**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| 1 **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. 3 ## **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. 4 **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. 5 ## **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. 6 ## **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. 7 ## **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 8 ## **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