2022-06-30-accounts

THE FRIEND PUBLICATIONS LIMITED (Registered Charity No 211649) (Company No: 00604838) (A company limited by guarantee)

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

MYRUS SMITH Chartered Accountants

Norman House, 8 Burnell Road, Sutton, Surrey. SM1 4BW

THE FRIEND PUBLICATIONS LIMITED (Registered Charity No 00211649) Company No: 00604838 (A company limited by guarantee)

CONTENTS

	Page
Trustees’ Annual Report	1 - 8
Independent Examiner’s Report	9
Statement of Financial Activities	10
Balance Sheet	11
Notes to the Financial Statements	12 - 22

THE FRIEND PUBLICATIONS LIMITED (Registered Charity No 211649) Company No: 00604838

(A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 30 JUNE 2022

The Council presents its statutory report together with the accounts of The Friend Publications Limited for the year ended 30 June 2022.

Reference and administrative details of the charity, its Council’s members and advisers

Council members on 30 June 2022	Janet Barlow (Trustees and Directors)
	Lis Burch
	Chaundra Crouch
	Peter Kennedy
	Colin Marsh
	Alastair Reid
	Barbara Windle
Secretary	Janet Barlow
Editor and Chief Executive Officer	Joseph Jones
Registered office	Friends House
	173 Euston Road
	London NW1 2BJ
Website address	www.thefriend.org
Company registration number 00604838	(England and Wales)
Charity registration number 211649	(Charity Commission for
	England & Wales)
Independent Examiners	Myrus Smith
	Norman House, 8 Burnell Rd
	Sutton SM1 4BW
Bankers	Co-operative Bank plc
	PO Box 250
	Skelmersdale WN8 6WT
	CAF Bank
	25 Kings Hill Avenue
	Kings Hill, West Malling
	Kent ME19 4JQ
Solicitors	Bindmans LLP
	236 Gray's Inn Road
	London WC1X 8HB
Investment Managers	Rathbone Greenbank
	10 Queen Square,
	Bristol BS1 4NT

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THE FRIEND PUBLICATIONS LIMITED (Registered Charity No 211649) Company No: 00604838

(A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 30 JUNE 2022 / cont

.

Report of the Council

The Council presents its statutory report together with the accounts of The Friend Publications Limited for the year ended 30 June 2022.

The report, which represents a directors’ report for compliance with company legislation, has been prepared in accordance with the Companies Act 2006.

The financial statements have been prepared in accordance with the accounting policies set out on pages 12 & 13 of the attached accounts and comply with the memorandum and articles of association of The Friend Publications Limited and applicable laws.

Structure, governance and management

Constitution

The Friend Publications Limited is a registered charity constituted as a company limited by guarantee in accordance with the memorandum and articles of association dated 20 May 1958 and updated on 4 March 2019, 5 March 2020 and 3 February 2023.

The Council

The Council is the meeting of trustees and directors. Members of Council constitute directors of the company for the purposes of the Companies Act 2006 and trustees of the charity for the purposes of charity law. All Council members are appointed for a three-year term of office and the retirement and appointment of members is staggered over three years. Council members are appointed by the Council on the advice of its Nominations Committee. On appointment new members are provided with induction information consisting of a copy of the governing documents, the minutes of recent Council meetings, information on current Council members and staff, the latest Report and financial statements of the company and publications of the Charity Commission for England and Wales relating to the role and responsibilities of trustees. New members are encouraged to meet staff and familiarise themselves with the work carried out on their behalf.

The following Council members served throughout the year except where otherwise indicated.

Janet Barlow Lis Burch Chaundra Couch Ingrid Greenhow released 28 April 2022 Maria Huff released 9 December 2021 Peter Kennedy Colin Marsh Sanjive Mahandra retired 16 June 2022 Alastair Reid Barbara Windle

In accordance with the charitable company's Articles of Association, one third of the Council members retire each year by rotation and are eligible for re-election for a further period of up to three years. Chaundra Crouch was released at her request on 8 December 2022 after 5 years of service: Colin Marsh resigned on 26 January 2023. Barbara Windle was due to retire having served 5 and 4 years respectively but has agreed to serve a second term of 3 years until the AGM in December 2023. It is hoped that at least one new trustee will be appointed before the AGM in December 2023 to bring the Council to minimum of 6 members,

The purpose of the charitable company is a dvancing the religious teaching of the Religious Society of Friends (Quakers): (1) through the production and publishing of independent Quaker

2

THE FRIEND PUBLICATIONS LIMITED (Registered Charity No 211649) Company No: 00604838 (A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 30 JUNE 2022 / cont

publications in formats both printed and digital, that cover the life, work and witness of Quakers, and benefits the said Society although not official publications of the said Society, and (2) by providing accessible and affordable publications and information to the Quaker community including those on low incomes.

From time to time the company is in receipt of discretionary grants from the centrally managed funds of Britain Yearly Meeting (BYM) and, when received, these are disclosed in the financial statements. Some members of Council serve both the company and BYM in a personal capacity and not as representatives.

