OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-03-31-accounts

GET IN TOUCH

Royal British Legion Industries Hall Road Aylesford ME20 7NL

 01622 795900

 marketing@rbli.co.uk

SUPPORT US

 fundraising@rbli.co.uk Mon to Fri 9am-5:30pm

VOLUNTEER FOR US

 volunteer@rbli.co.uk Mon to Fri 9am-5:30pm

PARTNER WITH US

 fundraising@rbli.co.uk Mon to Fri 9am-5:30pm

BECOME A FRIEND OF RBLI

 enquiries@rbli.co.uk Mon to Fri 9am-5:30pm

FIND US ONLINE

rbli.co.uk Royal British Legion Industries @RBLI Royal British Legion Industries Royal British Legion Industries

rbli.co.uk

Company Registration Number: 00158479 Registered Charity Number England & Wales: 210063 Registered Charity Number Scotland: SCO48795

ANNUAL ACCOUNTS ROYAL BRITISH LEGION INDUSTRIES LIMITED TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

CONTENTS

INTRODUCTION FROM OUR CHAIRMAN INTRODUCTION FROM OUR CHIEF EXECUTIVE WHO WE ARE

STRATEGIC REPORT

THE SUPPORT WE PROVIDE: HOMES TERRY’S STORY

THE SUPPORT WE PROVIDE: EMPLOYMENT

NICK’S STORY

THE SUPPORT WE PROVIDE: WELFARE

JAMES’ STORY

HOW WE MAKE IT HAPPEN: FUNDRAISING HOW WE MAKE IT HAPPEN: PEOPLE HOW WE MAKE IT HAPPEN: RETAIL

HOW WE MAKE IT HAPPEN: MANUFACTURING GOVERNANCE, MANAGEMENT & RISK

FINANCIAL REVIEW

STATEMENT OF TRUSTEES’ RESPONSIBILITIES INDEPENDENT AUDITOR’S REPORT FINANCIAL STATEMENTS

LEGAL & ADMINISTRATIVE INFORMATION

BOARD OF TRUSTEES

SENIOR LEADERSHIP TEAM

Front Cover: Princess Beatrice and Princess Eugenie were left inspired by the ‘incredible veterans’ supported at Royal British Legion Industries after a visit to mark Armistice Day.

Left: The Minister for Veterans’ Affairs, Johnny Mercer, visiting RBLI’s village in March to meet the veterans they support following his announcement of a £33m Veteran Capital Housing Fund for military veterans.

3 5 7 9 11 12 13 14 15 16 17 19 21 23 25 33 36 37 41 61 63 64

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 2

INTRODUCTION Our village community now numbers 340 households. We FROM OUR have also taken on new signage CHAIRMAN contracts in our social enterprise operations UK-wide and brought our employability programmes back to STEVEN national delivery to reach the most ROWBOTHAM deprived areas of the UK.

As a result, we have been supporting more homeless veterans and more veterans with complex mental health challenges than ever before.

Central to this direct support is the success of RBLI’s Great Tommy Sleep Out, and I must thank everyone who supports and takes part in this event – sleeping out across the UK and even internationally – during March. It gives me the greatest pride to be involved in the Great Tommy Sleep Out, to organise my own sleep out with our corporate partners, and to have helped grow this fantastic event year on year.

To achieve this, we have recruited I am pleased to report new leaders; new Trustees to our on a year of positive Board as well as our new Chief change and fantastic Executive and additional members of RBLI’s Senior Leadership Team. new service development They have all brought a fresh energy at RBLI. At the start to our services and strategy, and new of the financial year, determination to increase our reach we grew our unique and impact. They have helped us veterans’ village grow the professional teams needed considerably as we not just to deliver these services, but to better integrate the support we opened a specialist offer so that the veterans who need dementia care facility, us most receive the right care at followed by a new the right time and can tackle their assisted living home and challenges simultaneously. This is no the addition of more mean feat. homes for veterans and Throughout this process we’ve their families.

This year RBLI has been modernising our manufacturing operations, our online retail and our IT systems. With fluctuating costs we’ve been looking to achieve efficiencies urgently. We are bringing in innovations that will help our colleagues, many of whom are also our beneficiaries, co-ordinate across RBLI’s divisions more easily, make decisions more quickly, and find greater satisfaction and fulfilment at work.

Throughout this process we’ve been modernising our service structures and putting more training provisions in place. This ensures that we are empowering our staff and can support the most vulnerable veterans more quickly.

I am pleased to report on a year of positive change and fantastic new service development at RBLI.

support model.

Lord Dannatt’s Tommy Club

We have been undertaking a substantial governance review, refreshing our policies across all Divisions to ensure all are fully up to date and in line with best practice, and I am pleased to report that RBLI has been re-awarded with Investors in People accreditation. We are on the way to making RBLI charity an Employer of Choice.

and our Tommy events have continued to engage the public and grow. Our Tommy products continued to sell well on our online shop with the products we manufacture certainly helping veterans in more ways than one, including those to mark the significant milestone of the 40th Anniversary of the Falklands conflict.

I can only thank everyone involved in the charity, the veterans who are overcoming challenges, the customers and partners who are making our work possible, my fellow Trustees and RBLI’s staff. On top of this I want to thank individuals from Falmouth to Faslane who have put themselves behind our work in their thousands. The nationwide response to The Great Tommy Sleep Out, and my own Chairman’s Sleep Out, reminds us how lucky we are to have the passionate supporters that we do.

There is no doubt that economic

In September, we were

pressures during this period have been challenging particularly with the huge rises in energy prices. The combined financial and operational challenges our charity has faced this year have been considerable. Nevertheless, we have managed to take important steps forward in putting all RBLI’s varied activities on a firm operational footing. There remains significant work to do in the journey to create a modern charity that is able to respond to our beneficiaries’ emergency needs. I am very proud of RBLI’s new strategy and our plans to reach and employ more beneficiaries than ever.

saddened by the death of Her Majesty Queen Elizabeth II, a Sleep Out, and my own monarch who gave tremendous support to our nation’s Armed Forces and to RBLI. passionate supporters that We were immensely proud to we do. manufacture products for Her Majesty’s wonderful Jubilee celebrations and to support HM The Queen’s Green Canopy initiative as one of only four manufacturers asked to make STEVEN ROWBOTHAM the plaques. RBLI Chairman

21 December 2023

RBLI is a charity that our whole

nation can be proud of as we are here for the most disadvantaged Armed Forces veterans UK wide. We never stop providing the practical services veterans need. We work tirelessly to bring on more much-needed facilities and homes, as quickly as we possibly can. It was an honour that HRH Princess Beatrice and HRH Princess Eugenie chose to mark Remembrance alongside veterans at RBLI and it was a mark of the Princesses’ interest in RBLI’s unique village and

This has been a strong year for our Tommy brand, which is critical to RBLI’s public recognition and to our income generation. The Tommy brand has been promoted widely through our exciting partnership with Leyton Orient Football Club, General The

3 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 4

Within the military charity sector, we do now have a better picture of where veterans are living. The national census results were published in November 2022 showing, for the first time, where Armed Forces veterans are concentrated around the UK. RBLI has already responded to this with our Lifeworks programme getting our tailored employability coaching out to unemployed veterans in these communities as fast as we can. We have already reached Aldershot, Exeter, Hull, London, and Portsmouth.

work opportunities, the highest standards of person-centred care, new and uplifting dementia services, national employability programmes, as well as awardwinning social enterprises. All of these powerful interventions have been delivered with a backdrop in 2022-23 of external pressures and I am incredibly proud of my new senior leadership team.

INTRODUCTION FROM OUR CHIEF EXECUTIVE

LISA FARMER

The last year has been a particularly challenging one for most charities, with the cost-of-living crisis, housing pressures, and energy and food inflation all putting pressure on our most vulnerable beneficiaries as well as driving up the costs of our own projects and service delivery. The demand for RBLI’s homes, work opportunities and outreach services has never been higher.

RBLI is doing exactly what it was set up to do and in our new strategy we have a clear mission:

My first year in post involved unemployed veterans, secure looking at RBLI’s work in depth dignified paid work through – taking the time to understand our social enterprises and the services we offer. It is clear to employment programmes. me that we do need to do more to • To support more bring together our operations so disadvantaged veterans to live that they are not only successful a more active and independent and integrated, but also more life through our care, welfare, widely known, and more easily employability and homes. replicable to help more people • To create a thriving and overcome injury, disability and sustainable village community long-term health conditions. In and diverse facilities in Kent my time assessing our varied that maintains our powerful operations I have been reassured of heritage and demonstrates the positive impact RBLI is having, and our incredible ethos of fresh how encouraging diversity in age, gender, background, starts, and new opportunities. and service experience makes We’ve delivered emergency our community stronger and housing organised at speed, more forward looking. This is a move-on homes and dignified

• To create a thriving and sustainable village community and diverse facilities in Kent that maintains our powerful heritage and demonstrates how encouraging diversity in age, gender, background, and service experience makes our community stronger and more forward looking. This is a community that is a national

In my time assessing our varied operations I have been reassured of the positive impact RBLI is having , and our incredible ethos of fresh starts, and new opportunities.

over the Christmas period mobilised the British public to give like nothing this charity has ever experienced before. It has been a step change for RBLI to have The Telegraph’s support in making sure veterans’ experiences and challenges are heard and understood.

example of excellence in integrated care and welfare services, as well as social inclusion.

The Chairman has reported on our drive to modernise and this is, indeed, critical and an area of concentration. In an unpredictable economic environment, with fluctuating prices, huge changes in the work environment and evolving expectations about working conditions, modernisation is essential for us to develop truly sustainable services, and our new values help us all move forward together.

The year ahead will be focussing on growing all income generation. We will do this by maximising the facilities we operate, growing our social enterprises and increasing our fundraising. In addition, we will be improving all of our estate and creating more new homes and community facilities. At the same time, we will be looking to reduce our cost base and find efficiencies in our operations.

Central to our mission and our determination to grow the support we offer are our philanthropic and commercial partnerships. This year we are hugely indebted to Network Rail, Highways England, Amey, Bear Scotland and Forestry and Land Scotland, who help us provide jobs for people with disabilities. We are thrilled about our new partnership with the NHS Maidstone and Tunbridge Wells, supporting people to overcome the effects of severe stroke and live independently again. We would not have been able to deliver our Lifeworks employability programme across the UK without Barclays, Morrisons, Annington and ABF The Soldier’s Charity.

It feels most fitting that I sign off my review with my sincere thanks to all our partners, as there isn’t the space to mention them all here. Our Armed Forces will do whatever is necessary to keep us safe, and I can never thank our partners enough for making it possible for RBLI to be here for them in return.

We have been overwhelmed by LISA FARMER the support from philanthropic organisations including The Lawson Trust, The ColyerFergusson Charitable Trust, The Michael Uren Foundation, The Gosling Foundation, and the Veterans Foundation who are making the next stage of the Centenary Village a reality. Our partnership with The Telegraph

RBLI Chief Executive

21 December 2023

5 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 6

WHO WE ARE

Royal British Legion Industries (RBLI) is a national charity that has been helping those in need for over 100 years, providing support to the Armed Forces community, those with disabilities and those who have found themselves unemployed.

RBLI is a charity that our whole nation can be proud of .

Steven Rowbotham, RBLI Chairman

Each RBLI division offers a service to help veterans live an independent life with whatever support they require resulting in the successful delivery of a full-care pathway on-site to help veterans of any age or background from across the three services.

SOCIAL ENTERPRISES

Britain’s Bravest Manufacturing Company refers to RBLI’s social enterprise factory in Aylesford, providing signs for road and rail, wooden products and fulfilment services, as well as our print, mail and fulfilment centre in Leatherhead.

Scotland’s Bravest Manufacturing Company is RBLI’s award-winning factory in Renfrewshire, Scotland predominantly focusing on signage manufacturing and precision engineering.

As well as being market leaders in their industries, more than 70% of those employed across the Charity’s social enterprises are military veterans, those with disabilities, or both.

EMPLOYMENT SOLUTIONS

Lifeworks is an award-winning employment support programme which equips veterans and their family members, as well as the loved ones of those currently serving, with the tools needed to find meaningful employment outside the Armed Forces.

The free of charge programme continues to grow with courses nationwide and, with a core of ex-Armed Forces personnel in place behind the scenes, the team truly understands the complex needs of our nation’s veterans.

