

2022 in summary

Introduction

The Trustees present their annual report together with the consolidated financial statements of the charity and its subsidiary for the year ending 31 December 2022 which are also prepared to meet the requirements for a Directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Trust’s Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice (FRS102).

Our Vision and Strategy

The charitable objects of the Trust, as set out in its Articles of Association, are to:

In November 2020, following a review of the Trust’s future priorities, the Trustees agreed a new Vision and Strategy statement, taking full account of Charity Commission guidance on public benefit from charitable activities. This was further discussed at a strategy workshop in August 2022 to inform future priorities.

Page 1

Kennet and Avon Canal Trust (The)

Report of the Trustees for the Year Ended 31 December 2022

This statement included the following aims:

These aims guide the priorities for the Trust, as a basis for ensuring that it continues to meet its objects for the public benefit. The Trust will seek to achieve this in the following way:

Page 2

Kennet and Avon Canal Trust (The)

Report of the Trustees for the Year Ended 31 December 2022

Review of 2022

(a) Overview

After two years when operations were curtailed by Covid restrictions, we were able to operate a full season at Crofton Beam Engines (which is owned by the Trust) and on our boats in 2022. Although income was still below 2019 levels, our trading subsidiary returned to profit and has now been able to start repaying the loan from the Trust which was needed to help it survive the large loss in 2020.

The Trust’s achievements are heavily reliant on the contribution of the time and expertise of about four hundred volunteers, who mainly operate through the Trust’s eight Branches. Our boats are exclusively crewed by volunteers, Crofton opening days are almost entirely run by volunteers, and our events and support for canal side work are delivered by volunteers. The safety and wellbeing of our volunteers and staff is therefore a priority for Trustees.

At the end of 2022, the Group employed five members of staff (two full-time and three part-time), two at Crofton and three centrally managing boat bookings, administration and finance.

Trust Council reviewed updated financial projections for 2022 and for the five years to 2027 at its meeting in July. Trustees recognised that the cost of living crisis could have an impact on income in 2023, and that costs (particularly fuel and regulatory costs) were likely to increase significantly. This uncertainty will require the Trustees to be cautious about making new commitments beyond those already made, given the significant reduction in reserves in 2022, which will continue in 2023.

(b) Trust

The Trust operates mainly through its eight Branches.

Crofton Branch is responsible for running Crofton Beam Engines, a Grade 1 listed site housing the oldest beam engine in the world still in its original location and still able to perform its original task.

The site has continued to be managed in 2022 by a volunteer Site Manager with support from a full-time Assistant Site Manager, volunteer members of the Branch Committee, as well as about forty other regular volunteers. Boiler repairs, costing around £30k, were completed in February and it is hoped that no further major repairs will be required for perhaps ten years. The costs were met from a successful targeted fundraising campaign.

Crofton opened to the public for a total of 53 days, with the engines in steam for 14 of those days. Despite some operating issues, both engines were in steam although repairs to the pump-end valve of No 2 Engine (the 1846 Harvey of Hayle engine) are being undertaken in advance of the 2023 season. Steaming hours for the events in August and September were restricted by the low water levels in Wilton Water.

Total visitor numbers were 2,002 (2021: 881) on steaming days, of which 1,685 were paying adults, 291 children and 26 carers or other complimentary admissions. Visitor numbers on non-steaming days were 1,268 (2021: 2,347), with 673 adults paying to tour the station itself. About half the visitors on steaming days, when there was a charge to enter the site and timed slots for touring the station itself, pre-booked tickets. On non-steaming days, site entry was free, with a charge to tour the station itself.

Given the limited future availability of house coal, trials of coal alternatives were carried out but with mixed success. Trustees therefore agreed to advance purchase of 20 tonnes of coal in the Autumn, both to ensure 2023 supplies and avoid expected price increases. Further trials of coal alternatives will be carried out in 2023.

Following the appointment of a new Learning and Community Engagement Officer in May, Crofton’s learning offer has been developed further. There have been a number of visits to Crofton, and outreach events, including a visit by all 142 children from Burbage Primary School in May.

Page 3

Kennet and Avon Canal Trust (The)

Report of the Trustees for the Year Ended 31 December 2022

Trustees have agreed commercial terms with the Canal and River Trust (CRT) for purchase of the Smithy, the only building at Crofton site not owned by the Trust. The transfer is expected to complete in summer 2023. In preparation for this, a project group has been established to develop a site master plan and initial ideas for enhancing visitor and volunteer facilities, including creation of a museum in the Side Boiler House (which was used as a café until 2019) and a workshop and visitor display in the Smithy. Following discussion with the National Lottery Heritage Fund, a bid was submitted in December 2022 for a grant to fund a ‘resilience’ project which is designed to test the ideas for extending audiences engaging with Crofton and to develop a business plan to achieve financial sustainability and the grant was awarded in February 2023. The project will be completed by Autumn 2023, and will inform future Trust strategy for the site.

Trust activities in other branches included support for the Reading WaterFest in June and the Newbury Waterways Festival in July. Branches have also continued with their programmes of talks and social events.