Liability of the Members

The liability of the members is limited by guarantee. In the event of the charitable company being wound up during the period of membership or within the year following, members are required to contribute an amount not exceeding £10.

Organisation

The Council has ultimate responsibility and control of The Friend Publications Limited. Committees and Groups are set up to give guidance to the Council in its policy and general decision making. Day-to-day management is the responsibility of the Editor of The Friend with financial oversight exercised by the Treasurer.

Statement of the responsibility of Council members

The Council members (who are also directors of The Friend Publications Limited for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP 2019 (FRS 102);

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• ● prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

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

In so far as the trustees are aware:

• there is no relevant audit information of which the charitable company’s auditor is unaware and

• ● the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

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THE FRIEND PUBLICATIONS LIMITED (Registered Charity No 211649) Company No: 00604838

(A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 30 JUNE 2022 / cont

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

Risk management

The Council critically reviews at least annually the major risks to which the charitable company is exposed and continues to develop systems to better mitigate the exposure to these risks. In assessing risks and prioritising mitigation, attention has been paid to the likelihood of occurrence, the potential impact of such an occurrence and the controllability of the risk. Two new major risks have been identified this year – the impact of the decline in those that identify as Quaker and the threats from future pandemics to sustaining our output and the welfare of our staff.

Public Benefit and Objectives

TFPL puts its charitable purposes into effect in several ways.

First it seeks to ensure that accurate news and information about Quakerism in Britain today is readily and regularly available to the membership of Quakers in Britain and all those associated with them though not in membership, as well as members of other faith communities in Britain.

Secondly it is an important stimulus to developing Quaker thought on matters of concern to Quakers, through printing articles and letters on topics of current concern or religious controversy; these address current thinking and action on Quaker social testimonies of peace, social justice, equality in all its forms. This year’s Friend and Friends Quarterly have included thoughtful exploration of Quakerism in relation to racial and gender diversity and inclusion; these are key themes for Quakers nationally in the year ahead. They equally explore matters of theology, faith and spiritual growth, often sharing examples of the personal religious experience which is at the heart of the Quaker way. It is important to stress that the Society of Friends is not a ‘top-down’ doctrinally based community, so the ‘religious teaching’ referred to in the MOA is not fixed and credal but is a way of living, worked out in action. This makes the sharing of experience, as in The Friend and its organ the Friends Quarterly, a crucial means of growth for the Society as a whole. Reaching a Quaker position on the topic of assisted dying, for instance, is a matter requiring discernment at all levels of the Society from local meetings to our national representative body. The wide-ranging contributions in our publications add a not inconsiderable layer to this developing thinking. The question of how to put into action the Quaker testimony to sustainability has also been addressed.

Thirdly the magazine is a significant conduit for information beyond the immediate community of Quakers in Britain. Quakers across Europe are few in number and widely separated geographically. The Friend uses material by and about European Friends and others further afield, helping to integrate the larger and very scattered Quaker community.

The Friend takes the Charity Commission guidance on public benefit and fee charging into account in all its work. Schemes are in place, and are regularly updated, to make The Friend more widely available via reduced prices for younger Friends and to ensure the provision of free copies in some local meetings. There are also options for access via the web.

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THE FRIEND PUBLICATIONS LIMITED (Registered Charity No 211649) Company No: 00604838

(A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 30 JUNE 2022 / cont

Working for The Friend Publications Limited

The company is dependent on all the people who help to ensure that The Friend and The Friends Quarterly maintain their high standard and are published regularly. This is principally the staff employed, or contracted, by the company but also those who give their time voluntarily. Trustees are immensely thankful to staff who have worked in very difficult circumstances this year, mainly working from home, to produce their usual high-quality outputs.

Staff:

Staff:
CEO & Editor of The Friend	Joseph Jones
Production and Office Manager	Elinor Smallman
Sub-Editor	George Osgerby
Journalist	Rebecca Hardy
Advertisement Manager	George Penaluna to 31
	January 2022
Relationships Manager	Sarah Chapman from 1
	December 2021
Administrative Assistant	Imogen Sewell Ridley to 31 October
	2021
Subscriptions Officer	Imogen Sewell Ridley from 1 November
	2021
Finance Officer	Elaine Bright
Publishing assistant (freelance)	Gabrielle Scott
Friends Quarterly Editors	Gill Sewell, Olivia Sewell Risley
Volunteers:
Arts Correspondent	Rowena Loverance
Environment Correspondent	Laurie Michaelis

Performance and Achievements

Trustees are conscious of the stewardship they exercise for a tradition of independent Quaker journalism stretching back to 1843 and represented by The Friend and The Friends Quarterly. TFPL strives to be accessible to as many Friends as possible and to provide content that is relevant, radical and inspirational.

During the year the Friend and Friends Quarterly have continued to encourage and build an active sense of community and deepen our sense of being a religious group, with articles and reviews of religious weight with the potential to deepen the spirit.

The relationship with Britain Yearly Meeting is positive and productive, enabling TFPL to report impartially on major gatherings and activities, how we work as an organisation and how we interact with Christian, other faith groups and the secular world. Our articles on Friends’ witness helped connect active Friends and broaden relationships outside Quaker circles. Extensive coverage of COP26 included Quaker involvement and a wide range of other perspectives.