LIVING

RBLI's village in Aylesford provides 340 homes and, more than that, it offers a thriving community and a sense of belonging for veterans of all ages – whatever their level of need.

The Centenary Village is RBLI’s current capital project and the latest instalment of homes and facilities for our veterans. The first two phases have been completed, including an assisted living facility, move-on apartments particularly for younger veterans of more recent conflicts, and family homes. The next phase is due for construction shortly and will incorporate additional homes and a community centre at its heart.

STEP-IN is RBLI’s unique welfare model providing veterans and their families with structured, holistic support tailored to their individual needs.

Whether it’s support with housing, drug or alcohol dependency, financial issues or relationship breakdowns, RBLI’s STEP-IN programme, and our dedicated Welfare Team, create a plan specifically to help with any challenges when veterans first join our village community.

Mountbatten Pavilion is RBLI’s emergency

accommodation, often used as a ’stepping stone’ for single Armed Forces veterans. It enables residents to live in a safe environment whilst accessing training and welfare support from a dedicated team to lead independent lives with confidence in the future.

RBLI has two on-site assisted living facilities, Queen Elizabeth Court and Greenwich House . Both facilities are in place for those who have served in the Armed Forces, and their spouses, aged 55 and over, with on-site domiciliary care provided to help residents who need it whilst keeping their independence. Greenwich House is our new 24 apartment assisted living accommodation that opened as part of RBLI’s Centenary Village in 2022.

Bradbury House is our specialist nursing care home, now offering dementia care as of 2022. It provides longer term specialist support and care as well as shorter respite care packages. Appleton Lodge , opened by HM Queen Elizabeth II in 2019, is set amidst RBLI’s village and provides extra-care nursing with specialist staff on-hand with the dignity of the residents in mind.

7 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 8

STRATEGIC REPORT

OUR OBJECTIVES

OUR VALUES

I M P A C T

----- Start of picture text -----
RBLI WILL... RBLI WILL... RBLI WILL...
be regarded establish be known
as experts in RBLI WILL... our national RBLI WILL... as a national
supporting presence through charity with a
veterans and partnerships and headquarters in
people with have a thriving be an employer of Kent.
fundraising.
disabilities into village community choice with a fully
employment, and facilities in comprehensive
through our Kent that maintain diversity and
award-winning our heritage equitable culture
employment and that are a embedded by
services national example a strong set of
programmes and of excellence values.
through our social in integrated
enterprises across care and welfare
the UK. services.
----- End of picture text -----

Our values have been developed to underpin RBLI’s culture across the organisation and are at the heart of how we interact with one another, our customers and supporters, and crucially, how we interact with those who need our support.

Making an I M PA C T is a key part of our mission, having this word at the heart of our values is important to us as we aim to maximise the impact we have in everything we do.

To reinforce and embed the values, we have defined models of behaviours expected from our staff to ensure everyone is able to understand the importance and meaning of each values, as well as defining behaviours which would not live up to the values.

To drive this understanding and buy in from our staff we have been holding engagement sessions across the organisation and are updating our key HR processes to include the values, such as through our reward and recognition schemes, our personal development reviews and how we recruit colleagues.

We have also set up a team of staff representing different areas of the organisation who have been specifically tasked with identifying ways to embed the values through engagement with staff.

INTEGRITY

We are proud of the how; committed to doing what’s best while maintaining transparency and respect at all times.

MOTIVATED

We are motivated to maximise value through challenging ideas, innovation and embracing change.

PEOPLE FIRST

People are at the centre of everything we do; we care about those we support, our colleagues, our customers and our stakeholders.

ACCOUNTABLE

We are all responsible for our actions and we inspire each other to make decisions and take ownerships.

COMMUNITY

We take pride in our inclusive and thriving community with its unique network of support.

TEAMWORK

We achieve our goals together through the strength of our collaboration and communication.

9 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 10

The support we provide: HOMES

Through a wide range of purpose-built homes, care and assisted living accommodation, RBLI’s village in Aylesford is fast becoming a thriving intergenerational community of around 340 homes.

KEY ACHIEVEMENTS FOR 2022-23

----- Start of picture text -----
Occupancy figures for FY 22-23:
31 March 22 31 March 23
Appleton Lodge 11 12
Bradbury House 33 48
QEC 39 40
Greenwich House 0 24
Mountbatten Pavilion 20 26
Housing 97 96
TOTAL 200 246
----- End of picture text -----

PLANS FOR 2023-24

Terry’s story

“I’m absolutely over the moon with this place and all of the people.”

Terry, 1957-2023

Terry O’Grady, 66 described his situation as “pure hell” when, having been diagnosed with a terminal condition, he found himself living in a bedsit with a leaky

ceiling and shared bathroom, surrounded by constant banging, shouting, and screaming.

With his health deteriorating, Terry was admitted to Maidstone Hospital for three weeks before being referred to an NHS flat in RBLI's Greenwich House, where he met team leader, Donna Sears.

Despite his father having served in the Air Corps, Terry had no knowledge of RBLI before moving in, but immediately felt at home. "I’m absolutely over the moon with this place and all the people”, said Terry.

Shortly after moving in at Greenwich House, Terry started to go on walks, do his own shopping, and even started cooking his own meals at home. “It’s incredible how far he came”, explains Donna.

Just three weeks after arriving, Terry moved into one of the permanent flats available at Greenwich House, with more room for his family to visit; including his grandchildren.

Terry passed away peacefully from his condition in April 2023. He will be much missed at Greenwich House but the legacy he leaves is one of overwhelming positivity.

11 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 12

The support we provide: EMPLOYMENT

RBLI supports veterans and those with disabilities into employment through our nationwide employability programmes as well as roles at our social enterprises.

KEY ACHIEVEMENTS FOR 2022-23

that can be accessed anytime, further supporting veterans in independent learning and/or training.

PLANS FOR 2023-24

Nick’s

story

“I walked out of the Lifeworks course smiling. It was a massive confidence boost and I should’ve done it ages ago!”

Nick – Royal Navy veteran

After 24 years in the Royal Navy, Nick now suffers from severe arthritis and problems with his spine, hips and joints. Nick told us that his chronic

pain was slowly eroding his personality and mental health, and he was finding it difficult to find work due to a lack of confidence and was afraid of how his disability would affect his employability.

Since attending our award-winning Lifeworks course, Nick has gained a new-found confidence, taking away an improved knowledge of his employability skills such as interview techniques and an ability to respond to interview questions. Lifeworks also helped Nick with tips and support for job searching and identifying key companies of interest.

Nick commented that he had been reluctant to take the first step into support from a charity, but now looks forward to new prospects in his life. Our Lifeworks experts pride themselves on supporting every veteran simply by learning about their individual situation and experiences and using that to boost their confidence for new employment opportunities.

13 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 14

James

The support we provide: WELFARE

RBLI’s unique STEP-IN welfare model provides veterans and their families with structured, holistic support which is tailored to their individual needs to help them overcome a range of challenges on their way to independence..

KEY ACHIEVEMENTS FOR 2022-23

PLANS FOR 2023-24

James’

story

“Don’t give up, it’s okay not to be okay . Talk and get the help that’s out there. I am living proof!”

James’ 11-year Army career included two tours of Afghanistan with the 1st Battalion Royal Anglian Regiment. After leaving, his mental health deteriorated resulting in

alcohol dependency, the breakdown of his marriage and ultimately homelessness.

Following the suggestion of a volunteer worker, James’ sister, Katie, contacted RBLI and in April 2021, James moved into Mountbatten Pavilion to begin a bespoke STEP-IN programme. He successfully detoxed under a residential rehab programme and received weekly counselling from PTSD Resolutions. He also began volunteer work at The Great Comp Garden, one of Kent’s finest gardens in Sevenoaks.

James is now making great progress towards independence and continues to be supported by the RBLI welfare team. He has moved into his own flat in the Centenary Village and has secured a voluntary position at Kent Life in Aylesford. James has also applied for his driving licence and looks forward to being independent and future employment opportunities. James informs us that his future looks promising and the support he has received from RBLI has been life changing.

James also embarked upon his own 10k running challenge in 2022, aptly named “James’ Journey” to raise awareness of mental health and PTSD and raise funds for the Mountbatten Pavilion refurbishment, a place now very close to his heart.

15 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 16

How we make it happen: FUNDRAISING

Donations continue to make up a key part of RBLI’s income, covering community fundraising, individual giving and major gift donations. This support is crucial to the work RBLI is able to do in supporting those who need it most.

KEY ACHIEVEMENTS FOR 2022-23

PLANS FOR 2023-24

  - The Tommy Club is a key source of fundraising income and we have plans to increase the number of Champions by over 60%.

£4 MILLION

raised by supporters during 2022-23

£450K

raised by The Great Tommy Sleep Out

£145K

raised by the Daily Telegraph Christmas Appeal

67%

increase in Tommy Club membership

17 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 18

How we make it happen: PEOPLE

People are at the heart of what RBLI delivers and we recognise that a motivated and cohesive workforce is key to the future success of the Charity. We can achieve more together with effective teamwork than as individuals.

KEY ACHIEVEMENTS FOR 2022-23

PLANS FOR 2023-24

2022/23

----- Start of picture text -----
RBLI re-awarded with IIP accreditation
----- End of picture text -----

203

colleagues voted for RBLI's values

50

instant rewards given to colleagues by their peers

19 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 20

How we make it happen: RETAIL

Retail is a growing contributor to RBLI’s revenue with the USP that all products sold are made and/or fulfilled by veterans or by people with disabilities. This resonates strongly with our customers.

KEY ACHIEVEMENTS FOR 2022-23

PLANS FOR 2023-24

13,485

new customers visited RBLI through the online shop

£300K

revenue generated through a new range of Remembrance products

£25K

generated through a new licensing agreement

21 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 22

How we make it happen: MANUFACTURING

RBLI has three social enterprise factories in the UK, situated in Kent, Surrey and Renfrewshire. These cover the manufacturing of signs for road and rail, and wooden products such as pallets and fruit bins, as well as printing and mail facilities.

KEY ACHIEVEMENTS FOR 2022-23

Northern Isles. The signs were manufactured in August 2022 and installation completed by February 2023.

PLANS FOR 2023-24

141,000

signs were manufactured and sold by BBMC and SBMC combined.

1,557

no-smoking signs manufactured by SBMC for Scottish Government/NHS Scotland

222,000

pallets produced by our wood division, including 65,000 for one customer

1,522

orders fulfilled by our print site in Leatherhead

23 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 24

GOVERNANCE, MANAGEMENT & RISK

Governing document

Royal British Legion Industries Ltd. (RBLI) is a charitable company limited by guarantee and was set up on 2 September 1919, when it was called Industrial Settlements (Incorporated) Limited. It is governed by Articles of Association which were last amended in October 2022. The Articles set out it charitable objects which are:

As both a charity (registered charity numbers for England & Wales 210063 and Scotland SC048795) and a company (registered company number 00158479) RBLI is subject to both charity and company law. It is further subject to all relevant legislation within its geographical areas of operation, those being England and Scotland. The registered office of the charity is situated in England.

Reference and Administrative Information

The Trustees in office during the year and as at the date of this report, the Senior Leadership Team of the charity, its principal places of business and its professional advisers, are set out on page 63 of this report.

Board of Trustees

The Trustees, who are also Directors of the charity for the purposes of the Companies Act, have overall responsibility for the strategy, direction, and control of RBLI, including ensuring robust governance arrangements are in place. They govern in accordance with the Articles of Association, which details the decisions that are reserved for the Board

and therefore cannot be delegated. This document also allows for delegation and therefore, authorisation can be given to individual Trustees, committees, or staff, to act on behalf of the Board in specific areas. During the year a Matters Reserved for the Board and Scheme of Delegation document was approved by the Board to support this delegation.

The Board provides overall policy direction, and the management of the charity is delegated to the Chief Executive and the Senior Leadership Team. The Board meets quarterly, and papers are made available prior to Board Meetings including business plans and budgets.

In determining the remuneration of key management personnel within the charity, including the Chief Executive, consideration is given to the level of responsibility and skills requirements of the role, the market rate and external benchmarks for an equivalent role within the sector and relativity with other senior roles within the organisation. Remuneration for key management roles is recommended by the Chief Executive and approved by the Chair of Trustees. The remuneration of the Chief Executive is recommended by the Chair of Trustees and agreed by the Board of Trustees.