Discussions have been continuing with CRT on new leases for the tea rooms at Bradford on Avon and Aldermaston. In both cases, commercial terms have been agreed. At Aldermaston, a new 25 year lease has been agreed which gave Trustees the confidence to commit to starting work on conserving the Wash house, a small building on the sire which is though to pre-date construction of the canal. This work started in October, when the previous tea room operators moved out, and is expected to be competed in time for new operators to re-open the tea room before Easter.

The Trust Museum at Devizes reopened following completion of the rewiring work, and has generally opened on two days a week with support from Devizes Branch volunteers. Trustees have not yet taken a final decision on the future of the Devizes Wharf building, which is occupied on a short-notice lease from Wiltshire Council. Discussions are also continuing with the Wiltshire and Swindon History Centre on transfer of items from the Trust’s Archive, currently housed in a CRT portacabin at Caen Hill to Chippenham.

Two editions of the Trust’s magazine The Butty were published, which many members have opted to receive in digital form only.

(c) Enterprise

The Trust’s trading subsidiary, The Kennet and Avon Canal Trust (Enterprise) Ltd, operates public boat trips, holiday hire of boats adapted for use by disabled passengers, and a boat for use by community groups. It also licenses tea rooms at Bradford on Avon, Newbury and Aldermaston. These activities directly support delivery of the Trust’s charitable objects, in particular by promoting recreational use of the canal by a wide range of the public. In addition, by paying profits to the Trust, the scope of the Trust’s activities can be expanded, so that Enterprise also supports the public benefit indirectly.

In 2022, trip boats and holiday hire activities were able to run from Easter to October, as they did before the pandemic, with additional public services at Christmas.

A new hire agreement was entered into with the owners of a 12-seater trip boat to operate in Reading. The basis of the agreement is that Enterprise operates the boat, which has been named Matilda Too, and meets normal operating costs, with profits then shared with the owners, who are all members of Reading Branch.

Maintaining the boat fleet owned by Enterprise involves significant fixed costs, for example in respect of licences, inspection by the MCA, mooring and insurance.

The three licensed cafés made a small positive contribution to Enterprise in 2022, although there were significant legal costs associated with preparing new leases with operators and supporting negotiations on the new head leases with CRT. Following a tender exercise, new operators for the tea rooms at Aldermaston have been agreed, who expect to reopen the tea room before Easter.

Given these results, no further draw-down of the loan facility from Trust was required in 2022, and an initial repayment of £10k was made in January 2023.

Page 4

Kennet and Avon Canal Trust (The)

Report of the Trustees for the Year Ended 31 December 2022

(d) Administration and governance

The arrangements for administration of the Trust have continued to operate effectively.

Trust Council met six times during the year, as did the Enterprise Board. The Annual General Meeting of the Trust was held on 21 May. As in 2021, all meetings were held by Zoom. Health and Safety continues to be reviewed at all meetings of Trust Council and the Enterprise Board, including both accidents and near misses.

No new Trustees were appointed during the year. Recruitment of an additional trustee with particular experience of fundraising is in hand, as is recruitment of a new Treasurer to replace the current incumbent who is standing down at the 2023 AGM.

A number of Trust policies have been reviewed or updated during the year, and all are published on the Trust’s website. A priority for 2023 is finalisation of a policy on Safeguarding.

Plans for 2023 and beyond

(a) Trust

Priorities for the Trust in 2023 are:

In addition to these central initiatives, Branches will continue to deliver activities on a local basis, in particular through operation of the Crofton site and other Branch activities along the canal.

(b) Enterprise

Operating plans for the company’s trip boat and holiday hire fleet in 2023 broadly reflect those in 2022.

No major expenditure on boats is anticipated in 2023 apart from planned repainting of Kenavon Venture (deferred from 2022, and now booked to take place in March and April). As a consequence, the company expects to be able to make further repayments of the medium-term loan from the Trust in 2023, which now stands at £60k. Full repayment is due by the end of 2025. This loan is in addition to a £25k loan to provide working capital to the company.

As part of the strategy workshop, the cost and operating implications of replacing a trip boat and/or one of the Bruce Boats with a new boat with a hybrid or all-electric engine will be investigated. Such a boat would reduce noise and emissions.

(c) Administration and governance

Apart from recruitment of at least additional Trustees with relevant skills, in particular finance and fundraising, the main priority in respect of governance will be to finalise Trust policies in respect of safeguarding and conservation, and continue to review and update existing policies in particular the environmental policy. It is also planned to update the Trust’s Volunteer Handbook in 2023.

Page 5

Kennet and Avon Canal Trust (The)

Report of the Trustees for the Year Ended 31 December 2022

Financial Review

At Group level (Trust and Enterprise), net expenditure in 2022 was £45,114 (2021: £31,960). These figures are after charging depreciation on fixed assets of £46,637 (2021: £46,185).

There was a significant increase in income from commercial trading activities from £164,476 in 2021 to £268,731, although this was still well below the 2019 level of £311,308. However, this was partially offset by a reduction in donations, grants and legacies from £132,739 in 2021 to £92,857. Grants included the final Covid-related payments from the Government’s Retail, Hospitality and Leisure Fund, as well as £5k from the Berkshire Community Foundation.