The collaboration between Friends Quarterly and Woodbrooke, the Quaker College, in quarterly online events is beginning to reach people who are not currently subscribers. The income is being used to fund younger contributors. Increasing the diversity of authors and the relevance of themes is a key focus.

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THE FRIEND PUBLICATIONS LIMITED (Registered Charity No 211649) Company No: 00604838

(A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 30 JUNE 2022 / cont

The second year of the pandemic has been challenging but staff have weathered the difficulties of the past two years with professionalism and dedication. Whilst the pattern of working has changed, staff were relishing the return of in-person teamwork at the end of the reporting year. Inevitably deadlines have been missed, especially the completion of the new website, podcast and subscription system and the adoption of revised HR policies.

In January 2022, George Penaluna, a cornerstone of the organisation for many years, retired. His contribution and institutional memory will be greatly missed. His replacement brings different skills and experience, reviewing our approach to advertising and production services and collecting follow up data to demonstrate the efficacy of advertising in the Friend.

Paper costs rose during the year by 25% and other costs have risen in line with or higher than inflation. Subscription levels have fluctuated during the year and may fall as the impact of increased fuel costs affect our readership in 2022/23. Against a background of declining membership of the Religious Society of Friends, higher operating costs in year ahead will be particularly challenging.

Trustees held four Council meetings during the year by Zoom and received regular reports from the editors of both periodicals on operational priorities and from the Finance and Personnel and Nominations Committees. An online strategy and training weekend in October 2021 received the operational plan.

Progress to a smaller trustee body has happened more quickly than expected; several trustees have chosen to ask for release before the end of their full six years’ service. It is hoped that at least one new trustee will be appointed before the AGM in December 2023 to bring the Council to minimum of 6 members.

An annual programme of trustee induction and training will support new and existing trustees.

Legacies, Grants and Donations

We were grateful to receive grants from the Sir James Reckitt Charity, the George Cadbury Fund, the CH and HH Taylor Trust, the Westwood Trust, the Mollie Croysdale Charitable Trust, Norfolk and Waveney Area Meeting, William A Cadbury Charitable Trust, the Headley Pitt Trust, totalling £22,100. We are also grateful for the legacy of £9,802 left to The Friend from the Estate of Anne Watson Adams. We acknowledge with thanks the welcome annual grant of £17,493 received from Britain Yearly Meeting (BYM), always a most helpful part of our income. This year after a special appeal due to additional costs arising from COVID restrictions, we received generous donations of £11,534 from Meetings and interested individuals. We are most grateful for the continued generosity of all our individual and charitable supporters.

Financial Review

The combined income from sales of The Friend and The Friends Quarterly increased slightly compared to the past financial year. While printed subscriptions were up, there was also a decrease in the online Friend and Digital Archive subscriptions, perhaps indicating the changing demographics and requirements of our readership during this period of lockdowns (Note 3). Advertising revenue was initially slow but increased, particularly in the last quarter, due to more events to advertise after COVID restrictions reduced.

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THE FRIEND PUBLICATIONS LIMITED (Registered Charity No 211649) Company No: 00604838

(A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 30 JUNE 2022 / cont

Investment income has increased since last year, from £5,004 in the previous financial year to £5,537 in 2021-22. The current interest environment will mean that returns from investments are likely to decrease in the future and will not achieve the high levels achieved in the past. Management investment fees were £3,108 over the year (Notes 4 & 5). Rathbone Greenbank, our investment managers, follows the policy drawn up by BYM, so that we are confident our investments are managed ethically.

On the expenditure side, staff costs were similar to last year. Although there were sickness absences and we incurred additional costs necessary to cover the gaps, changes in staffing arrangements enabled us to maintain a steady expenditure pattern by the year end. Members of staff were awarded a modest increase in salary following the rise in CPI-H. (Note 11).

Higher production and editorial costs, particularly for paper and postage, were incurred in order to maintain the regularity of our publications. Advertising and marketing costs were slightly higher reflecting the increase in advertising demand. Subscription and promotion costs were lower due to changes in personnel. Other costs were relatively in line with inflation. (Notes 7 & 8).

Long term sickness absences have again delayed the implementation of the new subscription system although a small amount of work has been carried out. This has meant that we have underspent in this area by £5,000 compared to our budget. When complete, this work should result in greater efficiency and transparency for staff and subscribers and allow more flexible use of staff resources. Trustees recognise that upgrading of computer and website facilities are going to be a continuing financial requirement if The Friend and Friends Quarterly are to remain ‘fit for purpose’ from the point of view of keeping abreast with appropriate technology and changing ways of accessing information and articles. The subscription system will also ensure we can benefit from a more detailed analysis and targeting of our subscriber base. This is a priority for The Friend. We expect the subscription system to be up and running and paid by the end of 2023.