The Articles of Association require that the Board of Directors consists of a minimum of two but not more than fifteen members of the charity, excluding any ex officio members of the Board. Trustees are formally appointed at the Annual General Meeting in accordance with the terms they have agreed to serve. Where a vacancy arises during the year, the Trustees can co-opt a new trustee, who will then be formally appointed at the following Annual General Meeting.

Trustees are recruited based on the skills required on the Board. To support this a gap analysis is undertaken against the agreed skills and experience. The recruitment process, which is based on the Trustee Recruitment Policy, looks to ensure that there are a diversity of interests and experience brought to the Board. During the year three new Trustees were recruited, all of whom are members of a Board sub-committee. It is planned to revisit the skills gap analysis during 2023, with the view to recruit in areas such as social enterprise and digital transformation.

Newly appointed/elected Trustees are given induction training on their duties and responsibilities. This includes, although is not limited to, provision of key documentation such as Articles of Association, reports and financial statements and details of divisional work streams. In addition, on-Boarding visits to the various Royal British Legion Industries sites are undertaken at which introduction meetings are held with key members of staff. There are several key policies in place for Trustees, including the Code of Conduct and Conflicts of Interest Policy, which are provided during this period.

The Board of Trustees holds strategy days with the Senior Leadership Team at least once a year. The Board reviews existing operations of the charity and considers strategic options for the future. During the year the Trustees attended the two departmental open sessions run by the Fulfilment and Fundraising teams and took part in events on-site such as the Staff Awards and key visits.

Board Sub-Committees

The Board has three formal sub-committees, all of which have approved terms of reference, are chaired by a trustee with relevant experience and have a membership of Trustees, with the Chief Executive and other Senior Leadership Team members in attendance. During the year the following committees were in place and held meetings at least quarterly in-line with the Board timetable.

Care & Welfare Committee

The Care and Welfare Committee considers all care and welfare matters across RBLI’s village, reviewing:

The committee is also responsible for providing updates in relation to any developments within the sector on both a local and national level.

Estates Development Committee:

The Estates Development Committee is responsible for overseeing the Strategic Property Plan, which provides the vision for estates development across RBLI and overseeing any major property projects. It also reviews the Property Asset Management Plan, which details the maintenance requirements of the properties.

Finance, Performance & Remuneration Committee:

The Finance, Performance and Remuneration Committee is responsible for reviewing the operational and financial performance of RBLI, considering strategic and corporate risks, and evaluating the effectiveness of the risk management approach. It also oversees the annual audit process.

Senior Leadership Team

The Senior Leadership Team (SLT), which comprises the Chief Executive and the divisional Directors, is the principal management committee for RBLI, given delegated authority for day-to-day matters through the formal Scheme of Delegation. All members are accountable to the Chief Executive and through this support the delivery of the short to medium term strategic decisions for the organisation. There are SLT meetings held every two weeks; covering both performance and strategy. Members of the SLT attend Board and sub-committee meetings when required, to present papers for their area of responsibility. The Chief Executive, Director of Finance and Performance and the Company Secretary attend all Trustee Board meetings.

Governance Developments

Following on from the establishment of a Governance and Compliance Department in the previous financial year the decision was made to create a Director role to oversee this function.

The Governance team, lead on risk, data protection and legal and regulatory compliance. They also handle policies and procedures and all company secretariat matters. The team has been strengthened

25 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 26

GOVERNANCE, MANAGEMENT & RISK Continued

during the year and an extensive governance training programme has been developed which will be rolled out over the year.

During the year an assurance framework has been developed, the purpose of which is to give sufficient, continuous, and reliable assurance to Trustees on RBLI’s governance and management of the major risks thereby helping to ensure effective and efficient working practices. As part of this programme departmental heads provide an annual self-assessment against internal controls. These are summarised at a divisional level, approved by Directors, and at a corporate level. The corporate level summary forms the basis of an annual Statement on Internal Control, which is signed by the Chief Executive and the Director of Governance, Compliance and Business Systems on behalf of the SLT. Action plans have been established for areas where further work is required.

Charity Governance Code

RBLI support the principles of the Charity Governance Code, as shown by the Board’s formal adoption of this code in September 2021. During the 2022 / 23 financial year work was undertaken to review our practice against the principles and recommended practice. Several work streams that had already been identified, in areas such as formal delegation, policies and procedures, Board planning and definition of the new values for RBLI have been completed.

We recognise however that there is still work to do to improve our use of data and systems, which we are addressing through our digital strategy and transformation programme, as well as strengthening our approach to equality, diversity and inclusion, an initiative which will be led by the Director of People and Culture and supported by SLT. In addition, we are exploring the evaluation and monitoring of the charity’s impact.

Our self-assessment against the code going forward will be continuous.

Supporter Promise

We set the highest standards for our fundraising and comply with the relevant charity and data protection laws. Our aim is that supporters and volunteers are able to give to and fundraise for RBLI with confidence and trust that their hard work and generosity makes a difference. We are members of the Fundraising Regulator and we comply with the Fundraising Code of Practice as well as keeping up to date with Fundraising Preference Service registrations.

We have a Supporter Promise that describes how we approach our fundraising activity with details of how to contact us if we fall short of this. We are a small team and in some cases we use third party agencies with specialist expertise to support our work. This is a more cost effective way of working than trying to do everything ourselves. Each external supplier has been carefully selected and we have in place a service level agreement which is closely monitored by our colleagues.

We believe in being transparent, open and honest in relation to our fundraising and in how we represent veterans and everyone who benefits from RBLI services. We are careful to engage them in the planning and ensure they have given permission before these materials are made available to our supporters or the general public.

We are especially careful and sensitive when engaging with vulnerable people. We make it easy for our supporters to tell us how they want us to communicate with them and we never swap or sell their details to third parties.

Public Benefit

The Trustees confirm that reference has been made to the guidance contained in the Charity Commission’s guidance on public benefit of the Charities Act 2011, when reviewing the charity’s aims and objectives and in planning future activities. The Senior Leadership Team are involved in strategic planning with the Trustees and their recommendations are then formally approved by the Board.

The Trustees are satisfied that the current and planned activities will continue to align and meet the public benefit requirement as outlined in the Charities Act 2011, namely through the promoting of community interests and assisting veterans and disabled people.

Complaints

RBLI is committed to providing an excellent standard of service to all our beneficiaries, users, customers, supporters and the organisations that we support across our diverse operations. Where we get this right, we encourage positive feedback. Where we get this wrong, we will seek to address and improve, taking all concerns and complaints seriously and aiming for resolution as quickly as possible.

We have an organisational policy and procedure in place for complaints, which is underpinned by local procedures and processes. The procedure details who will respond and investigate complaints, depending on what the complaint may be about. It also details the three-stage process in place for complaints and how to move on to the next stage if the complainant is not satisfied.

We seek to investigate complaints at a local level wherever possible, with the relevant Director having oversight, moving through the stages if required. We also aim to meet the deadlines set within our procedure. During the year we did not always meet this standard and are working to streamline our processes to ensure this measure improves going forward.

As members of the Fundraising Regulator we record all complaints that we receive about our fundraising. In 2022-23 we recorded just six complaints, all of which were dealt with quickly and effectively. We were able to resolve these with the supporters concerned without referring them to the Fundraising Regulator.

Risk Management

RBLI’s Risk Management Strategy sets out the highlevel risk management framework including how to

address risks at different levels. RBLI aims to have a risk aware rather than risk averse culture and accepts that the avoidance of risk at all costs is unrealistic; to take opportunities in areas such as the development of the Centenary Village a certain level of risk is required. These risks however need to be managed to within an acceptable framework.

RBLI maintains risk registers at departmental, divisional, corporate, and strategic level. There is a mechanism for escalation of risk. The corporate risk register, which is a produced as an escalation of divisional risks, is discussed at SLT meeting every two weeks. Divisional Directors are responsible for ensuring the risks within their area are managed to an acceptable target risk level.

The strategic risk register, which contains the risks identified by the Trustees and the SLT, are reviewed at every Board and SLT meeting. The FPR Committee reviews this register in more detail, reviewing individual risks together with the associated controls.

A training programme for governance was introduced for staff and Trustees during the year and includes an overview of the risk management strategy together with detailed risk management sessions.

As part of the work on risk management the appetites given on a risk-by-risk basis have been reviewed in support of RBLI’s overarching risk appetite statement. The statement is given below:

‘RBLI has no risk appetite for any health and safety or safeguarding risks that could result in injury or harm to staff, volunteers, residents, beneficiaries, or any other relevant stakeholder. The safety and care of others is behind everything we do, and we will continue to ensure robust controls are in place to mitigate risks in these areas.

In addition, the tolerance levels set for the failure to comply with legislation and regulations or for financial loss is low and accordingly we continue to review the controls in place within these areas to ensure that there is no negative impact on the people we employee, care for and support.

27 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 28

GOVERNANCE, MANAGEMENT & RISK Continued

As an organisation that is risk aware rather than risk averse, RBLI is willing to acknowledge and therefore accept that occasionally there may be risks arising in relation to areas such as the cultural change programme we are currently undertaking and the recruitment and retention of staff, which may materialise. As with all the risks we face these remain under review and work continues to reduce the likelihood and mitigate any potential impact.

Strategic Risks

In the table below we have shared what we consider to be the main strategic risks to the achievement of our strategy. These are based on the strategic risk register at the year-end, updated to reflect any changes since that date.

----- Start of picture text -----
RISK CATEGORY CONTROLS AND FURTHER ACTIONS
Health and Safety ■ Qualified Health & Safety Manager in place
In a complex organisation such as ■ Risk assessment process
RBLI there are potential health and ■ Equipment inspections
safety risks to staff, in particular ■ Programme of training, inspections, and audit in place
within our manufacturing ■ Developing health and safety support roles within each division
businesses, if training and ■ Strengthening governance through revision of the health and
awareness is not maintained or safety committee structure
we operate with an insufficient ■ Strengthening reporting processes through introduction of
maintenance programme for specialist health and safety software
machinery and building. ■ Revisiting building maintenance programme
Financial Performance ■ Annual budget setting process, which includes review and
Reduction in reserves and cash challenge from SLT and Trustees
flow because of lower occupancy ■ Management of working capital, particularly stock and
rates in Living, lower sales in receivables
manufacturing, higher use of ■ Monthly performance reviews led by Chief Executive and
agency care staff or general cost Director of Finance and Performance
increases that cannot be passed ■ Annual going concern exercise
on to customers.
Attracting and retaining staff ■ Strong marketing campaigns for recruitment into the care
The current active employment settings
market results in difficulty ■ Initiatives to improve staff engagement such as the Chief
recruiting and/or retaining staff Executive’s Roadshows and Tactical Teams
and higher costs through greater ■ Staff Forum
use of agency staff. ■ Open-door sessions
■ Strong training programmes
■ Organisational values, which were developed through
collaboration with staff
----- End of picture text -----

----- Start of picture text -----
RISK CATEGORY CONTROLS AND FURTHER ACTIONS
Legislation and regulations ■ Internal support provided by the Governance Team
Non-compliance with laws ■ Director of Governance, Compliance & Business Systems has
and regulations because of oversight
inadequate training could result ■ Robust employment processes that ensure the employment of
in reputational damage, regulator competent staff
intervention and fines and ■ Continual training in key areas such as GDPR
associated financial loss. ■ Formal review processes such as audits
■ Monitoring programmes
Organisational and cultural ■ SLT meetings every two weeks
change ■ Data strategy Board in place
As we continue with a period ■ Digital strategy updates provided
of organisational and cultural ■ Chief Executive’s Tactical Teams in place to drive forward
change, poor communication and change
insufficient project management ■ Managers’ training programme in place
could result in delays in the ■ Staff forum
transformation programmes. ■ Values developed with staff, these will form the basis of
Performance Development Plans going forward
Cyber Security ■ Regular testing, both internally and using external providers
■ Ongoing training
Lack of continued training and
■ Policies and procedures
investment in security could cause
■ Automated controls
data breaches and the resulting
reputational damage and fines.
Business Continuity ■ All key documentation currently under review
Inadequate planning and ■ Training ongoing
training could result in the ■ Desk-top test planned for later in 2023
delayed recovery from a business ■ Learning taken from any actual incidents and improvements
continuity event, resulting in made if necessary
reduced operational capacity, ■ Alternative working arrangement set up
income loss and reputational ■ Arrangements in place within manufacturing to move work to
damage. other sites
■ Technology solutions such as back-ups in place
----- End of picture text -----

29 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 30

GOVERNANCE, MANAGEMENT & RISK Continued

Directors’ Indemnities

As permitted by the Articles of Association, the charity indemnifies the Directors/Trustees against any liability incurred in that capacity to the extent permitted by the Companies Act. In addition, an insurance policy is in place for Directors and Officers, the amount covered in the financial year being £2m.