Trading results for our trading subsidiary, Enterprise, show that the company returned to profit, after losses in 2020 and 2021, with a profit after depreciation and before tax of £18,815 (2021: £36,162 loss – see note 11).

Under the terms of the Deed of Covenant entered into in 2019, Enterprise pays up to the Trust the lower of its taxable and distributable profits. Given the tax losses incurred in 2020 and 2021, no payment will be made under the Deed of Covenant. However, the company repaid £10k of the medium term loan made by the Trust in 2020 in January 2023. Enterprise Directors have confirmed that they still expect the company to be able to repay the loan by the end of 2025.

During the year, a number of major projects were undertaken. These included repairs to the boiler at Crofton Beam Engines (with the £30k costs met by donations to the Boiler Appeal) and over £50k to rewire the Devizes Wharf building to bring it up to modern standards, required to meet the terms of both our insurance and the lease from Wiltshire Council. In October, the project to conserve the Wash House at Aldermaston, which will cost £100k in total, was started. This is progressing ahead of schedule, and will be completed in Spring 2023 in time for new tea room operators to open for business before Easter.

Commitments for 2023 include completion of the Wash House project and purchase of the Smithy at Crofton.

As a result of these capital projects, cash balances decreased during the year, from £504,582 to £430,945. On the basis of approved budgets, they are expected to fall by a further £100k in 2023. Additional project approvals will only be given if Trustees are satisfied that reserves will be in excess of the target level of reserves set under the Reserves Policy.

Risk management

Trustees are continuing to develop a more formal risk management framework for Trust and Enterprise activities. Trustees agreed a Risk Management policy in January 2022. To support this, a draft corporate risk register has been prepared, and will be further developed and then reviewed on a regular basis. A risk register has already been developed for Crofton Beam Engines, and health and safety risk assessments are in place for all activities involving volunteers, employees and members of the public which have been updated during the year to reflect changes in Covid risks.

Risks relating to Trust and Enterprise activities fall under three main headings:

Page 6

Kennet and Avon Canal Trust (The)

Report of the Trustees for the Year Ended 31 December 2022

Following the development of a formal Reserves Policy in 2019, Trustees have reviewed regularly the financial risks facing the Trust, and in particular the impact of the pandemic. Trustees agreed in July 2022 that the target minimum level of reserves, should remain at £150K, given both the scale of capital commitments and continued uncertainty about both revenue and costs.

On the basis of the most recent projections, Trustees are satisfied that the Trust has sufficient balances to maintain current activities in 2023. Additional major projects will be approved only to the extent that free reserves in excess of the target minimum level are available, or external grant funding has been committed.

Trustees reviewed the Finance Manual in 2022 in the light of the annual review of internal financial controls, and agreed that no changes were necessary.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The Trust was created by memorandum on 6th June 1962. It is governed by Articles of Association that were last updated in 2020. This document is the governing document of the charity which is a private company limited by guarantee without share capital. As at 31 December 2022, there were 1,079 individual and joint members and 340 life members of the Trust.

Trustees are required to declare ‘Persons of Significant Control’ in the Companies House register. For the Trust there are no persons of significant control other than the Trustees listed. For our Enterprise trading company, the Trust has been listed as a legal entity with significant control. The declarations are available on the Companies House website.

The Trust Council (which is the Board of Directors of the company) currently comprises ten Trustees. It meets bi-monthly to review Health and Safety issues, consider overall Trust strategy and policy, in particular in the light of reports on the management accounts, received reports from Branches and to take decisions on matters which are reserved to Trust Council such as major expenditure commitments. The Trust is not required to appoint a Company Secretary and the Treasurer also takes responsibility for governance matters.

A process of external advertising has been adopted for recruiting new Trustees. Following interview by the Chairman and at least one other Trustee, recommendations are made to the Board; if approved, new Trustees are then co-opted onto Trust Council ahead of standing for election at the following AGM. New Trustees may also be nominated by members for election at the AGM. Each year one third of Trustees stand down and may offer themselves for re-election at the AGM.

The Enterprise Board comprises, at the date of this report, eight Directors (only three of whom are also Trustees, so that the majority, including the Chairman, are non-conflicted). It also meets bi-monthly to review in more depth health and safety issues and operational matters relating to the passenger boats, the Bruce boats, and the three tea rooms, and financial performance. As a commercial trading company, the Enterprise Board focusses particularly on budgets, financial performance, risk management and commercial viability. The Board provides regular reports to Trust Council.

The Trust’s eight branches (Bath & Bristol, Bradford on Avon, Devizes, Crofton, Bruce, Hungerford, Newbury and Reading) are each run by a Branch Committee which is formally a sub-committee of the Trust Council and usually selected by a meeting of local members, but subject to veto by Trust Council. Branches undertake the Trust’s work in their area and often have practical control of a boat (or boats) or other operations. Branches submit annual budget bids to Trust and Enterprise as appropriate and then have spending freedom within the approved budget subject to the provisions of a Finance Manual approved by Trust Council.