No trustee expenses were incurred this year again due to our use of electronic rather than face to face meetings (Note 9). Nevertheless budgetary provision will be made in future to cover face to face meetings when they restart in subsequent years. Trustees now come from all three countries (England, Wales and Scotland), and this spread of trusteeship is deemed desirable (Note 11).

The financial results in 2021-22 are satisfactory, in that the surplus of £21,377 on a budget of £420,000 allows us to have more confidence in our future. We had planned for a deficit for £25,000 but this surplus arose from a necessary delay in implementing the subscription system and the additional grants and donations we received after a special appeal. We congratulate the staff on maintaining the regular production of the magazines despite the intense pressures of the COVID restrictions and a long-term sickness absence. Our publications continue to be essential to maintain morale and reduce isolation amongst the Quaker community. The staff are also to be congratulated in keeping costs down, whilst producing magazines which continue to generate good sales. Unfortunately, when the losses on our investments are taken into account, these have reversed much of the gain in investments made in 2020-21, and so our net assets have declined by £25,000 this year. Nevertheless thanks go to everyone who has contributed to maintaining the steadiness of our core business.

Reserves Policy

The Council has adopted the policy of ensuring that there are sufficient reserves in the event of the company ceasing to trade. The charitable company does not have a share capital and general reserves are required to provide working capital, financial development, capital expenditure and income to meet production costs as well as to provide a contingency fund for unforeseen events.

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THE FRIEND PUBLICATIONS LIMITED (Registered Charity No 211649) Company No: 00604838

(A company limited by guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 30 JUNE 2022 / cont

It is necessary to have sufficient reserves to safeguard deferred income (prepaid subscriptions), pension, tax and social security costs and potential redundancy costs in case of cessation (up to 6 months staff costs); these are estimated to total £180,000. As the accounts indicate, unrestricted reserves at 30 June 2022 now stand at £337,143. The Trustees assess that the charity’s assets would cover its liabilities in the event of a winding up and are aware of their continuing responsibility to keep the reserves under review.

Investments Policy

The Council’s investment policy has the primary object of achieving sufficient capital growth to ensure that reserves can be maintained at the required level. Where possible, investments are also used to generate income to supplement that from trading sources. Rathbone Greenbank has been appointed to manage our investments with the overall investment policy being to follow the ethical guidelines issued by the Religious Society of Friends. Oversight and review of our investments and investment policy is delegated to the Finance Committee which reports to the Council regularly. Rathbone Greenbank provides quarterly returns of their performance. Our investment policy is reviewed annually.

Assets

Acquisitions and disposals of fixed assets during the year are recorded in the notes to the financial statements.

Independent Examiners

The Council has taken advantage of the provision in the 2006 Companies Act that accounts with a turnover of less than £1,000,000 do not need to be subjected to a full audit. Myrus Smith were appointed independent examiners for the year ended 30 June 2022 and reappointed for the current year.

Signed on behalf of the Council:

Lis Burch (Clerk)

Alastair Reid (Treasurer)

Approved by the Council on 14 April 2023

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INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF

THE FRIEND PUBLICATIONS LIMITED (A company limited by guarantee)

I report to the charity trustees on my examination of the accounts of the company for the year ended 30 June 2022 which are set out on pages 10 to 22.

Responsibilities and basis of report

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

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

Independent examiner's statement

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

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

1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or

2. the accounts do not accord with those records; or

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

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

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

K.C. Fisher FCA C/o Myrus Smith Chartered Accountants

Norman House 8 Burnell Road Sutton, Surrey SM1 4BW

14 April 2023

9

THE FRIEND PUBLICATIONS LIMITED (A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (Incorporating Income and Expenditure Account)

FOR THE YEAR ENDED 30 JUNE 2022

		Unrestricted	Restricted	Total	Total
	Notes	Funds	Funds	2022	2021
		£	£	£	£
Income from:
Donations and legacies	2	60,929	-	60,929	36,659
Charitable activities	3	346,419	-	346,419	330,181
Investments	4	5,537	-	5,537	5,004
		──────	──────	──────	──────
Total		412,885	-	412,885	371,844
		──────	──────	──────	──────
Expenditure on:
Raising funds	5	3,108	-	3,108	2,773
Charitable activities	6	387,451	949	388,400	387,271
		──────	──────	──────	──────
Total		390,559	949	391,508	390,044
		──────	──────	──────	──────
Net income/(expenditure) before
investment gains		22,326	(949)	21,377	(18,200)
(Loss)/gains on investments	14	(47,203)	-	(47,203)	52,585
		──────	──────	──────	──────
Net income/(expenditure)	10	(24,877)	(949)	(25,826)	34,385
Transfers between funds		-	-	-	-
		──────	──────	──────	──────
Net movement in funds		(24,877)	(949)	(25,826)	34,385
Reconciliation of funds:
Total funds brought forward		362,020	5,768	367,788	333,403
		──────	────	──────	──────
Total funds carried forward		£337,143	£4,819	£341,962	£367,788
		══════	════	══════	══════

All income and expenditure derive from continuing activities.

The Statement of Financial Activities includes all recognised gains and losses

The notes form part of the financial statements.