In so far as the Trustees are aware:

Independent Auditors

BDO LLP were reappointed by Board as auditors of the charity for the 2022-23 financial year.

Trustees’ duty to promote success of the Charity – Section 172 statement

Trustees have a duty to promote the success of the charity under section 172(1) of the Companies Act 2006. As the Trustees of RBLI, we always act in good faith and would promote the success of the charity for the benefit of its members as a whole and in doing so have regard, amongst other things to:

The Trustees of RBLI consider, both individually and together, that they have acted in good faith to achieve the above. The Trustees delegate day to day management and decision making of RBLI’s operations to its Chief Executive and Senior Leadership Team and this plays a key part in ensuring the Trustees’ duty in this area is fulfilled. Trustees are members of various committees with senior staff in attendance at which regular operational updates are provided.

More strategic updates are provided at Board Meetings to ensure the charity is on target to meet its strategic objectives to beneficiaries and the wider community.

Our environmental commitment

As a respected Charity which puts care for individuals at its heart, not only do we need to ensure the wellbeing of our beneficiaries, but we must go beyond this to ensure that all we do minimises our impact on the environment. As such, reducing our carbon footprint, waste and caring for the natural resources we own are all accepted, and even expected, ways to create impact.

We have established an Environmental Management System and allocated roles and responsibilities to internal environmental leads, created a consumer and production register of factors that can potentially impact the environment and conducted an external gap analysis. We achieved ISO14001 accreditation in May 2022.

Our methodology for reporting emissions is based upon those areas where we have operational control and are charged for energy consumption.

----- Start of picture text -----
22/23 21/22
KWh (000) KWh (000)
SBMC Electricity 70 76
Gas 269 341
Leatherhead Electricity 10 12
Gas 38 28
Aylesford Electricity 735 655
Gas 1,999 1,753
Total 3,121 2,865
Indirect Emissions (tCOSe) Electricity 623 571
Emissions per FTE *Gas 2.18 2.13
----- End of picture text -----**

** Bradbury House care home was under renovation during 21/22 reducing gas consumption during that time, the prior year has also been recalculated to include all areas under operational control.

Emission calculations are derived from billing data. Where bills did not complete for a full year, an estimate based upon previous consumption has been included.

Moving forward RBLI has set carbon-reducing targets as follows:

Our baseline emissions are a record of the greenhouse gases that have been produced in the past and were produced prior to the introduction of any strategies to reduce emissions. The baseline emissions are therefore the reference point against which our emission reduction can be measured.

During 2022/23, RBLI carried out two energy audits from external specialist consultants. From these we identified areas of focus for future investment and action, for example, SBMC will fit fast-shutting roller doors and LED lighting at their Aylesford site.

RBLI continues to be committed to ISO14001 accreditation and the objectives set within that as published with our policy statement published on our website.

31 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 32

FINANCIAL REVIEW

In 2022-23, RBLI’s total income increased to £26.0m (2021-22: £21.6m) and total expenditure increased to £23.2m (2021-22: £20.6m). Net income for the year, after interest and including gains and losses on the investment portfolio was £2.7m (2021-22: £1.2m). The net increase in funds, after taking into account the actuarial gain on the pension fund was £2.7m (2021-22: £2.6m).

Village development and also the opening, following extensive refurbishment, of Bradbury House, our 50-bed high-dependency and Dementia care unit. Sapper House and Greenwich House have enabled us to significantly increase our accommodation for veterans and Bradbury House has broadened the range of specialist care services that we provide to our community. There were delays in the handover of both projects which meant that income generated from them in the year was significantly lower than we had hoped, although once the buildings were open occupancy increased rapidly.

Fundraising - income £4m (2021-22: £4.8m)

We continue to be hugely grateful for the Grants and Donations that we receive from our donors and the fundraising activity undertaken by our donors. Unrestricted fundraising income from individuals, corporates and friends totalled £1.4m (2021-22: £1.0m) benefitted from a hugely successful Tommy Sleep Out campaign which this year raised £0.4m. RBLI was delighted to be chosen as one of the Daily Telegraph Charities of the Year, which raised a further £145k.

The well-publicised recruitment challenges in the UK care sector have impacted adversely on the financial results of RBLI Living, because of the need to make increased use of agency care staff. By the end of the financial year occupancy levels were significantly higher and agency staff costs were much reduced.

As a result of receiving further donations, we are now able to commence construction on the next stage of the Centenary Village development; work on the Community Hub building and further veteran accommodation will begin in June 2023.

Social Enterprises – BBMC income £6.1m (2021-22: £6.8m), SBMC income

£1.7m (2021-22: £1.4m)

The year was also a challenging one for our social enterprises, with BBMC’s wood products business adversely impacted by both a slowdown in demand for pallets, following the post COVID restocking in 2021-22, and huge volatility in global wood prices in the months immediately following Russia’s invasion of Ukraine. Although by the end of the financial year wood prices had returned close to pre-invasion

Living - income £6.3m (2021-22: £5.2m)

The early part of the financial year saw the completion and handover of the Sapper House apartments and the Greenwich House assisted living accommodation, the latest stage of the Centenary

levels, the earlier volatility did impact temporarily on margins. Sales volumes increased in the final quarter of the year.

The Signs business has continued to grow, both in Aylesford and Scotland with significant new contracts obtained from Network Rail for trackside signage, Transport for London for London ULEZ signage and Scottish Government/NHS Scotland for no smoking signage. They also produced signage for both the Queens Green Canopy and the Birmingham Organising Committee for the 2022 Commonwealth Games.

Employment Solutions (including Lifeworks) - income £2.7m (2021-22: £2.2m)

Our Lifeworks programme has been building since its relaunch last year, running more courses, both online and in person, and helping a larger number of veterans to develop the skills and confidence to find employment and build a new career. We continue to receive funding for the programme from partners including ABF The Soldiers' Charity, Barclays and Morrisons.

For many years we have been administering the Building Better Opportunities programme on behalf of the National Lottery Fund and the European Social Fund and the Access to Work programme for the Department of Work and Pensions. Sadly, our involvement in both programmes ended in June 2023 as a result of the UK’s exit from the European Union and a competitive tender process respectively.

The contribution from these programmes has been classified as discontinuing activities in the Statement of Financial Activities.

Expenditure - £23.2m (2021-22: £20.6m)

All areas of RBLI have been impacted by the sharp increase in energy costs and by inflationary pressures on materials and salaries. We have made significant investments in strengthening the Senior Leadership Team and improving resilience, particularly in the Finance and Governance and Risk functions. Salary increases across the organisation have been weighted towards those with lower salaries and we increased our lowest salaries up to the National Living Wage.

Tangible Fixed Assets - £30.7m (2022: £28.1m)

During the year, Trustees carried out a review of RBLI’s property portfolio and made the decision to dispose of the land and bungalows that RBLI owned in Hermitage Lane, Maidstone that were beyond the boundaries of the Centenary Village development site. During 202223, we completed the sale of 7 bungalows and a parcel of land for consideration of £4.4m. All the properties were held at historical cost. We have recognised a profit on sale of £4.3m relating to this transaction.

During 2022-23, £3.2m was spent on Phase 2 of the Centenary Village development. Following the completion of Phase 2A and handover, £11.25m was transferred from assets under construction to freehold land and buildings and plant and machinery.

Land and Buildings are shown on the balance sheet at historical costs with buildings shown net of depreciation. These assets have not been restated at market value. The one exception to this is

the properties transferred to RBLI from the Vanguard Trust, which are shown at market valuation as at 2018. A professional valuation of the land transferred to the Charity in 1919 has not been undertaken. The Trustees believe that the market value is significantly higher than the negligible net book value reflected in tangible assets.

Investments - £nil (2022: £4.8m)

Following a review, Trustees made the decision to liquidate an investment portfolio managed by Julius Baer, consisting primarily of UK and overseas equities and bonds. The sale was completed during March 2023 raising cash proceeds, net of costs, of £4.7m.

Working Capital

As part of a focus on improving cash flow, the management of raw material stock and the processes around invoicing and the collection of receivables, have received particular attention this year. Trade debtors have reduced from £2.3m at 31 March 2022 to £1.3m at 31 March 2023. Raw material stock has reduced from £1.2m to £0.9m over the same period.

Loan Financing

In May 2022, £2.5m was drawn down from a £5million term loan facility provided by Barclays Bank. A further £1m was drawn down in September 2022.

Following the liquidation of the investment portfolio, the loan of £2.25m from Julius Baer, which was secured on the investment portfolio, was repaid on 30 March 2023.

Pension Scheme

RBLI participates in the Royal British Legion Staff Defined Benefit Pension Fund (the Fund), which was closed to new entrants

in 2002. RBLI also operates a Defined Contribution Group Personal Pension Scheme.

The Fund is a UK registered, trustbased, multi-employer defined benefit scheme. An actuarial valuation on the defined benefit is carried out every three years. The last actuarial valuation was performed as at 1 April 2020 which revealed a funding shortfall of £24 million. RBLI therefore agreed to pay annual deficit contributions of £161k plus and annual contribution of £51k to cover the expenses of the Fund. These contributions will continue until 2028 at which point RBLI will pay the lesser of £1.8m or the Scheme Actuary’s assessment of the share of the Fund’s deficit in respect of RBLI as at 1 April 2028.

The valuation is updated on an annual basis. The latest valuation showed an actuarial gain for the defined benefit pension of £618k with a net asset value of £852k (2021-22: a net asset of £140k). This improvement has arisen as a result of changes in assumptions, mainly the increased discount rate, and also due to the annual contributions that RBLI is making. This asset has not been recognised in the financial statements because Trustees do not have certainty that it will be recovered through future reductions in contributions.

Reserves - £32.3m (2022:

£29.6m)

In total, RBLI increased its reserves by £2.7m. A gain on the sale of assets of £4.3m was partially offset by a loss from operations of £1.5m, resulting in total funds of £32.3m. Following completion of the second phase of Centenary Village, funds totalling £8m have been transferred from Restricted Funds to Unrestricted Funds. Trustees have carried out a review of the restrictions that remain on the remaining tangible assets and this has resulted in the transfer

33 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 34

FINANCIAL REVIEW Continued

These challenges are recognised by Trustees and management, and a three-year planning exercise has been performed for all areas of RBLI, incorporating fundraising plans, trading performance, capital expenditure plans and planned asset sales. The budgets for the next three financial years are driving the focus of Trustees, in monitoring progress against plan and pursuing timely actions against emerging issues. Trustees and management recognise the need to maintain a strong focus on the operational improvements required for RBLI to progress on a stable footing as an organisation and to move away from reliance on property disposals to maintain financial sustainability.

significant areas of land that are held at historical cost and not yet developed. The ability to convert these assets to cash over the next few years is key to the long-term development of the Village and in the short term to the funding of the organisation.

of a further £7.3m of funds from Restricted Funds to Unrestricted Funds. Overall, Restricted Funds have decreased by £12.6m to £4.1m and Unrestricted Funds have increased by £15.3m to £28.1m (of which £25m represents the net book fixed assets, less associated loans, and £3.1m relates to free reserves.).

RBLI continues to prepare its financial statements on the basis that it is a going concern. To support that view, for the two years ending 31 March 2025 management has prepared working capital forecasts, run stress tests, and specifically considered the risks relating to the completion of a programme of asset sales, the proceeds from which are necessary to support the process of delivering on RBLI’s charitable objectives and realising significant improvements in the financial performance of its unrestricted activities.

Historically, RBLI’s reserve policy has been to hold a sum of money as designated funds to provide an operating reserve of £5m (approximating to three months operating costs) and a £5m reserve to cover RBLI’s contribution to planned future projects and developments. Following the completion of Bradbury House, Trustees have decided to release the designation on the reserve for future projects and developments. RBLI will continue to look for opportunities to develop RBLI’s village but will do so through fundraising and utilising RBLI’s funds as and when cash reserves permit. RBLI holds £3.1m as free reserves in unrestricted funds, which is below our target of £5m for operating cost reserves. RBLI will continue to build these free reserves through asset sales following its three year plan.