In addition, three members of staff provide a headquarters function supporting Trustees, Directors and branches, with a particular focus on Trust administration including matters such as insurance, managing boat booking, undertaking payments and banking, and ensuring compliance across a range of responsibilities.

REFERENCE AND ADMINISTRATIVE DETAILS

The Trust’s name is Kennet and Avon Canal Trust (The) and it is registered with Companies’ House with the reference 00726331, and with the Charity Commission for England and Wales with the reference 209206.

The Trust’s trading company is called The Kennet and Avon Canal Trust (Enterprise) Limited and is registered with Companies’ House under the reference 02679756.

The principal and registered office for the Trust is Devizes Wharf, Couch Lane, Devizes, SN10 1EB and for Enterprise is Canal Visitor Centre, Couch Lane, Devizes, Wiltshire, SN10 1EB.

Page 7

Kennet and Avon Canal Trust (The)

Report of the Trustees

for the Year Ended 31 December 2022

Directors and Trustees

The Directors of the charitable company (the charity) are its Trustees for the purpose of charity law. The Trustees serving during the year and since the year end were as follows (those marked * were also Directors of Enterprise): Trustees:

M R Bailey C W Bolt (Treasurer) D A Copley R G H Dunton D J Fearns T W Mundy Z S E E Puddephatt T J Pyatt C D Sims* (Chairman) G P Snook

In addition, the following were Directors of Enterprise:

C E Calder C R Churchouse (Chairman) (resigned 13 January 2023) J M Foley D C Hanlon L P Hooper G S Puddephatt D N Bone (appointed 24 February 2023) Captain P S Hanson (appointed 24 February 2023)

Independent Examiner

James Gare FCA DChA Monahans Chartered Accountants County Gate, County Way Trowbridge Wiltshire BA14 8FJ

Banker

Lloyds Bank plc 38 Market Place Devizes Wiltshire SN10 1JD

Approved by order of the board of trustees on ............................................. and signed on its behalf by: 20 March 2023

........................................................................ C W Bolt - Trustee

Page 8

Kennet and Avon Canal Trust (The)

Report of the Trustees for the Year Ended 31 December 2022

Statement of Trustees' responsibilities

The Trustees (who are also directors of The Kennet & Avon Canal Trust for the purpose of company law) are responsible for preparing the Trustees' Annual 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 charitable company and the group, and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and which 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 the group 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.

On behalf of the board

C W Bolt Director

Date: 20 March 2023

Page 9

Independent Examiner's Report to the Trustees of Kennet and Avon Canal Trust (The)

Independent examiner's report to the trustees of Kennet and Avon Canal Trust (The) ('the Group')

I report to the charity trustees on my examination of the consolidated accounts of the Group for the year ended 31 December 2022.

Responsibilities and basis of report

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

Having satisfied myself that the accounts of the Group 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 your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since the company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I can confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountant in England and Wales.

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:

  1. accounting records were not kept in respect of the Trust as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or

  2. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

  3. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

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 accounts to be reached.

James Gare FCA DChA The Institute of Chartered Accountants in England and Wales Monahans Chartered Accountants County Gate, County Way Trowbridge Wiltshire BA14 8FJ

Date: ….......................................... 21 April 2023

Page 10

Kennet and Avon Canal Trust (The)

Consolidated Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the Year Ended 31 December 2022

Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
92,857
Other trading activities
Commercial trading operation
3
11
40,133
268,731
Investment income
4
3,054
Other income
2,405
Total
407,180
EXPENDITURE ON
Raising funds
6,734
Charitable activities
Charitable activities
Commercial trading operations
229,044
237,523
Total
473,301
NET INCOME/(EXPENDITURE)
(66,121)
RECONCILIATION OF FUNDS
Total funds brought forward
1,168,378
TOTAL FUNDS CARRIED FORWARD
1,102,257		 2022
2021
Restricted
Total
Total
funds
funds
funds
£
£
£
-
92,857
132,796
24,511
-
64,644
268,731
25,810
164,476
-
3,054
1,487
-
2,405
1,609
24,511
431,691
326,178
-
6,734
4,006
3,504
-
232,548
237,523
154,424
199,708
3,504
476,805
358,138
21,007
(45,114)
(31,960)
500
1,168,878
1,200,838
21,507
1,123,764
1,168,878

The notes form part of these financial statements

Page 11

Kennet and Avon Canal Trust (The)

Consolidated Balance Sheet 31 December 2022

Notes
FIXED ASSETS
Tangible assets
10
CURRENT ASSETS
Stocks
13
Debtors
14
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
PROVISIONS FOR LIABILITIES
NET ASSETS
FUNDS
16
Unrestricted funds
Charitable subsidiary funds
Restricted funds
TOTAL FUNDS		 Unrestricted
funds
£
697,211
11,686
10,740
409,438
431,864
(26,818)
405,046
1,102,257
-
1,102,257		 Restricted
funds
£
-
-
-
21,507
21,507
-
21,507
21,507
-
21,507		 2022
Total
funds
£
697,211
11,686

10,740
430,945
453,371
(26,818)
426,553
1,123,764
-
1,123,764
726,906
375,351
21,507
1,123,764		 2021
Total
funds
£
675,426
-
9,329
504,582
513,911
(10,204)
503,707
1,179,133
(10,255)
1,168,878
761,678
346,281
60,919
1,168,878

The charitable group is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2022 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

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

The financial statements were approved by the Board of Trustees and authorised for issue on ….......................................... 20 March 2023 and were signed on its behalf by:

…..........................................