10

THE FRIEND PUBLICATIONS LIMITED

(A company limited by guarantee)

BALANCE SHEET

AS AT 30 JUNE 2022

			2022		2021
FIXED ASSETS	Notes	£	£	£	£
Tangible assets	13		-		-
Investments	14		302,299		353,387
			──────		──────
			302,299		353,387
CURRENT ASSETS
Debtors	15	44,773		24,548
Cash at bank and in hand	16	158,403		171,550
		──────		──────
		203,176		196,098
CREDITORS:Amounts falling due
within one year	17	145,747		157,697
		──────		──────
NET CURRENT ASSETS			57,429		38,401
			──────		──────
TOTAL ASSETS LESS CURRENT			£359,728		£391,788
LIABILITIES
CREDITORS:Amounts falling due	18
after more than one year			17,766		24,000
			──────		──────
NET ASSETS	20		£341,962		£367,788
			══════		══════
REPRESENTED BY:
Unrestricted funds	19		337,143		362,020
Restricted funds	19		4,819		5,768
			──────		──────
			£341,962		£367,788
			══════		══════

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2022 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

• (a) ensuring that the company keeps accounting records which comply with Section 386 and 387 of the Companies Act 2006 and

• (b) preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit for loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act.

The financial statements were approved and authorised for issue by the Council on 14 April 2023 and signed on its behalf by:

Lis Burch (Clerk)

Alistair Reid (Treasurer)

The notes form part of the financial statements.

11

THE FRIEND PUBLICATIONS LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

1. ACCOUNTING POLICIES

1.1 General information and basis of accounting

The Friend Publications Limited is registered charity (no. 211649) and a private company (no. 00604838) limited by guarantee, registered in England and Wales. Each member is liable to contribute an amount not exceeding £10 in the event of the charitable company being wound up. The registered office is given in the reference and administrative details on page 1.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis and under the historical cost convention. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

1.2 Income recognition

Items of income are recognised in the financial statements when all of the following criteria are met:

• The charity has entitlement to the funds;

• any performance conditions have been met or are fully within the control of the charity;

• there is sufficient certainty that receipt of the income is considered probable; and

• the amount can be measured reliably.

Legacies are included in the Statement of Financial Activities when the charity is advised by the personal representative of the estate that payment will be made or property transferred and the amount involved can be quantified with reasonable accuracy.

The company received government support through the Coronavirus Job Retention Scheme which is accounted for on the accruals basis.

1.3 Expenditure recognition

Expenditure is recognised once there is a legal or constructive obligation to make payment to a third party, it is probable that settlement will be required and the amount can be measured reliably.

Expenditure includes those costs of a direct nature which can be allocated to a specific activity. It also includes indirect costs, including governance costs that do not relate to a specific activity but are necessary to support those activities. Support costs are apportioned to each activity on the basis of staff time.

1.4 Tangible fixed assets

All assets costing more than £1,000 and with an expected useful life exceeding one year are capitalised.

Depreciation is charged at 33.3% on a straight line basis on the value of the furniture and office equipment in order to write the assets off over their useful economic lives.

12

THE FRIEND PUBLICATIONS LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022 contd

1. ACCOUNTING POLICIES/contd…

1.5 Investments

Listed investments in are initially recognised at transaction price and subsequent measured at fair value at the end of each financial reporting period. Fair value is based on the quoted market value on a recognised stock exchange. Gains and losses on revaluation and / or disposal of listed investments are recognised in the Statement of Financial Activities in the year in which they arise.

1.6 Fund accounting

Unrestricted general funds are freely available for use in furtherance of the objects of the charity and which have not been designated for particular purposes.

Designated funds are unrestricted funds set aside by the trustees for particular purposes.

Restricted funds are those funds which can only be used in accordance with the wishes of the donor or which have been raised for a specific purpose.

1.7 Pensions

The charity operates a defined contribution pension scheme. Contributions payable under the scheme are charged to the Statement of Financial Activities in the year to which they relate.

1.8 Leased assets

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the Statement of Financial Activities on a straight line basis over the lease term.

1.9 Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

2. DONATIONS AND LEGACIES

ONATIONS AND LEGACIES
	Unrestricted	Restricted	Total	Total
	Funds	Funds	2022	2021
	£	£	£
Donations	11,534	-	11,534	4,602
Legacies	9,802	-	9,802
Grant from Religious Society of Friends,
Britain Yearly Meeting	17,493	-	17,493	17,842
Grants from trusts	22,100	-	22,100	10,250
Government Job Retention Scheme	-	-	-	3,965
	─────	──	─────	─────
	£60,929	£Nil	£60,929	£36,659
	═════	══	═════	═════

Of the £36,659 recognised in 2021, £36,659 related to unrestricted funds and £Nil related to restricted funds.