Based on the above plan and the joint focus of Trustees and management on the need to drive operational efficiencies and ensure financial stability for RBLI as an organisation, and after considering the status and timing of the planned asset sales, Trustees have reasonable expectation that RBLI will have adequate resources to continue in operation for the foreseeable future and to meet its liabilities as they fall due. They therefore consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements.

Following the development of Centenary Village and the refurbishment of Bradbury House, coupled with challenging trading conditions for the unrestricted activities, RBLI has been focussed on rebuilding its unrestricted cash and reserves, through asset and investment sales and improving the financial performance of its operations. The next twelve months will continue to present challenges with rising costs and increasing interest rates. However, significant investment has been made and continues to be made in developing Centenary Village and in reducing costs and seeking to improve the performance of the social enterprises and the care homes.

Going Concern

The long-term financial strength of the Charity is underpinned by the RBLI Village, a 75-acre site the market value of which is significantly more than the net asset position of the organisation. The Charity has invested substantial resources in developing the Village over the last twenty years and owns

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

Financial statements are published on the charity’s

The Trustees are responsible for preparing the Strategic Report, the Trustees’ Report and the Financial Statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.

website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the Trustees. The Trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

This Trustees’ Report, including the Strategic Report, has been approved by the Board of Trustees, is authorised for issue and is signed on their behalf.

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

STEVEN ROWBOTHAM

RBLI Chairman

21 December 2023

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Act (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

35 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 36

INDEPENDENT AUDITOR’S REPORT

Opinion on the financial statements

In our opinion, the financial statements:

■ have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006, as amended. We have audited the financial statements of Royal British Legion Industries Limited (“the Charitable Company”) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, 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).

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Charitable Company in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions related 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.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report and Financial Statements, other than the financial statements and our auditor’s report thereon. 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Other Companies Act 2006 reporting

In our opinion, based on the work undertaken in the

course of the audit:

In the light of the knowledge and understanding of the Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or the Trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ responsibilities, 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 determines 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

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted 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.

Extent to which the audit was capable of detecting irregularities, including fraud

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:

37 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 38

INDEPENDENT AUDITOR’S REPORT Continued

Non-compliance with laws and regulations

Based on:

We considered the significant laws and regulations that have a direct impact on the financial statements to be the Companies Act 2006, the Charities Act 2011 and the Charities Accounts (Scotland) Regulations 2006.

The Charitable Company is also subject to laws and regulations where the consequence of noncompliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be taxation legislation, health and safety legislation, employment law and data protection. Our procedures in respect of the above included:

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

Company’s policies and procedures relating to:

Based on our risk assessment, we considered the areas most susceptible to fraud to be the posting of fraudulent journals, and bias in key accounting estimates.

Our procedures in respect of the above included:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting

from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://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, and to the Charitable Company’s Trustees, as a body, in accordance with the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the Charitable Company’s members and Trustees 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, the Charitable Company’s members as a body and the Charitable Company’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

JILL HALFORD (Senior Statutory Auditor)

For and on behalf of BDO LLP, Statutory Auditor London, UK

Date: 21 December 2023

BDO LLP is a limited liability partnership registered in England and Wales

(with registered number OC305127).

39 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 40

FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING AN INCOME AND

EXPENDITURE ACCOUNT) FOR YEAR ENDED 31 MARCH 2023

----- Start of picture text -----
22-23 21-22
Unrestricted Restricted Total Unrestricted Restricted Total
Note Funds Funds Funds Funds Funds Funds
£000’s £000’s £000’s £000’s £000’s £000’s
Income and Endowments
from
Donations and Legacies 2 1,368 2,674 4,042 1,048 3,741 4,789
Charitable activities –
continuing
Employment Solutions 4 192 290 482 79 251 330
Scotland’s Bravest
4 1,396 308 1,704 1,187 208 1,395
Manufacturing
Britain’s Bravest Manufacturing 4 5,966 172 6,138 6,644 195 6,839
RBLI Living 4 6,108 167 6,275 4,890 326 5,216
Shop 4 731 _ 731 695 _ 695
Total charitable activities –
14,393 937 15,330 13,495 980 14,475
continuing
Investment Income 3 94 _ 94 65 _ 65
Gains on sale of assets 4,269 _ 4,269 290 _ 290
Furlough Income _ _ _ 52 _ 52
Total income - continuing 20,124 3,611 23,735 14,950 4,721 19,671
Charitable Activities -
discontinuing
Employment Solutions 2,209 _ 2,209 1,896 _ 1,896
Total Income 22,333 3,611 25,944 16,846 4,721 21,567
Expenditure on:
Raising Funds 1,569 19 1,588 1,415 94 1,509
Charitable Activities -
continuing
Employment Solutions 5 688 211 899 438 207 645
Scotland’s Bravest
5 1,855 303 2,158 1,438 316 1,754
Manufacturing
Britain's Bravest Manufacturing 5 7,640 172 7,812 7,845 192 8,037
RBLI Living 5 8,151 189 8,340 5,843 311 6,154
Shop 413 _ 413 704 _ 704
Total Expenditure - continuing 20,316 894 21,210 17,683 1,120 18,803
----- End of picture text -----

----- Start of picture text -----
22-23 21-22
Unrestricted Restricted Total Unrestricted Restricted Total
Note Funds Funds Funds Funds Funds Funds
£000’s £000’s £000’s £000’s £000’s £000’s
Charitable activities -
discontinuing
Employment Solutions 2,003 _ 2,003 1,795 _ 1,795
Total Expenditure 22,319 894 23,213 19,478 1,120 20,598
Net Income (Expenditure)
before investment gains or 14 2,717 2,731 (2,632) 3,601 969
losses
(Losses)/Gains on investment
(47) (3) (50) 274 6 280
assets
Net Income/ (expenditure) (33) 2,714 2,681 (2,358) 3,607 1,249
Transfers between funds 14 15,329 (15,329) _ _ _ _
Actuarial gain on defined
17 _ _ _ 1,320 _ 1,320
benefit pension
Net movement in funds 15,296 (12,615) 2,681 (1,038) 3,607 2,569
Fund balances brought forward 12,853 16,761 29,614 13,891 13,154 27,045
Fund balances carried forward 15 28,149 4,146 32,295 12,853 16,761 29,614
The notes from page 45-59 form part of these financial statements.
----- End of picture text -----

41 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 42

BALANCE SHEET AS AT 31 MARCH 2023

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

----- Start of picture text -----
Note 22/23 21/22
FIXED ASSETS £000’s £000’s
Tangible assets 7 30,681 28,068
Investments 8 95 4,799
30,776 32,867
CURRENT ASSETS
Stock 10 974 1,341
Debtors 11 2,526 3,466
Cash 6,682 -
10,182 4,807
CURRENT LIABILITIES
Bank overdraft - 186
Creditors 12 3,513 3,613
3,513 3,799
NET CURRENT ASSETS 6,669 1,008
TOTAL ASSETS LESS CURRENT LIABILITIES 37,445 33,875
LONG TERM LIABILITIES
Loan Financing 13 5,150 4,261
NET ASSETS (excluding pension scheme) 32,295 29,614
DEFINED BENEFIT PENSION SCHEME _
NET ASSETS (including pension scheme) 32,295 29,614
THE FUNDS OF THE CHARITY
Unrestricted - Designated 15 - 10,000
Unrestricted - General 15 28,149 2,853
28,149 12,853
Pension Reserve 17 _
Total Unrestricted Funds 28,149 12,853
Restricted Income Funds 15 4,146 16,761
Total Charitable Funds 32,295 29,614
----- End of picture text -----

----- Start of picture text -----
Note 22/23 21/22
£000's £000's £000's £000's
Net cash inflow / (outflow) from operating activities
23 _ 649 _ (222)
Investments
Investment income 94 _ 65
Disposal of fixed asset investment 4,644 _ _
Net cash inflow from investments _ 4,738 _ 65
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (3,983) _ (8,279)
Receipts from the sale of fixed assets 4,269 _ 290
Net cash inflow / (outflow) from capital expenditure _ 286 _ (7,989)
and financial investment
Cashflows from Financing Activities
- new bank loans 3,500 _ 4,250
- repayment of loans (2,305) _ _
Net cash inflow from financing 1,195 4,250
Increase/(reduction) in net cash 6,868 (3,896)
Balance brought Forward (186) 3,710
Balance Carried Forward at 31 March 24 6,682 (186)
The notes from page 45-59 form part of these financial statements.
----- End of picture text -----

The notes from page 45-59 form part of these financial statements.

The Financial Statements which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes were approved by the Board of Trustees on 21 December 2023 were signed on its behalf by:

Mike DIxon Director of Finance & Performance 21 December 2023

Rebecca Wood RBLI Trustee 21 December 2023

43 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 44

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

1. PRINCIPAL ACCOUNTING POLICIES

BASIS OF PREPARATION

Royal British Legion Industries (RBLI) is a registered charity (210063 and SCO48795) and a private company limited by guarantee incorporated in England and Wales (00158479). The registered office is Hall Road, Aylesford Kent ME20 7NL.

These Financial Statements have been prepared in accordance with the 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) - Charities SORP (FRS102). Also prepared in accordance with UK charity and company law. The charity meets the definition of a public benefit entity under FRS102.

The principal accounting policies are applied consistently in the preparation of the Financial Statements unless stated otherwise.

The financial statements are prepared on a going concern basis under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value.

CONSOLIDATION

The company has two wholly owned subsidiaries, RBLI Contracts Limited and RBLI Ltd. Both subsidiaries are dormant and therefore have not been consolidated into the financial statements. Information on the subsidiaries is set out in note 9.

STRUCTURE OF FUNDS

The Charity maintains the following funds:

INCOME RECOGNITION

Charitable activity income is measured as consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts, rebates and value added taxes.

DONATIONS AND LEGACIES

Donations and Legacies are recognised as income when received or when entitlement to receive has been established, receipt is probable and the amount can be quantified with reasonable accuracy. Gift Aid receivable is included when claimable. Legacies are recognised when probate is granted and there is sufficient information to measure the value of the legacy.

GRANTS RECEIVED

Grants are recognised in the Statement of Financial Activities when the conditions for entitlement have been met. Grants received before the conditions for entitlement have been met are deferred and included in creditors.

SUBSIDIES RECEIVABLE

A subsidy is made to host companies who employ a disabled person under the terms of the Work Choice Programme. The subsidy arises on the employment of the disabled person and remains for the term of the employment contract. The subsidy is accounted for on an accruals basis.

PENSIONS

The Charity operates two pension schemes, the Defined Benefit Scheme, which was closed to new entrants in 2002 and the Group Personal Pension Scheme.

The Defined Benefit scheme, the assets of which are held and managed separately, is a multi-employer scheme. The actuaries have attributed scheme assets and liabilities to RBLI for the requirements of FRS102. The impact on the current year SOFA was an actuarial gain of £1.3m.

For the defined benefit section, the amounts charged in expenditure are the current service costs and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the Statement of Financial Activities if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. The interest cost and the expected return on assets are shown as a net amount of other finance costs or credits adjacent to interest. Actuarial gains and losses are recognised immediately in ‘Other recognised gains and losses’.

The Defined Benefit scheme is funded, with the assets of the scheme held separately from those of the underlying employers, in separate Trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the scheme liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The resulting defined benefit asset or liability is presented separately after other net assets on the face of the balance sheet.

In addition, the amount charged to the Statement of Financial activities includes contributions payable to the Group Personal Pension Scheme in the year.

SHORT TERM BENEFITS

Short-term benefits, including holiday pay, termination payments and other similar non-monetary benefits, are recognised as an expense in the period in which the service is incurred, or in the case of redundancy and termination payments when there is a commitment to an individual or group of people.

TAXATION

The company is a registered Charity, as such is entitled to certain tax exemptions on income, profits from investments and surpluses on any trading activities carried on in furtherance of the Charity’s primary objectives.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities.

INVESTMENTS

Investments are stated at bid-price and the value of both realised and unrealised gains are included in the Statement of Financial Activities within the relevant Funds. Investments are subject to review for impairment when there is an indication of a reduction in their carrying value. Any impairment is recognised in the year in which it occurs.