C W Bolt – Trustee

The notes form part of these financial statements

Page 12

Kennet and Avon Canal Trust (The)

Charity Balance Sheet 31 December 2022

Notes
FIXED ASSETS
Tangible assets
9
Investments
10
CURRENT ASSETS
Stocks
12
Debtors
13
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
15
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
funds
£
315,930
1,000
316,930
11,686
100,294
318,332
430,312
(20,336)
409,976
726,906
726,906		 Restricted
funds
£
-
-
-
-
-
21,507
21,507
-
21,507
21,507
21,507		 2022
Total
funds
£
315,930
1,000
316,930
11,686
100,294
339,839
451,819
(20,336)
431,483
748,413
748,413
726,906
21,507
748,413		 2021
Total
funds
£
266,115
1,000
267,115
-
102,272
457,735
560,007
(4,525)
555,482
822,597
822,597
761,678
60,919
822,597

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2022 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

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

The financial statements were approved by the Board of Trustees and authorised for issue on ….......................................... and were signed on its behalf by:

…..........................................

C W Bolt – Trustee

The notes form part of these financial statements

Page 13

Kennet and Avon Canal Trust (The)

Consolidated Cash Flow Statement
for the Year Ended 31 December 2022
2022
Notes
£
Cash flows from operating activities
Cash generated from operations
1
(8,269)
Net cash provided by operating activities
(8,269)
Cash flows from investing activities
Purchase of tangible fixed assets
(68,422)
Sale of fixed assets
-
Interest received
3,054
Net cash provided by investing activities
(65,368)
Change in cash and cash equivalents in
the reporting period
(73,637)
Cash and cash equivalents at the
beginning of the reporting period
504,582
Cash and cash equivalents at the end of
the reporting period
430,945		 2021
£
52,978
52,978
(6,949)
-
1,487
(5,462)
47,515
457,067
504,582

The notes form part of these financial statements

Page 14

Kennet and Avon Canal Trust (The)

Notes to the Consolidated Cash Flow Statement for the Year Ended 31 December 2022

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
2022 2021
£ £
Net income for the reporting period (as per the Statement of Financial
Activities) (45,114) (31,960)
Adjustments for:
Depreciation charges 46,637 46,185
Loss on disposal of fixed assets - -
Interest received (3,054) (1,487)
Decrease/(increase) in debtors 889 46,410
Increase in stocks (11,686) -
Increase/(Decrease) in provisions for liabilities (10,255) -
Increase/(Decrease) in creditors 14,314 (6,170)
Net cash provided by operations (8,269) 52,978
2. ANALYSIS OF CHANGES IN NET FUNDS
At 1.1.22 Cash flow At 31.12.22
£ £ £
Net cash
Cash at bank and in hand 504,582 (73,637) 430,945

Page 15

continued...

Kennet and Avon Canal Trust (The)

Notes to the Financial Statements for the Year Ended 31 December 2022

1. ACCOUNTING POLICIES

Charity information

Kennet and Avon Canal Trust (The) is a private limited company limited by guarantee and incorporated in England and Wales. The registered office is Devizes Wharf, Couch Lane, Devizes, SN10 1EB.

Kennet and Avon Canal Trust (The) and its group meet the definition of a public benefit entity under section 34 of FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value, unless otherwise stated in the relevant accounting policy.

The principal objectives of the charity are detailed in the Trustees report.

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006.

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

Basis of consolidation

The accounts of the trading subsidiary, The Kennet & Avon Canal Trust (Enterprise) Ltd, are consolidated with the accounts of Kennet and Avon Canal Trust (The) in accordance with current legislation. Inter group income and expenditure is eliminated and all income and expenditure relates to external transactions only. A separate Statement of Financial Activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006 and section 24 of SORP 2019.

Income

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable.

Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included.

Grants are recognised in full in the statement of financial activities in the year to which they relate. Subscriptions are included in the statement of financial activities when received.

Legacies are included when the charity is advised by the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified.

Expenditure

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates. Fundraising and publicity costs comprise the costs actually incurred in producing materials for promotional purposes and of raising funds through various fund raising events. Support costs include governance costs which are costs associated with the governance arrangements of the charity and relate to the general running of the charity as opposed to those costs associated with fundraising or charitable activity. These costs have been allocated between cost of raising funds and expenditure on charitable activities.

Page 16

continued...

Kennet and Avon Canal Trust (The)

Notes to the Financial Statements for the Year Ended 31 December 2022

1. ACCOUNTING POLICIES – continued

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold land - is not depreciated Freehold buildings - 2% on straight line basis Long leasehold & boats - 5% on a straight line basis Plant and machinery - 25% on straight line basis Fixtures and fittings - 15% on reducing balance Computer equipment - 20% on a straight line basis

Boats are included in the accounts at deemed cost, based on historic valuations. This is a change from the previous accounting policy which was that the boats were revalued by the Directors based on current trading value.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Termination benefits

The charity recognises a liability for termination benefits at the point where the charity is committed to making the payments in return for employee redundancy.