13

THE FRIEND PUBLICATIONS LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022 contd

3. INCOME FROM CHARITABLE ACTIVTIES

OME FROM CHARITABLE ACTIVTIES
	Unrestricted	Restricted	Total	Total
	Funds	Funds	2022	2021
	£	£	£	£
Publishing – The Friend and Friends
Quarterly	220,086	-	220,086	215,190
Advertising and book sales	110,517	-	110,517	98,732
Online Friend and Digital Archive	15,816	-	15,816	16,259
	──────	────	──────	──────
	£346,419	£Nil	£346,419	£330,181
	══════	════	══════	══════
ll of the £330,181 recognised in 2021 related to unrestricted		funds.
ESTMENT INCOME
	Unrestricted	Restricted	Total	Total
	Funds	Funds	2022	2021
Dividends and interest from listed
investments	£5,537	£Nil	£5,537	£5,004
	══════	════	══════	══════

All of the £330,181 recognised in 2021 related to unrestricted funds.

4. INVESTMENT INCOME

All of the £5,004 recognised in 2021 related to unrestricted funds.

5. COST OF RAISING FUNDS

5.	COST OF RAISING FUNDS
			Support	Total	Total
		Direct costs	costs	2022	2021
	Investment management fees	£3,108	-	£3,108	£2,773
		════	══	════	════
6.	COST OF CHARITABLE ACTIVITIES
			Support
		Direct costs	costs	Total	Total
		(note 7)	(note 8)	2022	2021
	Production of printed and online
	educational publications	£322,852	£65,548	£388,400	£387,271
		══════	═════	══════	══════

Of the £387,271 expenditure recognised in 2021, £386,371 was charged to unrestricted funds and £900 was charged to restricted funds.

14

THE FRIEND PUBLICATIONS LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022 contd

7.	ANALYSIS OF DIRECT COSTS
		Total	Total
		2022	2021
		£	£
	Publication costs	117,357	116,182
	Editorial costs	145,923	139,264
	Printing and advertising costs	59,572	58,060
		──────	──────
		£322,852	£313,506
		══════	══════
8.	ANALYSIS OF SUPPORT COSTS
		Total	Total
		2022	2021
		£	£
	Website maintenance	4,077	5,465
	Office costs	13,847	13,738
	Premises costs	15,000	15,000
	Marketing	6,349	3,863
	Subscription and promotion costs	24,229	34,199
	Finance cost	546	-
	Governance costs (note 9)	1,500	1,500
		─────	─────
		£65,548	£73,765
		═════	═════
9.	GOVERNANCE COSTS
		Total	Total
		2022	2021
		£	£
	Examination fees	1,500	1,500
	Council and trustee meetings	-	-
		────	────
		£1,500	£1,500
		════	════
10.	NET INCOME / (EXPENDITURE)	2022	2021
		£	£
	This is stated after charging:
	Depreciation	-	£900
	Independent examiners’ remuneration	£1,500	£1,500
	Operating lease rentals	£15,000	£15,000
	Pension costs (defined contribution scheme)	£13,383	£14,045
		═════	═════

15

THE FRIEND PUBLICATIONS LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022 contd

11. STAFF COSTS

STAFF COSTS	2022	2021
	£	£
Wages and salaries	172,258	171,609
Social security costs	12,078	12,772
Employer pension costs	13,383	14,045
Other related employment costs	1,529	556
Freelance fees	9,115	9,709
	──────	──────
	208,363	208,691
Pension deficit contributions	-	-
	──────	──────
	£208,363	£208,691
	══════	══════
Staff costs analysed by function:
Production and editorial	133,504	128,535
Advertising	54,203	50,633
Subscriptions	20,029	28,876
Friends Quarterly	627	647
	──────	──────
	£208,363	£208,691
	══════	══════

No employee received total employee benefits (excluding employer pension costs) of more than £60,000 per annum during the year (2021 – none).

The average number of full and part-time staff, analysed by function	2022	2021
was:	No.	No.
Production and editorial	3.8	4.0
Advertising	1.0	1.0
Subscriptions	1.0	1.0
Management and administration	0.2	-
	──	──
	6.0	6.0
	══	══
The average number of full-time equivalent staff, analysed by
function was:
Production and editorial	3.0	1.4
Advertising	1.0	1.0
Subscriptions	1.0	0.8
Management and administration	0.2	-
	──	──
	5.2	3.2
	══	══

No member of the Council received any remuneration in respect of their services as a member of the Council during the year.

Travel and subsistence expenses were reimbursed to, or paid directly on behalf of Nil (2021 : Nil) members of the Council amounting to £Nil (2021 : £Nil).

Total employee benefits received by key management amounted to £60,952 (2021 : £58,925). Under FRS 102, employee benefits include gross salary, employer’s national insurance and employer’s pension contribution.

16

THE FRIEND PUBLICATIONS LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022 contd

12. TAXATION

The Friend Publications Limited is a registered charity and therefore is not liable to Income Tax or Corporation Tax on income or gains derived from its charitable activities, as it falls within the various exemptions available to registered charities.

13.	TANGIBLE FIXED ASSETS	2022	2021
	Furniture and office equipment	£	£
	Cost
	At 1 July	27,682	27,682
	Additions	-	-
		─────	─────
	At 30 June	27,682	27,682
		─────	─────
	Depreciation
	At 1 July	27,682	26,782
	Charge for the year	-	900
		─────	─────
	At 30 June	27,682	27,682
		─────	─────
	Net Book Value
	30 June	£Nil	£Nil
		═══	══

All tangible fixed assets are held by the charity for use in meeting its charitable objects.