CHARITABLE EXPENDITURE

Costs are recognised on an accruals basis in the period in which they are incurred. Expenditure on raising funds includes the costs incurred in raising donation income and grant income, including apportioned support costs. Expenditure on charitable activities comprises the costs incurred on charitable activities including apportioned support costs. Where support costs cover more than one area of activity the costs are allocated to each activity based on weighting of the Charitable Activity revenue. Redundancy/ termination payments are recognised when there is a demonstrable commitment on an individual or group basis that cannot be realistically withdrawn.

Costs of expenditure on raising funds includes the fees incurred in managing the Charity’s investments and where applicable irrecoverable VAT.

OPERATING LEASES

Annual rentals under operating leases are charged against income on a straight-line basis over the lease term.

STOCK AND WORK-IN-PROGRESS

Raw materials, work-in-progress and finished goods are valued at the lower of cost or estimated selling price less cost to complete and sell. Cost comprises the direct cost of production and the net attributable proportion of overheads appropriate to each department.

Cost is determined on an average cost method. Cost includes the purchase price including transport and handling directly attributable to bringing the stock to its present location and condition.

Regular reviews of stock take place to ensure all stock is in good condition and in addition a stock provision is included in the stock valuation to allow for the potential of stock not being consumed/ sold.

TANGIBLE FIXED ASSETS

Tangible assets are stated at cost (or deemed cost) less accumulated depreciation. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs.

Land is not depreciated. Depreciation on other assets is calculated, using the straight-line method, to allocate the depreciable amount to their residual values over their estimated useful lives, as follows:

ASSETS UNDER CONSTRUCTION

Assets under construction represent expenditure incurred in creating assets. Depreciation takes place once the asset is brought into use.

LIMITATION OF CAPITALISATION

Expenditure below £1,000 per item does not qualify for capitalisation as a Fixed Asset as it is not considered to be material.

FINANCIAL RISK MANAGEMENT

The Charity’s operations expose it to some financial risks that include the effects of changes in market interest rates and its liquidity position. The Charity has in place a risk management programme that seeks to manage adverse effects on the financial performance of the Charity.

45 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 46

NOTES TO THE FINANCIAL STATEMENTS

GOING CONCERN

FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

1. PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

The Charity makes estimates and assumptions concerning the future. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

IMPAIRMENT OF ASSETS

Investments are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in fair value reserve.

The charity has material value of assets under construction where the market value post completion could be lower than the net book value and therefore could give rise to an estimation uncertainty at the year end. The Charity will undertake market valuations once the material capital developments have been completed to ensure the assets are reflected at the lesser of the recoverable value or the net book value.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party.

(ii) Financial liabilities

IMPAIRMENT OF DEBTORS

Basic financial liabilities include trade and other payables and loans. They are initially recognised at transaction price.

The Charity makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially and subsequently measured at transaction price as all of them are current.

DEFINED BENEFIT PENSION SCHEME

The Charity has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including: life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends.

All loans facilities are treated as a single financial instrument and are initially recognised at transaction price. Debt instruments are subsequently measured at amortised cost using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised at transaction cost of the loan to the extent that it is probable that some or all of the facility will be drawn down.

FINANCIAL INSTRUMENTS

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

(iii) Offsetting

Basic financial assets, including trade and other receivables, cash and bank balances are initially recognised at transaction price. At the end of each reporting period financial assets are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the estimated cash flows. The impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

The long-term financial strength of the Charity is underpinned by the RBLI Village, a 75-acre site the market value of which is significantly more than the net asset position of the organisation. The Charity has invested substantial resources in developing the Village over the last twenty years and owns significant areas of land that are held at historical cost and not yet developed. The ability to convert these assets to cash over the next few years is key to the long-term development of the Village and in the short term to the funding of the organisation.

RBLI continues to prepare its financial statements on the basis that it is a going concern. To support that view, for the two years ending 31 March 2025 management has prepared working capital forecasts, run stress tests, and specifically considered the risks relating to the completion of a programme of asset sales, the proceeds from which are necessary to support the process of delivering on RBLI’s charitable objectives and realising significant improvements in the financial performance of its unrestricted activities.

Following the development of Centenary Village and the refurbishment of Bradbury House, coupled with challenging trading conditions for the unrestricted activities, RBLI has been focussed on rebuilding its unrestricted cash and reserves, through asset and investment sales and improving the financial performance of its operations. The next twelve months will continue to present challenges with rising costs and increasing interest rates. However, significant investment has been made and continues to be made in developing Centenary Village and in reducing costs and seeking to improve the performance of the social enterprises and the care homes.

These challenges are recognised by Trustees and management, and a three-year planning exercise has been performed for all areas of RBLI, incorporating fundraising plans, trading performance, capital expenditure plans and planned asset sales. The budgets for the next three financial years are driving the focus of Trustees, in monitoring progress against plan and pursuing timely actions against emerging issues. Trustees and management recognise the need to maintain a strong focus on the operational improvements required for RBLI to progress on a stable footing as an organisation and to move away from reliance on property disposals to maintain financial sustainability.

Based on the above plan and the joint focus of Trustees and management on the need to drive operational efficiencies and ensure financial stability for RBLI as an organisation, and after considering the terms of the land sale completed on 20 November 2023 (see note 25 to the financial statements), and the status and timing of planned asset sales , Trustees have reasonable expectation that RBLI will have adequate resources to continue in operation for the foreseeable future and to meet its liabilities as they fall due. They therefore consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements.

2. INCOME FROM DONATIONS & LEGACIES

----- Start of picture text -----
22/23 21/22
Donations £000’s £000’s
Legacies 2,893 3,809
Fundraising events - 56
1,149 924
4,042 4,789
----- End of picture text -----

3. INVESTMENT INCOME

----- Start of picture text -----
22/23 21/22
£000’s £000’s
Investment dividends 94 65
94 65
----- End of picture text -----

47 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 48

NOTES TO THE FINANCIAL STATEMENTS

Governance costs include compliance with statutory regulation of the various activities of the charity.

The Trustees continue to review the method of allocation for the future.

FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

4. GRANT INCOME

RBLI receives grant income from various sources relating to its charitable activities, including government grants.

----- Start of picture text -----
22/23 21/22
£000’s £000’s
Income from government grants supporting employment 186 207
Government support relating to COVID-19 infection control costs 37 108
Grants and income from non-governmental sources 714 665
937 980
----- End of picture text -----

5. NET INCOME

----- Start of picture text -----
Net income is stated after charging 22/23 21/22
£000’s £000’s
Rentals payable under Operating Leases 142 162
Support Costs (see analysis) 3,081 2,524
Depreciation (Note 7) 1,121 895
Auditors remuneration
– Audit services 80 61
– Tax compliance services 3 3
– Total amount payable to the auditor 83 64
Impairment of trade receivables 52 142
----- End of picture text -----

Activities within Employment Solutions for Building Better Opportunities and Access to Work ended in June 2023, these activities have been classed as Discontinuing.

----- Start of picture text -----
Scotland's Britain's
Employment
SUPPORT COSTS 22/23 Bravest Bravest RBLI Living Fundraising Shop Total
Solutions
Manufacturing Manufacturing
£000’s £000’s £000’s £000’s £000’s £000’s £000’s
Executive 66 41 147 149 95 18 516
Governance 15 9 33 34 21 4 116
Finance 111 69 249 253 161 30 873
Business Systems 61 38 137 139 89 16 480
Human Resources 52 31 113 115 73 13 397
Marketing 50 32 114 116 74 14 400
355 220 793 806 513 95 2,782
----- End of picture text -----

All costs, including support costs are allocated, where practicable, to the charitable activities on a directly attributable basis. The remainder is apportioned to each activity based on revenue.

Interest and finance costs were also attributed to charitable activities on the basis of revenue as shown.

----- Start of picture text -----
Scotland's Britain's
INTEREST AND FINANCE Employment
Bravest Bravest RBLI Living Fundraising Shop Total
COSTS 22/23 Solutions
Manufacturing Manufacturing
£000’s £000’s £000’s £000’s £000’s £000’s £000’s
Interest and Finance Costs 38 24 85 87 55 10 299
----- End of picture text -----

----- Start of picture text -----
Scotland's Britain's
Employment
SUPPORT COSTS 21/22 Bravest Bravest RBLI Living Fundraising Shop Total
Solutions
Manufacturing Manufacturing
£000’s £000’s £000’s £000’s £000’s £000’s £000’s
Executive 27 17 86 66 60 9 265
Finance 75 46 230 176 160 24 711
Governance 15 9 42 32 29 4 131
Business Systems 47 29 144 110 100 15 445
Human Resources 36 22 110 84 75 11 338
Marketing 38 24 116 88 80 12 358
Other Costs 2 2 8 6 5 1 24
Pension Deficit 26 17 81 62 58 8 252
266 166 817 624 567 84 2,524
----- End of picture text -----

6. DIRECTORS, EMPLOYEES AND VOLUNTEERS

----- Start of picture text -----
22/23 21/22
The average monthly number of persons employed by the Company during the Number FTE Number FTE
year was:
Employment Solutions 49 45 48 42
RBLI Living 131 108 147 95
Scotland's Bravest Manufacturing 21 20 20 18
Britain's Bravest Manufacturing 81 67 100 72
Fundraising and Marketing 21 19 19 17
Executive & Corporate Services 29 28 27 24
332 287 361 268
----- End of picture text -----

During the year a total of 90 volunteers (FY 21/22: 40) worked for a total of 3,600 hours (FY 21/22: 3,043 hours)

The Charity is grateful for the large number of volunteers who have helped support the charity over the last 12 months. All areas of the Charity have benefitted from this support ranging from admin support, job coaching, care etc.

----- Start of picture text -----
22/23 21/22
£000’s £000’s
Staff costs
Wages and salaries 8,285 7,625
Social Security costs 841 685
Employer pension costs for Defined Contribution Scheme 627 597
Employer pension costs for the Defined Benefit Scheme 212 212
Other costs 57 535
Redundancy / Termination Payments 84 35
10,106 9,689
----- End of picture text -----

49 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 50

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

6. DIRECTORS, EMPLOYEES AND VOLUNTEERS (CONTINUED)

The total number of employees (excluding the Chief Executive) whose emoluments, excluding pension contributions, were in excess of £60,000 fell within the following bands:

----- Start of picture text -----
22/23 21/22
£ Number Number
60,001 - 70,000 2 3
70,001 - 80,000 3 1
80,001 - 90,000 - -
90,001 - 100,000 - 1
100,001 - 110,000 1 -
110,001 -120,000 1 2
120,001 -130,000 - -
130,001 -140,000 - -
140,001 -150,000 1 -
8 7
----- End of picture text -----

All the 8 employees, including the Chief Executive, (21/22: 7) earning over £60,000 in the year, participated in the company pension scheme, and pension contributions of £49,582 were made by RBLI in the year to 31 March 2023 (21/22 : £80,141).

The total remuneration (excluding employer pension contributions) of the key management personnel of RBLI was £730,512 (21/22: £670,984) including an end of contract payment of £30,000 made to the Director of Living and Welfare (21/22 : £nil). On top of these payments, the charity made employer pension and national insurance contributions in respect of the members of the senior leadership team totalling £132,137.

No remuneration is paid to the Trustees as they act on an honorary basis. There total expenses reimbursed to Trustees was £8 (21/22: £22).

7. TANGIBLE ASSETS

----- Start of picture text -----
Freehold Fixtures
Land and Buildings and Motor Office Plant and Assets Under
Buildings Plant Fittings Vehicles Equipment Machinery Construction Total
£000’s £000’s £000’s £000’s £000’s £000’s £000’s £000’s
COST
At 01 April 2022 23,551 2,046 2,531 101 477 1,755 8,252 38,713
Additions 81 110 174 - 10 36 3,421 3,832
Disposals ( 51 ) ( 9 ) ( 116 ) ( 35 ) ( 180 ) ( 41 ) _ ( 432 )
Transfers 10,699 232 243 - 16 60 ( 11,250 ) _
At 31st March 2023 34,280 2,379 2,832 66 323 1,810 423 42,113
ACCUMULATED DEPRECIATION
At 01 April 2022 6,048 1,526 1,445 88 422 1,116 _ 10,645
Charge for year 580 67 276 7 36 155 _ 1,121
Disposals _ ( 8 ) ( 71 ) ( 35 ) ( 180 ) ( 40 ) _ ( 334 )
Impairment charges -
At 31st March 2023 6,628 1,585 1,650 60 278 1,231 _ 11,432
NET BOOK VALUE at 31 March 27,652 794 1,182 6 45 579 423 30,681
2023
NET BOOK VALUE at 31 March 17,503 520 1,086 13 55 639 8,252 28,068
2022
----- End of picture text -----

The Trustees believe that the market value of land is significantly higher than the book value, which is negligible as it was transferred to the Charity in 1919. Valuations of some properties were performed in the year showing that the market value is significantly higher than the book value.