Financial instruments

The charity has only financial assets and financial liabilities of a kind that qualify as basic financial instruments, as defined by FRS102. The financial assets and liabilities and their measurement basis are as follows:

Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank - is classified as a basic financial instrument and measured at fair value.

Financial liabilities - trade creditors, accruals and other creditors are financial instruments and are measured at amortised cost. Taxation and social security are not included in the financial instrument disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company’s pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Going concern

There are no material uncertainties related to events or conditions that may cast significant doubt upon the charity’s ability to continue as a going concern.

Page 17

continued...

Kennet and Avon Canal Trust (The)

Notes to the Financial Statements for the Year Ended 31 December 2022

2. DONATIONS AND LEGACIES

Group and charity

Group and charity
Grants and donations
Legacies
Gift Aid Reclaims
Subscriptions
OTHER TRADING ACTIVITIES
Group and charity
Admissions
Crofton car park
Fundraising
Rent received		 2022
£
57,000
2,988
13,823
19,046
92,857
2022
£
22,871
556
27,670
13,547
64,644		 2021
£
81,734
18,396
9,555
23,111
132,796
2021
£
12,371
860
-
12,579
25,810

3. OTHER TRADING ACTIVITIES

Page 18

continued...

Kennet and Avon Canal Trust (The)

Notes to the Financial Statements – continued

for the Year Ended 31 December 2022

4. INVESTMENT INCOME

Group and charity

Group and charity
2022 2021
£ £
Bank interest receivable 3,054 1,487
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
2022 2021
£ £
Independent examiner’s remuneration (excluding VAT)
Examination and preparation of the group accounts 3,008 3,400
Preparation of accounts for the trading subsidiary 1,384 1,200
Other services 1,500 1,450
Depreciation – owned assets 46,637 46,184
Hire of plant and machinery 642 670

5. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

6. TRUSTEES’ REMUNERATION AND BENEFITS

There were no trustees’ remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.

Trustees’ expenses

There were no trustees’ expenses paid for the year ended 31 December 2022 (2021: none).

7. STAFF COSTS

Wages and salaries
Pension
Other costs
The average monthly number of employees during the year was as follows:		 2022
£
77,512
541
-
78,053
2022
5		 2021
£
69,355
423
147
69,925
2021
4

The average monthly number of employees during the year was as follows:

No employees received emoluments in excess of £60,000 (2021: None).

No employees received termination benefits during the year (2021: None).

Page 19

continued...

Kennet and Avon Canal Trust (The)

Notes to the Financial Statements – continued for the Year Ended 31 December 2022

8. COMPARATIVES FOR THE STATEMENT OF CONSOLIDATED FINANCIAL ACTIVITIES

Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
132,796
Other trading activities
Commercial trading operations
25,810
164,476
Investment income
1,487
Other income
1,609
Total
326,178
EXPENDITURE ON
Raising funds
Commercial trading operations
4,006
Charitable activities
Charitable activities
135,424
Commercial trading operations
199,708
Total
339,138
NET INCOME
(12,960)
RECONCILIATION OF FUNDS
Total funds brought forward
1,120,919
TOTAL FUNDS CARRIED FORWARD
1,107,959		 Restricted
Total
funds
funds
£
£
-
132,796
-
-
25,810
164,476
-
1,487
-
1,609
-
326,178
-
-
4,006
19,000
154,424
-
199,708
19,000
358,138
(19,000)
(31,960)
79,919
1,200,838
60,919
1,168,878

Page 20

continued...

Kennet and Avon Canal Trust (The)

Notes to the Financial Statements – continued for the Year Ended 31 December 2022

9. TAXATION

All of the charity’s income is applied for charitable purposes and therefore the charity is exempt from corporation tax. The charity’s trading subsidiary had a corporation tax liability of £nil for the year ended 31[st] December 2022 (2021: £Nil).

10. TANGIBLE FIXED ASSETS

Group

COST
At 1 January 2022
Additions
At 31 December 2022
DEPRECIATION
At 1 January 2022
Charge for year
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021		 Freehold
property
£
297,204
-
297,204
63,739
4,004
67,743
229,461
233,465		 Long
leasehold
£
65,302
61,831
127,133
46,821
4,659
51,480
75,653
18,481		 Plant and
machinery
£
178,684
5,494
184,178
122,562
10,880
133,442
50,736
56,122		 Fixtures
and
fittings
£
58,023
1,097
59,120
47,315
1,744
49,059
10,061
10,708
COST
At 1 January 2022
Additions
At 31 December 2022
DEPRECIATION
At 1 January 2022
Charge for year
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021		 Boats
Totals
£
£
507,000
1,106,213
-
68,422
507,000
1,174,635
150,350
430,787
25,350
46,637
175,700
477,424
331,300
697,211
356,650
675,426

Page 21

continued...