14.

INVESTMENTS 2022 2021 £ £ Listed investments: Fair value at 1 July 353,387 286,442 Acquisitions at cost 40,178 52,251 Disposals at opening market value (42,618) (33,986) Unrealised (losses) / gains on revaluation (48,648) 48,680 ────── ────── Fair value at 30 June £302,299 £353,387 ══════ ══════ Historic cost at 30 June £257,381 £252,574 ══════ ══════ 2022 2021 £ £ Analysis of investment gains: Unrealised (losses) / gains on revaluation (48,648) 48,680 Realised gains / (losses) on disposal 1,445 3,905 ────── ────── £(47,203) £52,585 ══════ ══════

All of the £52,585 gains recognised in 2021 related to unrestricted funds.

17

THE FRIEND PUBLICATIONS LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022 contd

14. INVESTMENTS/contd

14. INVESTMENTS/contd
		% of
	£	portfolio
		market
At 30 June 2022 the portfolio comprised the following investments:		value
Ishares II Plc UK Gilts UCITS ETF	3,210	1.06%
Treasury 7/8% Green Gilt 31/07/2033	1,304	0.43%
Treasury 1/8% I/L Stock 22/03/2024	11,965	3.96%
Aberdeen Standard Fund Managers Gbl Index Lkd Bond S Instl Inc	6,104	2.02%
Kreditanst Fur Wie 0.875% Gtd Snr 15/09/2026	8,472	2.80%
Places for People 4.25% Bonds 15/12/2023	1,994	0.66%
Liontrust Investments LTD - Corporate Bond 2	8,104	2.68%
Rathbone Unit Trust Mgmt Ethical Bond S Inc (GBP)	8,047	2.66%
Royal London Unit Trust MGRS Ethical Bond Z Inc	8,516	2.82%
Lombard Odier Funds	4,116	1.36%
Keller Group PLC	1,810	0.60%
Marshalls Group PLC	3,494	1.16%
Coats Group PLC 5p Ordinary	2,804	0.93%
Genuit Group PLC/(prvious name Polypipe Group) PLC 0.1p
Ordinary	3,060	1.01%
Smith (DS) PLC	4,966	1.64%
Halma PLC	5,625	1.86%
Spirax-Sarco Engineering	7,606	2.52%
Experian PLC USD 0.10 Ordinary	2,887	0.96%
Intertek Group PLC 1p Ordinary	4,038	1.34%
Bellway PLC	2,575	0.85%
Smith & Nephew PLC	4,934	1.63%
Dechra Pharmaceuticals PLC	7,262	2.40%
Hikma Pharmaceuticals PLC	1,941	0.64%
Marks & Spencer Group PLC	759	0.25%
Relx PLC	4,229	1.40%
Vodafone Group PLC	1,773	0.59%
SSE PLC 50p Ordinary	4,848	1.60%
National Grid PLC	3,682	1.22%
Legal & General Group PLC	2,275	0.75%
Prudential PLC	3,404	1.13%
Civitas Social Housing PLC	1,566	0.52%
Home REIT PLC	5,487	1.82%
LondonMetric Property Ltd	3,426	1.13%
Impax Asset MGMT Group 1p Ordinary	2,545	0.84%
FDM Group Holdings PLC 1p Ordinary	3,396	1.12%
Kainos Group Ltd	1,774	0.59%
Brown Advisory Funds US Sustainable Growth C Inc	34,509	11.42%
LEGG MASON GLOBAL FUNDS	12,429	4.11%
ASML Holdings NV	2,747	0.91%
ASSA ABLOY	3,492	1.16%
Liontrust Investments LTD SF European Growth 2	6,306	2.09%
Stewart Investors Asia Sustainability B Acc	6,061	2.00%

18

THE FRIEND PUBLICATIONS LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022 contd

14. INVESTMENTS/contd Baillie Gifford & Co BMO INV Funds (LUX) Responsible Gbl EM R Acc BMO INV FUNDS (UK) Responsible Gbl Equit 2 Acc Fund Partners LTD IM WHEB Sustainability B Acc Impax Environmental Markets PLC Janus Henderson Investments Gbl Sustainable Equity I Inc Schroder Investmnet MGMT Global energy Aquila European Renewables Digital 9 Infrastructure PLC Foresight Sustainable Forestry Greencoat UK Wind PLC Harmony Energy Income TST PLC Octopus Renewables Infrastructure Trust PLC Renewables Infrastructure Mayfair Capital Invest Mgmt Property Inc Trust for Charity 15. DEBTORS Publications debtors Prepayments VAT recoverable Cash held by investment manager Other debtors 16. CASH AT BANK AND IN HAND Current accounts Deposit accounts Cash Paypal