Assets Under Construction represent capital expenditure on Projects which are not finalised. The largest project under this section is the development of Centenary Village Phase 2B. A number of buildings were completed in July 2022 and bought into use. The expenditure has been transferred to the relevant category.

8. INVESTMENTS

----- Start of picture text -----
22/23 21/22
£000’s £000’s
At Fair Value
Managed Investment Portfolio
Listed on UK Stock Exchange 95 1,005
UK Fixed Interest _ 1,337
Overseas Equities _ 1,757
Overseas Fixed Interest _
Quoted Property _
Alternative Investments _ 289
Cash Reserve _ 411
Fair Value at 31 Marc 95 4,799
Cost of Managed Investments at 31 March _ 4,142
22/23 21/22
Analysis of Movements of Investments £000’s £000’s
Valuation at 01 April 4,799 4,565
Realised (Losses)/Gains (10) 188
Unrealised Gains _ 165
Withdrawals (4,644) (72)
Management Costs (50) (47)
Valuation at 31 March 95 4,799
----- End of picture text -----

9. INVESTMENT IN SUBSIDIARY

The company owns 100% of the issued share capital (being 2 shares of £1 each) of RBLI Contracts Ltd, a dormant company and 100% of the issued share capital (being 1 share of £1) of RBLI Ltd, a dormant company.

There has been no income or expenditure in either subsidiary in the year (21/22: none) and there is no capital and reserves in either company at the year-end (21/22: none).

10. STOCKS AND WORK IN PROGRESS

----- Start of picture text -----
22/23 21/22
£000’s £000’s
Raw materials 923 1,232
Finished goods 51 109
974 1,341
----- End of picture text -----

The replacement cost of raw materials does not differ materially from the value stated in the balance sheet. The cost of raw materials recognised as an expense in the year was £4,436,877 (21/22: £3,921,128).

51 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 52

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

11. DEBTORS

----- Start of picture text -----
22/23 21/22
£000’s £000’s
Trade debtors 1,547 2,271
Other debtors 53 309
Prepayments and accrued income 926 886
2,526 3,466
----- End of picture text -----

12. CREDITORS - AMOUNTS FALLING DUE WITHIN ONE YEAR

----- Start of picture text -----
22/23 21/22
£000’s £000’s
Amounts falling due within one year:
Trade creditors 1,231 897
Other taxation and social security 352 380
Other creditors 599 205
Accruals 921 1,840
Deferred Income 115 291
Loans 295 -
3,513 3,613
----- End of picture text -----

All income deferred from the prior year was recognised in the subsequent financial year. No income was deferred for more than 12 months.

13. LONG TERM LIABILITIES - DEBT ANALYSIS

----- Start of picture text -----
22/23 21/22
£000’s £000’s £000’s £000’s £000’s £000’s
Facility Drawn Undrawn Facility Drawn Undrawn
Royal British Legion Loan 2,000 1,945 55 2,000 2,000 -
Julius Baer - RCF _ _ _ 3,380 2,250 1,130
Barclays Secured Loan 5,000 3,500 1,500 _ _ _
Barclays Overdraft 1,000 _ 1,000 2,000 185 1,815
Total 8,000 5,445 2,555 7,380 4,435 2,945
----- End of picture text -----

The Royal British Legion Loan is for a 10-year term with an interest of BoE Base Rate plus 0.5%.

The loan is secured with a charge over Appleton Lodge to a value of £2.1m (carrying value of the building was £1.9m as of 31 March 2023).

The Julius Baer facility was previously drawdown against the investment portfolio. The loan was redeemed when the portfolio was liquidated during the year. The loan was secured with a charge over the investments placed with the Bank.

The Loan facility with Barclays is a 5-year term repayable in instalments with a final payment due in April 2027. Issue costs of £25,000 were incurred, paid and charged to the profit and loss during the year. The loan accrues interest at a rate of 2.65% above BoE Base Rate.

----- Start of picture text -----
Debt Maturity 22/23 21/22
£000’s £000’s
In one year or less, or on demand 295 2,490
In more than one year but not more than two years 319 220
In more than two year but not more than five years 3,987 661
In more than five years 844 1,064
5,445 4,435
----- End of picture text -----

14. ANALYSIS OF FUND MOVEMENTS

----- Start of picture text -----
Gains and
Balance Income Expenditure Transfers Losses Balance
As at 01 Capital Transfer As at 31
April 2022 expenditure between funds March 2023
FUND £000’s £000’s £000’s £000’s £000’s £000’s
Unrestricted
General Fund 2,853 22,333 (22,319) _ 314 (47) 3,134
Pension Reserve _ _ _ _ _ _
Unrestricted - Designated
Fixed Asset Reserve _ _ _ _ 25,015 _ 25,015
Operating Cost Reserve 5,000 _ _ _ (5,000) _
Future Projects and Developments 5,000 _ _ _ (5,000) _
Total Unrestricted Funds 12,853 22,333 (22,319) _ 15,329 (47) 28,149
Restricted
Capital and Revenue Grants
Centenary Village 727 2,564 _ (2,209) 55 _ 1,137
Scotland 93 308 (303) _ _ _ 98
Lifeworks 141 290 (211) _ _ _ 220
Welfare 250 96 (281) _ _ _ 65
Other 183 353 (99) (367) _ _ 70
Investments 98 _ _ _ _ (3) 95
Capital Assets
Centenary Village (including 10,182 _ _ 2,209 (12,391) _
Hermitage Lane Apartments)
Appleton Lodge 2,384 _ _ (2,384) _ _
Vanguard Properties 1,136 _ _ _ 1,136
Scotland Factory 133 _ _ _ 133
Bradbury House 601 _ _ 63 (314) _ 350
Other 833 _ _ 304 (295) _ 842
Total Restricted Funds 16,761 3,611 (894) _ (15,329) (3) 4,146
Total Charitable Funds 29,614 25,944 (23,213) _ _ (50) 32,295
----- End of picture text -----

The overdraft with Barclays Bank has an interest rate equal to the BoE Base Rate plus 2.25%.

The overdraft is secured with a charge on Queen Elizabeth Court to the value of £5.5m (carrying value of the building was £2.3m as of 31 March 2023).

The overdraft facility was reduced on the drawdown of the loan and the charge over Queen Elizabeth Court security included within the loan agreement. The loan agreement also includes security charged over Invictus Games House and Victory House (the carrying value of these buildings on Hermitage Lane was £3.6m as of 31 March 2023).

53 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 54

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

14. ANALYSIS OF FUND MOVEMENTS (CONTINUED)

Following the successful completion of several capital projects, the Trustees have reviewed the restrictions on funds donated for these and consider the restrictions of the original donations have been satisfied. They have therefore moved these Capital Assets to unrestricted designated funds. Trustees have decided to release the designation on the reserve for future projects and developments. RBLI will continue to look for opportunities to develop the RBLI Village but will do so through fundraising or using RBLI’s funds as and when cash reserves permit. Trustees have also decided to release the designation for the operating cost reserve, as it is felt that this is more appropriately reflected within general funds.

The fixed asset designated reserve represents the net book value of tangible fixed assets held within unrestricted funds less the carrying value of the associated loan.

Restricted funds represent monies received for specific purposes. Funds for Centenary Village are for the ongoing development of housing for beneficiaries. Other restricted funds support the relevant operational activities of the charity.

15. ANALYSIS OF FUND BALANCES

----- Start of picture text -----
22/23 21/22
Unrestricted Restricted Total Funds Unrestricted Restricted Total Funds
Funds Funds Funds Funds
£000's £000's £000's £000's £000's £000's
Tangible fixed assets 28,220 2,461 30,681 12,799 15,269 28,068
Investments _ 95 95 4,701 98 4,799
28,220 2,556 30,776 17,500 15,367 32,867
Net current assets/(liabilities) [free reserves] 3,134 3,535 6,669 (2,386) 3,394 1,008
TOTAL ASSETS LESS CURRENT LIABILITIES 31,354 6,091 37,445 15,114 18,761 33,875
Other Liabilities _ _ _ _ _ _
Loan (3,205) (1,945) (5,150) (2,261) (2,000) (4,261)
NET ASSETS 28,149 4,146 32,295 12,853 16,761 29,614
----- End of picture text -----

Following the successful completion of several capital projects, the Trustees have reviewed the restrictions on funds donated for these and consider the restrictions of the original donations have been satisfied. They have therefore moved these Capital Assets to unrestricted funds. Trustees have also decided to release the designation on the reserve for future projects and developments. RBLI will continue to look for opportunities to develop the RBLI Village but will do so through fundraising or using RBLI’s funds as and when cash reserves permit.

16. CONTINGENT LIABILITY

There were no contingent liabilities at year end.

17. PENSION SCHEME

Royal British Legion Industries participates in two staff pension funds. The Defined Benefit Scheme (the Fund), and the Group Personal Pension Plan (the GPPP), both operated in conjunction with The Royal British Legion.

Contributions to the Group Personal Pension Plan in the year were £627k (21/22 : £597k). Contributions are limited to twice the level of the employees’ contribution, excluding additional employee contributions. There were 317 employees participating in the scheme at 31 March 2023 (21/22: 293).

The Defined Benefit Scheme was closed to new entrants in 2002. During the year RBLI made a contribution of £161K to help fund the scheme deficit and £51K to fund administrative expenses of the scheme (21/22: £161K and £51K respectively).

A charge over land, the Churchill Centre and the factory buildings at Aylesford has been granted to The Royal British Legion Pension Fund Trustees as security for the pension deficit liability and to support the Employers Covenant.

The most recent formal scheme published actuarial valuation was carried out by First Actuarial LLP as at 1 April 2020. The major financial assumptions used by the actuary for FRS102 purposes were:

----- Start of picture text -----
Actuarial Assumptions 22/23 21/22
Discount rate (%p.a.) 4.70% 2.70%
Retail Price Inflation (%p.a.) 3.25% 3.75%
Consumer Price Inflation (%p.a.) 2.75% 3.05%
Salary increase rate (%p.a.) 3.75% 4.05%
Rate of increases of pensions in payment
Post 98 pension 3.20% 3.65%
Post 88 GMP 2.35% 2.50%
Revaluation of deferred pensions (non-GMP) 2.75% 3.05%
Life expectancy at age 65:
Current pensioners Men 86.4 86.3
Women 88.8 88.8
Future pensioners now 45 Men 87.7 87.7
Women 90.3 90.2
----- End of picture text -----

----- Start of picture text -----
22/23 21/22
£000’s £000’s
Fair value of fund assets
Equities 4,001 5,868
Bonds 711 4,621
Gilts _ _
Other Growth Seeking assets 3,506 3,288
Liability Driven Investments 3,178 2,035
Cash 1,365 127
Total 12,761 15,939
----- End of picture text -----

In addition, the Trustees hold insured annuity policies. The value of these annuities has been excluded from both the assets and the liabilities since the liability is matched directly by an asset value of equal value. This is consistent with previous disclosures. The Fund does not invest in the sponsor’s own financial instruments, including property or other assets owned by the sponsor.

----- Start of picture text -----
Defined Benefit
Reconciliation of scheme assets and liabilities Assets Obligation Total
£000’s £000’s £000’s
At 31 March 2022 15,939 (15,799) 140
Benefits paid (442) 442
Employer contributions 212 _ 212
Administration expenses (118) _ (118)
Past service cost _ _
Interest income/(cost) 421 (421) _
Remeasurement gains/(losses)
– Actuarial gains (change of basis) _ 4,465 4,465
– Actuarial gains (experience) _ (600) (600)
– Return on plan assets excluding interest income (3,247) _ (3,247)
At 31 March 2023 12,765 (11,913) 852
The Charity does not recognise the scheme asset in its balance sheet (see accounting policy - pensions) and consequently, as the scheme
has an overall surplus, the actuarial gain is not recognised in the Statement of Financial Activities.
----- End of picture text -----

55 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 56

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

18. TAXATION

The company is exempt from liability to corporation tax on its charitable activities due to its status as a registered Charity.