Kennet and Avon Canal Trust (The)

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

10. TANGIBLE FIXED ASSETS - continued

Charity

COST
At 1 January 2022
Additions
At 31 December 2022
DEPRECIATION
At 1 January 2022
Charge for year
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021		 Freehold
property
£
297,204
-
297,204
63,739
4,004
67,743
229,461
233,465		 Long
leasehold
£
65,302
61,831
127,133
46,821
4,659
51,480
75,653
18,481		 Plant and
machinery
£
41,767
-
41,767
38,306
2,706
41,012
755
3,461		 Fixtures
and
fittings
£
58,023
1,097
59,120
47,315
1,744
49,059
10,061
10,708
COST
At 1 January 2022
Additions
At 31 December 2022
DEPRECIATION
At 1 January 2022
Charge for year
At 31 December 2022
NET BOOK VALUE
At 31 December 2022
At 31 December 2021		 Totals
£
462,296
62,928
525,224
196,181
13,113
209,294
315,930
266,115

11. FIXED ASSET INVESTMENTS

Charity

Charity
Unlisted
investment
£
MARKET VALUE
At 1 January 2022 and 31 December 2022 1,000
NET BOOK VALUE
At 31 December 2022 1,000
At 31 December 2021 1,000

There were no investment assets outside the UK. Investments represent 100% of the issued share capital in The Kennet & Avon Canal Trust (Enterprise) Limited.

Page 22

continued...

Kennet and Avon Canal Trust (The)

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

12. SUBSIDIARY COMPANY

The charity has a wholly owned trading subsidiary, The Kennet & Avon Canal Trust (Enterprise) Limited, company number 02679756, which is incorporated in the United Kingdom. The principal activity of The Kennet & Avon Canal (Enterprise) Limited is to operate boat trips and sales of gifts and souvenirs.

A summary of the financial performance of the subsidiary is shown below:

Turnover
Total expenditure
Other income
Profit / (loss)		 2022
£
268,731
239,661
-
29,070		 2021
£
164,476
200,638
-
(36,162)

The assets and liabilities of The Kennet & Avon Canal Trust (Enterprise) Limited were:

Fixed and current assets
Liabilities and provisions
Total net assets
Share capital and reserves		 2022
£
477,710
(101,359)
376,351
376,351		 2021
£
460,392
(113,111)
347,281
347,281

Expenditure includes interest payable to the parent charity of £2,138 (2021: £930). This transaction has been eliminated on consolidation in the group Statement of Financial Activities.

13. STOCKS

Group Charity
2022 2021 2022 2021
£ £ £ £
Stocks 11,686 - 11,686 -

Page 23

Kennet and Avon Canal Trust (The)

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR


Trade debtors
Other debtors
Amounts owed by group undertakings
Prepayments and accrued income		 Group
2022
£
-
5,323
-
5,417
10,740
2021
£
-
2,216
-
7,113
9,329		 Charity
2022
£
-
-
94,877
5,417
100,294		 2021
£
-
-
97,177
5,095
102,272

Included within amounts owed by group undertaking is an amount of £94,877 (2021: £97,177) that is falling due after more than one year.

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR


Trade creditors
Social security and other taxes
Accruals and deferred income		 Group
2022
£
18,968
1,376
6,474
26,818
2021
£
3,608
866
5,730
10,204		 Charity
2022
£
15,422
304
4,610
20,336		 2021
£
202
243
4,080
4,525

Page 24

continued...

Kennet and Avon Canal Trust (The)

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

16. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Trading subsidiary
Restricted funds
AIM/Pilgrim Trust grants
Bruce Branch Project
Tesco Groundwork - journey cam
President’s Fund
TOTAL FUNDS		 At 1.1.22
£
822,097
346,281
1,168,378
-
-
-
500
500
1,168,878		 Net
movement

in funds
£
(95,191)
29,070
(66,121)
485
20,000
944
(422)
21,007
(45,114)		 Transfers

between
funds
£
-
-
-
-
-
-
-
-		 At
31.12.22
£
726,906
375,351
1,102,257
485
20,000
944
78
21,507
1,123,764

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Trading subsidiary
Consolidation adjustments
Restricted funds
AIM/Pilgrim Trust grants
Bruce Branch Project
Tesco Groundwork - journey cam
President’s Fund
TOTAL FUNDS		 Incoming
resources
£
140,587
268,731
(2,138)
407,180
3,386
20,000
1,125
-
24,511
431,691		 Resources
Movement
expended
in funds
£
£
(235,778)
(239,661)
2,138
(95,191)
29,070
-
(473,301)
(66,121)
(2,901)
485
-
(181)
(422)
20,000
944
(422)
(3,504)
21,007
(476,805)
(45,114)

Purposes of restricted funds

The President’s fund was set up by a donation from the Trust President to fund volunteer travel expenditure, to be used at the discretion of the Trust Chairman.

Crofton Beam Engines has received two grants from the Association of Independent Museums/Pilgrim Trust. One was for a Collection Care audit, which was completed in March 2022. The second was a Conservation grant for work to be completed by March 2023; further expenditure will be incurred, and the second instalment of the grant payment received, in 2023.