£ % of portfolio market value 5,320 1.76% 5,548 1.84% 11,301 3.74% 10,576 3.50% 6,000 1.98% 11,704 3.87% 4,285 1.42% 1,922 0.64% 3,650 1.21% 3,210 1.06% 3,140 1.04% 3,136 1.04% 5,076 1.68% 3,851 1.27% 4,038 1.34% 302,299 100.00% 2022 2021 £ £ 28,178 10,011 2,347 775 3,046 3,459 11,202 10,303 - - ────── ────── £44,773 £24,548 ══════ ══════ 2022 2021 £ £ 87,923 102,168 66,299 66,177 749 749 3,432 2,456 ────── ────── £158,403 £171,550 ══════ ══════

19

THE FRIEND PUBLICATIONS LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022 contd

17.	CREDITORS-AMOUNTS FALLING DUE WITHIN ONE YEAR	CREDITORS-AMOUNTS FALLING DUE WITHIN ONE YEAR	2022	2021
			£	£
	Trade creditors		17,930	24,226
	Social security costs and taxation		2,817	2,381
	Deferred income	- Subscriptions	99,374	113,378
		- BYM Grant	8,000	9,493
	Accruals		10,500	1,500
	Credit card		736	719
	Bounce back loan		6,390	6,000
			──────	──────
			£145,747	£157,697
			══════	══════
18.	CREDITORS - AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR		2022	2021
			£	£
	Bounce back loan		17,766	24,000
			─────	─────
			£17,766	£24,000
			═════	═════
			2022	2021
			£	£
	Amounts falling due within:
	1 – 2 years		6,390	6,000
	2 – 5 years		11,376	18,000
	More than 5 years		-	-
			──────	──────
			£17,766	£24,000
			══════	══════

We took advantage of the Government Bounce Back Loan facility to borrow £30,000 which is payable over 5 years or earlier at 2% per annum.

20

THE FRIEND PUBLICATIONS LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022 contd

19.	MOVEMENT IN FUNDS	Balance				Balance
		Brought	Income			Carried
2022		forward	(incl. loss)	Expenditure	Transfers	forward
		£	£	£	£	£
	Unrestricted Funds
	General funds	362,020	365,682	390,559	-	337,143
		──────	──────	──────	──────	──────
	Restricted Funds
	Website development	2,150	-	-	-	2,150
	Subscription system	1,000	-	-	-	1,000
	Yearly Meeting
	- Warwick University	1,307	-	-	-	1,307
	Office equipment	1,311	-	949	-	362
		──────	──────	──────	──────	──────
		5,768	-	949	-	4,819
		──────	──────	──────	──	──────
	Total Funds	£367,788	£365,682	£391,508	£Nil	£341,962
		══════	══════	══════	══	══════

Comparative information for the net movement in funds in the previous year is as follows:

2021		Balance				Balance
		Brought	Income			Carried
		forward	(incl. gains)	Expenditure	Transfers	forward
		£	£	£	£	£
	Unrestricted Funds
	General funds	326,735	424,429	389,144	-	362,020
		──────	──────	──────	──────	──────
	Restricted Funds
	Website development	2,150	-	-	-	2,150
	Subscription system	1,000	-	-	-	1,000
	Yearly Meeting
	- Warwick University	1,307	-	-	-	1,307
	Office equipment	2,211	-	900	-	1,311
		──────	──────	──────	──────	──────
		6,668	-	900	-	5,768
		──────	──────	──────	──	──────
	Total Funds	£333,403	£424,429	£390,044	£Nil	£367,788
		══════	══════	══════	══	══════

Purposes of Funds -Restricted Funds

Website Development

This to enable the improvement of The Friend’s website and associated systems.

Subscription system

This to enable the planning, introduction and maintenance of a new subscription system for The Friend and the Friends Quarterly

Yearly Meeting – Warwick University

This to enable the promotion of The Friend and the Friends Quarterly at the Yearly Meeting in Warwick.

Office Equipment

This to enable the upgrading of IT and computer equipment.

21

THE FRIEND PUBLICATIONS LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022 contd

20.	ANALYSIS OF NET ASSETS BETWEEN FUNDS
		Unrestricted	Restricted	Total
		Funds	Funds
		£	£	£
	Fixed assets	302,299	-	302,299
	Current assets	198,357	4,819	203,176
	Current liabilities	(145,747)	-	(145,747)
	Long term liabilities	(17,766)	-	(17,766)
		──────	────	──────
	As at 30 June 2022	£337,143	£4,819	£341,962
		══════	════	══════

Comparative information for the analysis of net assets between funds in the previous year is as follows:

		Unrestricted	Restricted	Total
		Funds	Funds	Funds
		£	£	£
	Fixed assets	353,387	-	353,387
	Current assets	190,330	5,768	196,098
	Current liabilities	(157,697)	-	(157,697)
	Long term liabilities	(24,000)	-	(24,000)
		──────	──────	──────
	As at 30 June 2021	£362,020	£5,768	£367,788
		══════	══════	══════
21.	OPERATING LEASE COMMITMENTS		2022	2021
	At 30 June 2022 the total minimum payments due under non-
	cancellable operating leases were as follows:
	Within one year		£15,000	£15,000
			═════	═════

22