19. CAPITAL COMMITMENTS

----- Start of picture text -----
22/23 21/22
£000's £000's
Capital Commitments contracted for at year end but not provided for. - 2,171
Capital Commitments approved but not contracted 3,600 122
----- End of picture text -----

The Board have approved the ongoing work for Centenary Village Phase 2B.

20. OPERATING LEASE COMMITMENTS

The Company had the following future minimum lease payments under non-cancellable operating leases for each of the following periods:

----- Start of picture text -----
Operating leases 22/23 21/22
£000's £000's
Payments due
Not later than one year 33 162
Later than one year and not later than five years 21 92
Later than 5 years - -
Total operating leases 54 254
----- End of picture text -----

21. RELATED PARTY TRANSACTIONS

During the prior year expenditure was incurred with Gullands LLP, an organisation related to a Trustee total expenditure for 20/21 was £1.1k. There were no related party transactions in the year to 31 March 2023.

22. GRANTS AND DONATIONS

Donations and Grants of £10,000 or more, received in either current or prior year, are shown below. These are reported in the Statement of Financial Activities either under Charitable activities or under income from donations.

----- Start of picture text -----
22/23 21/22
£000’s £000’s
The Michael Uren Foundation 1,000,001 -
BBO Grant 473,336 445,333
The Colyer-Fergusson Charitable Trust 375,000 125,000
Oak Foundation 300,000 -
The Lawson Trust 250,000 500,000
Workchoice employee support grant 185,796 206,574
Royal Engineers Association 180,000 220,000
ABF, The Soldiers' Charity 173,900 123,650
Armed Forces Covenant Fund Trust 122,110 174,601
The National Lottery Community Fund 110,565 -
Gosling Foundation, The 100,000 -
Barclays 100,000 100,000
Frank Brake Charitable Trust 100,000 -
Forces In Mind Trust 87,048 87,048
Annington 75,000 50,000
3i Plc 65,889 63,000
The Morrisons Foundation 60,000 -
Peter Cruddas Foundation 50,000 10,000
The Conway Charitable Foundation 50,000 50,000
The Veterans' Foundation 50,000 72,500
Queen Mary's Roehampton Trust 35,000 25,000
Barratt Developments PLC (Head Office) 21,000 -
Moondance Foundation 20,000 -
Sheila Elton 15,000 -
David Thomas 10,250 -
Charles Burnett Memorial Fund 10,000 -
Greenwich Hospital - 1,349,000
The Bradbury Foundation - 350,000
Garfield Weston Foundation - 300,000
Kent County Council - 132,519
BAE Systems - 120,000
Royal Navy and Royal Marines Charity - 100,000
The Davis Foundation - 50,000
The Rigby Foundation - 50,000
The Masonic Charitable Foundation - 45,000
The Swire Charitable Trust - 40,756
John Scott Charitable Trust - 30,000
Francis Winham Foundation - 25,000
Officers Association Scotland - 25,000
Calleva Foundation - 21,000
Corra Foundation - 20,000
The Pack Foundation - 20,000
Roger de Hann Charitable Trust - 20,000
Michael J Head - 42,325
The Army Central Fund - 15,000
Childwick Trust - 15,000
Veterans Scotland - 15,000
Armajaro Holdings - 12,500
Michael Holland - 12,500
Howard Bellm - 10,000
Lord Farmer - 10,000
----- End of picture text -----

57 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 58

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

23. NET CASH INFLOW / (OUTFLOW) FROM OPERATING ACTIVITIES

----- Start of picture text -----
FY 22/23 FY 21/22
£000's £000's
Net income 2,681 1,249
Losses/(Gains) on investment assets 50 (280)
Investment management fees deducted from fund 50 46
Difference between pension charge and cash contributions - 57
Investment income (94) (65)
Accrued Loan Interest 11 11
Depreciation on tangible fixed assets 1,121 895
Profit on disposal of fixed assets (4,269) (290)
Decrease/(Increase) in stocks 340 (601)
Decrease/(Increase) in debtors 1,370 (1,007)
Decrease in creditors (611) (237)
Net cash inflow / (outflow) from operating activities 649 (222)
----- End of picture text -----

24. ANALYSIS OF CHANGES IN NET CASH / (DEBT)

As at 01 April 2022 Cashflows Other non-cash
exchanges		 As at 31 March 2023
£000's £000's £000's £000's
Cash and cash equivalents
Cash - 6,682 - 6,682
Overdraft (186) 186 - -
(186) 6,868 - 6,682
Borrowings
Debt due within oneyear - (185) (110) (295)
Debt due after oneyear (4,261) (1,010) 121 (5,150)
(4,261) (1,195) 11 (5,445)
Total (4,447) 5,673 11 1,237
25. POST BALANCE SHEET EVENTS
On 20 November 2023, the charity completed the sale of a plot of land for £2.6m. The net book value of this land at the 31 March 2023 was
£nil, giving rise to a surplus on disposal of £2.5m (after taking account of transaction costs).
The sale agreement granted the buyer an option under which it may require the Charity to buy back the land for £2.6m plus interest if
certain historic covenants relatingto the land have not been removed by20 January2025.

----- Start of picture text -----
RBLI I ANNUAL ACCOUNTS I 2022/2023 I 60
----- End of picture text -----

59 I RBLI I ANNUAL ACCOUNTS I 2022/2023

LEGAL & ADMINISTRATIVE INFORMATION

TRUSTEES:

SENIOR LEADERSHIP TEAM:

COMPANY NUMBER:

Mr S Rowbotham - Chairman Mr F Martin DL – Vice Chairman Mrs N Ahmed CBE DL Mr C Blundell (appointed 18/10/22) Mrs K Cearns OBE, FCA FCCA (resigned 31/12/22) Dr P Edmondson-Jones MBE (appointed 18/10/22) Mr A B Gulland Brigadier D Innes Mr S Kingsman DL (resigned 21/09/22) Ms S Mason Mr A Watson Ms R Wood (appointed 18/10/22) Lisa Farmer Chief Executive Helen Bidgway Director Of People & Culture John Cowman Director Of Living & Welfare Mike Dixon Director of Finance and Performance Louise Gibson Director of Fundraising & Marketing Ghalume Obi Managing Director Of Social Enterprises – Operations Susan Stoker Director Of Governance, Compliance and Business Systems Michelle York Managing Director Of Social Enterprises – Commercial Will CampbellDirector of Living Wroe (resigned 07/10/22) Jagjit DosanjhDirector of Finance and Corporate Services Elton (resigned 31/07/22) Michelle Ferguson Managing Director of RBLI Social Enterprises (resigned 10/04/23) Christopher James Interim Director of Finance (resigned 31/03/22) 00158479 Incorporated in England and Wales

REGISTERED CHARITY 210063 The Charity is a public benefit entity NUMBER: England & Wales REGISTERED CHARITY SC048795 NUMBER: Scotland HEAD OFFICE AND Royal British Legion Industries Limited REGISTERED OFFICE Hall Road Aylesford Kent ME20 7NL Tel: 01622 795900 Fax: 01622 882195 INDEPENDENT AUDITORS: BDO LLP 55 Baker Street London W1U 7EU BANKERS: Barclays Bank Plc Corporate Banking Kent Team 2[nd] Floor, 30 Tower View Kings Hill, West Malling Kent ME19 4UY INVESTMENT ADVISORS: Julius Baer Portfolio Managers Ltd 1 St Martin’s Le Grand London EC1A 1HQ SOLICITORS: Thomas Snell & Brachers LLP Passmore LLP 59 London Road 3 Lonsdale Gardens Maidstone Tunbridge Wells Kent Kent ME16 8JH TN1 1NX

61 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 62

Board of Trustees

LORD KING OF LOTHBURY KG GBE DL

BLAIR GULLAND

Blair has been a practising solicitor for over 45 years and is a Trustee of many other charities including Benenden Almshouse Charities and the Michael Yoakley Charity.

PRESIDENT

STEVE ROWBOTHAM

CHAIRMAN

Steve has a comprehensive background in the defence industry having worked in this sector throughout a career spanning over four decades, now as Non-Executive Director of General Dynamics UK Limited having previously been their Chief Operating Officer.

BRIGADIER DAVID INNES

David is now retired having spent 34 years serving in the British Army as a Royal Engineer and 15 years as a Chief Executive in the charity sector.

SARAH MASON

Sarah is a member of the Royal Institution of Chartered Surveyors, working for an awardwinning private house builder, having been an Associate Director in private practice previously, acting as a development consultant to the public and private sectors.

FRANK MARTIN DL

VICE CHAIRMAN

Frank is a former Deputy Lieutenant of Kent and former Chief Executive of Hornby Plc where he committed to building an international brand while maintaining its Kent roots and heritage.

ALISTAIR WATSON

NADRA AHMED OBE DL

Alistair served in the Royal Navy, during which time he was appointed Equerry to HRH the Prince of Wales and then worked in the City for a leading international law firm.

Currently High Sheriff of Kent, Nadra is the Executive Chairman of the National Care Association and was awarded an OBE for her work in social care over 30 years.

BECKY WOOD

CHRIS BLUNDELL

Becky is a Fellow of the Institute of Chartered Accountants and has significant transactions experience in both private and public sectors having spent the last 20 years working in and leading complex transport infrastructure programmes.

Chris is recently retired following a 45-year career in housing and is a Fellow of both the RICS and the Chartered Institute of Housing. He has had four Director level positions in mid-sized and large housing associations in London and the southeast.

DR PAUL EDMONDSON-JONES MBE

Senior Leadership Team

LISA FARMER

LOUISE GIBSON

CHIEF EXECUTIVE

DIRECTOR OF FUNDRAISING AND MARKETING

Lisa was appointed Chief Executive at RBLI in 2022 having joined the organisation as Director of Strategic Development in 2015 with over 20 years of experience in fundraising, marketing and business development.

Louise joined RBLI in March 2023 with over 25 years’ experience in fundraising in charities, most recently with the RAF Benevolent Fund. She has a Masters in Charity Marketing and Fundraising.

GHALUME OBI

HELEN BIDGWAY

MANAGING DIRECTOR OF SOCIAL ENTERPRISES – OPERATIONS

DIRECTOR OF PEOPLE & CULTURE

A Fellow of the Chartered Institute of Personnel and Development, Helen joined RBLI in 2022 with over 30 years of experience in Human Resources at a senior level in the charity and education sectors.

Obi has held senior positions within the manufacturing sector with companies such as Morrisons, Saint Gobain and UCC Coffee and joined RBLI in February 2023.

JOHN COWMAN

SUSAN STOKER

DIRECTOR OF LIVING & WELFARE

DIRECTOR OF GOVERNANCE, COMPLIANCE AND BUSINESS SYSTEMS

John became a Director at RBLI in 2022 after holding the position of Chief Operating Officer at the Royal Mencap Society where he oversaw and supported a range of activities for people with learning disabilities.

Working at RBLI since 2019, Susan is an expert in assurance processes, specialising in corporate governance, risk management, and internal control with over 25 years’ experience across both the private and public sector.

MIKE DIXON

MICHELLE YORK

DIRECTOR OF FINANCE AND PERFORMANCE

MANAGING DIRECTOR OF SOCIAL ENTERPRISES - COMMERCIAL

Mike joined RBLI in October 2022 having worked for over 30 years in senior leadership positions with blue chip organisations in both the commercial and not for profit sectors. A Chartered Accountant, Mike has also performed non-executive and Charity Trustee roles and is currently a Trustee of Age UK.

Michelle joined RBLI in March 2023 having previously held several senior positions within the manufacturing sector, most recently with Nuneaton Signs, another social enterprise in the manufacturing sector.

Dr Edmondson-Jones was awarded an OBE having spent 23 years as an Army Doctor. He is currently Chief Medical Officer at Staffordshire & Stoke-onTrent Integrated Care Board.

63 I RBLI I ANNUAL ACCOUNTS I 2022/2023

RBLI I ANNUAL ACCOUNTS I 2022/2023 I 64