A donation of £20K has been received to fund initial design work for a new accessible boat for the Bruce Boat fleet. No expenditure has yet been incurred

A Tesco Community Grant has been received to provide four smart televisions with external camera and cabling for the Bruce Boat fleet. Further expenditure will be incurred, and the final instalment of the grant payment received, in 2023.

Page 25

continued...

Kennet and Avon Canal Trust (The)

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

16. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Trading subsidiary
Restricted funds
Our Crofton Story (NLHF Project) Fund
Bradford on Avon Projects Fund
Bedwyn Wharf Development Fund
Archimedean Screw Conservation Fund
President’s Fund
TOTAL FUNDS		 At 1.1.21
£
738,476
382,443
1,120,919
60,419
5,000
5,000
9,000
500
79,919
1,200,838		 Net
movement

in funds
£
23,202
(36,162)
(12,960)
-
(5,000)
(5,000)
(9,000)
-
(19,000)
(31,960)		 Net
Transfers

between
funds
£
60,419
-
60,419
(60,419)
-
-
-
-
(60,419)
-		 At
31.12.21
£
822,097
346,281
1,168,378
-
-
-
-
500
500
1,168,878

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Trading subsidiary
Consolidation adjustments
Restricted funds
Bradford on Avon Projects Fund
Bedwyn Wharf Development Fund
Archimedean Screw Conservation Fund
TOTAL FUNDS		 Incoming
resources
£
162,632
164,476
(930)		 Resources
Movement
expended
in funds
£
£
(139,430)
(200,638)
930
23,202
(36,162)
-		 Resources
Movement
expended
in funds
£
£
(139,430)
(200,638)
930
23,202
(36,162)
-
326,178
-
-
-
-
326,178		 (339,138)
(5,000)
(5,000)
(9,000)
(19,000)
(358,138)		 (12,960)
(5,000)
(5,000)
(9,000)
(19,000)
(31,960)

17. CHARGES

The Trustees of the National Lottery Heritage Fund hold a legal charge over the freehold property known as The Old Pumping Station, Crofton, Marlborough, Wiltshire, SN8 3DW.

18. RELATED PARTY DISCLOSURES

The charity has taken advantage of exemption, under the terms of Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’, not to disclose related party transactions with wholly owned subsidiaries within the group.

19. ULTIMATE PARENT UNDERTAKING

The ultimate controlling party is the Board of Trustee Directors.

Page 26

Kennet and Avon Canal Trust (The)

Notes to the Financial Statements - continued for the Year Ended 31 December 2022

20. COMPANY LIMITED BY GUARANTEE

Kennet and Avon Canal Trust (The) is a company limited by guarantee and accordingly does not have a share capital.

Every member of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of it being wound up while he or she is a member, or within one year after he or she ceases to be a member.

Page 27

Kennet and Avon Canal Trust (The)

Detailed Statement of Financial Activities for the Year Ended 31 December 2022

INCOME AND ENDOWMENTS
Donations and legacies
Grants and donations
Gift aid
Legacies
Subscriptions
Other trading activities
Admissions
Crofton car park
Fundraising
Rent received
Investment income
Bank interest receivable
Interest from trading subsidiary
Commercial trading operations
Commercial trading operations
Other income
Sundry income
Total incoming resources
EXPENDITURE
Raising funds
Butty costs
Advertisement & Publicity
Fundraising costs
Commercial trading operations
Costs of trading subsidiary
Interest on loan paid to parent
Total costs of raising funds
Charitable activities
Wages
Pensions
Hire of plant and machinery
Rates and water
Insurance
Light and heat
Telephone
Postage and stationery
Sundries
Bank charges
Grants payable
Carried forward		 2022
£
57,000
13,823
2,988
19,046
92,857
22,871
556
27,670
13,547
64,644
5,192
(2,138)
268,731
2,405
431,691
3,345
1,147
2,242
6,734
239,661
(2,138)
237,523
40,853
541
642
4,194
10,957
2,655
3,545
269
940
1,327
5,516
71,439		 2021
£
81,734
9,555
18,396
23,111
132,796
12,371
860
-
12,579
25,810
2,417
(930)
164,476
1,609
326,178
2,489
524
993
4,006
200,638
(930)
199,708
37,146
423
670
752
9,874
2,258
4,381
149
838
1,161
-
57,652

This page does not form part of the statutory financial statements

Page 28

Kennet and Avon Canal Trust (The)

Detailed Statement of Financial Activities

Charitable activities
Brought forward
Health & safety
Staff training
Recruitment
Rent
Repairs & maintenance
Depreciation
Coal
NLHF project costs
Computer costs
Stock purchases
Support costs
Governance costs
Independent examiner’s remuneration
Accountancy fees
Other professional costs
Total resources expended
Net expenditure		 for the Year Ended 31 December 2022
 2022
£
71,439
7,229
216
115
3,020
114,481
13,113
4,707
3,504
4,645
895
223,364
1,200
3,308
4,676
9,184
476,805
(45,114)		 2021
£
57,652
7,667
72
75
1,200
56,602
11,381
5,301
-
4,513
-
144,463
1,200
4,050
4,711
9,961
358,138
(31,960)

This page does not form part of the statutory financial statements

Page 29